Obligations a mortgage may secure; future obligations and
advances; future modifications, extensions, and renewals of
indebtedness; priority of lien
Sec. 10. (a) In addition to any other obligation secured by a
mortgage, a mortgage may also secure:
(1) future obligations and advances up to the maximum amount
stated in the mortgage (whether made as an obligation, made at
the option of the lender, made after a reduction to a zero (0) or
other balance, or made otherwise) to the same extent as if the
future obligations and advances were made on the date of
execution of the mortgage; and
(2) future modifications, extensions, and renewals of any
indebtedness or obligations secured by the mortgage if and to
the extent that the mortgage states that the mortgage secures
those future advances, modifications, extensions, and renewals.
(b) The lien of a mortgage with respect to future advances,
modifications, extensions, and renewals referred to in subsection (a)
has the priority to which the mortgage otherwise would be entitled
under IC 32-21-4-1 without regard to the fact that the future advance,
modification, extension, or renewal may occur after the mortgage is
executed.
As added by P.L.2-2002, SEC.14.
Last modified: May 24, 2006