Citations Affected: IC 32-28.
Synopsis: Mortgages and liens on real property. Provides that if the
record of a mortgage or lien that was created before July 1, 2012, does
not show the due date of the last installment, the mortgage or lien
expires 20 years (instead of 10 years under current law) after the date
of execution of the mortgage or lien. Provides that if: (1) the record of
a mortgage or lien does not show the due date of the last installment;
(2) the execution date is omitted from the mortgage or lien; and (3) the
mortgage or lien was created before July 1, 2012; the mortgage or lien
expires 20 years (instead of 10 years under current law) after the
mortgage or 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 lien if the
last installment of the debt secured by the mortgage 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 31, 2013, amended, reported favorably _ Do Pass.
A BILL FOR AN ACT to amend the Indiana Code concerning
property.
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.
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.