"Security deposit" defined
Sec. 9. (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.
As added by P.L.2-2002, SEC.16.
Last modified: May 24, 2006