AN ACT to amend the Indiana Code concerning property and to make an
appropriation.
Be it enacted by the General Assembly of the State of Indiana:
(1) A person authorized to make loans or extensions of credit
under state or federal laws that is subject to regulation and
supervision under state or federal laws, or a lender approved by
the United States Secretary of Housing and Urban Development
for participation in a mortgage insurance program under the
federal National Housing Act (12 U.S.C. 1701 et seq.).
(2) A bank or savings association or a subsidiary of a bank or
savings association that has deposits or accounts that are eligible
for insurance by the Federal Deposit Insurance Corporation.
(3) A credit union doing business in Indiana.
(4) A nonprofit organization exempt from taxation under Section
501(c)(3) of the Internal Revenue Code.
(5) A person licensed as a real estate broker under IC 25-34.1 if
the person is acting within the course and scope of the person's license.
(6) A person admitted to the practice of law in Indiana if the
person is acting within the course and scope of the person's
practice as an attorney.
(7) A broker-dealer registered with the Securities and Exchange
Commission or the Commodity Futures Trading Commission if
the broker-dealer is acting within the course and scope of the
broker-dealer's regulation.
(8) A consumer reporting agency (as defined in the Federal Fair
Credit Reporting Act (15 U.S.C. 1681 et seq.)).
SECTION 2. IC 24-5-15-3 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2006]: Sec. 3. As used in this
chapter, "extension of credit" means the right to:
(1) defer payment of debt or offered or granted primarily for
personal, family, or household purposes;
(2) incur debt and defer payment of the debt offered or granted
primarily for personal, family, or household purposes; or
(3) delay or avoid foreclosure on a buyer's residence.
SECTION 3. IC 24-5-15-5 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2006]: Sec. 5. The following are
deceptive acts:
(1) To charge or receive money or other valuable consideration
before the complete performance of services that a credit services
organization has agreed to perform for or on behalf of a
consumer, unless the credit services organization has under
section 8 of this chapter:
(A) obtained a surety bond issued by a surety company
admitted to do business in Indiana; or
AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2006]:
Chapter 3.6. Title Insurance Enforcement Fund
Sec. 1. The title insurance enforcement fund is established for
the following purposes:
(1) To provide supplemental funding for department
operations that are related to title insurance.
(2) To pay the costs of hiring and employing staff in the area
of enforcement of title insurance law.
Sec. 2. The title insurance enforcement fund shall be
administered by the commissioner. The expenses of administering
the title insurance enforcement fund shall be paid from money in
the fund.
Sec. 3. The treasurer of state shall invest the money in the fund
not currently needed to meet the obligations of the fund in the same
manner as other public money may be invested.
Sec. 4. Money in the fund at the end of a state fiscal year does
not revert to the state general fund.
Sec. 5. The budget agency may augment the appropriation for
the department of insurance from balances in the fund.
Sec. 6. The following shall be deposited in the title insurance
enforcement fund:
(1) Policy reporting fees remitted by title insurers to the
commissioner under section 7 of this chapter.
(2) All fines, monetary penalties, and costs imposed upon
persons by the department as authorized by law for violation
of IC 27-7-3.5.
(3) Other amounts remitted to the commissioner or the
department that are required by law to be deposited into the
title insurance enforcement fund.
Sec. 7. (a) A person that purchases a title insurance policy shall
pay to the title insurer that issues the title insurance policy a fee of
five dollars ($5) as a fee for the title insurance enforcement fund at
the time of payment for the title insurance policy.
(b) A title insurer shall:
(1) retain two dollars ($2) of the fee collected under subsection
(a) as an administrative fee; and
(2) pay to the department three dollars ($3) of the fee
collected under subsection (a) for deposit in the title insurance
enforcement fund.
SECTION 6. IC 32-21-1-17 IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 17. A conveyance of land may incorporate
by reference a recorded covenant, restriction, easement, or other
encumbrance on the use of the land with a clause that is
substantially similar to either of the following:
(1) "Subject to the __________ (insert the type of
encumbrance) recorded on _____ (insert the date of
recording) in ___________ (insert the book and page number
on which the encumbrance is recorded or the instrument
number in which the encumbrance is recorded).".
(2) "Subject to ___________ (insert the type of encumbrance)
of record.".
SECTION 7. IC 32-21-7-1 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JANUARY 1, 2006 (RETROACTIVE)]:
Sec. 1. In any suit to establish title to land or real estate, possession of
the land or real estate is not adverse to the owner in a manner as to
establish title or rights in and to the land or real estate unless the
adverse possessor or claimant pays and discharges all taxes and special
assessments that the adverse possessor or claimant reasonably
believes in good faith to be due on the land or real estate during the
period the adverse possessor or claimant claims to have possessed the
land or real estate adversely. However, this section does not relieve any
adverse possessor or claimant from proving all the elements of title by
adverse possession required by law.
SECTION 8. IC 33-37-6-2 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2006]: Sec. 2. (a) A payment made
under this chapter does not finally discharge the person's liability, and
the person has not paid the liability until the clerk receives payment or
credit from the institution responsible for making the payment or credit.
(b) The clerk may contract with a bank or credit card vendor for
acceptance of bank or credit cards. However, Subject to subsection
(d), if there is a vendor transaction charge or discount fee, whether
billed to the clerk or charged directly to the clerk's account, the clerk
shall collect a credit card service fee equal to the vendor transaction
charge or discount fee from the person using the bank or credit card.
shall collect a fee from the person using the bank card or credit
card. The fee collected under this section is a permitted additional
charge to the money the clerk is required to collect under section 1(1)
of this chapter.
(c) Subject to subsection (d), the clerk may contract with a
payment processing company, which may collect a transaction fee
from the person using the bank card or credit card. The fee
collected under this section is a permitted additional charge to the
money the clerk is required to collect under section 1(1) of this
chapter.
(d) The clerk shall collect and deposit in the appropriate fund an
amount not less than the amount the clerk would collect and
deposit if the clerk received payment by a means other than a bank
card or credit card.
SECTION 9. IC 36-2-7-10 IS AMENDED TO READ AS FOLLOW
[EFFECTIVE JULY 1, 2006]: Sec. 10. (a) The county recorder shall
tax and collect the fees prescribed by this section for recording, filing,
copying, and other services the recorder renders, and shall pay them
into the county treasury at the end of each calendar month. The fees
prescribed and collected under this section supersede all other
recording fees required by law to be charged for services rendered by
the county recorder.
(b) The county recorder shall charge the following:
(1) Six dollars ($6) for the first page and two dollars ($2) for each
additional page of any document the recorder records if the pages
are not larger than eight and one-half (8 ½) inches by fourteen
(14) inches.
(2) Fifteen dollars ($15) for the first page and five dollars ($5) for
each additional page of any document the recorder records, if the
pages are larger than eight and one-half (8 ½) inches by fourteen
(14) inches.
(3) For attesting to the release, partial release, or assignment of
any mortgage, judgment, lien, or oil and gas lease contained on a
multiple transaction document, the fee for each transaction after
the first is the amount provided in subdivision (1) plus the amount
provided in subdivision (4) and one dollar ($1) for marginal
mortgage assignments or marginal mortgage releases.
(4) One dollar ($1) for each cross-reference of a recorded
document.
(5) One dollar ($1) per page not larger than eight and one-half (8
1/2) inches by fourteen (14) inches for furnishing copies of
records produced by a photographic process, and two dollars ($2)
per page that is larger than eight and one-half (8 1/2) inches by
fourteen (14) inches.
(6) Five dollars ($5) for acknowledging or certifying to a
document.
(7) Five dollars ($5) for each deed the recorder records, in
addition to other fees for deeds, for the county surveyor's corner
perpetuation fund for use as provided in IC 32-19-4-3 or
IC 36-2-12-11(e).
(8) A fee in an amount authorized under IC 5-14-3-8 for
transmitting a copy of a document by facsimile machine.
(9) A fee in an amount authorized by an ordinance adopted by the
county legislative body for duplicating a computer tape, a
computer disk, an optical disk, microfilm, or similar media. This
fee may not cover making a handwritten copy or a photocopy or
using xerography or a duplicating machine.
(10) A supplemental fee of three dollars ($3) for recording a
document that is paid at the time of recording. The fee under this
subdivision is in addition to other fees provided by law for
recording a document.
(11) Three dollars ($3) for each mortgage on real estate recorded,
in addition to other fees required by this section, distributed as
follows:
(A) Fifty cents ($0.50) is to be deposited in the recorder's
record perpetuation fund.
(B) Two dollars and fifty cents ($2.50) is to be distributed to
the auditor of state on or before June 20 and December 20 of
each year as provided in IC 24-9-9-3.
(c) The county recorder shall charge a two dollar ($2) county
identification security protection fee for recording or filing a
document. This fee shall be deposited under IC 36-2-7.5-6.
(c) (d) The county treasurer shall establish a recorder's records
perpetuation fund. All revenue received under subsection (b)(5), (b)(8),
(b)(9), and (b)(10), and fifty cents ($0.50) from revenue received under
subsection (b)(11), shall be deposited in this fund. The county recorder
may use any money in this fund without appropriation for the
preservation of records and the improvement of record keeping systems
and equipment.
(d) (e) As used in this section, "record" or "recording" includes the
functions of recording, filing, and filing for record.
(e) (f) The county recorder shall post the fees set forth in subsection
(b) in a prominent place within the county recorder's office where the
fee schedule will be readily accessible to the public.
(f) (g) The county recorder may not tax or collect any fee for:
(1) recording an official bond of a public officer, a deputy, an
appointee, or an employee; or
(2) performing any service under any of the following:
county recorder to bulk users.
(g) Except as provided by subsection (h), the county recorder shall
charge bulk users the following for bulk form copies:
(1) Five cents ($0.05) per page for a recorded document,
including the index of the instrument number or book and page,
or both, for retrieving the recorded document.
(2) Five cents ($0.05) per recorded document for a copy of the
other indices used by the county recorder for finding, retrieving,
and viewing a recorded document.
(h) As used in this subsection, "actual cost" does not include labor
costs or overhead costs. The county recorder may charge a fee that
exceeds the amount established by subsection (g) if the actual cost of
providing the bulk form copies exceeds the amount established by
subsection (g). However, the total amount charged for the bulk form
copies may not exceed the actual cost plus one cent ($0.01) of
providing the bulk form copies.
(i) The county recorder shall provide bulk users with bulk form
copies in the format or medium in which the county recorder maintains
the recorded documents and indices. If the county recorder maintains
the recorded documents and indices in more than one (1) format or
medium, the bulk user may select the format or medium in which the
bulk user shall receive the bulk form copies. If the county recorder
maintains the recorded documents and indices for finding, retrieving,
and viewing the recorded documents in an electronic or a digitized
format, a reasonable effort shall be made to provide the bulk user with
bulk form copies in a standard, generally acceptable, readable format.
Upon request of the bulk user, the county recorder shall provide the
bulk form copies to the bulk user within a reasonable time after the
recorder's archival process is completed and bulk form copies become
available in the office of the county recorder.
(j) Bulk form copies under this section may be used:
(1) in the ordinary course of the business of the bulk user; and
(2) by customers of the bulk user.
The bulk user may charge its customers a fee for using the bulk form
copies obtained by the bulk user. However, bulk form copies obtained
by a bulk user under this section may not be resold.
(k) All revenue generated by the county recorder under this section
shall be deposited in the recorder's record perpetuation fund and used
by the recorder in accordance with IC 36-2-7-10(c). section 10(c) of
this chapter.
(l) This section does not apply to enhanced access under
IC 5-14-3-3.
SECTION 11. IC 36-2-7.5-1.5 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE UPON PASSAGE]: Sec. 1.5. This chapter does not
apply to a federal lien on real property or federal tax lien on
personal property as described in IC 36-2-11-25.
SECTION 12. IC 36-2-7.5-2, AS ADDED BY P.L.91-2005,
SECTION 3, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 2. As used in this chapter, "redacting
technology" refers to technology that has the ability to:
(1) search recorded and filed documents; and
(2) redact Social Security numbers from recorded and filed
documents.
SECTION 13. IC 36-2-7.5-4, AS ADDED BY P.L.91-2005,
SECTION 3, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 4. A document may not be submitted to the
county recorder for recording or filing if the document contains the
Social Security number of an individual, unless required by law.
SECTION 14. IC 36-2-7.5-5, AS ADDED BY P.L.91-2005,
SECTION 3, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 5. (a) An individual preparing a document for
recording or filing shall affirm, under the penalties for perjury, that the
individual has:
(1) reviewed the entire document before submitting the document
for recording for the purpose of identifying and, to the extent
permitted by law, redacting all Social Security numbers; and
(2) taken reasonable care to redact each Social Security number
in the document.
(b) An individual shall make the affirmation required under
subsection (a) on a form prescribed by the state board of accounts.
make the affirmation and statement required by IC 36-2-11-15(c)
and IC 36-2-11-15(d).
SECTION 15. IC 36-2-7.5-6, AS ADDED BY P.L.91-2005,
SECTION 3, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 6. (a) A county recorder may not accept a
document for recording without the completed and executed form
described in section 5 of this chapter attached to the document. A form
attached to a document under this subsection is considered part of the
document for purposes of the fee charged under subsection (b) in
accordance with IC 36-2-7-10.
(b) (a) The county recorder shall charge a two dollar ($2) county
identification security protection fee for recording or filing a
document under this chapter in accordance with IC 36-2-7-10. addition
to the fees required by IC 36-2-7-10(b)(1) through
IC 36-2-7-10(b)(11).
(c) (b) The county recorder shall deposit two dollars ($2) of the fee
charged under subsection (b) (a) in the county identification security
protection fund established by section 11 of this chapter. This
subsection expires July 1, 2011.
SECTION 16. IC 36-2-7.5-7, AS ADDED BY P.L.91-2005,
SECTION 3, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 7. The state board of accounts shall establish
reasonable procedures for a county recorder to follow:
(1) when receiving and reviewing a document submitted for
recording or filing; and
(2) in order to comply with this chapter.
SECTION 17. IC 36-2-7.5-8, AS ADDED BY P.L.91-2005,
SECTION 3, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2006 (RETROACTIVE)]: Sec. 8. (a) This section
applies after December 31, 2007.
(b) To the extent possible, practicable and as permitted by law,
a county recorder may not disclose a recorded or filed document for
public inspection under IC 5-14-3 until the county recorder has:
(1) searched the document for a Social Security number; and
(2) to the extent possible, practicable, redacted any Social
Security numbers contained in the document;
using redacting technology.
SECTION 18. IC 36-2-7.5-9, AS ADDED BY P.L.91-2005,
SECTION 3, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 9. A county recorder shall post a notice in the
county recorder's office that states the:
(1) duties of:
(A) an individual preparing or reviewing a document for
recording or filing; and
(B) the county recorder;
under this chapter; and
(2) penalties under section 12 of this chapter.
SECTION 19. IC 36-2-7.5-11, AS ADDED BY P.L.91-2005,
SECTION 3, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 11. (a) As used in this section, "fund" refers
to a county identification security protection fund established under
subsection (b).
note the release as a partial lien release.
(f) A federal lien on real property and a federal tax lien on
personal property are not subject to the:
(1) requirement to redact Social Security numbers as
described in IC 36-2-7.5-1.5; or
(2) requirements to include statements in a recorded or filed
instrument as described in section 15(c) and 15(d) of this
chapter.
SECTION 23. IC 36-2-11-27 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2006]: Sec. 27. (a) A payment to the county
recorder for any purpose may be made by any of the following
financial instruments that the county recorder authorizes to use:
(1) Cash.
(2) Check.
(3) Bank draft.
(4) Money order.
(5) Bank card or credit card.
(6) Electronic funds transfer.
(7) Any other financial instrument authorized by the county
recorder.
(b) If there is a charge to the county recorder for the use of a
financial instrument other than a bank card or credit card, the
county recorder shall collect a sum equal to the amount of the
charge from the person who uses the financial instrument.
(c) The county recorder may contract with a bank card or credit
card vendor for acceptance of bank cards or credit cards. A
payment made under this chapter does not finally discharge the
person's liability, and the person has not paid the liability until the
county recorder receives payment or credit from the institution
responsible for making the payment or credit. Subject to
subsection (e), if there is a vendor transaction card or discount fee,
whether billed to the county recorder or charged directly to the
county recorder's account, the county recorder shall collect a fee
from the person using the bank card or credit card. The fee is a
permitted charge under IC 24-4.5-3-202.
(d) Subject to subsection (e), the county recorder may contract
with a payment processing company, which may collect a
transaction fee from the person using the bank card or credit card.
(e) The county recorder shall collect and deposit in the
appropriate fund an amount not less than the amount the county
recorder would collect and deposit if the county recorder received
payment by a means other than a bank card or credit card.
(f) Funds described in subsection (c) may be used without
appropriation to pay the transaction charge or discount fee
charged by the bank or credit card vendor.
SECTION 24. An emergency is declared for this act.
Date: