Bill Text: IN HB1079 | 2013 | Regular Session | Amended
Bill Title: Mortgages and vendor's liens on real property.
Spectrum: Bipartisan Bill
Status: (Passed) 2013-05-13 - Public Law 18 [HB1079 Detail]
Download: Indiana-2013-HB1079-Amended.html
Citations Affected: IC 32-28.
Synopsis: Mortgages and vendor's liens on real property. Provides that
if the record of a mortgage or vendor's lien that was created before July
1, 2012, does not show the due date of the last installment, the
mortgage or vendor's lien expires 20 years (instead of 10 years under
current law) after the date of execution of the mortgage or vendor's
lien. Provides that if: (1) the record of a mortgage or vendor's lien does
not show the due date of the last installment; (2) the execution date is
omitted from the mortgage or vendor's lien; and (3) the mortgage or
vendor's lien was created before July 1, 2012; the mortgage or vendor's
lien expires 20 years (instead of 10 years under current law) after the
mortgage or vendor's lien is recorded. Makes exceptions to the
expiration period if a foreclosure action is brought not later than the
expiration period. Makes corresponding changes in the provision that
allows the mortgagee or lienholder to file an affidavit stating when the
debt becomes due. Removes language that prohibits a person from
maintaining an action to foreclose a mortgage or enforce a vendor's lien
if the last installment of the debt secured by the mortgage or vendor's
lien has been due more than 10 years.
Effective: July 1, 2012 (retroactive).
January 7, 2013, read first time and referred to Committee on Financial Institutions.
January 17, 2013, amended, reported _ Do Pass.
PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana Constitution) is being amended, the text of the existing provision will appear in this style type, additions will appear in this style type, and deletions will appear in
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A BILL FOR AN ACT to amend the Indiana Code concerning
property.
(b) An action may not be brought
SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2012 (RETROACTIVE)]: Sec. 2. (a) Except as provided in
section 3 of this chapter, if the record of a mortgage or vendor's lien
described in section 1 of this chapter does not show when the debt or
the last installment of the debt secured by the mortgage or vendor's
lien becomes due, the following apply:
(1) If the mortgage or vendor's lien was created before July 1,
2012, the mortgage or vendor's lien expires twenty (20) years
after the date on which the mortgage or vendor's lien was
executed unless an action to foreclose is brought not later than
twenty (20) years after the date on which the mortgage or
vendor's lien was executed.
(2) If the mortgage or vendor's lien was created after June 30,
2012, the mortgage or vendor's lien expires ten (10) years after
the date on which the mortgage or vendor's lien is was executed
unless an action to foreclose is brought or maintained not later
than ten (10) years after the date on which the mortgage or
vendor's lien was executed.
(b) If:
(1) the record of a mortgage or vendor's lien described in
section 1 of this chapter does not show when the debt or the
last installment of the debt secured by the mortgage or
vendor's lien becomes due;
(2) the date of execution has been omitted in the mortgage or
vendor's lien; and
(3) the mortgage or vendor's lien was created before July 1,
2012;
the mortgage or vendor's lien expires twenty (20) years after the
date on which the mortgage or vendor's lien was recorded unless
an action to foreclose is brought not later than twenty (20) years
after the date on which the mortgage or vendor's lien was
recorded.
(b) (c) If:
(1) the record of a mortgage or vendor's lien described in section
1 of this chapter does not show when the debt or the last
installment of the debt secured by the mortgage or vendor's lien
becomes due; and
(2) the date of execution has been omitted in a the mortgage or
vendor's lien; and
(3) the mortgage or vendor's lien was created after June 30,
2012;
the mortgage or vendor's lien expires ten (10) years after the date on
which the mortgage or vendor's lien is was recorded unless an action
to foreclose is brought or maintained not later than ten (10) years after
the date on which the mortgage or vendor's lien was recorded.
(c) (d) Upon the request of the owner of record of real estate
encumbered by a mortgage or vendor's lien that has expired under this
section, the recorder of the county in which the real estate is situated
shall certify on the record that the mortgage or vendor's lien is fully
paid and satisfied by lapse of time, and the real estate is released from
the mortgage or vendor's lien.
(1) the original mortgagee;
(2) the owner of the mortgage; or
(3) the owner of a vendor's lien;
may file an affidavit with the recorder of the county where the mortgage or vendor's lien is recorded, stating when the debt becomes due.
(b) An affidavit must be filed under this section not later than the following:
(1) If the mortgage or vendor's lien was created before July 1, 2012, not later than twenty (20) years after:
(A) the date on which the mortgage or vendor's lien was executed; or
(B) if the mortgage or vendor's lien does not contain the date on which the mortgage or vendor's lien was executed, the date on which the mortgage or vendor's lien was recorded.
(2) If the mortgage or vendor's lien was created after June 30, 2012, ten (10) years after the date of execution of the mortgage or vendor's lien, or, if the mortgage or vendor's lien contains no date of execution, not later than ten (10) years from the date the mortgage or vendor's lien was recorded.
Upon the filing of the affidavit, the recorder shall note in the record of the mortgage or vendor's lien that an affidavit has been filed, showing the location where the affidavit is recorded.
within which an action may be brought or maintained to foreclose the
mortgage or vendor's lien as though the time of maturity of the debt or
the last installment of the debt secured by the mortgage or vendor's lien
had been stated in the mortgage or vendor's lien when recorded. The
affidavit is prima facie evidence of the truth of the averments contained
in the affidavit.
(d) The lien of a A mortgage or vendor's lien on the real estate
described in the affidavit expires as follows:
(1) If the mortgage or vendor's lien was created before July 1,
2012, twenty (20) years after the date on which the debt or the
last installment of the debt secured by the mortgage or
vendor's lien becomes due, as shown by the affidavit.
(2) If the mortgage or vendor's lien was created after June 30,
2012, ten (10) years after the time when the debt or the last
installment of the debt secured by the mortgage or vendor's lien
becomes due, as shown by the affidavit.
Upon the expiration of a mortgage or vendor's lien as described in this
section and at the request of the real estate owner, the recorder of the
county in which the affidavit is recorded shall certify on the record of
the mortgage or vendor's lien that the mortgage or vendor's lien is fully
paid and satisfied by lapse of time and that the real estate is released
from the mortgage or vendor's lien.
(c) (e) The recorder shall charge a fee for filing the affidavit in
accordance with the fee schedule established in IC 36-2-7-10.