CHAPTER 3. MECHANIC'S LIENS
IC 32-28-3
Chapter 3. Mechanic's Liens
IC 32-28-3-1
Mechanic's liens; persons to whom available; effect of contractprovisions; credit transactions; restrictions
Sec. 1. (a) A contractor, a subcontractor, a mechanic, a lessorleasing construction and other equipment and tools, whether or notan operator is also provided by the lessor, a journeyman, a laborer,or any other person performing labor or furnishing materials ormachinery, including the leasing of equipment or tools, for:
(1) the erection, alteration, repair, or removal of:
(A) a house, mill, manufactory, or other building; or
(B) a bridge, reservoir, system of waterworks, or otherstructure;
(2) the construction, alteration, repair, or removal of a walk orsidewalk located on the land or bordering the land, a stile, awell, a drain, a drainage ditch, a sewer, or a cistern; or
(3) any other earth moving operation;
may have a lien as set forth in this section.
(b) A person described in subsection (a) may have a lienseparately or jointly:
(1) upon the house, mill, manufactory, or other building, bridge,reservoir, system of waterworks, or other structure, sidewalk,walk, stile, well, drain, drainage ditch, sewer, cistern, or earth:
(A) that the person erected, altered, repaired, moved, orremoved; or
(B) for which the person furnished materials or machinery ofany description; and
(2) on the interest of the owner of the lot or parcel of land:
(A) on which the structure or improvement stands; or
(B) with which the structure or improvement is connected;
to the extent of the value of any labor done or the material furnished,or both, including any use of the leased equipment and tools.
(c) All claims for wages of mechanics and laborers employed inor about a shop, mill, wareroom, storeroom, manufactory orstructure, bridge, reservoir, system of waterworks or other structure,sidewalk, walk, stile, well, drain, drainage ditch, cistern, or any otherearth moving operation shall be a lien on all the:
(1) machinery;
(2) tools;
(3) stock;
(4) material; or
(5) finished or unfinished work;
located in or about the shop, mill, wareroom, storeroom, manufactoryor other building, bridge, reservoir, system of waterworks, or otherstructure, sidewalk, walk, stile, well, drain, drainage ditch, sewer,cistern, or earth used in a business.
(d) If the person, firm, limited liability company, or corporationdescribed in subsection (a) or (c) is in failing circumstances, the
claims described in this section shall be preferred debts whether aclaim or notice of lien has been filed.
(e) Subject to subsection (f), a contract:
(1) for the construction, alteration, or repair of a Class 2structure (as defined in IC 22-12-1-5);
(2) for the construction, alteration, or repair of an improvementon the same real estate auxiliary to a Class 2 structure (asdefined in IC 22-12-1-5);
(3) for the construction, alteration, or repair of property that is:
(A) owned, operated, managed, or controlled by a:
(i) public utility (as defined in IC 8-1-2-1);
(ii) municipally owned utility (as defined in IC 8-1-2-1);
(iii) joint agency (as defined in IC 8-1-2.2-2);
(iv) rural electric membership corporation formed underIC 8-1-13-4;
(v) rural telephone cooperative corporation formed underIC 8-1-17; or
(vi) not-for-profit utility (as defined in IC 8-1-2-125);
regulated under IC 8; and
(B) intended to be used and useful for the production,transmission, delivery, or furnishing of heat, light, water,telecommunications services, or power to the public; or
(4) to prepare property for Class 2 residential construction;
may include a provision or stipulation in the contract of the ownerand principal contractor that a lien may not attach to the real estate,building, structure or any other improvement of the owner.
(f) A contract containing a provision or stipulation described insubsection (e) must meet the requirements of this subsection to bevalid against subcontractors, mechanics, journeymen, laborers, orpersons performing labor upon or furnishing materials or machineryfor the property or improvement of the owner. The contract must:
(1) be in writing;
(2) contain specific reference by legal description of the realestate to be improved;
(3) be acknowledged as provided in the case of deeds; and
(4) be filed and recorded in the recorder's office of the countyin which the real estate, building, structure, or otherimprovement is situated not more than five (5) days after thedate of execution of the contract.
A contract containing a provision or stipulation described insubsection (e) does not affect a lien for labor, material, or machinerysupplied before the filing of the contract with the recorder.
(g) Upon the filing of a contract under subsection (f), the recordershall:
(1) record the contract at length in the order of the time it wasreceived in books provided by the recorder for that purpose;
(2) index the contract in the name of the:
(A) contractor; and
(B) owner;
in books kept for that purpose; and (3) collect a fee for recording the contract as is provided for therecording of deeds and mortgages.
(h) A person, firm, partnership, limited liability company, orcorporation that sells or furnishes on credit any material, labor, ormachinery for the alteration or repair of an owner occupied single ordouble family dwelling or the appurtenances or additions to thedwelling to:
(1) a contractor, subcontractor, mechanic; or
(2) anyone other than the occupying owner or the owner's legalrepresentative;
must furnish to the occupying owner of the parcel of land where thematerial, labor, or machinery is delivered a written notice of thedelivery or work and of the existence of lien rights not later thanthirty (30) days after the date of first delivery or labor performed.The furnishing of the notice is a condition precedent to the right ofacquiring a lien upon the lot or parcel of land or the improvement onthe lot or parcel of land.
(i) A person, firm, partnership, limited liability company, orcorporation that sells or furnishes on credit material, labor, ormachinery for the original construction of a single or double familydwelling for the intended occupancy of the owner upon whose realestate the construction takes place to a contractor, subcontractor,mechanic, or anyone other than the owner or the owner's legalrepresentatives must:
(1) furnish the owner of the real estate:
(A) as named in the latest entry in the transfer booksdescribed in IC 6-1.1-5-4 of the county auditor; or
(B) if IC 6-1.1-5-9 applies, as named in the transfer books ofthe township assessor (if any) or the county assessor;
with a written notice of the delivery or labor and the existenceof lien rights not later than sixty (60) days after the date of thefirst delivery or labor performed; and
(2) file a copy of the written notice in the recorder's office ofthe county not later than sixty (60) days after the date of thefirst delivery or labor performed.
The furnishing and filing of the notice is a condition precedent to theright of acquiring a lien upon the real estate or upon the improvementconstructed on the real estate.
(j) A lien for material or labor in original construction does notattach to real estate purchased by an innocent purchaser for valuewithout notice of a single or double family dwelling for occupancyby the purchaser unless notice of intention to hold the lien isrecorded under section 3 of this chapter before recording the deed bywhich the purchaser takes title.
As added by P.L.2-2002, SEC.13. Amended by P.L.101-2002, SEC.5;P.L.151-2003, SEC.1; P.L.1-2006, SEC.501; P.L.1-2007, SEC.210;P.L.219-2007, SEC.101; P.L.146-2008, SEC.674.
IC 32-28-3-2
Extent of lien; leased or mortgaged land Sec. 2. (a) The entire land upon which the building, erection, orother improvement is situated, including the part of the land notoccupied by the building, erection, or improvement, is subject to alien to the extent of the right, title, and interest of the owner forwhose immediate use or benefit the labor was done or materialfurnished.
(b) If:
(1) the owner has only a leasehold interest; or
(2) the land is encumbered by mortgage;
the lien, so far as concerns the buildings erected by the lienholder, isnot impaired by forfeiture of the lease for rent or foreclosure ofmortgage. The buildings may be sold to satisfy the lien and may beremoved not later than ninety (90) days after the sale by thepurchaser.
As added by P.L.2-2002, SEC.13.
IC 32-28-3-3
Notice of intention to hold lien; filing
Sec. 3. (a) Except as provided in subsection (b), a person whowishes to acquire a lien upon property, whether the claim is due ornot, must file in duplicate a sworn statement and notice of theperson's intention to hold a lien upon the property for the amount ofthe claim:
(1) in the recorder's office of the county; and
(2) not later than ninety (90) days after performing labor orfurnishing materials or machinery described in section 1 of thischapter.
The statement and notice of intention to hold a lien may be verifiedand filed on behalf of a client by an attorney registered with the clerkof the supreme court as an attorney in good standing under therequirements of the supreme court.
(b) This subsection applies to a person that performs labor orfurnishes materials or machinery described in section 1 of thischapter related to a Class 2 structure (as defined in IC 22-12-1-5) oran improvement on the same real estate auxiliary to a Class 2structure (as defined in IC 22-12-1-5). A person who wishes toacquire a lien upon property, whether the claim is due or not, mustfile in duplicate a sworn statement and notice of the person'sintention to hold a lien upon the property for the amount of theclaim:
(1) in the recorder's office of the county; and
(2) not later than sixty (60) days after performing labor orfurnishing materials or machinery described in section 1 of thischapter.
The statement and notice of intention to hold a lien may be verifiedand filed on behalf of a client by an attorney registered with the clerkof the supreme court as an attorney in good standing under therequirements of the supreme court.
(c) A statement and notice of intention to hold a lien filed underthis section must specifically set forth: (1) the amount claimed;
(2) the name and address of the claimant;
(3) the owner's:
(A) name; and
(B) latest address as shown on the property tax records of thecounty; and
(4) the:
(A) legal description; and
(B) street and number, if any;
of the lot or land on which the house, mill, manufactory or otherbuildings, bridge, reservoir, system of waterworks, or otherstructure may stand or be connected with or to which it may beremoved.
The name of the owner and legal description of the lot or land willbe sufficient if they are substantially as set forth in the latest entry inthe transfer books described in IC 6-1.1-5-4 of the county auditor or,if IC 6-1.1-5-9 applies, the transfer books of the township assessor (ifany) or the county assessor at the time of filing of the notice ofintention to hold a lien.
(d) The recorder shall:
(1) mail, first class, one (1) of the duplicates of the statementand notice of intention to hold a lien to the owner named in thestatement and notice not later than three (3) business days afterrecordation;
(2) post records as to the date of the mailing; and
(3) collect a fee of two dollars ($2) from the lien claimant foreach statement and notice that is mailed.
The statement and notice shall be addressed to the latest address ofthe owner as specifically set out in the sworn statement and notice ofthe person intending to hold a lien upon the property.
As added by P.L.2-2002, SEC.13. Amended by P.L.219-2007,SEC.102; P.L.146-2008, SEC.675.
IC 32-28-3-4
Validity of certain notices of intention to hold lien
Sec. 4. Any otherwise valid and enforceable statement and noticeof intention to hold a lien filed before March 10, 1967, is valid andenforceable.
As added by P.L.2-2002, SEC.13.
IC 32-28-3-5
Recording notice; priority of lien
Sec. 5. (a) As used in this section, "lender" refers to:
(1) an individual;
(2) a supervised financial organization (as defined inIC 26-1-4-102.5);
(3) an insurance company or a pension fund; or
(4) any other entity that has the authority to make loans.
(b) The recorder shall record the statement and notice of intentionto hold a lien when presented under section 3 of this chapter in the
miscellaneous record book. The recorder shall charge a fee forrecording the statement and notice in accordance with IC 36-2-7-10.When the statement and notice of intention to hold a lien is recorded,the lien is created. The recorded lien relates back to the date themechanic or other person began to perform the labor or furnish thematerials or machinery. Except as provided in subsections (c) and(d), a lien created under this chapter has priority over a lien createdafter it.
(c) The lien of a mechanic or materialman does not have priorityover the lien of another mechanic or materialman.
(d) The mortgage of a lender has priority over all liens createdunder this chapter that are recorded after the date the mortgage wasrecorded, to the extent of the funds actually owed to the lender forthe specific project to which the lien rights relate. This subsectiondoes not apply to a lien that relates to a construction contract for thedevelopment, construction, alteration, or repair of the following:
(1) A Class 2 structure (as defined in IC 22-12-1-5).
(2) An improvement on the same real estate auxiliary to a Class2 structure (as defined in IC 22-12-1-5).
(3) Property that is:
(A) owned, operated, managed, or controlled by:
(i) a public utility (as defined in IC 8-1-2-1);
(ii) a municipally owned utility (as defined in IC 8-1-2-1);
(iii) a joint agency (as defined in IC 8-1-2.2-2);
(iv) a rural electric membership corporation formed underIC 8-1-13-4;
(v) a rural telephone cooperative corporation formed underIC 8-1-17; or
(vi) a not-for-profit utility (as defined in IC 8-1-2-125);
regulated under IC 8; and
(B) intended to be used and useful for the production,transmission, delivery, or furnishing of heat, light, water,telecommunications services, or power to the public.
As added by P.L.2-2002, SEC.13. Amended by P.L.101-2002, SEC.6;P.L.35-2010, SEC.207.
IC 32-28-3-6
Enforcement of lien
Sec. 6. (a) A person may enforce a lien by filing a complaint inthe circuit or superior court of the county where the real estate orproperty that is the subject of the lien is situated. The complaint mustbe filed not later than one (1) year after:
(1) the date the statement and notice of intention to hold a lienwas recorded under section 3 of this chapter; or
(2) subject to subsection (c), the expiration of the credit, if acredit is given.
(b) Except as provided in subsection (c), if a lien is not enforcedwithin the time set forth in subsection (a), the lien is void.
(c) A credit does not extend the time for filing an action toenforce the lien under subsection (a)(2) unless: (1) the terms of the credit are in writing;
(2) the credit was executed by:
(A) the lienholder; and
(B) all owners of record; and
(3) the credit was recorded:
(A) in the same manner as the original statement and noticeof intention to hold a lien; and
(B) not later than one (1) year after the date the statementand notice of intention to hold a lien was recorded.
(d) If the lien is foreclosed under this chapter, the court renderingjudgment shall order a sale to be made of the property subject to thelien. The officers making the sale shall sell the property without anyrelief from valuation or appraisement laws.
As added by P.L.2-2002, SEC.13.
IC 32-28-3-7
Sale to satisfy lien; consolidation of actions
Sec. 7. (a) A person whose lien is recorded under this chapter maybe a party to an action to enforce a lien.
(b) The court may, by judgment, direct a sale of the land andbuilding for the satisfaction of the liens and costs. The sale shall notprejudice the rights of:
(1) a prior encumbrance; or
(2) an owner or other person who is not a party to the action.
(c) If several actions are brought by different claimants and arepending at the same time, the court may order the actions to beconsolidated.
As added by P.L.2-2002, SEC.13.
IC 32-28-3-8
Insufficient proceeds of sale
Sec. 8. If the proceeds of the sale of the property subject to a lienare insufficient to pay all the claimants, the court shall order theclaimants to be paid in proportion to the amount due each claimant.
As added by P.L.2-2002, SEC.13.
IC 32-28-3-9
Subcontractor's, journeyman's, or laborer's liens; notice; actions
Sec. 9. (a) This section applies to a:
(1) subcontractor;
(2) lessor leasing construction and other equipment and tools,regardless of whether an operator is also provided by the lessor;
(3) journeyman; or
(4) laborer;
employed or leasing any equipment or tools used by the lessee inerecting, altering, repairing, or removing any house, mill,manufactory or other building, or bridge, reservoir, system ofwaterworks, or other structure or earth moving, or in furnishing anymaterial or machinery for these activities.
(b) Except as provided in subsection (f) and section 12 of this
chapter, in order to acquire rights under this section, a persondescribed in subsection (a) must give to the property owner, or if theproperty owner is absent, to the property owner's agent, writtennotice particularly setting forth the amount of the person's claim andservices rendered for which:
(1) the person's employer or lessee is indebted to the person;and
(2) the person holds the property owner responsible.
(c) Subject to subsections (d) and (e), the property owner is liablefor the person's claim.
(d) The property owner is liable to a person described insubsection (a) for not more than the amount that is due and may laterbecome due from the owner to the employer or lessee.
(e) A person described in subsection (a) may recover the amountof the person's claim if, after the amounts of other claims that havepriority are subtracted from the amount due from the property ownerto the employer or lessee, the remainder of the amount due from theproperty owner to the employer or lessee is sufficient to pay theamount of the person's claim.
(f) This subsection applies to a person described in subsection (a)who gives written notice, to the property owner or, if the propertyowner is absent, to the owner's agent, before labor is performed ormaterials or machinery is furnished. The notice must particularly setforth the amount of:
(1) labor the person has contracted to perform; or
(2) materials or machinery the person has contracted to furnish;
for the employer or lessee in erecting, altering, repairing, orremoving any of the buildings or other structures described insubsection (a). A person described in this subsection has the samerights and remedies against the property owner for the amount of thelabor performed by the person or materials or machinery furnishedby the person after the notice is given, as are provided in this chapterfor persons who serve notice after performing the labor or furnishingthe materials or machinery.
(g) If an action is brought against a property owner under thissection, all subcontractors, equipment lessors leasing equipment,journeymen, and laborers who have:
(1) performed labor or furnished materials or machinery; and
(2) given notice under this section;
may become parties to the action. If, upon final judgment against theproperty owner the amount recovered and collected is not sufficientto pay the claimants in full, the amount recovered and collected shallbe divided among the claimants pro rata.
As added by P.L.2-2002, SEC.13. Amended by P.L.1-2010, SEC.129.
IC 32-28-3-10
Notice to commence suit; affidavit of service
Sec. 10. (a) A lien is void if both of the following occur:
(1) The owner of property subject to a mechanic's lien or anyperson or corporation having an interest in the property,
including a mortgagee or a lienholder, provides written noticeto the owner or holder of the lien to file an action to foreclosethe lien.
(2) The owner or holder of the lien fails to file an action toforeclose the lien in the county where the property is locatednot later than thirty (30) days after receiving the notice.
However, this section does not prevent the claim from beingcollected as other claims are collected by law.
(b) A person who gives notice under subsection (a)(1) byregistered or certified mail to the lienholder at the address given inthe recorded statement and notice of intention to hold a lien may filean affidavit of service of the notice to file an action to foreclose thelien with the recorder of the county in which the property is located.The affidavit must state the following:
(1) The facts of the notice.
(2) That more than thirty (30) days have passed since the noticewas received by the lienholder.
(3) That no action for foreclosure of the lien is pending.
(4) That no unsatisfied judgment has been rendered on the lien.
(c) The recorder shall:
(1) record the affidavit of service in the miscellaneous recordbook of the recorder's office; and
(2) certify on the face of the record any lien that is fullyreleased.
When the recorder records the affidavit and certifies the record underthis subsection, the real estate described in the lien is released fromthe lien.
As added by P.L.2-2002, SEC.13.
IC 32-28-3-11
Undertaking to pay judgment and cost
Sec. 11. (a) In an action to foreclose a lien:
(1) the defendant or owner of the property subject to the lien; or
(2) any person having an interest in the property subject to thelien, including a mortgagee or other lienholder;
may file in the action a written undertaking with surety to beapproved by the court.
(b) An undertaking filed under this section must provide that theperson filing it will pay any judgment that may be recovered in theaction to foreclose the lien, including costs and attorney's feesallowed by the court, if the claim on which the judgment is foundedis found by the court to have been a lien on the property at the timethe action was filed.
(c) If an undertaking is filed and approved by the court:
(1) the court shall enter an order releasing the property from thelien; and
(2) the property shall be discharged from the lien.
As added by P.L.2-2002, SEC.13.
IC 32-28-3-12 Railroads; labor and materials; lien
Sec. 12. (a) This section applies to a person who:
(1) performs work or labor such as:
(A) grading;
(B) building embankments;
(C) making excavations for track;
(D) building:
(i) bridges;
(ii) trestlework;
(iii) works of masonry;
(iv) fencing; or
(v) other structures; or
(E) performs work of any kind;
in the construction or repair of a railroad or part of a railroad inIndiana; or
(2) furnishes material for:
(A) a bridge, trestlework, work of masonry, fence, or otherstructure; or
(B) use in the construction or repair of a railroad or part ofa railroad;
in Indiana.
(b) The work, labor, or material described in subsection (a) maybe provided under a contract:
(1) with the railroad corporation building, repairing, or owningthe railroad; or
(2) with a person, corporation, or company engaged as:
(A) lessee;
(B) contractor;
(C) subcontractor; or
(D) agent;
of the railroad corporation in the work of constructing orrepairing the railroad or part of the railroad in Indiana.
(c) A person to whom this section applies may have a lien to theextent of the work or labor performed, or material furnished, or both,upon:
(1) the right-of-way and franchises of the railroad corporation;and
(2) the works and structures as set forth in this section that maybe upon the right-of-way and franchise of the railroadcorporation;
within the limits of the county in which the work or labor may beperformed or the material may be furnished.
(d) A person performing work or labor or furnishing materialsunder a contract described in subsection (b)(2) is not required to givenotice to the railroad corporation under section 9 of this chapter inorder to acquire and hold a lien for labor performed or materialfurnished under the provisions of this section. The performance ofthe labor or the furnishing of the materials is sufficient notice to therailroad corporation. A lien that is acquired as set forth in thissubsection shall be enforced as other mechanic's liens are enforced
in Indiana.
(e) A person who, in doing business with a railroad company, hasconstructed a building or other improvement on a portion of therailroad right-of-way adjacent to the person's place of business mayhave a lien to the extent of the fair market value of the improvementon that portion of the right-of-way. The lien may be acquired andenforced:
(1) upon abandonment of the right-of-way by the railroadcompany; and
(2) against the successors in title of the railroad company.
This subsection does not apply to property that is subject to a writtenagreement providing for the disposition of improvements uponabandonment. Liens acquired under this subsection shall be enforcedas other mechanic's liens are enforced in Indiana.
As added by P.L.2-2002, SEC.13.
IC 32-28-3-13
Notice of intention to hold lien
Sec. 13. A person who desires to acquire the lien provided for insection 12 of this chapter must give notice of the person's intentionto hold the lien by causing the notice to be recorded in the recorder'soffice of the county in which the work was done or materialfurnished in the same manner and within the same time as providedin this chapter for giving notice of a mechanic's lien. A person whogives notice within the proper time may enforce the lien in the samemanner as mechanic's liens are enforced. The suit must be broughtwithin one (1) year after the time the notice was filed in therecorder's office.
As added by P.L.2-2002, SEC.13.
IC 32-28-3-14
Attorney's fees
Sec. 14. (a) Except as provided in subsection (b), in an action toenforce a lien under this chapter, a plaintiff or lienholder whorecovers a judgment in any sum is entitled to recover reasonableattorney's fees. The court shall enter the attorney's fees as a part ofthe judgment.
(b) A plaintiff may not recover attorney's fees as part of thejudgment against a property owner in an action in which the contractconsideration for the labor, material, or machinery has been paid bythe property owner or party for whom the improvement has beenconstructed.
As added by P.L.2-2002, SEC.13. Amended by P.L.1-2007, SEC.211.
IC 32-28-3-15
Accepting payment for labor or materials subject to outstandingindebtedness
Sec. 15. A person who knowingly or intentionally:
(1) performs labor, supplies services, or furnishes material ormachinery in the: (A) construction;
(B) repair; or
(C) remodeling;
of a building, structure, or other work;
(2) accepts payment for the labor, services, material, ormachinery furnished and supplied;
(3) at the time of receiving the payment, knows that the personis indebted to another for:
(A) labor, including the cost of renting or leasingconstruction and other equipment and tools, whether or notan operator is also provided by the lessor;
(B) services;
(C) material; or
(D) machinery;
used or employed in the construction, repair, or remodeling;
(4) fails:
(A) at the time of receiving the payment; and
(B) with intent to defraud;
to notify in writing the person from whom the payment wasreceived of the existence of the outstanding indebtedness; and
(5) causes the person from whom the payment was received tosuffer a loss by failing under subdivision (4) to notify theperson of the existence of the outstanding indebtedness;
commits a Class D felony.
As added by P.L.2-2002, SEC.13.
IC 32-28-3-16
Waiver of right to a lien voiding contract
Sec. 16. (a) This section applies to a construction contract for theconstruction, alteration, or repair of a building or structure otherthan:
(1) a Class 2 structure (as defined in IC 22-12-1-5) or animprovement on the same real estate auxiliary to a Class 2structure (as defined in IC 22-12-1-5); or
(2) property that is:
(A) owned, operated, managed, or controlled by a publicutility (as defined in IC 8-1-2-1), a municipally owned utility(as defined in IC 8-1-2-1), a joint agency (as defined inIC 8-1-2.2-2), a rural electric membership corporationformed under IC 8-1-13-4, rural telephone cooperativecorporation formed under IC 8-1-17, or a not-for-profitutility (as defined in IC 8-1-2-125) regulated under IC 8; and
(B) intended to be used and useful for the production,transmission, delivery, or furnishing of heat, light, water,telecommunications services, or power to the public.
(b) A provision in a contract for the improvement of real estate inIndiana is void if the provision requires a person described in section1 of this chapter who furnishes labor, materials, or machinery towaive a right to:
(1) a lien against real estate; or (2) a claim against a payment bond;
before the person is paid for the labor or materials furnished.
(c) A provision in a contract for the improvement of real estate inIndiana under which one (1) or more persons agree not to file anotice of intention to hold a lien is void.
As added by P.L.2-2002, SEC.13. Amended by P.L.101-2002, SEC.7.
IC 32-28-3-17
Provision that contract subject to laws of another state void
Sec. 17. A provision in a contract for the improvement of realestate in Indiana is void if the provision:
(1) makes the contract subject to the laws of another state; or
(2) requires litigation, arbitration, or other dispute resolutionprocess on the contract occur in another state.
As added by P.L.2-2002, SEC.13.
IC 32-28-3-18
Receipt of payment from third person not limiting right to lien
Sec. 18. (a) This section applies to a provider of labor, materials,or equipment under a contract for the improvement of real estate thatconditions the right of the provider to receive payment on theobligor's receipt of payment from a third person with whom theprovider does not have a contractual relationship.
(b) This section does not apply to a construction contract for theconstruction, alteration, or repair of the following:
(1) A Class 2 structure (as defined in IC 22-12-1-5).
(2) An improvement on the same real estate auxiliary to a Class2 structure (as defined in IC 22-12-1-5).
(3) Property that is:
(A) owned, operated, managed, or controlled by a:
(i) public utility (as defined in IC 8-1-2-1);
(ii) municipally owned utility (as defined in IC 8-1-2-1);
(iii) joint agency (as defined in IC 8-1-2.2-2);
(iv) rural electric membership corporation formed underIC 8-1-13-4;
(v) rural telephone cooperative corporation formed underIC 8-1-17; or
(vi) not-for-profit utility (as defined in IC 8-1-2-125);
regulated under IC 8; and
(B) intended to be used and useful for the production,transmission, delivery, or furnishing of heat, light, water,telecommunications services, or power to the public.
(c) An obligor's receipt of payment from a third person may not:
(1) be a condition precedent to;
(2) limit; or
(3) be a defense to;
the provider's right to record or foreclose a lien against the real estatethat was improved by the provider's labor, material, or equipment.
As added by P.L.2-2002, SEC.13. Amended by P.L.101-2002, SEC.8.