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 rentsand profits arising from real estate.
(b) Unless a mortgage specifically provides that the mortgageeshall have possession of the mortgaged premises, the mortgagee isnot 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 forthe payment of the sum intended to be secured by the mortgage so asto enable the mortgagee or the mortgagee's assignees orrepresentatives to maintain an action for the recovery of this sum. Ifan express covenant is not contained in the mortgage for the paymentand a bond or other separate instrument to secure the payment hasnot been given, the remedy of the mortgagee is confined to the realproperty 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 representativemay not require a mortgagor, as a condition of receiving ormaintaining a mortgage, to obtain hazard insurance coverage againstrisks to improvements on the mortgaged property in an amountexceeding 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 havingthe legal effect of a mortgage, may not authorize the mortgagee tosell the mortgaged property. The sale of mortgaged property by themortgagee 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 purchasemoney 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 toC.D." (here describe the premises) "to secure the repayment of"(here recite the sum for which the mortgage is granted, or thenotes or other evidences of debt, or a description of the debtsought 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'sheirs, assigns, executors, and administrators, with warranty from thegrantor (as defined in IC 32-17-1-1) and the grantor's legalrepresentatives of perfect title in the grantor and against all previousencumbrances. However, if in the mortgage form the words "andwarrant" 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 beenrecorded has received full payment from the mortgagor of the sumspecified in the mortgage, the mortgagee shall, at the request of themortgagor, enter in the record of the mortgage that the mortgage hasbeen satisfied. An entry in the record showing that a mortgage hasbeen satisfied operates as a complete release and discharge of themortgage.
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, dulyacknowledged by the mortgagee or the mortgagee's lawful agent, asrequired for the acknowledgment of conveyances to entitle them tobe recorded. The certificate and acknowledgment shall be recordedby the recorder in whose office the mortgage is recorded, with areference to the location of the record of the mortgage. The recordedcertificate discharges and releases the mortgagor from the mortgage(or portion of the mortgage as indicated in a partial satisfaction), andbars 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 mortgagemay be assigned by the mortgagee or any assignee of the mortgage,either by an assignment entered on the margin of the record, signedby the person making the assignment and attested by the recorder, orby a separate instrument executed and acknowledged before anyperson authorized to take acknowledgments, and recorded in the
mortgage records of the county. The county recorder shall note theassignment in the margin by reference to the location where theassignment is recorded.
(b) The signature of a person on an assignment under subsection(a) may be a facsimile. The facsimile on the assignment is equivalentto and constitutes the written signature of the person for allrequirements regarding mortgage assignments.
(c) Notwithstanding subsection (a), marginal assignments may beaccepted at the discretion of the recorder. Except in a county thataccepts marginal assignments of mortgage, an assignment ofmortgage must be recorded on a separate written instrument from themortgage. If a recorder accepts marginal assignments of mortgage,an instrument presented for recording in that county may not containmore than one (1) assignment. If a recorder allows an instrument tocontain more than one (1) assignment, the fee for recording thatinstrument is provided in IC 36-2-7-10(b)(3).
(d) After entry is made of record, the mortgagor and all otherpersons are bound by the record, and the entry is a public record.Any assignee may enter satisfaction or release of the mortgage, or thepart 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 lawrelating to the foreclosure of mortgages to the state, so far as theprovisions 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 andadvances; future modifications, extensions, and renewals ofindebtedness; priority of lien
Sec. 10. (a) In addition to any other obligation secured by amortgage, a mortgage may also secure:
(1) future obligations and advances up to the maximum amountstated in the mortgage (whether made as an obligation, made atthe option of the lender, made after a reduction to a zero (0) orother balance, or made otherwise) to the same extent as if thefuture obligations and advances were made on the date ofexecution of the mortgage; and
(2) future modifications, extensions, and renewals of anyindebtedness or obligations secured by the mortgage if and tothe extent that the mortgage states that the mortgage securesthose 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 entitledunder 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 profitsarising from real estate;
(2) the right of an assignee, a mortgagee, or a pledgee to collectrents and profits for application in accordance with anassignment, a mortgage, or a pledge; or
(3) the power of a court of equity to appoint a receiver to takecharge of real estate to collect rents and profits for applicationin accordance with an assignment, a mortgage, or a pledge.
(b) A person may enforce an assignment, a mortgage, or a pledgeof rents and profits arising from real property:
(1) whether the person has or does not have possession of thereal 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 andprofits 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 beimposed on the holder of the assignment, mortgage, or pledge.
(d) Except for those instances involving liens defined inIC 32-28-3-1, a mortgagee seeking equitable subrogation with respectto 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 overwhich the mortgagee seeks to assert priority;
(2) the lien for which the mortgagee seeks to be subrogated wasreleased; or
(3) the mortgagee obtained a title insurance policy.
(e) Subsection (d) does not apply to a municipal sewer lien underIC 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.