CHAPTER 12. CORPORATE EMPLOYEES' LIENS
IC 32-28-12
Chapter 12. Corporate Employees' Liens
IC 32-28-12-1
Work and labor; priority
Sec. 1. (a) Except as provided in subsection (b), the employees of
a corporation doing business in Indiana, whether organized under
Indiana law or otherwise, may have and hold a first and prior lien
upon:
(1) the corporate property of the corporation; and
(2) the earnings of the corporation;
for all work and labor done and performed by the employees for the
corporation from the date of the employees' employment by the
corporation. A lien under this section is prior to all liens created or
acquired after the date of the employment of the employees by the
corporation, except as otherwise provided in this chapter.
(b) An employee lien arising from the sale of real estate:
(1) is limited to a lien on the real estate; and
(2) is subject to section 3 of this chapter.
As added by P.L.2-2002, SEC.13.
IC 32-28-12-2
Recording lien; priority
Sec. 2. (a) This section does not apply to a lien acquired by any
person for purchase money.
(b) Any employee wishing to acquire a lien under section 1 of this
chapter upon the corporate property of any corporation or the
corporation's earnings, whether the employee's claim is due or not,
must file, in the recorder's office of the county where the corporation
is located or doing business, notice of the employee's intention to
hold a lien upon the corporation's property and earnings. The notice
must state the following:
(1) The amount of the employee's claim.
(2) The date of the employee's employment.
(3) The name of the corporation.
When a notice required by this section is presented for record, the
county recorder shall record the notice in the record required by law
for notice of mechanic's liens. The recorder shall charge a fee for
recording the notice in an amount specified in IC 36-2-7-10(b)(1) and
IC 36-2-7-10(b)(2). The lien created shall relate to the time when the
employee was employed by the corporation or to any subsequent date
during the employee's employment, at the election of the employee.
The lien has priority over all liens suffered or created after the time
elected by the employee, except other employees' liens, over which
the lien has no priority.
(c) If:
(1) a person other than an employee acquires a lien upon the
corporate property of any corporation located or doing business
in Indiana;
(2) the lien, for a period of sixty (60) days, either:
(A) remains a matter of record in the proper place specified
in IC 26-1-9.1-501; or
(B) remains otherwise perfected under applicable law; and
(3) no notice of an employee's intention to hold a lien is filed by
any employee of the corporation during that period;
the lien described in subdivision (1) has priority over the lien of an
employee in the county where the corporation is located or doing
business.
As added by P.L.2-2002, SEC.13.
IC 32-28-12-3
Real estate sale commission claims; filing notice; priority
Sec. 3. (a) Notwithstanding section 2 of this chapter, an employee:
(1) whose claim is for a commission due upon the conveyance
of real estate; and
(2) who wishes to acquire a lien on the real estate;
may file a notice in the recorder's office of the county in which the
real estate is located of the employee's intention to hold a lien on the
real estate.
(b) A notice filed under this section must:
(1) contain the same information required for a mechanic's lien;
(2) state that the claim is due upon the conveyance of the real
estate; and
(3) be filed before the conveyance of the real estate by the
corporation.
(c) The recorder of any county shall, when notice is presented for
recording under this section:
(1) record the notice in the record required by law for notice of
mechanic's liens; and
(2) charge a fee in an amount specified in IC 36-2-7-10(b)(1)
and IC 36-2-7-10(b)(2).
(d) The lien created under this section must relate to:
(1) the time when the employee was employed by the
corporation; or
(2) any subsequent date during the employment, at the election
of the employee;
and has priority over all liens suffered or created after the date,
except other employees' liens, over which there is no priority.
As added by P.L.2-2002, SEC.13.
IC 32-28-12-4
Complaint to enforce lien
Sec. 4. (a) An employee having acquired a lien under this chapter
may enforce the lien by filing a complaint in the circuit or superior
court in the county where the lien was acquired at any time within six
(6) months after the date of acquiring the lien, or if a credit is given,
after the date of the credit.
(b) The court rendering judgment for the claim shall declare the
claim a lien upon the corporation's property and order the property
sold to pay and satisfy the judgment and costs, as other lands are sold
on execution or decree, without relief from valuation or appraisement
laws.
(c) In an action brought under this section, the court shall make
orders as to the application of the earnings of the corporation that are
just and equitable, whether or not the the relief is asked for in the
complaint.
As added by P.L.2-2002, SEC.13.
IC 32-28-12-5
Parties; consolidation of actions; insufficient proceeds of sale
Sec. 5. (a) In an action brought under this chapter, all persons
whose liens are recorded under section 2 of this chapter may be made
parties to the action. Issues shall be made up and trials had as in
other cases.
(b) The court may, when several actions are pending by different
claimants to enforce liens under this chapter, order that the cases be
consolidated. If the proceeds of the sale of the corporation's property
or the corporation's earnings are insufficient to pay and satisfy the
claimants in full, the court shall order the claimants to be paid in
proportion to the amount due each, and the sale shall be made
without prejudice to the rights of any prior encumbrances, owner, or
other persons not parties to the action.
As added by P.L.2-2002, SEC.13.
IC 32-28-12-6
Undertaking of defendant
Sec. 6. In a proceeding commenced under this chapter, a
defendant may file a written undertaking, with surety to be approved
by the court, in the exercise of sound discretion, to the effect that the
defendant will pay the judgments that may be recovered, and costs.
An undertaking under this section releases the defendant's property
from the liens created under this chapter.
As added by P.L.2-2002, SEC.13.
IC 32-28-12-7
Enforcement of mechanic's liens; application of law
Sec. 7. In all cases not specially provided for in this chapter, the
law, rules, practice, and pleadings in force in reference to the
enforcement of mechanic's liens apply to suits commenced under this
chapter.
As added by P.L.2-2002, SEC.13.