HOUSE BILL No. 1612
DIGEST OF INTRODUCED BILL
Citations Affected: IC 32-28-3-5.
Synopsis: Mechanic's liens. Provides that a mechanic's lien has
priority over a mortgage or a lien for the development, construction,
alteration, or repair of certain property.
Effective: July 1, 2007.
January 23, 2007, read first time and referred to Committee on Judiciary.
First Regular Session 115th General Assembly (2007)
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HOUSE BILL No. 1612
A BILL FOR AN ACT to amend the Indiana Code concerning
Be it enacted by the General Assembly of the State of Indiana:
SOURCE: IC 32-28-3-5; (07)IN1612.1.1. -->
SECTION 1. IC 32-28-3-5 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2007]: Sec. 5. (a) As used in this
section, "lender" refers to:
(1) an individual;
(2) a supervised financial organization (as defined in
(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 intention
to hold a lien when presented under section 3 of this chapter in the
miscellaneous record book. The recorder shall charge a fee for
recording 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 the
mechanic or other person began to perform the labor or furnish the
materials or machinery. Except as provided in subsections (c) and (d),
a lien created under this chapter has priority over a lien created after it.
(c) The lien of a mechanic or materialman does not have priority
over the lien of another mechanic or materialman.
The mortgage of a lender has priority over
All liens created
under this chapter have priority over the mortgage of a lender or
that are recorded after the date the mortgage was recorded, to the extent
of the funds actually owed to the lender for the specific project to
which the lien rights relate. This subsection does not apply to
a lien that
relates to a construction contract for the development, 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 Class
2 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 under
(v) a rural telephone cooperative corporation formed under
IC 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.