Authority: IC 22-9.5-4-2

Affected: IC 22-9.5

Sec. 12. (a) It shall be unlawful for any person or entity engaged in purchasing loans or other debts or securities which support the purchase, construction, improvement, repair, or maintenance of a dwelling or which are secured by residential real estate:

1. (1) to refuse to purchase such loans, debts, or securities; or
2. (2) to impose different terms or conditions for such purchases;

because of race, color, religion, sex, handicap, familial status, or national origin.

(b) Unlawful conduct under this section includes, but is not limited to, the following:

1. (1) Purchasing loans or other debts or securities which relate to or are secured by dwellings in certain communities or neighborhoods but not in others because of race, color, religion, sex, handicap, familial status, or national origin of persons in such neighborhoods or communities.
2. (2) Pooling or packaging loans or other debts or securities which relate to or are secured by dwellings differently because of race, color, religion, sex, handicap, familial status, or national origin.
3. (3) Imposing or using different terms or conditions on marketing or selling securities issued on the basis of loans or other debts or securities which relate to or are secured by dwellings because of race, color, religion, sex, handicap, familial status, or national origin.

(c) This section does not prevent consideration in purchasing a loan of factors justified by business necessity, including requirements of federal law, relating to a transaction's financial security or to protection against default or reduction of the value of the security. Thus, this section does not preclude consideration employed in a normal and prudent transaction, provided that no such factor may in any way relate to race, color, religion, sex, handicap, familial status, or national origin.

(Civil Rights Commission; 910 IAC 2-2-12; filed Aug 20, 1993, 5:00 p.m.: 17 IR 16; readopted filed Oct 25, 2001, 2:15 p.m.: 25 IR 942; readopted filed Oct 29, 2007, 2:55 p.m.: 20071128-IR-910070566RFA; readopted filed Nov 19, 2013, 9:07 a.m.: 20131218-IR-910130454RFA; readopted filed Sep 27, 2019, 2:32 p.m.: 20191030-IR-910190407RFA)