Assignment, mortgage, or pledge of rents and profits as security;
recording; immediate perfection
Sec. 2. (a) This section applies to an instrument regardless of
when the instrument was recorded, except that this section does not
divest rights that vested before May 1, 1993.
(b) An assignment, a mortgage, or a pledge of rents and profits
arising from real estate that is intended as security, whether
contained in a separate instrument or otherwise, must be recorded
under section 1 of this chapter.
(c) When an assignment, a mortgage, or a pledge of rents and
profits is recorded under subsection (b), the security interest of the
assignee, mortgagee, or pledgee is immediately perfected as to the
assignor, mortgagor, pledgor, and any third parties:
(1) regardless of whether the assignment, mortgage, or pledge
is operative:
(A) immediately;
(B) upon the occurrence of a default; or
(C) under any other circumstances; and
(2) without the holder of the security interest taking any further
action.
(d) This section does not apply to security interests in:
(1) farm products;
(2) accounts or general intangibles arising from or relating to
the sale of farm products by a farmer;
(3) timber to be cut; or
(4) minerals or the like (including oil and gas);
that may be perfected under IC 26-1-9.1.
As added by P.L.2-2002, SEC.6.
Last modified: May 24, 2006