Indiana Code Title 24. Trade Regulation § 24-9-2-3

Sec. 3. “Bona fide discount points” means loan discount points that:

if the reduction in the interest rate that is achieved by the payment of the loan discount points reduces the interest charged on the scheduled payments so that the borrower's dollar amount of savings in interest during the first four (4) years of the loan is equal to or greater than the dollar amount of loan discount points paid by the borrower.