Indiana § 37-3-3-10 - Borrower's default; permissible and prohibited remedies; notice to borrower
Full text of Indiana Indiana Code § 37-3-3-10 — Borrower's default; permissible and prohibited remedies; notice to borrower, with citation guidance and answers to common questions.
§ 37-3-3-10. Borrower's default; permissible and prohibited remedies; notice to borrower
Sec. 10. (a) An agreement with respect to a small loan may not provide for charges as a result of default by the borrower other than those specifically authorized by this chapter. A provision in a small loan agreement in violation of this section is unenforceable.
(b) A lender or an assignee of a small loan may seek only the following remedies upon default by a borrower:
(1) Recovery of:
(A) the contracted principal amount of the loan; and
(B) the loan finance charge.
(2) If contracted for under section 3 of this chapter, collection of a fee for:
(A) a returned check, negotiable order of withdrawal, or share draft; or
(B) a dishonored authorization to debit the borrower's account;
because of insufficient funds in the borrower's account.
(3) Collection of postjudgment interest, if awarded by a court.
(4) Collection of court costs, if awarded by a court.
(c) A lender or an assignee of a small loan may not seek any of the following damages or remedies upon default by a borrower:
(1) Payment of the lender's attorney's fees.
(2) Treble damages.
(3) Prejudgment interest.
(4) Damages allowed for dishonored checks under any statute other than this chapter.
(5) Any damages or remedies not set forth in subsection (b).
(d) A contractual agreement in a small loan transaction must include a notice of the following in 14 point bold type:
(1) The remedies available to a lender or an assignee under subsection (b).
(2) The remedies and damages that a lender or an assignee is prohibited from seeking in a small loan transaction under subsection (c).
[Pre-2026 Revision Citation: 24-4.5-7-406.]
As added by P.L.115-2026, SEC.97.
Source: official Indiana text · Last verified 2026-08-27
Frequently Asked Questions About Indiana § 37-3-3-10
What does Indiana Code § 37-3-3-10 cover?
Section 37-3-3-10 ("Borrower's default; permissible and prohibited remedies; notice to borrower") 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 § 37-3-3-10?
A common citation format is "Indiana Code § 37-3-3-10" (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 § 37-3-3-10 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.