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 ofa corporation doing business in Indiana, whether organized underIndiana law or otherwise, may have and hold a first and prior lienupon:
(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 thecorporation from the date of the employees' employment by thecorporation. A lien under this section is prior to all liens created oracquired after the date of the employment of the employees by thecorporation, 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 anyperson for purchase money.
(b) Any employee wishing to acquire a lien under section 1 of thischapter upon the corporate property of any corporation or thecorporation's earnings, whether the employee's claim is due or not,must file, in the recorder's office of the county where the corporationis located or doing business, notice of the employee's intention tohold a lien upon the corporation's property and earnings. The noticemust 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, thecounty recorder shall record the notice in the record required by lawfor notice of mechanic's liens. The recorder shall charge a fee forrecording the notice in an amount specified in IC 36-2-7-10(b)(1) andIC 36-2-7-10(b)(2). The lien created shall relate to the time when theemployee was employed by the corporation or to any subsequent dateduring the employee's employment, at the election of the employee.The lien has priority over all liens suffered or created after the timeelected by the employee, except other employees' liens, over whichthe lien has no priority.
(c) If:
(1) a person other than an employee acquires a lien upon thecorporate property of any corporation located or doing businessin Indiana;
(2) the lien, for a period of sixty (60) days, either: (A) remains a matter of record in the proper place specifiedin 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 byany employee of the corporation during that period;
the lien described in subdivision (1) has priority over the lien of anemployee in the county where the corporation is located or doingbusiness.
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 conveyanceof 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 thereal estate is located of the employee's intention to hold a lien on thereal 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 realestate; and
(3) be filed before the conveyance of the real estate by thecorporation.
(c) The recorder of any county shall, when notice is presented forrecording under this section:
(1) record the notice in the record required by law for notice ofmechanic'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 thecorporation; or
(2) any subsequent date during the employment, at the electionof 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 chaptermay enforce the lien by filing a complaint in the circuit or superiorcourt 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 theclaim a lien upon the corporation's property and order the propertysold to pay and satisfy the judgment and costs, as other lands are sold
on execution or decree, without relief from valuation or appraisementlaws.
(c) In an action brought under this section, the court shall makeorders as to the application of the earnings of the corporation that arejust and equitable, whether or not the the relief is asked for in thecomplaint.
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 personswhose liens are recorded under section 2 of this chapter may be madeparties to the action. Issues shall be made up and trials had as inother cases.
(b) The court may, when several actions are pending by differentclaimants to enforce liens under this chapter, order that the cases beconsolidated. If the proceeds of the sale of the corporation's propertyor the corporation's earnings are insufficient to pay and satisfy theclaimants in full, the court shall order the claimants to be paid inproportion to the amount due each, and the sale shall be madewithout prejudice to the rights of any prior encumbrances, owner, orother 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, adefendant may file a written undertaking, with surety to be approvedby the court, in the exercise of sound discretion, to the effect that thedefendant will pay the judgments that may be recovered, and costs.An undertaking under this section releases the defendant's propertyfrom 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, thelaw, rules, practice, and pleadings in force in reference to theenforcement of mechanic's liens apply to suits commenced under thischapter.
As added by P.L.2-2002, SEC.13.