For immediate release:
Jan. 23, 2013
INDIANAPOLIS - The Indiana House today passed legislation coauthored by Rep. Justin Moed (D-Indianapolis) that improves on a loan expiration date law passed last year.
House Bill 1079 passed through the Indiana House of Representatives with a 94-0 vote.
The proposal fixes an unintended consequence of legislation passed last year, which added expiration dates to bank loans that did not already have them. The law was meant to be proactive, but unintentionally caught already existing loans that would have disrupted lines of credit for Hoosier homeowners and small businesses.
According to Moed, last year’s law was not intended to work retroactively.
“The law was passed to bring uniformity to bank loan expiration dates going forward,” he said. “This legislation simply corrects the unforeseen errors and specifies which loans fall under the law.”
If the bill becomes law, it will apply only to loans issued after July 1, 2012.
“The goal of this bill is to clarify the original law,” said Moed. “It’s not a partisan issue, just an adjustment we realized we needed to make.”
The bill now will be presented to the Indiana Senate for consideration.