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IC 32-28-3
Chapter 3. Mechanic's Liens
IC
32-28-3-1
Mechanic's liens; persons to whom available; effect of contract
provisions; credit transactions; restrictions
Sec. 1. (a) A contractor, a subcontractor, a mechanic, a lessor
leasing construction and other equipment and tools, whether
or not an operator is also provided by the lessor, a journeyman,
a laborer, or any other person performing labor or furnishing
materials or machinery, including the leasing of equipment
or tools, for:
(1) the erection, alteration, repair, or removal of:
(A) a house, mill, manufactory, or other building; or
(B) a bridge, reservoir, system of waterworks, or other structure;
or
(2) the construction, alteration, repair, or removal of a
walk or sidewalk located on the land or bordering the land,
a stile, a well, a drain, a drainage ditch, a sewer, or a
cistern; or
(3) any other earth moving operation;
may have a lien as set forth in this section.
(b) A person described in subsection (a) may have a lien separately
or jointly upon the:
(1) house, mill, manufactory, or other building, bridge, reservoir,
system of waterworks, or other structure, sidewalk, walk,
stile, well, drain, drainage ditch, sewer, cistern, or earth:
(A) that the person erected, altered, repaired, moved, or
removed; or
(B) for which the person furnished materials or machinery
of any description; and
(2) on the interest of the owner of the lot or parcel of land:
(A) on which the structure or improvement stands; or
(B) with which the structure or improvement is connected;
to the extent of the value of any labor done or the material
furnished, or both, including any use of the leased equipment
and tools.
(c) All claims for wages of mechanics and laborers employed
in or about a shop, mill, wareroom, storeroom, manufactory
or structure, bridge, reservoir, system of waterworks or other
structure, sidewalk, walk, stile, well, drain, drainage ditch,
cistern, or any other earth moving operation shall be a lien
on all the:
(1) machinery;
(2) tools;
(3) stock;
(4) material; or
(5) finished or unfinished work;
located in or about the shop, mill, wareroom, storeroom, manufactory
or other building, bridge, reservoir, system of waterworks,
or other structure, sidewalk, walk, stile, well, drain, drainage
ditch, sewer, cistern, or earth used in a business.
(d) If the person, firm, limited liability company, or corporation
described in subsection (a) is in failing circumstances, the
claims described in this section shall be preferred debts
whether a claim or notice of lien has been filed.
(e) Subject to subsection (f), a contract for the construction,
alteration, or repair of:
(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); or
(3) property that is:
(A) owned, operated, managed, or controlled by a:
(i) public utility (as defined in IC 8-1-2-1);
(ii) municipally owned utility (as defined in IC 8-1-2-1);
(iii) joint agency (as defined in IC 8-1-2.2-2);
(iv) rural electric membership corporation formed under IC
8-1-13-4;
(v) rural telephone cooperative corporation formed under IC
8-1-17; or
(vi) 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;
may include a provision or stipulation in the contract of
the owner and principal contractor that a lien may not attach
to the real estate, building, structure or any other improvement
of the owner.
(f) A contract containing a provision or stipulation described
in subsection (e) must meet the requirements of this subsection
to be valid against subcontractors, mechanics, journeymen,
laborers, or persons performing labor upon or furnishing materials
or machinery for the property or improvement of the owner.
The contract must:
(1) be in writing;
(2) contain specific reference by legal description of the
real estate to be improved;
(3) be acknowledged as provided in the case of deeds; and
(4) be filed and recorded in the recorder's office of the
county in which the real estate, building, structure, or other
improvement is situated not more than five (5) days after
the date of execution of the contract.
A contract containing a provision or stipulation described
in subsection (e) does not affect a lien for labor, material,
or machinery supplied before the filing of the contract with
the recorder.
(g) Upon the filing of a contract under subsection (f), the
recorder shall:
(1) record the contract at length in the order of the time
it was received in books provided by the recorder for that
purpose;
(2) index the contract in the name of the:
(A) contractor; and
(B) owner;
in books kept for that purpose; and
(3) collect a fee for recording the contract as is provided
for the recording of deeds and mortgages.
(h) A person, firm, partnership, limited liability company,
or corporation that sells or furnishes on credit any material,
labor, or machinery for the alteration or repair of an owner
occupied single or double family dwelling or the appurtenances
or additions to the dwelling to:
(1) a contractor, subcontractor, mechanic; or
(2) anyone other than the occupying owner or the owner's legal
representative;
must furnish to the occupying owner of the parcel of land
where the material, labor, or machinery is delivered a written
notice of the delivery or work and of the existence of lien
rights not later than thirty (30) days after the date of first
delivery or labor performed. The furnishing of the notice
is a condition precedent to the right of acquiring a lien
upon the lot or parcel of land or the improvement on the lot
or parcel of land.
(i) A person, firm, partnership, limited liability company,
or corporation that sells or furnishes on credit material,
labor, or machinery for the original construction of a single
or double family dwelling for the intended occupancy of the
owner upon whose real estate the construction takes place
to a contractor, subcontractor, mechanic, or anyone other
than the owner or the owner's legal representatives must:
(1) furnish the owner of the real estate:
(A) as named in the latest entry in the transfer books described
in IC 6-1.1-5-4 of the county auditor; or
(B) if IC 6-1.1-5-9 applies, as named in the transfer books
of the township assessor;
with a written notice of the delivery or labor and the existence
of lien rights not later than sixty (60) days after the date
of the first delivery or labor performed; and
(2) file a copy of the written notice in the recorder's office
of the county not later than sixty (60) days after the date
of the first delivery or labor performed.
The furnishing and filing of the notice is a condition precedent
to the right of acquiring a lien upon the real estate or upon
the improvement constructed on the real estate.
(j) A lien for material or labor in original construction
does not attach to real estate purchased by an innocent purchaser
for value without notice of a single or double family dwelling
for occupancy by the purchaser unless notice of intention
to hold the lien is recorded under section 3 of this chapter
before recording the deed by which the purchaser takes title.
As added by P.L.2-2002, SEC.13. Amended by P.L.101-2002, SEC.5.
IC 32-28-3-2
Extent of lien; leased or mortgaged land
Sec. 2. (a) The entire land upon which the building, erection,
or other improvement is situated, including the part of the
land not occupied by the building, erection, or improvement,
is subject to a lien to the extent of the right, title, and
interest of the owner for whose immediate use or benefit the
labor was done or material furnished.
(b) If:
(1) the owner has only a leasehold interest; or
(2) the land is encumbered by mortgage;
the lien, so far as concerns the buildings erected by the
lienholder, is not impaired by forfeiture of the lease for
rent or foreclosure of mortgage. The buildings may be sold
to satisfy the lien and may be removed not later than ninety
(90) days after the sale by the purchaser.
As added by P.L.2-2002, SEC.13.
IC 32-28-3-3
Notice of intention to hold lien; filing
Sec. 3. (a) Except as provided in subsection (b), a person
who wishes to acquire a lien upon property, whether the claim
is due or not, must file in duplicate a sworn statement and
notice of the person's intention to hold a lien upon the property
for the amount of the claim:
(1) in the recorder's office of the county; and
(2) not later than ninety (90) days after performing labor
or furnishing materials or machinery described in section
1 of this chapter.
The statement and notice of intention to hold a lien may be
verified and filed on behalf of a client by an attorney registered
with the clerk of the supreme court as an attorney in good
standing under the requirements of the supreme court.
(b) This subsection applies to a person that performs labor
or furnishes materials or machinery described in section 1
of this chapter related to a Class 2 structure (as defined
in IC 22-12-1-5) or an improvement on the same real estate
auxiliary to a Class 2 structure (as defined in IC 22-12-1-5).
A person who wishes to acquire a lien upon property, whether
the claim is due or not, must file in duplicate a sworn statement
and notice of the person's intention to hold a lien upon the
property for the amount of the claim:
(1) in the recorder's office of the county; and
(2) not later than sixty (60) days after performing labor
or furnishing materials or machinery described in section
1 of this chapter.
The statement and notice of intention to hold a lien may be
verified and filed on behalf of a client by an attorney registered
with the clerk of the supreme court as an attorney in good
standing under the requirements of the supreme court.
(c) A statement and notice of intention to hold a lien filed
under this section must specifically set forth:
(1) the amount claimed;
(2) the name and address of the claimant;
(3) the owner's:
(A) name; and
(B) latest address as shown on the property tax records of
the county; and
(4) the:
(A) legal description; and
(B) street and number, if any;
of the lot or land on which the house, mill, manufactory or
other buildings, bridge, reservoir, system of waterworks,
or other structure may stand or be connected with or to which
it may be removed.
The name of the owner and legal description of the lot or
land will be sufficient if they are substantially as set forth
in the latest entry in the transfer books described in IC
6-1.1-5-4 of the county auditor or, if IC 6-1.1-5-9 applies,
the transfer books of the township assessor at the time of
filing of the notice of intention to hold a lien.
(d) The recorder shall:
(1) mail, first class, one (1) of the duplicates of the statement
and notice of intention to hold a lien to the owner named
in the statement and notice not later than three (3) business
days after recordation;
(2) post records as to the date of the mailing; and
(3) collect a fee of two dollars ($2) from the lien claimant
for each statement and notice that is mailed.
The statement and notice shall be addressed to the latest
address of the owner as specifically set out in the sworn
statement and notice of the person intending to hold a lien
upon the property.
As added by P.L.2-2002, SEC.13.
IC 32-28-3-4
Notice of intention to hold lien
Sec. 4. Any otherwise valid and enforceable statement and
notice of intention to hold a lien filed before March 10,
1967, is valid and enforceable.
As added by P.L.2-2002, SEC.13.
IC
32-28-3-5
Recording notice; priority of lien
Sec. 5. (a) As used in this section, "lender" refers
to:
(1) an individual;
(2) a supervised financial organization (as defined in IC
24-4.5-1-301);
(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 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.
As added by P.L.2-2002, SEC.13. Amended by P.L.101-2002, SEC.6.
IC 32-28-3-6
Enforcement of lien
Sec. 6. (a) A person may enforce a lien by filing a complaint
in the circuit or superior court of the county where the real
estate or property that is the subject of the lien is situated.
The complaint must be filed not later than one (1) year after:
(1) the date the statement and notice of intention to hold
a lien was recorded under section 3 of this chapter; or
(2) subject to subsection (c), the expiration of the credit,
if a credit is given.
(b) Except as provided in subsection (c), if a lien is not
enforced within the time set forth in subsection (a), the
lien is void.
(c) A credit does not extend the time for filing an action
to enforce the lien under subsection (a)(2) unless:
(1) the terms of the credit are in writing;
(2) the credit was executed by:
(A) the lienholder; and
(B) all owners of record; and
(3) the credit was recorded:
(A) in the same manner as the original statement and notice
of intention to hold a lien; and
(B) not later than one (1) year after the date the statement
and notice of intention to hold a lien was recorded.
(d) If the lien is foreclosed under this chapter, the court
rendering judgment shall order a sale to be made of the property
subject to the lien. The officers making the sale shall sell
the property without any relief from valuation or appraisement
laws.
As added by P.L.2-2002, SEC.13.
IC 32-28-3-7
Sale to satisfy lien; consolidation of actions
Sec. 7. (a) A person whose lien is recorded under this chapter
may be a party to an action to enforce a lien.
(b) The court may, by judgment, direct a sale of the land
and building for the satisfaction of the liens and costs.
The sale shall not prejudice the rights of:
(1) a prior encumbrance; or
(2) an owner or other person who is not a party to the action.
(c) If several actions are brought by different claimants
and are pending at the same time, the court may order the
actions to be consolidated.
As added by P.L.2-2002, SEC.13.
IC 32-28-3-8
Insufficient proceeds of sale
Sec. 8. If the proceeds of the sale of the property subject
to a lien are insufficient to pay all the claimants, the court
shall order the claimants to be paid in proportion to the
amount due each claimant.
As added by P.L.2-2002, SEC.13.
IC 32-28-3-9
Subcontractor's, journeyman's, or laborer's liens; notice;
actions
Sec. 9. (a) This section applies to a:
(1) subcontractor;
(2) lessor leasing construction and other equipment and tools,
regardless of whether an operator is also provided by the
lessor;
(3) journeyman; or
(4) laborer;
employed or leasing any equipment or tools used by the lessee
in erecting, altering, repairing, or removing any house, mill,
manufactory or other building, or bridge, reservoir, system
of waterworks, or other structure or earth moving, or in furnishing
any material or machinery for these activities.
(b) Except as provided in section 12 of this chapter, in order
to acquire and hold a lien, a person described in subsection
(a) must give to the property owner, or if the property owner
is absent, to the property owner's agent, written notice particularly
setting forth the amount of the person's claim and services
rendered for which:
(1) the person's employer or lessee is indebted to the person;
and
(2) the person holds the property owner responsible.
(c) Subject to subsections (d) and (e), the property owner
is liable for the person's claim.
(d) The property owner is liable to a person described in
subsection (a) for not more than the amount that is due and
may later become due from the owner to the employer or lessee.
(e) A person described in subsection (a) may recover the amount
of the person's claim if, after the amounts of other claims
that have priority are subtracted from the amount due from
the property owner to the employer or lessee, the remainder
of the amount due from the property owner to the employer
or lessee is sufficient to pay the amount of the person's
claim.
(f) This section applies to a person described in subsection
(a) who gives written notice, to the property owner or, if
the property owner is absent, to the owner's agent, before
labor is performed or materials or machinery is furnished.
The notice must particularly set forth the amount of:
(1) labor the person has contracted to perform; or
(2) materials or machinery the person has contracted to furnish;
for the employer or lessee in erecting, altering, repairing,
or removing any of the buildings or other structures described
in subsection (a). A person described in subsection (a) has
the same rights and remedies against the property owner for
the amount of the labor performed by the person or materials
or machinery furnished by the person after the notice is given,
as are provided in this chapter for persons who serve notice
after performing the labor or furnishing the materials or
machinery.
(g) If an action is brought against a property owner under
this section, all subcontractors, equipment lessors leasing
equipment, journeymen, and laborers who have:
(1) performed labor or furnished materials or machinery; and
(2) given notice under this section;
may become parties to the action. If, upon final judgment
against the property owner the amount recovered and collected
is not sufficient to pay the claimants in full, the amount
recovered and collected shall be divided among the claimants
pro rata.
As added by P.L.2-2002, SEC.13.
IC
32-28-3-10
Notice to commence suit; affidavit of service
Sec. 10. (a) A lien is void if both of the following occur:
(1) The owner of property subject to a mechanic's lien or
any person or corporation having an interest in the property,
including a mortgagee or a lienholder, provides written notice
to the owner or holder of the lien to file an action to foreclose
the lien.
(2) The owner or holder of the lien fails to file an action
to foreclose the lien in the county where the property is
located not later than thirty (30) days after receiving the
notice.
However, this section does not prevent the claim from being
collected as other claims are collected by law.
(b) A person who gives notice under subsection (a)(1) by registered
or certified mail to the lienholder at the address given in
the recorded statement and notice of intention to hold a lien
may file an affidavit of service of the notice to file an
action to foreclose the lien with the recorder of the county
in which the property is located. The affidavit must state
the following:
(1) The facts of the notice.
(2) That more than thirty (30) days have passed since the
notice was received by the lienholder.
(3) That no action for foreclosure of the lien is pending.
(4) That no unsatisfied judgment has been rendered on the
lien.
(c) The recorder shall:
(1) record the affidavit of service in the miscellaneous record
book of the recorder's office; and
(2) certify on the face of the record any lien that is fully
released.
When the recorder records the affidavit and certifies the
record under this subsection, the real estate described in
the lien is released from the lien.
As added by P.L.2-2002, SEC.13.
IC
32-28-3-11
Undertaking to pay judgment and cost
Sec. 11. (a) In an action to foreclose a lien:
(1) the defendant or owner of the property subject to the
lien; or
(2) any person having an interest in the property subject
to the lien, including a mortgagee or other lienholder;
may file in the action a written undertaking with surety to
be approved by the court.
(b) An undertaking filed under this section must provide that
the person filing it will pay any judgment that may be recovered
in the action to foreclose the lien, including costs and attorney's
fees allowed by the court, if the claim on which the judgment
is founded is found by the court to have been a lien on the
property at the time the action was filed.
(c) If an undertaking is filed and approved by the court:
(1) the court shall enter an order releasing the property
from the lien; and
(2) the property shall be discharged from the lien.
As added by P.L.2-2002, SEC.13.
IC
32-28-3-12
Railroads; labor and materials; lien
Sec. 12. (a) This section applies to a person who:
(1) performs work or labor such as:
(A) grading;
(B) building embankments;
(C) making excavations for track;
(D) building:
(i) bridges;
(ii) trestlework;
(iii) works of masonry;
(iv) fencing; or
(v) other structures; or
(E) performs work of any kind;
in the construction or repair of a railroad or part of a railroad
in Indiana; or
(2) furnishes material for:
(A) a bridge, trestlework, work of masonry, fence, or other
structure; or
(B) use in the construction or repair of a railroad or part
of a railroad;
in Indiana.
(b) The work, labor, or material described in subsection (a)
may be provided under a contract:
(1) with the railroad corporation building, repairing, or
owning the railroad; or
(2) with a person, corporation, or company engaged as:
(A) lessee;
(B) contractor;
(C) subcontractor; or
(D) agent;
of the railroad corporation in the work of constructing or
repairing the railroad or part of the railroad in Indiana.
(c) A person to whom this section applies may have a lien
to the extent of the work or labor performed, or material
furnished, or both, upon:
(1) the right-of-way and franchises of the railroad corporation;
and
(2) the works and structures as set forth in this section
that may be upon the right-of-way and franchise of the railroad
corporation;
within the limits of the county in which the work or labor
may be performed or the material may be furnished.
(d) A person performing work or labor or furnishing materials
under a contract described in subsection (b)(2) is not required
to give notice to the railroad corporation under section 9
of this chapter in order to acquire and hold a lien for labor
performed or material furnished under the provisions of this
section. The performance of the labor or the furnishing of
the materials is sufficient notice to the railroad corporation.
A lien that is acquired as set forth in this subsection shall
be enforced as other mechanic's liens are enforced in Indiana.
(e) A person who, in doing business with a railroad company,
has constructed a building or other improvement on a portion
of the railroad right-of-way adjacent to the person's place
of business may have a lien to the extent of the fair market
value of the improvement on that portion of the right-of-way.
The lien may be acquired and enforced:
(1) upon abandonment of the right-of-way by the railroad company;
and
(2) against the successors in title of the railroad company.
This subsection does not apply to property that is subject
to a written agreement providing for the disposition of improvements
upon abandonment. Liens acquired under this subsection shall
be enforced as other mechanic's liens are enforced in Indiana.
As added by P.L.2-2002, SEC.13.
IC 32-28-3-13
Notice of intention to hold lien
Sec. 13. A person who desires to acquire the lien provided
for in section 12 of this chapter must give notice of the
person's intention to hold the lien by causing the notice
to be recorded in the recorder's office of the county in which
the work was done or material furnished in the same manner
and within the same time as provided in this chapter for giving
notice of a mechanic's lien. A person who gives notice within
the proper time may enforce the lien in the same manner as
mechanic's liens are enforced. The suit must be brought within
one (1) year after the time the notice was filed in the recorder's
office.
As added by P.L.2-2002, SEC.13.
IC
32-28-3-14
Attorney's fees
Sec. 14. (a) Except as provided in subsection (b), in an action
to enforce a lien under this chapter, the plaintiff or lienholder
may recover reasonable attorney's fees as a part of the judgment.
(b) A plaintiff may not recover attorney's fees as part of
the judgment against a property owner in an action in which
the contract consideration for the labor, material, or machinery
has been paid by the property owner or party for whom the
improvement has been constructed.
As added by P.L.2-2002, SEC.13.
IC 32-28-3-15
Accepting payment for labor or materials subject to outstanding
indebtedness
Sec. 15. A person who knowingly or intentionally:
(1) performs labor, supplies services, or furnishes material
or machinery in the:
(A) construction;
(B) repair; or
(C) remodeling;
of a building, structure, or other work;
(2) accepts payment for the labor, services, material, or
machinery furnished and supplied;
(3) at the time of receiving the payment, knows that the person
is indebted to another for:
(A) labor, including the cost of renting or leasing construction
and other equipment and tools, whether or not an operator
is also provided by the lessor;
(B) services;
(C) material; or
(D) machinery;
used or employed in the construction, repair, or remodeling;
(4) fails:
(A) at the time of receiving the payment; and
(B) with intent to defraud;
to notify in writing the person from whom the payment was
received of the existence of the outstanding indebtedness;
and
(5) causes the person from whom the payment was received to
suffer a loss by failing under subdivision (4) to notify the
person of the existence of the outstanding indebtedness;
commits a Class D felony.
As added by P.L.2-2002, SEC.13.
IC
32-28-3-16
Waiver of right to a lien voiding contract
Sec. 16. (a) This section applies to a construction contract
for the construction, alteration, or repair of a building
or structure other than:
(1) a Class 2 structure (as defined in IC 22-12-1-5) or an
improvement on the same real estate auxiliary to a Class 2
structure (as defined in IC 22-12-1-5); or
(2) property that is:
(A) owned, operated, managed, or controlled by a public utility
(as defined in IC 8-1-2-1), a municipally owned utility (as
defined in IC 8-1-2-1), a joint agency (as defined in IC 8-1-2.2-2),
a rural electric membership corporation formed under IC 8-1-13-4,
rural telephone cooperative corporation formed under IC 8-1-17,
or 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.
(b) A provision in a contract for the improvement of real
estate in Indiana is void if the provision requires a person
described in section 1 of this chapter who furnishes labor,
materials, or machinery to waive a right to:
(1) a lien against real estate; or
(2) a claim against a payment bond;
before the person is paid for the labor or materials furnished.
(c) A provision in a contract for the improvement of real
estate in Indiana under which one (1) or more persons agree
not to file a notice of intention to hold a lien is void.
As added by P.L.2-2002, SEC.13. Amended by P.L.101-2002, SEC.7.
IC
32-28-3-17
Provision that contract subject to laws of another state void
Sec. 17. A provision in a contract for the improvement of
real estate in Indiana is void if the provision:
(1) makes the contract subject to the laws of another state;
or
(2) requires litigation, arbitration, or other dispute resolution
process on the contract occur in another state.
As added by P.L.2-2002, SEC.13.
IC 32-28-3-18
Receipt of payment from third person not limiting right to
lien
Sec. 18. (a) This section applies to a provider of labor,
materials, or equipment under a contract for the improvement
of real estate that conditions the right of the provider to
receive payment on the obligor's receipt of payment from a
third person with whom the provider does not have a contractual
relationship.
(b) This section does not apply to a construction contract
for the 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 a:
(i) public utility (as defined in IC 8-1-2-1);
(ii) municipally owned utility (as defined in IC 8-1-2-1);
(iii) joint agency (as defined in IC 8-1-2.2-2);
(iv) rural electric membership corporation formed under IC
8-1-13-4;
(v) rural telephone cooperative corporation formed under IC
8-1-17; or
(vi) 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.
(c) An obligor's receipt of payment from a third person may
not:
(1) be a condition precedent to;
(2) limit; or
(3) be a defense to;
the provider's right to record or foreclose a lien against
the real estate that was improved by the provider's labor,
material, or equipment.
As added by P.L.2-2002, SEC.13. Amended by P.L.101-2002, SEC.8. |
