2020 Indiana Code
Title 28. Financial Institutions
Article 1. Department of Financial Institutions
Chapter 29. Debt Management Companies
28-1-29-8.8. Debtor's Failure to Make Payment; Cancellation of Agreement; Letter of Continuation; Return of Money to Contract Debtor
Sec. 8.8. (a) If a contract debtor fails to make a payment to a licensee within ninety (90) days after the date a payment is due under an agreement, the agreement may be considered canceled by the licensee unless:
(1) one (1) or more creditors included in the contract debtor's plan object to the termination; or
(2) subject to subsection (b), the contract debtor files a letter of continuation.
(b) A contract debtor may file a letter of continuation of an agreement even if the contract debtor did not make a payment within ninety (90) days after a payment was due. All of the following apply to a letter of continuation of an agreement:
(1) A contract debtor may file only one (1) letter of continuation with a licensee for each twelve (12) month period the agreement is in effect.
(2) A letter of continuation must contain a detailed explanation of the reason or reasons for the missed payment.
(3) If an agreement for which a letter of continuation that meets the requirements of this subsection is filed, the agreement remains in effect and subject to cancellation for any future failure to make a payment as described in this section.
(4) A contract debtor may not file a letter of continuation with a licensee during the first six (6) months an agreement is in effect.
(5) If one (1) or more creditors included in the contract debtor's plan agree to continue the plan based on the explanation provided under subdivision (2), the contract debtor and the licensee shall modify the agreement then in effect between the contract debtor and the licensee to reflect the changes agreed to under the letter of continuation.
(c) If a licensee or a contract debtor terminates an agreement, the licensee shall immediately return to the contract debtor any money of the contract debtor held in trust for the benefit of the contract debtor.
As added by P.L.35-2010, SEC.130. Amended by P.L.216-2013, SEC.29.
