January 14, 2005
ENGROSSED
HOUSE BILL No. 1021
_____
DIGEST OF HB 1021
(Updated January 12, 2005 4:16 pm - DI 106)
Citations Affected: IC 24-9; noncode.
Synopsis: Lending acts and practices. Specifies that a reference in
Indiana's home loan practices law to rescission rights granted for a
violation of law refers only to a violation of the federal Truth in
Lending Act.
Effective: January 1, 2005 (retroactive).
Burton, Bardon
(SENATE SPONSORS _ BRAY, LANANE, CLARK, ZAKAS)
January 4, 2005, read first time and referred to Committee on Financial Institutions.
January 4, 2005, reported _ Do Pass.
January 6, 2005, read second time, ordered engrossed. Engrossed.
January 10, 2005, read third time, passed. Yeas 97, nays 0.
SENATE ACTION
January 10, 2005, read first time and referred to Committee on Judiciary.
January 13, 2005, reported favorably _ Do Pass.
January 14, 2005
First Regular Session 114th General Assembly (2005)
PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
Constitution) is being amended, the text of the existing provision will appear in this style type,
additions will appear in
this style type, and deletions will appear in
this style type.
Additions: Whenever a new statutory provision is being enacted (or a new constitutional
provision adopted), the text of the new provision will appear in
this style type. Also, the
word
NEW will appear in that style type in the introductory clause of each SECTION that adds
a new provision to the Indiana Code or the Indiana Constitution.
Conflict reconciliation: Text in a statute in
this style type or
this style type reconciles conflicts
between statutes enacted by the 2004 Regular Session of the General Assembly.
ENGROSSED
HOUSE BILL No. 1021
A BILL FOR AN ACT to amend the Indiana Code concerning trade
regulation and consumer credit.
Be it enacted by the General Assembly of the State of Indiana:
SOURCE: IC 24-9-5-4; (05)EH1021.1.1. -->
SECTION 1. IC 24-9-5-4 IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JANUARY 1, 2005 (RETROACTIVE)]: Sec. 4.
(a) A
person who violates this article is liable to a person who is a party to
the home loan transaction that gave rise to the violation for the
following:
(1) Actual damages, including consequential damages. A person
is not required to demonstrate reliance in order to receive actual
damages.
(2) Statutory damages equal to two (2) times the finance charges
agreed to in the home loan agreement.
(3) Costs and reasonable attorney's fees.
(b) A person may be granted injunctive, declaratory, and other
equitable relief as the court determines appropriate in an action to
enforce compliance with this chapter.
(c) The right of rescission granted under 15 U.S.C. 1601 et seq. for
a violation of
law the federal Truth in Lending Act (15 U.S.C. 1601
et seq.) is available to a person acting only in an individual capacity by
way of recoupment as a defense against a party foreclosing on a home
loan at any time during the term of the loan. Any recoupment claim
asserted under this provision is limited to the amount required to
reduce or extinguish the person's liability under the home loan plus
amounts required to recover costs, including reasonable attorney's fees.
This article shall not be construed to limit the recoupment rights
available to a person under any other law.
(d) The remedies provided in this section are cumulative but are not
intended to be the exclusive remedies available to a person. Except as
provided in subsection (e), a person is not required to exhaust any
administrative remedies under this article or under any other applicable
law.
(e) Before bringing an action regarding an alleged deceptive act
under this chapter, a person must:
(1) notify the homeowner protection unit established by
IC 4-6-12-2 of the alleged violation giving rise to the action; and
(2) allow the homeowner protection unit at least ninety (90) days
to institute appropriate administrative and civil action to redress
a violation.
(f) An action under this chapter must be brought within five (5)
years after the date that the person knew, or by the exercise of
reasonable diligence should have known, of the violation of this article.
(g) An award of damages under subsection (a) has priority over a
civil penalty imposed under this article.
SOURCE: ; (05)EH1021.1.2. -->
SECTION 2. [EFFECTIVE JANUARY 1, 2005 (RETROACTIVE)]
The general assembly intends the amendment of IC 24-9-5-4(c)
made by this act to be construed together with P.L.73-2004,
SECTION 33, and to apply as if the language of IC 24-9-5-4(c), as
amended by this act, had been part of P.L.73-2004, SECTION 33.
SOURCE: ; (05)EH1021.1.3. -->
SECTION 3.
An emergency is declared for this act.