"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.