First Regular Session 113th General Assembly (2003)
PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
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HOUSE ENROLLED ACT No. 1365
AN ACT to amend the Indiana Code concerning property.
Be it enacted by the General Assembly of the State of Indiana:
SOURCE: IC 32-29-1-11; (03)HE1365.1.1. -->
SECTION 1. IC 32-29-1-11, AS ADDED BY P.L.2-2002,
SECTION 14, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2003]: Sec. 11. (a) This chapter does not limit:
(1) the right to assign, mortgage, or pledge the rents and profits
arising from real estate;
(2) the right of an assignee, a mortgagee, or a pledgee to collect
rents and profits for application in accordance with an
assignment, a mortgage, or a pledge; or
(3) the power of a court of equity to appoint a receiver to take
charge of real estate to collect rents and profits for application in
accordance with an assignment, a mortgage, or a pledge.
(b) A person may enforce an assignment, a mortgage, or a pledge of
rents and profits arising from real property:
(1) whether the person has or does not have possession of the real
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 and
profits 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 be
imposed on the holder of the assignment, mortgage, or pledge.
(d) A mortgagee seeking equitable subrogation with respect to
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 over
which the mortgagee seeks to assert priority;
(2) the lien for which the mortgagee seeks to be subrogated
was released; or
(3) the mortgagee obtained a title insurance policy.
(e) Subsection (d) does not apply to a municipal sewer lien under
IC 36-9-23 or a mechanic's lien under IC 32-28-3-1.