Indiana § 24-7-4-13 - Acceptance and application of payments; payments exceeding scheduled amount due
Full text of Indiana Indiana Code § 24-7-4-13 — Acceptance and application of payments; payments exceeding scheduled amount due, with citation guidance and answers to common questions.
§ 24-7-4-13. Acceptance and application of payments; payments exceeding scheduled amount due
Sec. 13. (a) Except as provided in subsection (b), a lessor may not accept payment from a lessee and hold the amount of the payment in a reserve account for future payments. Any amounts paid by a lessee must be applied:
(1) as an initial rental payment;
(2) as a regular rental payment; or
(3) to an accrued additional charge under IC 24-7-5.
(b) If a lessee makes a payment that exceeds the sum of the scheduled regular rental payment and any permitted additional charges that are due, the lessor may hold the excess funds in a reserve account subject to the following conditions:
(1) The balance of the lessee's reserve account may not exceed the amount of the next scheduled regular rental payment.
(2) If the balance in the lessee's reserve account reaches the limit specified in subdivision (1), the lessor shall apply the funds to the lessee's next scheduled regular rental payment.
(c) This section may not be construed to preclude a lessor from accepting and applying:
(1) an initial rental payment; or
(2) multiple regular rental payments;
before the rental payments' scheduled due dates.
As added by P.L.35-2010, SEC.90. Amended by P.L.69-2018, SEC.38.
IC 24-7-5Chapter 5. Additional Charges
24-7-5-1Nonrefundable processing fee 24-7-5-2Security deposit refunds 24-7-5-3Delivery charges 24-7-5-4Rental payment pickup charges 24-7-5-5Late charges or delinquency fees 24-7-5-5.5Returned payment fee 24-7-5-6Reinstatement fee 24-7-5-7Sales and use taxes 24-7-5-8Official fees 24-7-5-10Liability of lessee for replacement cost of leased property; fair market value 24-7-5-11Liability damage waivers; fee; prohibitions and requirements 24-7-5-12Fee for accepting rental payments by telephone
Source: official Indiana text · Last verified 2026-08-27
Frequently Asked Questions About Indiana § 24-7-4-13
What does Indiana Code § 24-7-4-13 cover?
Section 24-7-4-13 ("Acceptance and application of payments; payments exceeding scheduled amount due") is part of the Indiana Code, the codified statutory law of Indiana. It sets out the legal rule or procedure described in the text above. Statutes are amended regularly, so always verify against the official source.
How do I cite Indiana § 24-7-4-13?
A common citation format is "Indiana Code § 24-7-4-13" (Indiana). Legal writing may require the code abbreviation, section number, and year or edition. Match the style required by your court, professor, or publisher.
Is this the official text of Indiana law?
No. This page is for research and education and may not include the most recent amendments. For official current law, check the Indiana official source linked on this page or consult a licensed Indiana attorney.
How does Indiana § 24-7-4-13 apply to my situation?
Statutes are interpreted in context, and application depends on your specific facts. Only a licensed attorney in Indiana can advise on how this section applies to you. Contact your state or local bar association for a referral.
Sources & Verification
Not legal advice. Verify against the official source and consult a licensed attorney in Indiana.