Citations Affected: IC 32-7-5.
Synopsis: Residential tenants' security deposits. Provides that a
landlord who fails to comply with statutes relating to the return of a
security deposit is liable to the tenant for two times the amount of the
security deposit. (Under current law, the tenant may recover the amount
of the security deposit due to the tenant after subtracting certain
Effective: July 1, 2000.
January 20, 2000, read first time and referred to Committee on Public Policy.
A BILL FOR AN ACT to amend the Indiana Code concerning
IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2000]: Sec. 12. (a) Upon
termination of a rental agreement, all of the security deposit held by the
landlord shall be returned to the tenant, except for any amount applied
(1) the payment of accrued rent;
(2) the amount of damages that the landlord has or will reasonably suffer by reason of the tenant's noncompliance with law or the rental agreement; and
(3) unpaid utility or sewer charges that the tenant is obligated to pay under the rental agreement;
all as itemized by the landlord in a written notice delivered to the tenant together with the amount due within forty-five (45) days after termination of the rental agreement and delivery of possession. The landlord is not liable under this chapter until supplied by the tenant in writing with a mailing address to which to deliver the notice and amount prescribed by this subsection. Unless otherwise agreed, the
tenant is not entitled to apply a security deposit to rent.
(b) If the landlord fails to comply with subsection (a), the tenant may recover all of the following:
(1) Two (2) times the amount of the security deposit.
(2) Reasonable attorney's fees.
(c) This section does not preclude the landlord or tenant from recovering other damages to which either is entitled.
(d) The owner of the dwelling unit at the time of the termination of the rental agreement is bound by this section.
SECTION 2. IC 32-7-5-16 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2000]: Sec. 16. A landlord who fails to provide a written statement within forty-five (45) days of termination of the tenancy or the return of the appropriate security deposit is liable to the tenant
in an for all of the following:
(1) Two (2) times the amount
equal to the part of the security
deposit. withheld by the landlord, plus
(2) Reasonable attorney's fees and court costs.