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32-31-3-9. "Security deposit" defined

IN Code § 32-31-3-9 (2019) (N/A)
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Sec. 9. (a) As used in this chapter, "security deposit" means a deposit paid by a tenant to the landlord or the landlord's agent to be held for all or a part of the term of the rental agreement to secure performance of any obligation of the tenant under the rental agreement.

(b) The term includes:

(1) a required prepayment of rent other than the first full rental payment period of the lease agreement;

(2) a sum required to be paid as rent in any rental period in excess of the average rent for the term; and

(3) any other amount of money or property returnable to the tenant on condition of return of the rental unit by the tenant in a condition as required by the rental agreement.

(c) The term does not include the following:

(1) An amount paid for an option to purchase under a lease with option to purchase, unless it is shown that the intent was to evade this chapter.

(2) An amount paid as a subscription for or purchase of a membership in a cooperative housing association incorporated under Indiana law.

[Pre-2002 Recodification Citation: 32-7-5-9.]

As added by P.L.2-2002, SEC.16.

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32-31-3-10. "Tenant" defined