Bill Text: IN SB0279 | 2013 | Regular Session | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Nonnamed parties in foreclosure actions.

Spectrum: Bipartisan Bill

Status: (Passed) 2013-05-13 - Public Law 189 [SB0279 Detail]

Download: Indiana-2013-SB0279-Amended.html

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Reprinted

February 19, 2013

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SENATE BILL No. 279

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DIGEST OF SB 279 (Updated February 18, 2013 2:34 pm - DI 106)

Citations Affected: IC 32-29.

Synopsis: Nonnamed parties in foreclosure actions. Eliminates a provision under which certain omitted parties (parties who have an interest in the property subject to a mortgage foreclosure action but who are not named in the foreclosure action) are bound by the court's judgment in the foreclosure action as if they had been parties to the foreclosure action. Limits the post-sale redemption rights of certain omitted parties.

Effective: July 1, 2013.

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Zakas , Lanane, Tallian

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    January 8, 2013, read first time and referred to Committee on Civil Law.
    February 12, 2013, reported favorably _ Do Pass.
    February 18, 2013, read second time, amended, ordered engrossed.

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Reprinted

February 19, 2013

First Regular Session 118th General Assembly (2013)

PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana Constitution) is being amended, the text of the existing provision will appear in this style type, additions will appear in this style type, and deletions will appear in this style type.
Additions: Whenever a new statutory provision is being enacted (or a new constitutional provision adopted), the text of the new provision will appear in this style type. Also, the word NEW will appear in that style type in the introductory clause of each SECTION that adds a new provision to the Indiana Code or the Indiana Constitution.
Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts between statutes enacted by the 2012 Regular Session of the General Assembly.

SENATE BILL No. 279

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    A BILL FOR AN ACT to amend the Indiana Code concerning property.

Be it enacted by the General Assembly of the State of Indiana:

SOURCE: IC 32-29-8-2; (13)SB0279.2.1. -->     SECTION 1. IC 32-29-8-2, AS AMENDED BY P.L.130-2012, SECTION 5, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 2. A person who
        (1) is assigned a mortgage and fails to have the assignment properly placed on the mortgage record or
        (2) has an interest described in section 1 of this chapter and is not made a party to the foreclosure action as required by section 1 of this chapter;
is bound by the court's judgment or decree as if the person were a party to the suit.

SOURCE: IC 32-29-8-3; (13)SB0279.2.2. -->     SECTION 2. IC 32-29-8-3, AS AMENDED BY P.L.130-2012, SECTION 6, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 3. A person who:
        (1) purchases a mortgaged premises or any part of a mortgaged premises under the court's judgment or decree at a judicial sale or who claims title to the mortgaged premises under the judgment or decree; and

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        (2) buys the mortgaged premises or any part of the mortgaged premises without actual notice of
            (A) an assignment that is not of record; or
            (B) the transfer of a note, the holder of which is not a party to the action;
holds the premises free and discharged of the lien. However, any assignee or transferee may redeem the premises, like any other creditor, during the period of one (1) year after the sale or during another period ordered by the court in an action brought under section 4 of this chapter, but not exceeding ninety (90) days after the date of the court's decree in the action.