1. (a) The parties to a rental purchase agreement may contract for late charges or delinquency fees as follows:

   1. (1) For agreements with monthly renewal dates, a late charge not exceeding eight dollars ($8) may be assessed on any rental payment not made within five (5) days after:

      1. (A) the renewal date for the agreement; or
      2. (B) the return of the property is required under the rental purchase agreement.

   2. (2) For agreements with weekly or biweekly renewal dates, a late charge not exceeding the amount specified in subsection (e) may be assessed on any rental payments not made within two (2) days after:

      1. (A) the renewal date for the agreement; or
      2. (B) the return of the property is required under the agreement.
2. (b) A late charge on a rental purchase agreement may be assessed only once on any accrued regular rental payment, no matter how long it remains unpaid.
3. (c) A late charge may be collected at any time after it accrues.
4. (d) A late charge may not be assessed against a regular rental payment that is timely made, even though an earlier late charge has not been paid in full.

5. (e) The amount that may be assessed under subsection (a)(2) is as follows:

   1. (1) Three dollars ($3) for any payment not greater than twenty dollars ($20).
   2. (2) Five dollars ($5) for any payment greater than twenty dollars ($20).

As added by P.L.254-1987, SEC.1. Amended by P.L.138-1990, SEC.8; P.L.14-1992, SEC.63; P.L.213-2007, SEC.30; P.L.217-2007, SEC.29; P.L.69-2018, SEC.39; P.L.176-2019, SEC.34.