IC 32-31-3-12
Return of deposits; deductions; liability
Sec. 12. (a) Upon termination of a rental agreement, a landlord
shall return to the tenant the security deposit minus any amount
applied to:
(1) the payment of accrued rent;
(2) the amount of damages that the landlord has suffered or will
reasonably suffer by reason of the tenant's noncompliance with
law or the rental agreement; and
(3) unpaid utility or sewer charges that the tenant is obligated
to pay under the rental agreement;
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