CHAPTER 6. MORTGAGE RELEASE BY TITLE INSURANCE COMPANIES
IC 32-29-6
Chapter 6. Mortgage Release by Title Insurance Companies
IC 32-29-6-1
"Mortgage"
Sec. 1. As used in this chapter, "mortgage" means a mortgage or
mortgage lien on an interest in real property in Indiana given to
secure a loan in the original principal amount of not more than one
million dollars ($1,000,000).
As added by P.L.2-2002, SEC.14.
IC 32-29-6-2
"Mortgagee"
Sec. 2. As used in this chapter, "mortgagee" means:
(1) the grantee of a mortgage; or
(2) if a mortgage has been assigned of record, the last person to
whom the mortgage has been assigned of record.
As added by P.L.2-2002, SEC.14.
IC 32-29-6-3
"Mortgage servicer"
Sec. 3. As used in this chapter, "mortgage servicer" means the last
person to whom a mortgagor or the mortgagor's successor in interest
has been instructed by a mortgagee to send payments on a loan
secured by a mortgage. A person transmitting a payoff statement is
the mortgage servicer for the mortgage described in the payoff
statement.
As added by P.L.2-2002, SEC.14.
IC 32-29-6-4
"Mortgagor"
Sec. 4. As used in this chapter, "mortgagor" means the grantor of
a mortgage.
As added by P.L.2-2002, SEC.14.
IC 32-29-6-5
"Payoff statement"
Sec. 5. As used in this chapter, "payoff statement" means a
statement of the amount of:
(1) the unpaid balance of a loan secured by a mortgage,
including principal, interest, and any other charges properly due
under or secured by the mortgage; and
(2) interest on a per day basis for the unpaid balance.
As added by P.L.2-2002, SEC.14.
IC 32-29-6-6
"Person"
Sec. 6. As used in this chapter, "person" means an individual, a
corporation, or any other legal entity.
As added by P.L.2-2002, SEC.14.
IC 32-29-6-7
"Record"
Sec. 7. As used in this chapter, "record" means to record with the
county recorder.
As added by P.L.2-2002, SEC.14.
IC 32-29-6-8
"Title insurance company"
Sec. 8. As used in this chapter, "title insurance company" means
a corporation or other business entity authorized and licensed to
transact the business of insuring titles to interests in real property in
Indiana under IC 27.
As added by P.L.2-2002, SEC.14.
IC 32-29-6-9
Certificate of release
Sec. 9. An officer or appointed agent of a title insurance company
may, on behalf of a mortgagor or a person who acquired from the
mortgagor a lien against all or part of the property described in a
mortgage, execute a certificate of release that complies with the
requirements of this chapter and record the certificate of release in
the real property records of each county in which the mortgage is
recorded if:
(1) a satisfaction or release of the mortgage has not been
executed and recorded within sixty (60) days after the date
payment in full of the loan secured by the mortgage was sent in
accordance with a payoff statement furnished by the mortgagee
or the mortgage servicer; and
(2) the title insurance company, an officer of the title insurance
company, or an agent of the title insurance company has sent to
the last known address of the mortgagee or the mortgage
servicer, at least thirty (30) days before executing the certificate
of release, written notice of its intention to execute and record
a certificate of release in accordance with this section after the
expiration of the sixty (60) day period.
As added by P.L.2-2002, SEC.14.
IC 32-29-6-10
Certificate of release; contents
Sec. 10. A certificate of release executed under this chapter must
contain substantially all of the following:
(1) The name of the mortgagor, the name of the original
mortgagee and, if applicable, the name of the mortgage servicer,
the date of the mortgage, the date of recording of the mortgage,
and the volume and page or instrument number for the mortgage
in the real property records where the mortgage is recorded,
together with similar information for the last recorded
assignment of the mortgage.
(2) A statement that the mortgage was in the original principal
amount of not more than one million dollars ($1,000,000).
(3) A statement that the person executing the certificate of
release is an officer or a duly appointed agent of a title
insurance company authorized and licensed to transact the
business of insuring titles to interests in real property in Indiana
under IC 27.
(4) A statement that the certificate of release is made on behalf
of the mortgagor or a person who acquired a lien from the
mortgagor against all or part of the property described in the
mortgage.
(5) A statement that the mortgagee or mortgage servicer
provided a payoff statement that was used to make payment in
full of the unpaid balance of the loan secured by the mortgage.
(6) A statement that payment in full of the unpaid balance of the
loan secured by the mortgage was made in accordance with the
written or verbal payoff statement and received by the
mortgagee or mortgage servicer, as evidenced in the records of
the title insurance company or its agents by:
(A) a bank check;
(B) a certified check;
(C) an escrow account check from the title company or title
insurance agent;
(D) an attorney trust account check that has been negotiated
by the mortgagee or mortgage servicer; or
(E) any other documentary evidence of payment to the
mortgagee or mortgage servicer.
(7) A statement indicating that more than sixty (60) days have
elapsed since the date payment in full was sent.
(8) A statement that after the expiration of the sixty (60) day
period referred to in section 9 of this chapter, the title insurance
company, its officers, or its agent sent to the last known address
of the mortgagee or mortgage servicer, at least thirty (30) days
before executing the certificate of release, notice in writing of
its intention to execute and record a certificate of release as
required under this section, with an unexecuted copy of the
proposed certificate of release attached to the written notice.
(9) A statement that neither the title insurance company nor its
officers or agent have received notification in writing of any
reason why the certificate of release should not be executed and
recorded after the expiration of the thirty (30) day notice period
referred to in section 9 of this chapter.
As added by P.L.2-2002, SEC.14.
IC 32-29-6-11
Certificate of release; execution and acknowledgment
Sec. 11. A certificate of release authorized by this chapter shall be
executed and acknowledged in the same manner as required by law
in Indiana for the execution and acknowledgment of a deed.
As added by P.L.2-2002, SEC.14.
IC 32-29-6-12
Notice of authorization
Sec. 12. (a) A title insurance company may authorize an appointed
agent of the title insurance company to execute certificates of release
under this chapter by recording a notice of authorization in the office
of the county recorder for each county in which the duly appointed
agent is authorized to execute and record certificates of release on
behalf of the title insurance company. The notice of authorization
must state the following:
(1) The name of the title insurance company that is authorizing
an appointed agent to execute certificates of release on behalf
of the title insurance company.
(2) The identity of the person who is an appointed agent of the
title insurance company and who is authorized to execute and
record certificates of release in accordance with the
requirements of this chapter on behalf of the title insurance
company.
(3) That the appointed agent has full authority to execute and
record certificates of release in accordance with the
requirements of this chapter on behalf of the title insurance
company.
(b) The notice of authorization must be executed and
acknowledged in the same manner as required by law in Indiana for
the execution and acknowledgment of a deed.
(c) A single notice of authorization recorded in the office of a
county recorder under this section constitutes the authority of the
appointed agent to execute and record certificates of release in that
county on behalf of the title insurance company. A separate notice of
authority is not required for each certificate of release recorded by an
appointed agent.
(d) The authority granted to an appointed agent by a title
insurance company under this section continues until a revocation of
the notice of authorization is recorded in the office of the county
recorder for the county in which the notice of authorization was
recorded.
(e) The delegation of authority to an appointed agent by a title
insurance company under this section does not relieve the title
insurance company of any liability for damages for the wrongful or
erroneous execution and recording of a certificate of release by the
appointed agent.
As added by P.L.2-2002, SEC.14.
IC 32-29-6-13
Misstatement in written payoff statement
Sec. 13. A creditor or mortgage servicer may not withhold the
release of a mortgage if the written mortgage payoff statement
misstates the amount of the payoff and the written payoff is relied
upon in good faith by an independent closing agent without
knowledge of the misstatement. It is not a misstatement if the written
payoff statement is not accurate as a result of a change in
circumstances occurring after the issuance of the payoff statement.
The release of a mortgage does not affect the ability of the creditor
or mortgage servicer to collect the full amount owed without regard
to a misstatement in the written payoff statement and a release of the
mortgage.
As added by P.L.2-2002, SEC.14.
IC 32-29-6-14
Acceptance of payment
Sec. 14. The acceptance of a payment by a creditor or mortgage
servicer of an amount that is not sufficient to pay the amount owed
does not constitute a waiver, release, accord and satisfaction, or other
impairment of the creditors or mortgage servicers rights
notwithstanding any contrary instructions or restrictive
endorsements.
As added by P.L.2-2002, SEC.14.
IC 32-29-6-15
Release of mortgage
Sec. 15. A certificate of release prepared, executed, and recorded
in accordance with the requirements of this chapter constitutes a
release of the mortgage described in that certificate of release, and
the county recorder shall enter and index the certificate of release in
the same manner that a release or satisfaction of mortgage is entered
and indexed in the records of the county recorder.
As added by P.L.2-2002, SEC.14.
IC 32-29-6-16
Erroneous certificate of release
Sec. 16. (a) The execution and recording of a wrongful or
erroneous certificate of release by a title insurance company or a
duly appointed agent with authority from a title insurance company
does not relieve the mortgagor, or anyone succeeding to or assuming
the interest of the mortgagor, from any liability for the debt or other
obligations secured by the mortgage that is the subject of the
wrongful or erroneous certificate of release.
(b) Additionally, a title insurance company or an appointed agent
with authority from a title insurance company that wrongfully or
erroneously executes and records a certificate of release is liable to
the mortgagee, or the assignee of the mortgagee if the mortgage has
been assigned, for actual damages sustained due to the recording of
a wrongful or erroneous certificate of release.
As added by P.L.2-2002, SEC.14.
IC 32-29-6-17
Applicability of chapter
Sec. 17. This chapter applies to the release of a mortgage after
June 30, 2001, regardless of when the mortgage was created or
assigned.
As added by P.L.2-2002, SEC.14. Amended by P.L.48-2003, SEC.1
and P.L.79-2003, SEC.1.