CHAPTER 3. LIMITATIONS ON CONFESSION OF JUDGMENT UNDER POWER OF ATTORNEY
IC 34-54-3
Chapter 3. Limitations on Confession of Judgment Under Power
of Attorney
IC 34-54-3-1
Applicability of chapter
Sec. 1. This chapter applies to a contract, agreement, provision,
or stipulation that:
(1) gives a person a power of attorney or authority as attorney
for the maker or endorser of the instrument in the name of the
debtor to:
(A) appear in any court of record; and
(B) waive the service of process in an action to enforce
payment of money claimed to be due on the instrument;
(2) authorizes or purports to authorize an attorney or agent,
however designated, to confess judgment on the instrument for
a sum of money to be ascertained in a manner other than by
action of the court upon a hearing after notice to the debtor,
whether with or without an attorney fee; or
(3) authorizes or purports to authorize an attorney described in
subdivision (1) or (2) to:
(A) release errors and the right of appealing from a judgment
described in subdivision (1) or (2); or
(B) consent to the issue of execution on the judgment.
As added by P.L.1-1998, SEC.50.
IC 34-54-3-2
Certain agreements not to be executed
Sec. 2. A person shall not execute or procure to be executed any
contract, agreement, provision, or stipulation described in section 1
of this chapter:
(1) as part of or in connection with the execution of any
negotiable instrument or other written contract to pay money;
and
(2) before a cause of action on the instrument or contract has
accrued.
As added by P.L.1-1998, SEC.50.
IC 34-54-3-3
Certain agreements void
Sec. 3. A:
(1) contract;
(2) stipulation; or
(3) power of attorney;
given or entered into before a cause of action accrues on a promise
to pay is void.
As added by P.L.1-1998, SEC.50.
IC 34-54-3-4
Certain foreign judgments unenforceable
Sec. 4. (a) This section applies to all cases in which the court
rendering a foreign judgment obtains or attempts to obtain
jurisdiction of a judgment debtor, in whole or in part, by virtue of a
contract, agreement, or stipulation that is prohibited and declared
void by this chapter.
(b) An Indiana court shall not issue an execution or other process
to aid or enforce the collection of any judgment that may be rendered
upon a judgment that:
(1) is taken in another state or foreign country; and
(2) was founded or based upon a negotiable instrument or
contract containing an agreement, stipulation, or provision that
is prohibited and declared void by.
(c) A judgment described in this section may not become a lien
upon real estate.
As added by P.L.1-1998, SEC.50.