Indiana Code - Property - Title 32, Section 32-31-3-13

Use of deposits

Sec. 13. A security deposit may be used only for the following
purposes:

(1) To reimburse the landlord for actual damages to the rental
unit or any ancillary facility that are not the result of ordinary
wear and tear.
(2) To pay the landlord for:
(A) all rent in arrearage under the rental agreement; and
(B) rent due for premature termination of the rental
agreement by the tenant.
(3) To pay for the last payment period of a residential rental
agreement if a written agreement between the landlord and the
tenant stipulates that the security deposit will serve as the last
payment of rent due.
(4) To reimburse the landlord for utility or sewer charges paid
by the landlord that are:
(A) the obligation of the tenant under the rental agreement;
and
(B) unpaid by the tenant.
As added by P.L.2-2002, SEC.16.

Last modified: May 24, 2006