Sec. 5. (a) As used in this section, "lender" refers to:
(1) an individual;
(2) a supervised financial organization (as defined in IC 26-1-4-102.5);
(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.
(d) The mortgage of a lender has priority over all liens created under this chapter 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 IC 8-1-13-4;
(v) a rural communications 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.
[Pre-2002 Recodification Citation: 32-8-3-5.]
As added by P.L.2-2002, SEC.13. Amended by P.L.101-2002, SEC.6; P.L.35-2010, SEC.207; P.L.81-2020, SEC.19.
Structure Indiana Code
Article 28. Liens on Real Property
32-28-3-0.2. Application of Certain Amendments to Prior Law
32-28-3-2. Extent of Lien; Leased or Mortgaged Land
32-28-3-3. Notice of Intention to Hold Lien; Filing
32-28-3-4. Validity of Certain Notices of Intention to Hold Lien
32-28-3-5. Recording Notice; Priority of Lien
32-28-3-6. Enforcement of Lien
32-28-3-7. Sale to Satisfy Lien; Consolidation of Actions
32-28-3-8. Insufficient Proceeds of Sale
32-28-3-9. Subcontractor's, Journeyman's, or Laborer's Liens; Notice; Actions
32-28-3-11. Undertaking to Pay Judgment and Cost
32-28-3-12. Railroads; Labor and Materials; Lien
32-28-3-13. Notice of Intention to Hold Lien
32-28-3-15. Accepting Payment for Labor or Materials Subject to Outstanding Indebtedness
32-28-3-16. Waiver of Right to a Lien Voiding Contract
32-28-3-17. Provision That Contract Subject to Laws of Another State Void
32-28-3-18. Receipt of Payment From Third Person Not Limiting Right to Lien