Sec. 18. (a) This section applies to a provider of labor, materials, or equipment under a contract for the improvement of real estate that conditions the right of the provider to receive payment on the obligor’s receipt of payment from a third person with whom the provider does not have a contractual relationship.

     (b) This section does not apply to a construction contract for the construction, alteration, or repair of the following:

contract signature

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Terms Used In Indiana Code 32-28-3-18

  • Contract: A legal written agreement that becomes binding when signed.
  • Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
  • Lien: A claim against real or personal property in satisfaction of a debt.
  • Precedent: A court decision in an earlier case with facts and law similar to a dispute currently before a court. Precedent will ordinarily govern the decision of a later similar case, unless a party can show that it was wrongly decided or that it differed in some significant way.
  • Property: includes personal and real property. See Indiana Code 1-1-4-5
(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 a:

(i) public utility (as defined in IC 8-1-2-1);

(ii) municipally owned utility (as defined in IC 8-1-2-1);

(iii) joint agency (as defined in IC 8-1-2.2-2);

(iv) rural electric membership corporation formed under IC 8-1-13-4;

(v) rural communications cooperative corporation formed under IC 8-1-17; or

(vi) 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.

     (c) An obligor’s receipt of payment from a third person may not:

(1) be a condition precedent to;

(2) limit; or

(3) be a defense to;

the provider’s right to record or foreclose a lien against the real estate that was improved by the provider’s labor, material, or equipment.

[Pre-2002 Recodification Citation: 32-8-3-18.]

As added by P.L.2-2002, SEC.13. Amended by P.L.101-2002, SEC.8; P.L.81-2020, SEC.21.

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