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.
Last modified: May 24, 2006