Sec. 2. (a) This section applies if:

(1) the mortgagor or another person having the right to demand the release of a mortgage or lien makes a written demand, sent by registered or certified mail with return receipt requested, to the owner, holder, or custodian to release, discharge, and satisfy of record the mortgage, mechanic’s lien, judgment, or other lien; and

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Terms Used In Indiana Code 32-28-1-2

  • Attorney: includes a counselor or other person authorized to appear and represent a party in an action or special proceeding. See Indiana Code 1-1-4-5
  • Damages: Money paid by defendants to successful plaintiffs in civil cases to compensate the plaintiffs for their injuries.
  • Judgment: means all final orders, decrees, and determinations in an action and all orders upon which executions may issue. See Indiana Code 1-1-4-5
  • Jurisdiction: (1) The legal authority of a court to hear and decide a case. Concurrent jurisdiction exists when two courts have simultaneous responsibility for the same case. (2) The geographic area over which the court has authority to decide cases.
  • Lien: A claim against real or personal property in satisfaction of a debt.
  • Mortgage: The written agreement pledging property to a creditor as collateral for a loan.
  • Mortgagor: The person who pledges property to a creditor as collateral for a loan and who receives the money.
  • Plaintiff: The person who files the complaint in a civil lawsuit.
(2) the owner, holder, or custodian fails, neglects, or refuses to release, discharge, and satisfy of record the mortgage, mechanic’s lien, judgment, or other lien as required under section 1 of this chapter not later than fifteen (15) days after the date the owner, holder, or custodian receives the written demand.

     (b) An owner, holder, or custodian shall forfeit and pay to the mortgagor or other person having the right to demand the release of the mortgage or lien:

(1) a sum not to exceed five hundred dollars ($500) for the failure, neglect, or refusal of the owner, holder, or custodian to:

(A) release;

(B) discharge; and

(C) satisfy of record the mortgage or lien; and

(2) costs and reasonable attorney‘s fees incurred in enforcing the release, discharge, or satisfaction of record of the mortgage or lien.

     (c) If the court finds in favor of a plaintiff who files an action to recover damages under subsection (b), the court shall award the plaintiff the costs of the action and reasonable attorney’s fees as a part of the judgment.

     (d) The court may appoint a commissioner and direct the commissioner to release and satisfy the mortgage, mechanic’s lien, judgment, or other lien. The costs incurred in connection with releasing and satisfying the mortgage, mechanic’s lien, judgment, or other lien shall be taxed as a part of the costs of the action.

     (e) The owner, holder, or custodian, by virtue of having recorded the mortgage, mechanic’s lien, judgment, or other lien in Indiana, submits to the jurisdiction of the courts of Indiana as to any action arising under this section.

[Pre-2002 Recodification Citation: 32-8-1-2.]

As added by P.L.2-2002, SEC.13.