CHAPTER 1. MORTGAGE OF REAL ESTATE
IC 32-29
ARTICLE 29. MORTGAGES
IC 32-29-1
Chapter 1. Mortgage of Real Estate
IC 32-29-1-1
Possession premises
Sec. 1. (a) This section does not apply to security interests in rents
and profits arising from real estate.
(b) Unless a mortgage specifically provides that the mortgagee
shall have possession of the mortgaged premises, the mortgagee is
not entitled to possession of the mortgaged premises.
As added by P.L.2-2002, SEC.14.
IC 32-29-1-2
Construction of mortgage
Sec. 2. A mortgage may not be construed to imply a covenant for
the payment of the sum intended to be secured by the mortgage so as
to enable the mortgagee or the mortgagee's assignees or
representatives to maintain an action for the recovery of this sum. If
an express covenant is not contained in the mortgage for the payment
and a bond or other separate instrument to secure the payment has
not been given, the remedy of the mortgagee is confined to the real
property described in the mortgage.
As added by P.L.2-2002, SEC.14.
IC 32-29-1-2.5
Hazard insurance
Sec. 2.5. A mortgagee or a mortgagee's assignee or representative
may not require a mortgagor, as a condition of receiving or
maintaining a mortgage, to obtain hazard insurance coverage against
risks to improvements on the mortgaged property in an amount
exceeding the replacement value of the improvements.
As added by P.L.73-2004, SEC.45.
IC 32-29-1-3
Sale of premises
Sec. 3. A mortgage of real estate, including an instrument having
the legal effect of a mortgage, may not authorize the mortgagee to
sell the mortgaged property. The sale of mortgaged property by the
mortgagee may only be made under a judicial proceeding.
As added by P.L.2-2002, SEC.14.
IC 32-29-1-4
Purchase money mortgage
Sec. 4. A mortgage granted by a purchaser to secure purchase
money has priority over a prior judgment against the purchaser.
As added by P.L.2-2002, SEC.14.
IC 32-29-1-5
Form; mortgage
Sec. 5. A mortgage of land that is:
(1) worded in substance as "A.B. mortgages and warrants to
C.D." (here describe the premises) "to secure the repayment of"
(here recite the sum for which the mortgage is granted, or the
notes or other evidences of debt, or a description of the debt
sought to be secured, and the date of the repayment); and
(2) dated and signed, sealed, and acknowledged by the grantor;
is a good and sufficient mortgage to the grantee and the grantee's
heirs, assigns, executors, and administrators, with warranty from the
grantor (as defined in IC 32-17-1-1) and the grantor's legal
representatives of perfect title in the grantor and against all previous
encumbrances. However, if in the mortgage form the words "and
warrant" are omitted, the mortgage is good but without warranty.
As added by P.L.2-2002, SEC.14.
IC 32-29-1-6
Payment in full; release and discharge of mortgage
Sec. 6. After a mortgagee of property whose mortgage has been
recorded has received full payment from the mortgagor of the sum
specified in the mortgage, the mortgagee shall, at the request of the
mortgagor, enter in the record of the mortgage that the mortgage has
been satisfied. An entry in the record showing that a mortgage has
been satisfied operates as a complete release and discharge of the
mortgage.
As added by P.L.2-2002, SEC.14.
IC 32-29-1-7
Certificate of payments and satisfaction
Sec. 7. If a mortgage has been paid and satisfied by the mortgagor,
the mortgagor may take a certificate of satisfaction, duly
acknowledged by the mortgagee or the mortgagee's lawful agent, as
required for the acknowledgment of conveyances to entitle them to
be recorded. The certificate and acknowledgment shall be recorded
by the recorder in whose office the mortgage is recorded, with a
reference to the location of the record of the mortgage. The recorded
certificate discharges and releases the mortgagor from the mortgage
(or portion of the mortgage as indicated in a partial satisfaction), and
bars all suits and actions on the mortgage.
As added by P.L.2-2002, SEC.14.
IC 32-29-1-8
Assignment of mortgage
Sec. 8. (a) Any mortgage of record or any part of the mortgage
may be assigned by the mortgagee or any assignee of the mortgage,
either by an assignment entered on the margin of the record, signed
by the person making the assignment and attested by the recorder, or
by a separate instrument executed and acknowledged before any
person authorized to take acknowledgments, and recorded in the
mortgage records of the county. The county recorder shall note the
assignment in the margin by reference to the location where the
assignment is recorded.
(b) The signature of a person on an assignment under subsection
(a) may be a facsimile. The facsimile on the assignment is equivalent
to and constitutes the written signature of the person for all
requirements regarding mortgage assignments.
(c) Notwithstanding subsection (a), marginal assignments may be
accepted at the discretion of the recorder. Except in a county that
accepts marginal assignments of mortgage, an assignment of
mortgage must be recorded on a separate written instrument from the
mortgage. If a recorder accepts marginal assignments of mortgage,
an instrument presented for recording in that county may not contain
more than one (1) assignment. If a recorder allows an instrument to
contain more than one (1) assignment, the fee for recording that
instrument is provided in IC 36-2-7-10(b)(3).
(d) After entry is made of record, the mortgagor and all other
persons are bound by the record, and the entry is a public record.
Any assignee may enter satisfaction or release of the mortgage, or the
part of the mortgage held by the assignee of record.
As added by P.L.2-2002, SEC.14.
IC 32-29-1-9
Foreclosure to state
Sec. 9. This chapter does not affect any provisions made by law
relating to the foreclosure of mortgages to the state, so far as the
provisions conflict with the provisions of this chapter.
As added by P.L.2-2002, SEC.14.
IC 32-29-1-10
Obligations a mortgage may secure; future obligations and
advances; future modifications, extensions, and renewals of
indebtedness; priority of lien
Sec. 10. (a) In addition to any other obligation secured by a
mortgage, a mortgage may also secure:
(1) future obligations and advances up to the maximum amount
stated in the mortgage (whether made as an obligation, made at
the option of the lender, made after a reduction to a zero (0) or
other balance, or made otherwise) to the same extent as if the
future obligations and advances were made on the date of
execution of the mortgage; and
(2) future modifications, extensions, and renewals of any
indebtedness or obligations secured by the mortgage if and to
the extent that the mortgage states that the mortgage secures
those future advances, modifications, extensions, and renewals.
(b) The lien of a mortgage with respect to future advances,
modifications, extensions, and renewals referred to in subsection (a)
has the priority to which the mortgage otherwise would be entitled
under IC 32-21-4-1 without regard to the fact that the future advance,
modification, extension, or renewal may occur after the mortgage is
executed.
As added by P.L.2-2002, SEC.14.
IC 32-29-1-11
Rents and profits from real property; enforcement of assignment,
mortgage, or pledge; rights not affected; equitable subrogation
Sec. 11. (a) This chapter does not limit:
(1) the right to assign, mortgage, or pledge the rents and profits
arising from real estate;
(2) the right of an assignee, a mortgagee, or a pledgee to collect
rents and profits for application in accordance with an
assignment, a mortgage, or a pledge; or
(3) the power of a court of equity to appoint a receiver to take
charge of real estate to collect rents and profits for application
in accordance with an assignment, a mortgage, or a pledge.
(b) A person may enforce an assignment, a mortgage, or a pledge
of rents and profits arising from real property:
(1) whether the person has or does not have possession of the
real estate; and
(2) regardless of the:
(A) adequacy of the security; or
(B) solvency of the assignor, mortgagor, or pledgor.
(c) If a person:
(1) enforces an assignment, a mortgage, or a pledge of rents and
profits arising from real estate; and
(2) does not have possession of the real estate;
the obligations of a mortgagee in possession of real estate may not be
imposed on the holder of the assignment, mortgage, or pledge.
(d) Except for those instances involving liens defined in
IC 32-28-3-1, a mortgagee seeking equitable subrogation with respect
to a lien may not be denied equitable subrogation solely because:
(1) the mortgagee:
(A) is engaged in the business of lending; and
(B) had constructive notice of the intervening lien over
which the mortgagee seeks to assert priority;
(2) the lien for which the mortgagee seeks to be subrogated was
released; or
(3) the mortgagee obtained a title insurance policy.
(e) Subsection (d) does not apply to a municipal sewer lien under
IC 36-9-23 or a mechanic's lien under IC 32-28-3-1.
As added by P.L.2-2002, SEC.14. Amended by P.L.122-2003, SEC.1;
P.L.151-2003, SEC.2; P.L.2-2005, SEC.86.