Section 32-31-3-9 - "Security deposit" defined(a) As used in this chapter, "security deposit" means a deposit paid by a tenant to the landlord or the landlord's agent to be held for all or a part of the term of the rental agreement to secure performance of any obligation of the tenant under the rental agreement.(b) The term includes:(1) a required prepayment of rent other than the first full rental payment period of the lease agreement;(2) a sum required to be paid as rent in any rental period in excess of the average rent for the term; and(3) any other amount of money or property returnable to the tenant on condition of return of the rental unit by the tenant in a condition as required by the rental agreement.(c) The term does not include the following:(1) An amount paid for an option to purchase under a lease with option to purchase, unless it is shown that the intent was to evade this chapter.(2) An amount paid as a subscription for or purchase of a membership in a cooperative housing association incorporated under Indiana law.Pre-2002 Recodification Citation: 32-7-5-9.
As added by P.L. 2-2002, SEC.16.