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 ormortgage lien on an interest in real property in Indiana given tosecure a loan in the original principal amount of not more than onemillion 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 towhom 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 lastperson to whom a mortgagor or the mortgagor's successor in interesthas been instructed by a mortgagee to send payments on a loansecured by a mortgage. A person transmitting a payoff statement isthe mortgage servicer for the mortgage described in the payoffstatement.
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 ofa 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 astatement of the amount of:
(1) the unpaid balance of a loan secured by a mortgage,including principal, interest, and any other charges properly dueunder 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, acorporation, 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 thecounty 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" meansa corporation or other business entity authorized and licensed totransact the business of insuring titles to interests in real property inIndiana 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 companymay, on behalf of a mortgagor or a person who acquired from themortgagor a lien against all or part of the property described in amortgage, execute a certificate of release that complies with therequirements of this chapter and record the certificate of release inthe real property records of each county in which the mortgage isrecorded if:
(1) a satisfaction or release of the mortgage has not beenexecuted and recorded within sixty (60) days after the datepayment in full of the loan secured by the mortgage was sent inaccordance with a payoff statement furnished by the mortgageeor the mortgage servicer; and
(2) the title insurance company, an officer of the title insurancecompany, or an agent of the title insurance company has sent tothe last known address of the mortgagee or the mortgageservicer, at least thirty (30) days before executing the certificateof release, written notice of its intention to execute and recorda certificate of release in accordance with this section after theexpiration 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 mustcontain substantially all of the following:
(1) The name of the mortgagor, the name of the originalmortgagee 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 mortgagein the real property records where the mortgage is recorded,together with similar information for the last recordedassignment of the mortgage.
(2) A statement that the mortgage was in the original principalamount of not more than one million dollars ($1,000,000). (3) A statement that the person executing the certificate ofrelease is an officer or a duly appointed agent of a titleinsurance company authorized and licensed to transact thebusiness of insuring titles to interests in real property in Indianaunder IC 27.
(4) A statement that the certificate of release is made on behalfof the mortgagor or a person who acquired a lien from themortgagor against all or part of the property described in themortgage.
(5) A statement that the mortgagee or mortgage servicerprovided a payoff statement that was used to make payment infull of the unpaid balance of the loan secured by the mortgage.
(6) A statement that payment in full of the unpaid balance of theloan secured by the mortgage was made in accordance with thewritten or verbal payoff statement and received by themortgagee or mortgage servicer, as evidenced in the records ofthe 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 titleinsurance agent;
(D) an attorney trust account check that has been negotiatedby the mortgagee or mortgage servicer; or
(E) any other documentary evidence of payment to themortgagee or mortgage servicer.
(7) A statement indicating that more than sixty (60) days haveelapsed since the date payment in full was sent.
(8) A statement that after the expiration of the sixty (60) dayperiod referred to in section 9 of this chapter, the title insurancecompany, its officers, or its agent sent to the last known addressof the mortgagee or mortgage servicer, at least thirty (30) daysbefore executing the certificate of release, notice in writing ofits intention to execute and record a certificate of release asrequired under this section, with an unexecuted copy of theproposed certificate of release attached to the written notice.
(9) A statement that neither the title insurance company nor itsofficers or agent have received notification in writing of anyreason why the certificate of release should not be executed andrecorded after the expiration of the thirty (30) day notice periodreferred 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 beexecuted and acknowledged in the same manner as required by lawin 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 appointedagent of the title insurance company to execute certificates of releaseunder this chapter by recording a notice of authorization in the officeof the county recorder for each county in which the duly appointedagent is authorized to execute and record certificates of release onbehalf of the title insurance company. The notice of authorizationmust state the following:
(1) The name of the title insurance company that is authorizingan appointed agent to execute certificates of release on behalfof the title insurance company.
(2) The identity of the person who is an appointed agent of thetitle insurance company and who is authorized to execute andrecord certificates of release in accordance with therequirements of this chapter on behalf of the title insurancecompany.
(3) That the appointed agent has full authority to execute andrecord certificates of release in accordance with therequirements of this chapter on behalf of the title insurancecompany.
(b) The notice of authorization must be executed andacknowledged in the same manner as required by law in Indiana forthe execution and acknowledgment of a deed.
(c) A single notice of authorization recorded in the office of acounty recorder under this section constitutes the authority of theappointed agent to execute and record certificates of release in thatcounty on behalf of the title insurance company. A separate notice ofauthority is not required for each certificate of release recorded by anappointed agent.
(d) The authority granted to an appointed agent by a titleinsurance company under this section continues until a revocation ofthe notice of authorization is recorded in the office of the countyrecorder for the county in which the notice of authorization wasrecorded.
(e) The delegation of authority to an appointed agent by a titleinsurance company under this section does not relieve the titleinsurance company of any liability for damages for the wrongful orerroneous execution and recording of a certificate of release by theappointed 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 therelease of a mortgage if the written mortgage payoff statementmisstates the amount of the payoff and the written payoff is reliedupon in good faith by an independent closing agent withoutknowledge of the misstatement. It is not a misstatement if the writtenpayoff statement is not accurate as a result of a change incircumstances occurring after the issuance of the payoff statement.
The release of a mortgage does not affect the ability of the creditoror mortgage servicer to collect the full amount owed without regardto a misstatement in the written payoff statement and a release of themortgage.
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 mortgageservicer of an amount that is not sufficient to pay the amount oweddoes not constitute a waiver, release, accord and satisfaction, or otherimpairment of the creditors or mortgage servicers rightsnotwithstanding any contrary instructions or restrictiveendorsements.
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 recordedin accordance with the requirements of this chapter constitutes arelease of the mortgage described in that certificate of release, andthe county recorder shall enter and index the certificate of release inthe same manner that a release or satisfaction of mortgage is enteredand 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 orerroneous certificate of release by a title insurance company or aduly appointed agent with authority from a title insurance companydoes not relieve the mortgagor, or anyone succeeding to or assumingthe interest of the mortgagor, from any liability for the debt or otherobligations secured by the mortgage that is the subject of thewrongful or erroneous certificate of release.
(b) Additionally, a title insurance company or an appointed agentwith authority from a title insurance company that wrongfully orerroneously executes and records a certificate of release is liable tothe mortgagee, or the assignee of the mortgagee if the mortgage hasbeen assigned, for actual damages sustained due to the recording ofa 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 afterJune 30, 2001, regardless of when the mortgage was created orassigned.
As added by P.L.2-2002, SEC.14. Amended by P.L.48-2003, SEC.1and P.L.79-2003, SEC.1.