1. (a) "Loans arising in factoring" means:

   1. (1) a loan or extension of credit secured by one (1) or more accounts receivable; or
   2. (2) a sale of one (1) or more accounts receivable in which the purchaser has recourse against the seller for an uncollected accounts receivable.

2. (b) The term does not refer to:

   1. (1) a sale of one (1) or more accounts receivable without recourse; or
   2. (2) an assignment of an account receivable.

As added by P.L.146-2020, SEC.31.