Citations Affected: IC 32-29.
Synopsis: Equitable subrogation. Provides that a mortgagee may not
be denied equitable subrogation solely because the mortgagee is a
lender and had constructive notice of the intervening lien, the lien was
released, or the mortgagee obtained title insurance.
Effective: July 1, 2003.
January 9, 2003, read first time and referred to Committee on Insurance and Financial
Institutions.
February 27, 2003, reported favorably _ Do Pass.
A BILL FOR AN ACT to amend the Indiana Code concerning
property.
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