Ind. Code § 26-1-9.1-208 — Indiana Code / Title 26 / Article 1 / Chapter 9.1 / Section 26-1-9.1-208
Additional duties of secured party having control of collateral
Status: in_force

Sec. 208. (a) This section applies to cases in which there is no outstanding secured obligation, and the secured party is not committed to make advances, incur obligations, or otherwise give value.

(b) Within ten (10) days after receiving a signed demand by the debtor:

(1) a secured party having control of a deposit account under IC 26-1-9.1-104(a)(2) shall send to the bank with which the deposit account is maintained a signed record that releases the bank from any further obligation to comply with instructions originated by the secured party;

(2) a secured party having control of a deposit account under IC 26-1-9.1-104(a)(3) shall:

(A) pay the debtor the balance on deposit in the deposit account; or

(B) transfer the balance on deposit into a deposit account in the debtor's name;

(3) a secured party, other than a buyer, having control under section 105 of this chapter of an authoritative electronic copy of a record evidencing chattel paper shall transfer control of the electronic copy to the debtor or a person designated by the debtor;

(4) a secured party having control of investment property under IC 26-1-8.1-106(d)(2) or IC 26-1-9.1-106(b) shall send to the securities intermediary or commodity intermediary with which the security entitlement or commodity contract is maintained a signed record that releases the securities intermediary or commodity intermediary from any further obligation to comply with entitlement orders or directions originated by the secured party;

(5) a secured party having control of a letter-of-credit right under IC 26-1-9.1-107 shall send to each person having an unfulfilled obligation to pay or deliver proceeds of the letter of credit to the secured party a signed release from any further obligation to pay or deliver proceeds of the letter of credit to the secured party;

(6) a secured party having control under IC 26-1-7-106 of an authoritative electronic copy of an electronic document of title shall transfer control of the electronic copy to the debtor or a person designated by the debtor; and

(7) a secured party having control under IC 26-1-12-105 of a controllable electronic record, other than a buyer of a controllable account or controllable payment intangible evidenced by the controllable electronic record, shall transfer control of the controllable electronic record to the debtor or a person designated by the debtor.

As added by P.L.57-2000, SEC.45. Amended by P.L.143-2007, SEC.68; P.L.199-2023, SEC.48.
Ind. Code § 26-3-7-16.8 — Indiana Code / Title 26 / Article 3 / Chapter 7 / Section 26-3-7-16.8
Liens on grain assets
Status: in_force

Sec. 16.8. (a) A lien against all grain assets of a licensee or a person who is required to be licensed under this chapter attaches in favor of the following:

(1) A lender or other claimant that has a receipt for grain owned or stored by the licensee.

(2) A claimant that has a ticket or written evidence, other than a receipt, of a storage obligation of the licensee.

(3) A claimant that surrendered a receipt as part of a grain sales transaction if:

(A) the claimant was not fully paid for the grain sold; and

(B) the licensee has had the licensee's license revoked less than twenty-one (21) days after the surrender of the receipt.

(4) A claimant that has other written evidence of a sale to the licensee of grain for which the claimant has not been fully paid.

(b) A lien under this section attaches and is effective at the earliest of the following:

(1) the delivery of the grain for sale, storage, or under a bailment;

(2) the commencement of the storage obligation; or

(3) the advancement of funds by a lender.

(c) A lien under this section terminates when the licensee discharges the claim.

(d) If a licensee has had the licensee's license revoked, the lien that attaches under this section is assigned to the agency by operation of this section. If a licensee whose license has been revoked is liquidated, a lien under this section continues to attach as a claim against the assets or proceeds of the assets of the licensee that are received or liquidated by the agency.

(e) Except as provided in subsection (h), if a licensee has had the licensee's license revoked, the power to enforce the lien on the licensee's grain assets transfers by operation of this section to the director and rests exclusively with the director who shall allocate and prorate the proceeds of the grain assets as provided in subsections (g) and (i).

(f) The lien established under this section has priority over all competing lien claims asserted against the licensee's grain assets.

(g) The priority of a lien that attaches under this section is not determined by the date on which the claim arose. If a licensee's license has been revoked, the director shall enforce lien claims and allocate grain assets and the proceeds of grain assets of the licensee in the following order of priority:

(1) First priority is assigned to the following:

(A) A lender or other claimant that has a receipt for grain owned or stored by the licensee.

(B) A claimant that has a ticket or written evidence, other than a receipt, of a storage obligation of the licensee.

(C) A claimant that surrendered a receipt as part of a grain sales transaction if:

(i) the claimant was not fully paid for the grain sold; and

(ii) the licensee has had the licensee's license revoked less than twenty-one (21) days after the surrender of the receipt.

If there are insufficient grain assets to satisfy all first priority claims, first priority claimants shall share pro rata in the assets.

(2) Second priority is assigned to all claimants who have written evidence of the sale of grain, such as a ticket, a deferred pricing agreement, or similar grain delivery contract, and who completed delivery less than thirty (30) days before the revocation of the licensee's license. Claimants under this subdivision share pro rata in the remaining assets if all claimants under subdivision (1) have been paid but insufficient assets remain to fully satisfy all claimants under this subdivision.

(3) Third priority is assigned to all other claimants that have written evidence of the sale of grain to the revoked license of the licensee. Claimants under this subdivision share pro rata in the distribution of the remaining grain assets.

(h) If a claimant under this section brings an action to recover grain assets that are subject to a lien under this section and the agency does not join the action, the director shall, upon request of the claimant, assign the lien to the claimant in order to allow the claimant to pursue the claim to the extent that the action does not delay the resolution of the matter by the agency, the prompt liquidation of the assets, or the ultimate distribution of assets to all claimants.

(i) If:

(1) a claimant engaged in farming operations granted to one (1) or more secured parties one (1) or more security interests in the grain related to the claimant's claim under this section; and

(2) one (1) or more secured parties described in subdivision (1) have given to:

(A) the licensee prior written notice of the security interest under IC 26-1-9.1-320(a)(1) or IC 26-1-9-307(1)(a) before its repeal; and

(B) the director prior written notice of the security interest with respect to the grain described in subdivision (1) sufficient to give the director a reasonable opportunity to cause the issuance of a joint check under this subsection;

the director shall pay the claimant described in subdivision (1) the portion of the proceeds of grain assets under subsection (e) to which the claimant is entitled under this section by issuance of a check payable jointly to the order of the claimant and any secured party described in subdivision (1) who has given the notices described in subdivision (2). If only one (1) secured party described in subdivision (1) is a payee, the rights of the secured party in the check shall be to the extent of the indebtedness of the claimant to the secured party. If two (2) or more secured parties described in subdivision (1) are payees, the nature, extent, and priority of their respective rights in the check are determined in the same manner as the nature, extent, and priority of their respective security interest under IC 26-1-9.1.

As added by P.L.125-1997, SEC.37. Amended by P.L.115-1999, SEC.1; P.L.173-1999, SEC.10; P.L.1-2002, SEC.101; P.L.75-2010, SEC.14; P.L.145-2017, SEC.8; P.L.114-2025, SEC.26.
Ind. Code § 26-1-1-207 — Indiana Code / Title 26 / Article 1 / Chapter 1 / Section 26-1-1-207
Performance or acceptance under reservation of rights
Status: reserved

Sec. 207. (1) A party who, with explicit reservation of rights, performs or promises performance or assents to performance in a manner demanded or offered by the other party does not thereby prejudice the rights reserved. Such words as "without prejudice", "under protest" or the like are sufficient.

(2) Subsection (1) does not apply to an accord and satisfaction.

Formerly: Acts 1963, c.317, s.1-207. As amended by P.L.222-1993, SEC.2.
Ind. Code § 26-1-9.1-309 — Indiana Code / Title 26 / Article 1 / Chapter 9.1 / Section 26-1-9.1-309
Security interest perfected upon attachment
Status: in_force

Sec. 309. The following security interests are perfected when they attach:

(1) A purchase-money security interest in consumer goods, except as otherwise provided in IC 26-1-9.1-311(b) with respect to consumer goods that are subject to a statute or treaty described in IC 26-1-9.1-311(a).

(2) An assignment of accounts or payment intangibles which does not by itself or in conjunction with other assignments to the same assignee transfer a significant part of the assignor's outstanding accounts or payment intangibles.

(3) A sale of a payment intangible.

(4) A sale of a promissory note.

(5) A security interest created by the assignment of a health-care-insurance receivable to the provider of the health-care goods or services.

(6) A security interest arising under IC 26-1-2-401, IC 26-1-2-505, IC 26-1-2-711(3), or IC 26-1-2.1-508(5), until the debtor obtains possession of the collateral.

(7) A security interest of a collecting bank arising under IC 26-1-4-210.

(8) A security interest of an issuer or nominated person arising under IC 26-1-5.1-118.

(9) A security interest arising in the delivery of a financial asset under IC 26-1-9.1-206(c).

(10) A security interest in investment property created by a broker or securities intermediary.

(11) A security interest in a commodity contract or a commodity account created by a commodity intermediary.

(12) An assignment for the benefit of all creditors of the transferor and subsequent transfers by the assignee thereunder.

(13) A security interest created by an assignment of a beneficial interest in a decedent's estate.

As added by P.L.57-2000, SEC.45.
Ind. Code § 26-1-4-203 — Indiana Code / Title 26 / Article 1 / Chapter 4 / Section 26-1-4-203
Effect of instructions
Status: in_force

Sec. 203. Subject to of IC 26-1-3.1-420 concerning conversion of instruments and the provisions of both IC 26-1-3.1 and IC 26-1-4 concerning restrictive endorsements (IC 26-1-3.1-206), only a collecting bank's transferor can give instructions that affect the bank or constitute notice to it, and a collecting bank is not liable to prior parties for any action taken pursuant to the instructions or in accordance with any agreement with its transferor.

Formerly: Acts 1963, c.317, s.4-203. As amended by P.L.152-1986, SEC.215; P.L.222-1993, SEC.19.
Ind. Code § 26-1-8.1-106 — Indiana Code / Title 26 / Article 1 / Chapter 8.1 / Section 26-1-8.1-106
Control by purchaser; certificated security, uncertificated security, or security entitlement; agreement by issuer or securities intermediary to comply with purchaser's orders or instructions
Status: in_force

Sec. 106. (a) A purchaser has "control" of a certificated security in bearer form if the certificated security is delivered to the purchaser.

(b) A purchaser has "control" of a certificated security in registered form if the certificated security is delivered to the purchaser, and:

(1) the certificate is endorsed to the purchaser or in blank by an effective endorsement; or

(2) the certificate is registered in the name of the purchaser, upon original issue or registration of transfer by the issuer.

(c) A purchaser has "control" of an uncertificated security if:

(1) the uncertificated security is delivered to the purchaser; or

(2) the issuer has agreed that it will comply with instructions originated by the purchaser without further consent by the registered owner.

(d) A purchaser has "control" of a security entitlement if:

(1) the purchaser becomes the entitlement holder;

(2) the securities intermediary has agreed that it will comply with entitlement orders originated by the purchaser without further consent by the entitlement holder; or

(3) another person, other than the transferor to the purchaser of an interest in the security entitlement:

(A) has control of the security entitlement and acknowledges that it has control on behalf of the purchaser; or

(B) obtains control of the security entitlement after having acknowledged that it will obtain control of the security entitlement on behalf of the purchaser.

(e) If an interest in a security entitlement is granted by the entitlement holder to the entitlement holder's own securities intermediary, the securities intermediary has control.

(f) A purchaser who has satisfied the requirements of subsection (c) or (d) has control even if the registered owner in the case of subsection (c) or the entitlement holder in the case of subsection (d) retains the right to make substitutions for the uncertificated security or security entitlement, to originate instructions or entitlement orders to the issuer or a securities intermediary, or otherwise to deal with the uncertificated security or security entitlement.

(g) An issuer or a securities intermediary may not enter into an agreement of the kind described in subsection (c)(2) or (d)(2) without the consent of the registered owner or entitlement holder, but an issuer or a securities intermediary is not required to enter into such an agreement even though the registered owner or entitlement holder so directs. An issuer or securities intermediary that has entered into such an agreement is not required to confirm the existence of the agreement to another party unless requested to do so by the registered owner or entitlement holder.

(h) A person that has control under this section is not required to acknowledge that it has control on behalf of a purchaser.

(i) If a person acknowledges that it has or will obtain control on behalf of a purchaser, unless the person otherwise agrees, or law other than this chapter or IC 26-1-9.1 otherwise provides, the person does not owe any duty to the purchaser and is not required to confirm the acknowledgment to any other person.

As added by P.L.247-1995, SEC.10. Amended by P.L.57-2000, SEC.40; P.L.199-2023, SEC.37.
Ind. Code § 26-1-2-303 — Indiana Code / Title 26 / Article 1 / Chapter 2 / Section 26-1-2-303
Allocation or division of risks
Status: in_force

Sec. 303. Where IC 26-1-2 allocates a risk or a burden as between the parties "unless otherwise agreed," the agreement may not only shift the allocation but may also divide the risk or burden.

Formerly: Acts 1963, c.317, s.2-303. As amended by P.L.152-1986, SEC.130.
Ind. Code § 26-1-9.1-341 — Indiana Code / Title 26 / Article 1 / Chapter 9.1 / Section 26-1-9.1-341
Bank's rights and duties with respect to deposit account subject to security interest
Status: in_force

Sec. 341. Except as otherwise provided in IC 26-1-9.1-340(c), and unless the bank otherwise agrees in a signed record, a bank's rights and duties with respect to a deposit account maintained with the bank are not terminated, suspended, or modified by:

(1) the creation, attachment, or perfection of a security interest in the deposit account;

(2) the bank's knowledge of the security interest; or

(3) the bank's receipt of instructions from the secured party.

As added by P.L.57-2000, SEC.45. Amended by P.L.199-2023, SEC.70.
Ind. Code § 26-3-8-1 — Indiana Code / Title 26 / Article 3 / Chapter 8 / Section 26-3-8-1
"Default"
Status: in_force

Sec. 1. As used in this chapter, "default" means the failure of a renter to perform, in a timely fashion, any duty imposed by section 10 of this chapter or by a rental agreement.

As added by P.L.265-1987, SEC.1.
Ind. Code § 26-1-3.1-119 — Indiana Code / Title 26 / Article 1 / Chapter 3.1 / Section 26-1-3.1-119
Notice of right to defend action
Status: in_force

Sec. 119. In an action for breach of an obligation for which a third person is answerable over pursuant to IC 26-1-3.1 or IC 26-1-4, the defendant may give the third person notice of the litigation in a record, and the person notified may then give similar notice to any other person who is answerable over. If the notice states:

(1) that the person notified may come in and defend; and

(2) that failure to do so will bind the person notified in an action later brought by the person giving the notice as to any determination of fact common to the two (2) litigations;

the person notified is so bound unless after reasonable receipt of the notice the person notified does come in and defend.

As added by P.L.222-1993, SEC.5. Amended by P.L.135-2009, SEC.5.
Ind. Code § 26-3-7-6.1 — Indiana Code / Title 26 / Article 3 / Chapter 7 / Section 26-3-7-6.1
Financial statement
Status: in_force

Sec. 6.1. (a) A financial statement submitted under this chapter must comply with the following:

(1) Be prepared by an independent accountant certified under IC 25-2.1.

(2) Comply with generally accepted United States accounting principles.

(3) Be at a review level or audit level.

(4) Contain:

(A) an income statement;

(B) a balance sheet;

(C) a statement of cash flow;

(D) a statement of retained earnings;

(E) the preparer's notes; and

(F) other information the agency requires.

(5) An aged accounts receivable listing detailing accounts that are ninety (90) days due, one hundred twenty (120) days due, and more than one hundred twenty (120) days due.

(6) A copy of the daily position record for the end of the licensee's fiscal year.

(b) If a person, an applicant, or a licensee is the subsidiary of a parent entity, and financial statements are not prepared by or for the person, applicant, or licensee in the ordinary course of business, the director may consider the following to be the equivalent of a review level or audit level financial statement, for purposes of this section:

(1) Either:

(A) a compilation level financial statement prepared in accordance with generally accepted United States accounting principles by an independent accountant certified under IC 25-2.1; or

(B) an audited or review level financial statement of the parent entity, current as of its most recent fiscal year end, that is in full compliance with the requirements of this section.

(2) An unconditional guaranty of the parent entity in the form required by the agency, with a term of at least one (1) year, under which the parent entity agrees without condition to satisfy in full any and all existing and future monetary obligations of the person, applicant, or licensee covered by all applicable licenses covered under this chapter.

(c) Except as provided in subsection (e), for any particular person, applicant, or licensee, the director may consider the following documents and materials, taken together, to be the equivalent of a compilation level, review level, or audit level financial statement for purposes of this section after making the determination required under subsection (b):

(1) Copies of state and federal tax returns for the person, applicant, or licensee, for the two (2) years before the most recent fiscal year of the person, applicant, or licensee.

(2) Copies of state and federal tax returns for the principals, members, shareholders, or other owners of or stakeholders in the person, applicant, or licensee.

(3) Current reports or similar accounting documents showing all outstanding payables and receivables, with each due date and party, including contact information.

(4) A business plan covering the next five (5) fiscal years of the person, applicant, or licensee and signed by a principal, member, shareholder, owner, or executive or other officer of the person, applicant, or licensee.

(5) A proposed agreement between the person, applicant, or licensee and the agency, in the form required by the agency, where the person, applicant, or licensee agrees to use certain risk management practices, which the director determines are necessary or appropriate under the circumstances, to mitigate the risk of loss by the person, applicant, or licensee in the futures or options market.

(6) Other documents or materials as the director may by rule identify.

(d) If a financial statement is required under this chapter, a person, applicant, or licensee may submit the equivalent of a review level or audit level financial statement under subsection (b) or (c) if the person, applicant, or licensee obtains preapproval from the director before the financial statement is or would be required to be submitted under this chapter and complies with the following:

(1) At least forty-five (45) days before the financial statement is or would be required to be submitted under this chapter, the person, applicant, or licensee submits to the director a letter regarding the financial statement requirement that includes the following:

(A) Identifies the person, applicant, or licensee submitting the letter and each section of this chapter that the person, applicant, or licensee is or will be required to submit a financial statement.

(B) Encloses all the documents and materials required under subsection (b) or (c).

(C) A detailed explanation regarding why, under the particular circumstances, the director should consider all the documents and materials required under subsection (b) or (c), as submitted, to be the equivalent of a review level or audit level financial statement.

(D) States whether the person, applicant, or licensee is seeking to submit the documents and materials required under subsection (b) or (c) only once, in perpetuity, or for some other set period.

(E) Sets forth contact information for the person, applicant, or licensee.

(2) Upon receipt by the director of a letter under subdivision (1), the director shall do the following:

(A) Conduct a review of the letter and its enclosures, including contacting the person, applicant, or licensee if necessary and reviewing any other documents, information, or other materials already available to the director.

(B) Determine whether the enclosures should be considered to be the equivalent of a review level or audit level financial statement under the circumstances and for the reasons set forth in the letter.

(C) Issue a notice of financial statement determination to the person, applicant, or licensee that sets forth the director's determination under clause (B), that includes the reasons under subdivision (3), and whether the determination will apply only once, in perpetuity, or for another set period, as determined by the director.

(3) In reviewing the letter and its enclosures to make the determination under subdivision (2)(A) and (2)(B), the director shall consider the following:

(A) Whether the documents and materials required under subsection (b) or (c), as submitted by the particular person, applicant, or licensee, adequately supply the director and the agency with sufficient information regarding the person, applicant, or licensee for the agency to perform its statutory functions under this chapter with respect to the person, applicant, or licensee.

(B) Whether it would be reasonable and appropriate for the director to continue to accept the documents and materials required under subsection (b) or (c) from the person, applicant, or licensee, in perpetuity or for some other set period, including, the length of the guaranty required under subsection (b)(2).

(4) Any letter under subdivision (1) and any response under subdivisions (2) and (3), including the director's determination under subdivisions (2)(B) and (3), applies only to the person, applicant, or licensee that submitted the letter under subdivision (1).

(e) The director may not accept documents and materials listed in subsection (c) to be the equivalent of a review level or audit level financial statement from a person, an applicant, or a licensee if the person, applicant, or licensee offers:

(1) deferred pricing;

(2) delayed payments; or

(3) contracts linked to the commodity futures or commodity options market in connection with grain purchases.

As added by P.L.64-2009, SEC.5. Amended by P.L.60-2015, SEC.8; P.L.134-2015, SEC.2; P.L.114-2025, SEC.11.
Ind. Code § 26-1-2-605 — Indiana Code / Title 26 / Article 1 / Chapter 2 / Section 26-1-2-605
Waiver of buyer's objections by failure to particularize
Status: in_force

Sec. 605. (1) The buyer's failure to state in connection with rejection a particular defect which is ascertainable by reasonable inspection precludes him from relying on the unstated defect to justify rejection or to establish breach:

(a) where the seller could have cured it if stated seasonably; or

(b) between merchants when the seller has after rejection made a request in writing for a full and final written statement of all defects on which the buyer proposes to rely.

(2) Payment against documents made without reservation of rights precludes recovery of the payment for defects apparent in the documents.

Formerly: Acts 1963, c.317, s.2-605. As amended by P.L.143-2007, SEC.17.
Ind. Code § 26-1-4.1-104 — Indiana Code / Title 26 / Article 1 / Chapter 4.1 / Section 26-1-4.1-104
Funds transfer—definitions
Status: in_force

Sec. 104. In IC 26-1-4.1:

(a) "Funds transfer" means the series of transactions, beginning with the originator's payment order, made for the purpose of making payment to the beneficiary of the order. The term includes any payment order issued by the originator's bank or an intermediary bank intended to carry out the originator's payment order. A funds transfer is completed by acceptance by the beneficiary's bank of a payment order for the benefit of the beneficiary of the originator's payment order.

(b) "Intermediary bank" means a receiving bank other than the originator's bank or the beneficiary's bank.

(c) "Originator" means the sender of the first payment order in a funds transfer.

(d) "Originator's bank" means (i) the receiving bank to which the payment order of the originator is issued if the originator is not a bank, or (ii) the originator if the originator is a bank.

As added by P.L.189-1991, SEC.4.
Ind. Code § 26-1-2-506 — Indiana Code / Title 26 / Article 1 / Chapter 2 / Section 26-1-2-506
Rights of financing agency
Status: in_force

Sec. 506. (1) A financing agency by paying or purchasing for value a draft which relates to a shipment of goods acquires to the extent of the payment or purchase and in addition to its own rights under the draft and any document of title securing it any rights of the shipper in the goods including the right to stop delivery and the shipper's right to have the draft honored by the buyer.

(2) The right to reimbursement of a financing agency which has in good faith honored or purchased the draft under commitment to or authority from the buyer is not impaired by subsequent discovery of defects with reference to any relevant document which was apparently regular.

Formerly: Acts 1963, c.317, s.2-506. As amended by P.L.143-2007, SEC.15.
Ind. Code § 26-1-12-104 — Indiana Code / Title 26 / Article 1 / Chapter 12 / Section 26-1-12-104
Rights of purchaser and qualifying purchaser in controllable accounts, controllable payment intangibles, and controllable electronic records; filing of financing statement ineffective as notice of claim of property right in controllable electronic record
Status: in_force

Sec. 104. (a) This section applies to the acquisition and purchase rights in a controllable account or a controllable payment intangible, including the rights and benefits under subsections (c), (d), (e), (g), and (h) of a purchaser and a qualifying purchaser, in the same manner that this section applies with respect to a controllable electronic record.

(b) For purposes of determining whether a purchaser of a controllable account or a controllable payment intangible is a qualifying purchaser, the purchaser obtains control of the account or the payment intangible if the purchaser obtains control of the controllable electronic record that evidences the account or the payment intangible.

(c) Except as provided in this section, law other than this chapter determines:

(1) whether a person acquires a right in a controllable electronic record; and

(2) the right the person acquires.

(d) A purchaser of a controllable electronic record acquires all rights in the controllable electronic record that the transferor had or had the power to transfer. However, a purchaser of a limited interest in a controllable electronic record acquires rights only to the extent of the interest purchased.

(e) A qualifying purchaser acquires the qualifying purchaser's rights in a controllable electronic record free of a claim of a property right in the controllable electronic record.

(f) Except as provided in subsections (a) and (e) with respect to a controllable account or a controllable payment intangible, or in law other than this chapter, a qualifying purchaser takes:

(1) a right to payment;

(2) a right to performance; or

(3) another interest in property;

that is evidenced by a controllable electronic record subject to a claim of a property right in the right to payment, right to performance, or other interest in property.

(g) An action may not be asserted against a qualifying purchaser based on both:

(1) a purchase by the qualifying purchaser of a controllable electronic record; and

(2) a claim of a property right in another controllable electronic record;

regardless of whether the action is framed in conversion, replevin, constructive trust, equitable lien, or another theory.

(h) The filing of a financing statement under IC 26-1-9.1 is not notice of a claim of property right in a controllable electronic record.

As added by P.L.199-2023, SEC.90.
Ind. Code § 26-1-8.1-503 — Indiana Code / Title 26 / Article 1 / Chapter 8.1 / Section 26-1-8.1-503
Property interests in financial assets; enforcement of property rights; purchasers for value
Status: in_force

Sec. 503. (a) To the extent necessary for a securities intermediary to satisfy all security entitlements with respect to a particular financial asset, all interests in that financial asset held by the securities intermediary are held by the securities intermediary for the entitlement holders, are not property of the securities intermediary, and are not subject to claims of creditors of the securities intermediary, except as otherwise provided in IC 26-1-8.1-511.

(b) An entitlement holder's property interest with respect to a particular financial asset under subsection (a) is a pro rata property interest in all interests in that financial asset held by the securities intermediary, without regard to the time the entitlement holder acquired the security entitlement or the time the securities intermediary acquired the interest in that financial asset.

(c) An entitlement holder's property interest with respect to a particular financial asset under subsection (a) may be enforced against the securities intermediary only by exercise of the entitlement holder's rights under IC 26-1-8.1-505 through IC 26-1-8.1-508.

(d) An entitlement holder's property interest with respect to a particular financial asset under subsection (a) may be enforced against a purchaser of the financial asset or interest therein only if:

(1) insolvency proceedings have been initiated by or against the securities intermediary;

(2) the securities intermediary does not have sufficient interests in the financial asset to satisfy the security entitlements of all of its entitlement holders to that financial asset;

(3) the securities intermediary violated its obligations under IC 26-1-8.1-504 by transferring the financial asset or interest therein to the purchaser; and

(4) the purchaser is not protected under subsection (e).

The trustee or other liquidator, acting on behalf of all entitlement holders having security entitlements with respect to a particular financial asset, may recover the financial asset, or interest therein, from the purchaser. If the trustee or other liquidator elects not to pursue that right, an entitlement holder whose security entitlement remains unsatisfied has the right to recover its interest in the financial asset from the purchaser.

(e) An action based on the entitlement holder's property interest with respect to a particular financial asset under subsection (a), whether framed in conversion, replevin, constructive trust, equitable lien, or other theory, may not be asserted against any purchaser of a financial asset or interest therein who gives value, obtains control, and does not act in collusion with the securities intermediary in violating the securities intermediary's obligations under IC 26-1-8.1-504.

As added by P.L.247-1995, SEC.10.
Ind. Code § 26-1-2-507 — Indiana Code / Title 26 / Article 1 / Chapter 2 / Section 26-1-2-507
Effect of seller's tender; delivery on condition
Status: in_force

Sec. 507. (1) Tender of delivery is a condition to the buyer's duty to accept the goods and, unless otherwise agreed, to his duty to pay for them. Tender entitles the seller to acceptance of the goods and to payment according to the contract.

(2) Where payment is due and demanded on the delivery to the buyer of goods or documents of title, his right as against the seller to retain or dispose of them is conditional upon his making the payment due.

Formerly: Acts 1963, c.317, s.2-507.
Ind. Code § 26-3-4-3 — Indiana Code / Title 26 / Article 3 / Chapter 4 / Section 26-3-4-3
Transfer of documents evidencing interest in goods under foreign warehouse receipt; form and contents; prohibition; exceptions
Status: in_force

Sec. 3. It shall be unlawful for any corporation, firm, limited liability company, or person, their agents or employees, to issue, sign, sell, pledge, assign or transfer, in this state, any receipt, certificate or other written instrument evidencing, or purporting to evidence, the sale, pledge, mortgage, or bailment of any goods, wares or merchandise stored or deposited, or claimed to be stored or deposited, in any warehouse, public or private, in any other state, unless such receipt, certificate or other written instrument shall plainly designate the number and location of such warehouse, and shall also set forth therein a full, true and complete copy of the receipt issued by the warehouseman operating such warehouse wherein such goods, wares, or merchandise are stored or deposited, or are claimed to be stored or deposited; however, the provisions of this section shall not apply to the issue, signing, sale, pledge, assignment, or transfer of bona fide warehouse receipt issued by the warehouseman operating public or bonded warehouses in other states according to the laws of the state wherein such warehouses may be located.

Formerly: Acts 1897, c.124, s.3. As amended by P.L.8-1993, SEC.407.
Ind. Code § 26-1-2-209 — Indiana Code / Title 26 / Article 1 / Chapter 2 / Section 26-1-2-209
Modification, rescission, and waiver
Status: in_force

Sec. 209. (1) An agreement modifying a contract within IC 26-1-2 needs no consideration to be binding.

(2) A signed agreement which excludes modification or rescission, except by a signed writing or another signed record, cannot be otherwise modified or rescinded, but except as between merchants such a requirement on a form supplied by the merchant must be separately signed by the other party.

(3) The requirements of the statute of frauds section (IC 26-1-2-201) must be satisfied if the contract as modified is within its provisions.

(4) Although an attempt at modification or rescission does not satisfy the requirements of subsection (2) or (3), it can operate as a waiver.

(5) A party who has made a waiver affecting an executory portion of the contract may retract the waiver by reasonable notification received by the other party that strict performance will be required of any term waived, unless the retraction would be unjust in view of a material change of position in reliance on the waiver.

Formerly: Acts 1963, c.317, s.2-209. As amended by P.L.152-1986, SEC.128; P.L.199-2023, SEC.9.
Ind. Code § 26-1-2.1-526 — Indiana Code / Title 26 / Article 1 / Chapter 2.1 / Section 26-1-2.1-526
Lessor's stoppage of delivery
Status: in_force

Sec. 526. (1) A lessor may stop delivery of goods in the possession of a carrier or other bailee if the lessor discovers the lessee to be insolvent and may stop delivery of carload, truckload, planeload, or larger shipments of express or freight if the lessee repudiates or fails to make a payment due before delivery, whether for rent, security, or otherwise under the lease contract, or for any other reason the lessor has a right to withhold or take possession of the goods.

(2) In pursuing its remedies under subsection (1), the lessor may stop delivery until:

(a) receipt of the goods by the lessee;

(b) acknowledgment to the lessee by any bailee of the goods, except a carrier, that the bailee holds the goods for the lessee; or

(c) such an acknowledgment to the lessee by a carrier via reshipment or as a warehouse.

(3)(a) To stop delivery, a lessor shall so notify as to enable the bailee by reasonable diligence to prevent delivery of the goods.

(b) After notification, the bailee shall hold and deliver the goods according to the directions of the lessor, but the lessor is liable to the bailee for any ensuing charges or damages.

(c) A carrier who has issued a nonnegotiable bill of lading is not obliged to obey a notification to stop received from a person other than the consignor.

As added by P.L.189-1991, SEC.3. Amended by P.L.143-2007, SEC.21.
Ind. Code § 26-1-9.1-316 — Indiana Code / Title 26 / Article 1 / Chapter 9.1 / Section 26-1-9.1-316
Continued perfection of security interest following change in governing law
Status: in_force

Sec. 316. (a) A security interest perfected pursuant to the law of the jurisdiction designated in IC 26-1-9.1-301(1), IC 26-1-9.1-305(c), IC 26-1-9.1-306.1(d), or IC 26-1-9.1-306.2(b) remains perfected until the earliest of:

(1) the time perfection would have ceased under the law of that jurisdiction;

(2) the expiration of four (4) months after a change of the debtor's location to another jurisdiction; or

(3) the expiration of one (1) year after a transfer of collateral to a person that thereby becomes a debtor and is located in another jurisdiction.

(b) If a security interest described in subsection (a) becomes perfected under the law of the other jurisdiction before the earliest time or event described in that subsection, it remains perfected thereafter. If the security interest does not become perfected under the law of the other jurisdiction before the earliest time or event, it becomes unperfected and is deemed never to have been perfected as against a purchaser of the collateral for value.

(c) A possessory security interest in collateral, other than goods covered by a certificate of title and as-extracted collateral consisting of goods, remains continuously perfected if:

(1) the collateral is located in one (1) jurisdiction and subject to a security interest perfected under the law of that jurisdiction;

(2) thereafter the collateral is brought into another jurisdiction; and

(3) upon entry into the other jurisdiction, the security interest is perfected under the law of the other jurisdiction.

(d) Except as otherwise provided in subsection (e), a security interest in goods covered by a certificate of title which is perfected by any method under the law of another jurisdiction when the goods become covered by a certificate of title from this state remains perfected until the security interest would have become unperfected under the law of the other jurisdiction had the goods not become so covered.

(e) A security interest described in subsection (d) becomes unperfected as against a purchaser of the goods for value and is deemed never to have been perfected as against a purchaser of the goods for value if the applicable requirements for perfection under IC 26-1-9.1-311(b) or IC 26-1-9.1-313 are not satisfied before the earlier of:

(1) the time the security interest would have become unperfected under the law of the other jurisdiction had the goods not become covered by a certificate of title from this state; or

(2) the expiration of four (4) months after the goods had become so covered.

(f) A security interest in chattel paper, controllable accounts, controllable electronic records, controllable payment intangibles, deposit accounts, letter-of-credit rights, or investment property which is perfected under the law of the chattel paper's jurisdiction, the controllable electronic record's jurisdiction, the bank's jurisdiction, the issuer's jurisdiction, a nominated person's jurisdiction, the securities intermediary's jurisdiction, or the commodity intermediary's jurisdiction, as applicable, remains perfected until the earlier of:

(1) the time the security interest would have become unperfected under the law of that jurisdiction; or

(2) the expiration of four (4) months after a change of the applicable jurisdiction to another jurisdiction.

(g) If a security interest described in subsection (f) becomes perfected under the law of the other jurisdiction before the earlier of the time or the end of the period described in that subsection, it remains perfected thereafter. If the security interest does not become perfected under the law of the other jurisdiction before the earlier of that time or the end of that period, it becomes unperfected and is deemed never to have been perfected as against a purchaser of the collateral for value.

(h) The following rules apply to collateral to which a security interest attaches within four (4) months after the debtor changes its location to another jurisdiction:

(1) A financing statement filed before the change under the law of the jurisdiction designated in IC 26-1-9.1-301(1) or IC 26-1-9.1-305(c) is effective to perfect a security interest in the collateral if the financing statement would have been effective to perfect a security interest in the collateral had the debtor not changed its location.

(2) If a security interest perfected by a financing statement that is effective under subdivision (1) becomes perfected under the law of the other jurisdiction before the earlier of the time the financing statement would have become ineffective under the law of the jurisdiction designated in IC 26-1-9.1-301(1) or IC 26-1-9.1-305(c) or the expiration of the four (4) month period, it remains perfected thereafter. If the security interest does not become perfected under the law of the other jurisdiction before the earlier time or event, it becomes unperfected and is deemed never to have been perfected as against a purchaser of the collateral for value.

(i) If a financing statement naming an original debtor is filed under the law of the jurisdiction designated in IC 26-1-9.1-301(1) or IC 26-1-9.1-305(c) and the new debtor is located in another jurisdiction, the following rules apply:

(1) The financing statement is effective to perfect a security interest in collateral acquired by the new debtor before, and within four (4) months after, the new debtor becomes bound under IC 26-1-9.1-203(d), if the financing statement would have been effective to perfect a security interest in the collateral had the collateral been acquired by the original debtor.

(2) A security interest perfected by the financing statement and which becomes perfected under the law of the other jurisdiction before the earlier of the time the financing statement would have become ineffective under the law of the jurisdiction designated in IC 26-1-9.1-301(1) or IC 26-1-9.1-305(c) or the expiration of the four (4) month period remains perfected thereafter. A security interest that is perfected by the financing statement but which does not become perfected under the law of the other jurisdiction before the earlier time or event becomes unperfected and is deemed never to have been perfected as against a purchaser of the collateral for value.

As added by P.L.57-2000, SEC.45. Amended by P.L.54-2011, SEC.7; P.L.199-2023, SEC.61.
Ind. Code § 26-4-1-7 — Indiana Code / Title 26 / Article 4 / Chapter 1 / Section 26-4-1-7
"Corporation"
Status: in_force

Sec. 7. "Corporation" means the Indiana grain indemnity corporation established by IC 26-4-3-1.

As added by P.L.250-1995, SEC.1.
Ind. Code § 26-2-8-202 — Indiana Code / Title 26 / Article 2 / Chapter 8 / Section 26-2-8-202
Acceptance and distribution of electronic records by governmental agencies
Status: in_force

Sec. 202. (a) Except as otherwise provided in section 111(f) of this chapter, each governmental agency shall determine whether, and the extent to which, it will send and accept electronic records and electronic signatures to and from other persons and otherwise create, generate, communicate, store, process, use, and rely upon electronic records and electronic signatures.

(b) To the extent that a governmental agency uses electronic records and electronic signatures under subsection (a), the governmental agency, giving due consideration to security, may specify:

(1) the manner and format in which the electronic records must be created, generated, sent, communicated, received, and stored and the systems established for such purposes;

(2) if electronic records must be electronically signed, the type of electronic signature required, the manner and format in which the electronic signature must be affixed to the electronic record, and the identity of, or criteria that must be met by, any third party used by a person filing a document to facilitate the process;

(3) control processes and procedures as appropriate to ensure adequate preservation, disposition, integrity, security, confidentiality, and auditability of electronic records; and

(4) any other required attributes for electronic records that are specified for corresponding nonelectronic records or reasonably necessary under the circumstances.

(c) Except as otherwise provided in section 111(f) of this chapter, this chapter does not require a governmental agency to use or permit the use of electronic records or electronic signatures.

As added by P.L.62-2000, SEC.1.
Ind. Code § 26-1-2.1-309 — Indiana Code / Title 26 / Article 1 / Chapter 2.1 / Section 26-1-2.1-309
Lessor's and lessee's rights when goods become fixtures
Status: in_force

Sec. 309. (1) In this section:

(a) goods are "fixtures" when they become so related to particular real estate that an interest in them arises under real estate law;

(b) a "fixture filing" is the filing, in the office where a mortgage on the real estate would be filed or recorded, of a financing statement covering goods that are or are to become fixtures and conforming to the requirements of IC 26-1-9.1-502(a) and IC 26-1-9.1-502(b);

(c) a lease is a "purchase money lease" unless the lessee has possession or use of the goods or the right to possession or use of the goods before the lease agreement is enforceable;

(d) a mortgage is a "construction mortgage" to the extent it secures an obligation incurred for the construction of an improvement on land including the acquisition cost of the land, if the recorded writing so indicates; and

(e) "encumbrance" includes real estate mortgages and other liens on real estate and all other rights in real estate that are not ownership interests.

(2) Under IC 26-1-2.1 a lease may be of goods that are fixtures or may continue in goods that become fixtures, but no lease exists under IC 26-1-2.1 of ordinary building materials incorporated into an improvement on land.

(3) IC 26-1-2.1 does not prevent creation of a lease of fixtures pursuant to real estate law.

(4) The perfected interest of a lessor of fixtures has priority over a conflicting interest of an encumbrancer or owner of the real estate if:

(a) the lease is a purchase money lease, the conflicting interest of the encumbrancer or owner arises before the goods become fixtures, the interest of the lessor is perfected by a fixture filing before the goods become fixtures or within ten (10) days thereafter, and the lessee has an interest of record in the real estate or is in possession of the real estate; or

(b) the interest of the lessor is perfected by a fixture filing before the interest of the encumbrancer or owner is of record, the lessor's interest has priority over any conflicting interest of a predecessor in title of the encumbrancer or owner, and the lessee has an interest of record in the real estate or is in possession of the real estate.

(5) The interest of a lessor of fixtures, whether or not perfected, has priority over the conflicting interest of an encumbrancer or owner of the real estate if:

(a) the fixtures are readily removable factory or office machines, readily removable equipment that is not primarily used or leased for use in the operation of the real estate, or readily removable replacements of domestic appliances that are goods subject to a consumer lease, and before the goods become fixtures the lease contract is enforceable; or

(b) the conflicting interest is a lien on the real estate obtained by legal or equitable proceedings after the lease contract is enforceable; or

(c) the encumbrancer or owner has consented in writing to the lease or has disclaimed an interest in the goods as fixtures; or

(d) the lessee has a right to remove the goods as against the encumbrancer or owner. If the lessee's right to remove terminates, the priority of the interest of the lessor continues for a reasonable time.

(6) Notwithstanding subsection 4(a) but otherwise subject to subsections (4) and (5), the interest of a lessor of fixtures, including the lessor's residual interest, is subordinate to the conflicting interest of an encumbrancer of the real estate under a construction mortgage recorded before the goods become fixtures if the goods become fixtures before the completion of the construction. To the extent given to refinance a construction mortgage, the conflicting interest of an encumbrancer of the real estate under a mortgage has this priority to the same extent as the encumbrancer of the real estate under the construction mortgage.

(7) In cases not within the preceding subsections, priority between the interest of a lessor of fixtures, including the lessor's residual interest, and the conflicting interest of an encumbrancer or owner of the real estate who is not the lessee is determined by the priority rules governing conflicting interests in real estate.

(8) If the interest of a lessor of fixtures, including the lessor's residual interest, has priority over all conflicting interests of all owners and encumbrancers of the real estate, the lessor or the lessee may (i) on default, expiration, termination, or cancellation of the lease agreement but subject to the lease agreement and IC 26-1-2.1, or (ii) if necessary to enforce other rights and remedies of the lessor or lessee under IC 26-1-2.1, remove the goods from the real estate, free and clear of all conflicting interests of all owners and encumbrancers of the real estate, but the lessor or lessee must reimburse any encumbrancer or owner of the real estate who is not the lessee and who has not otherwise agreed for the cost of repair of any physical injury, but not for any diminution in value of the real estate caused by the absence of the goods removed or by any necessity of replacing them. A person entitled to reimbursement may refuse permission to remove until the party seeking removal gives adequate security for the performance of this obligation.

(9) Even though the lease agreement does not create a security interest, the interest of a lessor of fixtures, including the lessor's residual interest, is perfected by filing a financing statement as a fixture filing for leased goods that are or are to become fixtures in accordance with the relevant provisions of IC 26-1-9.1.

As added by P.L.189-1991, SEC.3. Amended by P.L.34-1997, SEC.17; P.L.57-2000, SEC.26.
Ind. Code § 26-1-3.1-118 — Indiana Code / Title 26 / Article 1 / Chapter 3.1 / Section 26-1-3.1-118
Statute of limitations
Status: in_force

Sec. 118. (a) Except as provided in subsection (e), an action to enforce the obligation of a party to pay a note payable at a definite time must be commenced within six (6) years after the due date or dates stated in the note or, if a due date is accelerated, within six (6) years after the accelerated due date.

(b) Except as provided in subsection (d) or (e), if demand for payment is made to the maker of a note payable on demand, an action to enforce the obligation of a party to pay the note must be commenced within six (6) years after the demand. If no demand for payment is made to the maker, an action to enforce the note is barred if neither principal nor interest on the note has been paid for a continuous period of ten (10) years.

(c) Except as provided in subsection (d), an action to enforce the obligation of a party to an unaccepted draft to pay the draft must be commenced within three (3) years after dishonor of the draft or ten (10) years after the date of the draft, whichever period expires first.

(d) An action to enforce the obligation of the acceptor of a certified check or the issuer of a teller's check, cashier's check, or traveler's check must be commenced within three (3) years after demand for payment is made to the acceptor or issuer, as the case may be.

(e) An action to enforce the obligation of a party to a certificate of deposit to pay the instrument must be commenced within six (6) years after demand for payment is made to the maker, but if the instrument states a due date and the maker is not required to pay before that date, the six (6) year period begins when a demand for payment is in effect and the due date has passed.

(f) An action to enforce the obligation of a party to pay an accepted draft, other than a certified check, must be commenced:

(1) within six (6) years after the due date or dates stated in the draft or acceptance if the obligation of the acceptor is payable at a definite time; or

(2) within six (6) years after the date of the acceptance if the obligation of the acceptor is payable on demand.

(g) Unless governed by other law regarding claims for indemnity or contribution, an action:

(1) for conversion of an instrument, for money had and received, or like action based on conversion;

(2) for breach of warranty; or

(3) to enforce an obligation, duty, or right arising under IC 26-1-3.1;

and not governed by this section must be commenced within three (3) years after the cause of action accrues.

As added by P.L.222-1993, SEC.5.
Ind. Code § 26-1-7-505 — Indiana Code / Title 26 / Article 1 / Chapter 7 / Section 26-1-7-505
Endorser not a guarantor for other parties
Status: in_force

Sec. 505. The endorsement of a tangible document of title issued by a bailee does not make the endorser liable for any default by the bailee or previous endorsers.

Formerly: Acts 1963, c.317, s.7-505. As amended by P.L.143-2007, SEC.56.
Ind. Code § 26-1-3.1-605 — Indiana Code / Title 26 / Article 1 / Chapter 3.1 / Section 26-1-3.1-605
Release or extension of an obligor's obligation
Status: in_force

Sec. 605. (a) If a person entitled to enforce an instrument releases the obligation of a principal obligor in whole or in part, and another party to the instrument is a secondary obligor with respect to the obligation of that principal obligor, the following rules apply:

(1) Any obligations of the principal obligor to the secondary obligor with respect to any previous payment by the secondary obligor are not affected. Unless the terms of the release preserve the secondary obligor's recourse, the principal obligor is discharged, to the extent of the release, from any other duties to the secondary obligor under this article.

(2) Unless the terms of the release provide that the person entitled to enforce the instrument retains the right to enforce the instrument against the secondary obligor, the secondary obligor is discharged to the same extent as the principal obligor from any unperformed part of its obligation on the instrument. If the instrument is a check and the obligation of the secondary obligor is based on an endorsement of the check, the secondary obligor is discharged without regard to the language or circumstances of the discharge or other release.

(3) If the secondary obligor is not discharged under subdivision (2), the secondary obligor is discharged to the extent of the value of the consideration for the release, and to the extent that the release would otherwise cause the secondary obligor a loss.

(b) If a person entitled to enforce an instrument grants a principal obligor an extension of the time at which one (1) or more payments are due on the instrument, and another party to the instrument is a secondary obligor with respect to the obligation of that principal obligor, the following rules apply:

(1) Any obligations of the principal obligor to the secondary obligor with respect to any previous payment by the secondary obligor are not affected. Unless the terms of the extension preserve the secondary obligor's recourse, the extension correspondingly extends the time for performance of any other duties owed to the secondary obligor by the principal obligor under this article.

(2) The secondary obligor is discharged to the extent that the extension would otherwise cause the secondary obligor a loss.

(3) To the extent that the secondary obligor is not discharged under subdivision (2), the secondary obligor may perform its obligations to a person entitled to enforce the instrument as if the time for payment had not been extended or, unless the terms of the extension provide that the person entitled to enforce the instrument retains the right to enforce the instrument against the secondary obligor as if the time for payment had not been extended, may treat the time for performance of its obligations as having been extended correspondingly.

(c) If a person entitled to enforce an instrument agrees, with or without consideration, to a modification of the obligation of a principal obligor other than a complete or partial release or an extension of the due date, and another party to the instrument is a secondary obligor with respect to the obligation of that principal obligor, the following rules apply:

(1) Any obligations of the principal obligor to the secondary obligor with respect to any previous payment by the secondary obligor are not affected. The modification correspondingly modifies any other duties owed to the secondary obligor by the principal obligor under this article.

(2) The secondary obligor is discharged from any unperformed part of its obligation to the extent that the modification would otherwise cause the secondary obligor a loss.

(3) To the extent that the secondary obligor is not discharged under subdivision (2), the secondary obligor may satisfy its obligation on the instrument as if the modification had not occurred, or treat its obligation on the instrument as having been modified correspondingly.

(d) If the obligation of a principal obligor is secured by an interest in collateral, another party to the instrument is a secondary obligor with respect to that obligation, and a person entitled to enforce the instrument impairs the value of the interest in collateral, the obligation of the secondary obligor is discharged to the extent of the impairment. The value of an interest in collateral is impaired to the extent the value of the interest is reduced to an amount less than the amount of the recourse of the secondary obligor, or the reduction in value of the interest causes an increase in the amount by which the amount of the recourse exceeds the value of the interest. For purposes of this subsection, impairing the value of an interest in collateral includes failure to obtain or maintain perfection or recordation of the interest in collateral, release of collateral without substitution of collateral of equal value or equivalent reduction of the underlying obligation, failure to perform a duty to preserve the value of collateral owed, under IC 26-1-9.1 or other law, to a debtor or other person secondarily liable, and failure to comply with applicable law in disposing of or otherwise enforcing the interest in collateral.

(e) A secondary obligor is not discharged under subsection (a)(3), (b), (c), or (d) unless the person entitled to enforce the instrument knows that the person is a secondary obligor or has notice under IC 26-1-3.1-419(c) that the instrument was signed for accommodation.

(f) A secondary obligor is not discharged under this section if the secondary obligor consents to the event or conduct that is the basis of the discharge, or the instrument or a separate agreement of the party provides for waiver of discharge under this section specifically or by general language indicating that parties waive defenses based on suretyship or impairment of collateral. Unless the circumstances indicate otherwise, consent by the principal obligor to an act that would lead to a discharge under this section constitutes consent to that act by the secondary obligor if the secondary obligor controls the principal obligor or deals with the person entitled to enforce the instrument on behalf of the principal obligor.

(g) A release or extension preserves a secondary obligor's recourse if the terms of the release or extension provide that:

(1) the person entitled to enforce the instrument retains the right to enforce the instrument against the secondary obligor; and

(2) the recourse of the secondary obligor continues as if the release or extension had not been granted.

(h) Except as otherwise provided in subsection (i), a secondary obligor asserting discharge under this section has the burden of persuasion both with respect to the occurrence of the acts alleged to harm the secondary obligor and loss or prejudice caused by those acts.

(i) If the secondary obligor demonstrates prejudice caused by an impairment of its recourse, and the circumstances of the case indicate that the amount of loss is not reasonably susceptible of calculation or requires proof of facts that are not ascertainable, it is presumed that the act impairing recourse caused a loss or impairment equal to the liability of the secondary obligor on the instrument. In that event, the burden of persuasion as to any lesser amount of the loss is on the person entitled to enforce the instrument.

As added by P.L.222-1993, SEC.5. Amended by P.L.57-2000, SEC.28; P.L.135-2009, SEC.14.
Ind. Code § 26-1-3.1-601 — Indiana Code / Title 26 / Article 1 / Chapter 3.1 / Section 26-1-3.1-601
Discharge and effect of discharge
Status: in_force

Sec. 601. (a) The obligation of a party to pay the instrument is discharged as stated in IC 26-1-3.1 or by an act or agreement with the party which would discharge an obligation to pay money under a simple contract.

(b) Discharge of the obligation of a party is not effective against a person acquiring rights of a holder in due course of the instrument without notice of the discharge.

As added by P.L.222-1993, SEC.5.
Ind. Code § 26-3-2-5 — Indiana Code / Title 26 / Article 3 / Chapter 2 / Section 26-3-2-5
Delivery of goods without canceling outstanding receipt
Status: in_force

Sec. 5. A warehouseman, or any officer, agent, or servant of a warehouseman, who delivers goods out of the possession of the warehouseman, knowing that a negotiable receipt, the negotiation of which would transfer the right to the possession of the goods, is outstanding and uncanceled, without obtaining the possession of the receipt at or before the time of delivery, commits a Class A misdemeanor.

Formerly: Acts 1921, c.100, s.54. As amended by Acts 1978, P.L.2, SEC.2605.
Ind. Code § 26-1-12-102 — Indiana Code / Title 26 / Article 1 / Chapter 12 / Section 26-1-12-102
Definitions; applicability of definitions concerning secured transactions; applicability of general definitions and principles of construction and interpretation
Status: in_force

Sec. 102. (a) In this chapter the following definitions apply:

(1) "Controllable electronic record" means a record stored in an electronic medium that can be subjected to control under section 105 of this chapter. The term does not include a controllable account, a controllable payment intangible, a deposit account, an electronic copy of a record evidencing chattel paper, an electronic document of title, investment property, a transferable record, or an electronic record that is currently authorized or adopted by a domestic or foreign government and is not a medium of exchange that was recorded and transferable in a system that existed and operated for the medium of exchange before the medium of exchange was authorized or adopted by a government.

(2) "Qualifying purchaser" means a purchaser:

(A) of a controllable electronic record; or

(B) of an interest in a controllable electronic record;

that obtains control of the controllable electronic record for value, in good faith, and without notice of a claim of a property right in the controllable electronic record.

(3) "Transferable record" has the meaning set forth in:

(A) Section 201(a)(1) of the Electronic Signatures in Global and National Commerce Act (15 U.S.C. 7021(a)(1)); or

(B) IC 26-2-8-115(a).

(4) "Value" has the meaning set forth in IC 26-1-3.1-303(a), as if references in IC 26-1-3.1-303(a) to an "instrument" were references to a controllable account, a controllable electronic record, or a controllable payment intangible.

(b) The definitions in IC 26-1-9.1 of "account debtor", "controllable account", "controllable payment intangible", "chattel paper", "deposit account", and "investment property" apply throughout this chapter.

(c) The general definitions and principles of construction and interpretation set forth in IC 26-1-1 apply throughout this chapter.

As added by P.L.199-2023, SEC.90.
Ind. Code § 26-2-3-8 — Indiana Code / Title 26 / Article 2 / Chapter 3 / Section 26-2-3-8
Interest on protested bill of exchange
Status: in_force

Sec. 8. Beyond such damages, no interest or charges accruing prior to protest shall be allowed, but interest from the date of the protest may be recovered.

Formerly: Acts 1861, c.75, s.8.
Ind. Code § 26-1-9.1-519 — Indiana Code / Title 26 / Article 1 / Chapter 9.1 / Section 26-1-9.1-519
Numbering, maintaining, and indexing records; communicating information provided in records
Status: in_force

Sec. 519. (a) For each record filed in a filing office, the filing office shall:

(1) assign a unique number to the filed record;

(2) create a record that bears the number assigned to the filed record and the date and time of filing;

(3) maintain the filed record for public inspection; and

(4) index the filed record in accordance with subsections (c), (d), and (e).

(b) A file number must include a digit that:

(1) is mathematically derived from or related to the other digits of the file number; and

(2) aids the filing office in determining whether a number communicated as the file number includes a single-digit or transpositional error.

(c) Except as otherwise provided in subsections (d) and (e), the filing office shall:

(1) index an initial financing statement according to the name of the debtor and index all filed records relating to the initial financing statement in a manner that associates with one another an initial financing statement and all filed records relating to the initial financing statement; and

(2) index a record that provides a name of a debtor that was not previously provided in the financing statement to which the record relates also according to the name that was not previously provided.

(d) If a financing statement is filed as a fixture filing or covers as-extracted collateral or timber to be cut, the filing office shall index it:

(1) under the names of the debtor and of each owner of record shown on the financing statement as if they were the mortgagors under a mortgage of the real property described; and

(2) to the extent that the law of this state provides for indexing of records of mortgages under the name of the mortgagee, under the name of the secured party as if the secured party were the mortgagee thereunder, or, if indexing is by description, as if the financing statement were a record of a mortgage of the real property described.

(e) If a financing statement is filed as a fixture filing or covers as-extracted collateral or timber to be cut, the filing office shall index an assignment filed under IC 26-1-9.1-514(a) or an amendment filed under IC 26-1-9.1-514(b):

(1) under the name of the assignor as grantor; and

(2) to the extent that the law of this state provides for indexing a record of the assignment of a mortgage under the name of the assignee, under the name of the assignee.

(f) The filing office shall maintain a capability:

(1) to retrieve a record by the name of the debtor and by the file number assigned to the initial financing statement to which the record relates; and

(2) to associate and retrieve with one another an initial financing statement and each filed record relating to the initial financing statement.

(g) The filing office may not remove a debtor's name from the index until one (1) year after the effectiveness of a financing statement naming the debtor lapses under IC 26-1-9.1-515 with respect to all secured parties of record.

(h) The filing office shall perform the acts required by subsections (a) through (e) at the time and in the manner prescribed by filing-office rule, but not later than two (2) business days after the filing office receives the record in question.

(i) Subsections (b) and (h) do not apply to a filing office described in IC 26-1-9.1-501(a)(1).

As added by P.L.57-2000, SEC.45.
Ind. Code § 26-1-9.1-337 — Indiana Code / Title 26 / Article 1 / Chapter 9.1 / Section 26-1-9.1-337
Priority of security interests in goods covered by certificate of title
Status: in_force

Sec. 337. If, while a security interest in goods is perfected by any method under the law of another jurisdiction, this state issues a certificate of title that does not show that the goods are subject to the security interest or contain a statement that they may be subject to security interests not shown on the certificate:

(1) a buyer of the goods, other than a person in the business of selling goods of that kind, takes free of the security interest if the buyer gives value and receives delivery of the goods after issuance of the certificate and without knowledge of the security interest; and

(2) the security interest is subordinate to a conflicting security interest in the goods that attaches, and is perfected under IC 26-1-9.1-311(b), after issuance of the certificate and without the conflicting secured party's knowledge of the security interest.

As added by P.L.57-2000, SEC.45.
Ind. Code § 26-1-10-105 — Indiana Code / Title 26 / Article 1 / Chapter 10 / Section 26-1-10-105
Repealed
Status: repealed

Formerly: Acts 1963, c.317, s.10-105. Repealed by P.L.93-1985, SEC.41.
Ind. Code § 26-3-7-33 — Indiana Code / Title 26 / Article 3 / Chapter 7 / Section 26-3-7-33
Examination of warehouse; fee; expenses
Status: in_force

Sec. 33. In addition to all other inspections and investigations authorized by this chapter, the director or the director's designated representative may, upon request of any person having an interest in grain in a licensed warehouse, cause the warehouse to be examined. The director or the director's representative may check the outstanding receipts and tickets against the grain on hand and advise each depositor of any shortage with respect to any grain in which the person has an interest. If the cost of the examination is more than twenty-five dollars ($25.00), the person requesting the examination shall pay the additional cost to the director unless a shortage is found to exist.

Formerly: Acts 1973, P.L.268, SEC.1; Acts 1974, P.L.120, SEC.19. As amended by P.L.125-1997, SEC.53.
Ind. Code § 26-3-7-32 — Indiana Code / Title 26 / Article 3 / Chapter 7 / Section 26-3-7-32
Injunctions; unlawful removal of grain; temporary restraining orders
Status: in_force

Sec. 32. (a) The director may apply for, and the courts of this state are vested with jurisdiction to issue, a temporary or permanent injunction against the business operation of a licensee, or the issuance of receipts or tickets without a license and against interference by any person with the director, the director's designated representative, or a receiver appointed under section 31 of this chapter, in the performance of their duties and powers under this chapter.

(b) Upon a determination by the director that there is reasonable cause to believe that a licensee is unable to meet the licensee's storage or other grain obligations, and that the licensee is removing, or the director has reasonable cause to believe that the licensee may remove, grain from the licensed premises, the director may, under the conditions provided in, and in accordance with, the Indiana Rules of Trial Procedure, seek from the circuit court, superior court, or probate court of the Indiana county in which the licensee has the licensee's principal place of business a temporary restraining order preventing the further sale or movement of any grain and requiring that proceeds from grain sales received after the issuance of the temporary restraining order should be held in the form in which they are received by the licensee and kept separate from all other funds held by the licensee.

Formerly: Acts 1973, P.L.268, SEC.1; Acts 1974, P.L.120, SEC.18. As amended by Acts 1979, P.L.249, SEC.16; Acts 1982, P.L.155, SEC.18; P.L.191-1991, SEC.12; P.L.125-1997, SEC.52; P.L.84-2016, SEC.116.
Ind. Code § 26-1-2-703 — Indiana Code / Title 26 / Article 1 / Chapter 2 / Section 26-1-2-703
Seller's remedies in general
Status: in_force

Sec. 703. Where the buyer wrongfully rejects or revokes acceptance of goods or fails to make a payment due on or before delivery or repudiates with respect to a part or the whole, then with respect to any goods directly affected and, if the breach is of the whole contract (IC 26-1-2-612), then also with respect to the whole undelivered balance, the aggrieved seller may:

(a) withhold delivery of such goods;

(b) stop delivery by any bailee as hereafter provided (IC 26-1-2-705);

(c) proceed under IC 26-1-2-704 respecting goods still unidentified to the contract;

(d) resell and recover damages as hereafter provided (IC 26-1-2-706);

(e) recover damages for nonacceptance (IC 26-1-2-708) or in a proper case the price (IC 26-1-2-709);

(f) cancel.

Formerly: Acts 1963, c.317, s.2-703. As amended by P.L.152-1986, SEC.162.
Ind. Code § 26-4-1-3.7 — Indiana Code / Title 26 / Article 4 / Chapter 1 / Section 26-4-1-3.7
Repealed
Status: repealed

As added by P.L.114-2025, SEC.45. Repealed by P.L.23-2026, SEC.260.
Ind. Code § 26-1-3.1-403 — Indiana Code / Title 26 / Article 1 / Chapter 3.1 / Section 26-1-3.1-403
Unauthorized signature
Status: in_force

Sec. 403. (a) Unless otherwise provided in IC 26-1-3.1 or IC 26-1-4, an unauthorized signature is ineffective except as the signature of the unauthorized signer in favor of a person who in good faith pays the instrument or takes it for value. An unauthorized signature may be ratified for all purposes of IC 26-1-3.1.

(b) If the signature of more than one (1) person is required to constitute the authorized signature of an organization, the signature of the organization is unauthorized if one (1) of the required signatures is lacking.

(c) The civil or criminal liability of a person who makes an unauthorized signature is not affected by any provision of IC 26-1-3.1 that makes the unauthorized signature effective for the purposes of IC 26-1-3.1.

As added by P.L.222-1993, SEC.5.
Ind. Code § 26-1-4.1-207 — Indiana Code / Title 26 / Article 1 / Chapter 4.1 / Section 26-1-4.1-207
Misdescription of beneficiary
Status: in_force

Sec. 207. (a) Subject to subsection (b), if, in a payment order received by the beneficiary's bank, the name, bank account number, or other identification of the beneficiary refers to a nonexistent or unidentifiable person or account, no person has rights as a beneficiary of the order and acceptance of the order cannot occur.

(b) If a payment order received by the beneficiary's bank identifies the beneficiary both by name and by an identifying or bank account number and the name and number identify different persons, the following rules apply:

(1) Except as otherwise provided in subsection (c), if the beneficiary's bank does not know that the name and number refer to different persons, it may rely on the number as the proper identification of the beneficiary of the order. The beneficiary's bank need not determine whether the name and number refer to the same person.

(2) If the beneficiary's bank pays the person identified by name or knows that the name and number identify different persons, no person has rights as beneficiary except the person paid by the beneficiary's bank if that person was entitled to receive payment from the originator of the funds transfer. If no person has rights as beneficiary, acceptance of the order cannot occur.

(c) If (i) a payment order described in subsection (b) is accepted, (ii) the originator's payment order described the beneficiary inconsistently by name and number, and (iii) the beneficiary's bank pays the person identified by number as permitted by subsection (b)(1), the following rules apply:

(1) If the originator is a bank, the originator is obliged to pay its order.

(2) If the originator is not a bank and proves that the person identified by number was not entitled to receive payment from the originator, the originator is not obliged to pay its order unless the originator's bank proves that the originator, before acceptance of the originator's order, had notice that payment of a payment order issued by the originator might be made by the beneficiary's bank on the basis of an identifying or bank account number even if it identifies a person different from the named beneficiary. Proof of notice may be made by any admissible evidence. The originator's bank satisfies the burden of proof if it proves that the originator, before the payment order was accepted, signed a record stating the information to which the notice relates.

(d) In a case governed by subsection (b)(1), if the beneficiary's bank rightfully pays the person identified by number and that person was not entitled to receive payment from the originator, the amount paid may be recovered from that person to the extent allowed by the law governing mistake and restitution as follows:

(1) If the originator is obliged to pay its payment order as stated in subsection (c), the originator has the right to recover.

(2) If the originator is not a bank and is not obliged to pay its payment order, the originator's bank has the right to recover.

As added by P.L.189-1991, SEC.4. Amended by P.L.199-2023, SEC.26.
Ind. Code § 26-1-5.1-116 — Indiana Code / Title 26 / Article 1 / Chapter 5.1 / Section 26-1-5.1-116
Liability of issuer, nominated person, or advisor; governing law; bank branches; rules of custom or practice; choice of forum
Status: in_force

Sec. 116. (a) The liability of an issuer, nominated person, or adviser for action or omission is governed by the law of the jurisdiction chosen by an agreement in the form of a record signed by the affected parties or by a provision in the person's letter of credit, confirmation, or other undertaking. The jurisdiction whose law is chosen need not bear any relation to the transaction.

(b) Unless subsection (a) applies, the liability of an issuer, nominated person, or adviser for action or omission is governed by the law of the jurisdiction in which the person is located. The person is considered to be located at the address indicated in the person's undertaking. If more than one (1) address is indicated, the person is considered to be located at the address from which the person's undertaking was issued.

(c) For the purpose of jurisdiction, choice of law, and recognition of interbranch letters of credit, but not enforcement of a judgment, all branches of a bank are considered separate juridical entities and a bank is considered to be located at the place where its relevant branch is considered to be located under subsection (d).

(d) A branch of a bank is considered to be located at the address indicated in the branch's undertaking. If more than one (1) address is indicated, the branch is considered to be located at the address from which the undertaking was issued.

(e) Except as otherwise provided in this subsection, the liability of an issuer, nominated person, or adviser is governed by any rules of custom or practice, such as the Uniform Customs and Practice for Documentary Credits, to which the letter of credit, confirmation, or other undertaking is expressly made subject. If:

(i) IC 26-1-5.1 would govern the liability of an issuer, nominated person, or adviser under subsection (a) or (b);

(ii) the relevant undertaking incorporates rules of custom or practice; and

(iii) there is conflict between IC 26-1-5.1 and those rules as applied to that undertaking;

those rules govern except to the extent of any conflict with the nonvariable provisions specified in IC 26-1-5.1-103(c).

(f) If there is conflict between IC 26-1-5.1 and IC 26-1-3.1, IC 26-1-4, IC 26-1-4.1, or IC 26-1-9.1, IC 26-1-5.1 governs.

(g) The forum for settling disputes arising out of an undertaking within IC 26-1-5.1 may be chosen in the manner and with the binding effect that governing law may be chosen in accordance with subsection (a).

As added by P.L.183-1996, SEC.4. Amended by P.L.57-2000, SEC.31; P.L.199-2023, SEC.32.
Ind. Code § 26-1-2-511 — Indiana Code / Title 26 / Article 1 / Chapter 2 / Section 26-1-2-511
Tender of payment by buyer; payment by check
Status: in_force

Sec. 511. (1) Unless otherwise agreed, tender of payment is a condition to the seller's duty to tender and complete any delivery.

(2) Tender of payment is sufficient when made by any means or in any manner current in the ordinary course of business, unless the seller demands payment in legal tender and gives any extension of time reasonably necessary to procure it.

(3) Subject to the provisions of IC 26-1-3.1-802 on the effect of an instrument on an obligation, payment by check is conditional and is defeated as between the parties by dishonor of the check on due presentment.

Formerly: Acts 1963, c.317, s.2-511. As amended by P.L.152-1986, SEC.148; P.L.222-1993, SEC.4.
Ind. Code § 26-2-9-3 — Indiana Code / Title 26 / Article 2 / Chapter 9 / Section 26-2-9-3
"Debtor"
Status: in_force

Sec. 3. As used in this chapter, "debtor" means a person who:

(1) obtains credit under a credit agreement with a creditor;

(2) seeks a credit agreement with a creditor; or

(3) owes money to a creditor.

[Pre-2002 Title 32 Recodification Citation: 32-2-1.5-3.]

As added by P.L.2-2002, SEC.79.
Ind. Code § 26-1-2.1-515 — Indiana Code / Title 26 / Article 1 / Chapter 2.1 / Section 26-1-2.1-515
Acceptance of goods
Status: in_force

Sec. 515. (1) Acceptance of goods occurs after the lessee has had a reasonable opportunity to inspect the goods and:

(a) the lessee signifies or acts with respect to the goods in a manner that signifies to the lessor or the supplier that the goods are conforming or that the lessee will take or retain them in spite of their nonconformity; or

(b) the lessee fails to make an effective rejection of the goods (IC 26-1-2.1-509(2)).

(2) Acceptance of a part of any commercial unit is acceptance of that entire unit.

As added by P.L.189-1991, SEC.3.
Ind. Code § 26-1-9.1-110 — Indiana Code / Title 26 / Article 1 / Chapter 9.1 / Section 26-1-9.1-110
Security interests arising under IC 26-1-2 or IC 26-1-2.1
Status: in_force

Sec. 110. A security interest arising under IC 26-1-2-401, IC 26-1-2-505, IC 26-1-2-711(3), or IC 26-1-2.1-508(5) is subject to IC 26-1-9.1. However, until the debtor obtains possession of the goods:

(1) the security interest is enforceable, even if IC 26-1-9.1-203(b)(3) has not been satisfied;

(2) filing is not required to perfect the security interest;

(3) the rights of the secured party after default by the debtor are governed by IC 26-1-2 or IC 26-1-2.1; and

(4) the security interest has priority over a conflicting security interest created by the debtor.

As added by P.L.57-2000, SEC.45.
Ind. Code § 26-1-4-101 — Indiana Code / Title 26 / Article 1 / Chapter 4 / Section 26-1-4-101
Short title
Status: in_force

Sec. 101. IC 26-1-4 may be cited as Uniform Commercial Code ─ Bank Deposits and Collections.

Formerly: Acts 1963, c.317, s.4-101. As amended by P.L.152-1986, SEC.205; P.L.222-1993, SEC.6.
Ind. Code § 26-1-2-512 — Indiana Code / Title 26 / Article 1 / Chapter 2 / Section 26-1-2-512
Payment by buyer before inspection
Status: in_force

Sec. 512. (1) Where the contract requires payment before inspection, nonconformity of the goods does not excuse the buyer from so making payment unless:

(a) the nonconformity appears without inspection; or

(b) despite tender of the required documents the circumstances would justify injunction against honor under IC 26-1-5.1-109(b).

(2) Payment pursuant to subsection (1) does not constitute an acceptance of the goods or impair the buyer's right to inspect or any of his remedies.

Formerly: Acts 1963, c.317, s.2-512. As amended by P.L.152-1986, SEC.149; P.L.183-1996, SEC.2.
Ind. Code § 26-1-2.1-502 — Indiana Code / Title 26 / Article 1 / Chapter 2.1 / Section 26-1-2.1-502
Notice after default
Status: in_force

Sec. 502. Except as otherwise provided in IC 26-1-2.1 or the lease agreement, the lessor or lessee in default under the lease contract is not entitled to notice of default or notice of enforcement from the other party to the lease agreement.

As added by P.L.189-1991, SEC.3.
Ind. Code § 26-4-1-3.5 — Indiana Code / Title 26 / Article 4 / Chapter 1 / Section 26-4-1-3.5
"Basis"
Status: in_force

Sec. 3.5. "Basis" means the difference between the flat price contract and a specified futures price of the same or a related commodity.

As added by P.L.114-2025, SEC.44.
Ind. Code § 26-1-9.1-304 — Indiana Code / Title 26 / Article 1 / Chapter 9.1 / Section 26-1-9.1-304
Law governing perfection, effect of perfection or nonperfection, and priority of security interests in deposit accounts; determination of bank's jurisdiction
Status: in_force

Sec. 304. (a) The local law of a bank's jurisdiction governs perfection, the effect of perfection or nonperfection, and the priority of a security interest in a deposit account maintained with that bank even if the transaction does not bear any relation to the bank's jurisdiction.

(b) The following rules determine a bank's jurisdiction for purposes of IC 26-1-9.1-301 through IC 26-1-9.1-342:

(1) If an agreement between the bank and the debtor governing the deposit account expressly provides that a particular jurisdiction is the bank's jurisdiction for purposes of IC 26-1, that jurisdiction is the bank's jurisdiction.

(2) If subdivision (1) does not apply and an agreement between the bank and its customer governing the deposit account expressly provides that the agreement is governed by the law of a particular jurisdiction, that jurisdiction is the bank's jurisdiction.

(3) If neither subdivision (1) nor subdivision (2) applies, and an agreement between the bank and its customer governing the deposit account expressly provides that the deposit account is maintained at an office in a particular jurisdiction, that jurisdiction is the bank's jurisdiction.

(4) If none of the preceding subdivisions apply, the bank's jurisdiction is the jurisdiction in which the office identified in an account statement as the office serving the customer's account is located.

(5) If none of the preceding subdivisions apply, the bank's jurisdiction is the jurisdiction in which the chief executive office of the bank is located.

As added by P.L.57-2000, SEC.45. Amended by P.L.165-2001, SEC.2; P.L.199-2023, SEC.52.
Ind. Code § 26-1-4-403 — Indiana Code / Title 26 / Article 1 / Chapter 4 / Section 26-1-4-403
Customer's right to stop payment; burden of proof of loss
Status: in_force

Sec. 403. (a) A customer or any person authorized to draw on the account if there is more than one (1) person may stop payment of any item drawn on the customer's account or close the account by an order to the bank describing the item or account with reasonable certainty received at a time and in a manner that affords the bank a reasonable opportunity to act on it before any action by the bank with respect to the item described in IC 26-1-4-303. If the signature of more than one (1) person is required to draw on an account, any of these persons may stop payment or close the account.

(b) A stop-payment order is effective for six (6) months, but it lapses after fourteen (14) calendar days if the original order was oral and was not confirmed in a record within that period. A stop-payment order may be renewed for additional six (6) month periods by a record given to the bank within a period during which the stop-payment order is effective.

(c) The burden of establishing the fact and amount of loss resulting from the payment of an item contrary to a stop-payment order or order to close an account is on the customer. The loss from payment of an item contrary to a stop-payment order may include damages for dishonor of subsequent items under IC 26-1-4-402.

Formerly: Acts 1963, c.317, s.4-403. As amended by P.L.152-1986, SEC.225; P.L.222-1993, SEC.38; P.L.135-2009, SEC.20.
Ind. Code § 26-1-7-401 — Indiana Code / Title 26 / Article 1 / Chapter 7 / Section 26-1-7-401
Irregularities in issue of receipt or bill or conduct of issuer
Status: in_force

Sec. 401. The obligations imposed by this chapter on an issuer apply to a document of title even if:

(1) the document does not comply with the requirements of this chapter or of any other statute, rule, or regulation regarding its issuance, form, or content;

(2) the issuer violated laws regulating the conduct of its business;

(3) the goods covered by the document were owned by the bailee when the document was issued; or

(4) the person issuing the document is not a warehouse but the document purports to be a warehouse receipt.

Formerly: Acts 1963, c.317, s.7-401. As amended by P.L.152-1986, SEC.254; P.L.143-2007, SEC.48.
Ind. Code § 26-1-8.1-306 — Indiana Code / Title 26 / Article 1 / Chapter 8.1 / Section 26-1-8.1-306
Warranties by guarantor
Status: in_force

Sec. 306. (a) A person who guarantees a signature of an endorser of a security certificate warrants that at the time of signing:

(1) the signature was genuine;

(2) the signer was an appropriate person to endorse, or if the signature is by an agent, the agent had actual authority to act on behalf of the appropriate person; and

(3) the signer had legal capacity to sign.

(b) A person who guarantees a signature of the originator of an instruction warrants that at the time of signing:

(1) the signature was genuine;

(2) the signer was an appropriate person to originate the instruction, or if the signature is by an agent, the agent had actual authority to act on behalf of the appropriate person, if the person specified in the instruction as the registered owner was, in fact, the registered owner, as to which fact the signature guarantor does not make a warranty; and

(3) the signer had legal capacity to sign.

(c) A person who specially guarantees the signature of an originator of an instruction makes the warranties of a signature guarantor under subsection (b) and also warrants that at the time the instruction is presented to the issuer:

(1) the person specified in the instruction as the registered owner of the uncertificated security will be the registered owner; and

(2) the transfer of the uncertificated security requested in the instruction will be registered by the issuer free from all liens, security interests, restrictions, and claims other than those specified in the instruction.

(d) A guarantor under subsections (a) and (b) or a special guarantor under subsection (c) does not otherwise warrant the rightfulness of the transfer.

(e) A person who guarantees an endorsement of a security certificate makes the warranties of a signature guarantor under subsection (a) and also warrants the rightfulness of the transfer in all respects.

(f) A person who guarantees an instruction requesting the transfer of an uncertificated security makes the warranties of a special signature guarantor under subsection (c) and also warrants the rightfulness of the transfer in all respects.

(g) An issuer may not require a special guaranty of signature, a guaranty of endorsement, or a guaranty of instruction as a condition to registration of transfer.

(h) The warranties under this section are made to a person taking or dealing with the security in reliance on the guaranty, and the guarantor is liable to the person for loss resulting from their breach. An endorser or originator of an instruction whose signature, endorsement, or instruction has been guaranteed is liable to a guarantor for any loss suffered by the guarantor as a result of breach of the warranties of the guarantor.

As added by P.L.247-1995, SEC.10.
Ind. Code § 26-1-1-203 — Indiana Code / Title 26 / Article 1 / Chapter 1 / Section 26-1-1-203
Obligation of good faith
Status: in_force

Sec. 203. Every contract or duty within IC 26-1 imposes an obligation of good faith in its performance or enforcement.

Formerly: Acts 1963, c.317, s.1-203. As amended by P.L.152-1986, SEC.116.
Ind. Code § 26-2-3-9 — Indiana Code / Title 26 / Article 2 / Chapter 3 / Section 26-2-3-9
Rate of exchange
Status: in_force

Sec. 9. As to any such bills payable within the United States, the rate of exchange shall not be taken into account.

Formerly: Acts 1861, c.75, s.9.
Ind. Code § 26-1-9.1-505 — Indiana Code / Title 26 / Article 1 / Chapter 9.1 / Section 26-1-9.1-505
Filing and compliance with other statutes and treaties for consignments, leases, other bailments, and other transactions
Status: in_force

Sec. 505. (a) A consignor, lessor, or other bailor of goods or a buyer of a payment intangible or a promissory note may file a financing statement, or may comply with a statute or treaty described in IC 26-1-9.1-311(a), using the terms "consignor", "consignee", "lessor", "lessee", "bailor", "bailee", "licensor", "licensee", "owner", "registered owner", "buyer", "seller", or words of similar import, instead of the terms "secured party" and "debtor".

(b) IC 26-1-9.1-501 through IC 26-1-9.1-527 apply to the filing of a financing statement under subsection (a) and, as appropriate, to compliance that is equivalent to filing a financing statement under IC 26-1-9.1-311(b), but the filing or compliance is not of itself a factor in determining whether the collateral secures an obligation. If it is determined for another reason that the collateral secures an obligation, a security interest held by the consignor, lessor, bailor, owner, or buyer which attaches to the collateral is perfected by the filing or compliance.

As added by P.L.57-2000, SEC.45.
Ind. Code § 26-2-9-2 — Indiana Code / Title 26 / Article 2 / Chapter 9 / Section 26-2-9-2
"Creditor"
Status: in_force

Sec. 2. As used in this chapter, "creditor" means:

(1) a bank, a savings bank, a trust company, a savings association, a credit union, an industrial loan and investment company, or any other financial institution regulated by any agency of the United States or any state, including a consumer finance institution licensed to make supervised or regulated loans under IC 37-2 or IC 37-3;

(2) a person authorized to sell and service loans for the Federal National Mortgage Association or the Federal Home Loan Mortgage Corporation, issue securities backed by the Government National Mortgage Association, make loans insured by the United States Department of Housing and Urban Development, make loans guaranteed by the United States Department of Veterans Affairs, or act as a correspondent of loans insured by the United States Department of Housing and Urban Development or guaranteed by the United States Department of Veterans Affairs; or

(3) an insurance company or its affiliates that extend credit under a credit agreement with a debtor.

[Pre-2002 Title 32 Recodification Citation: 32-2-1.5-2.]

As added by P.L.2-2002, SEC.79. Amended by P.L.115-2026, SEC.50.
Ind. Code § 26-1-2.1-308 — Indiana Code / Title 26 / Article 1 / Chapter 2.1 / Section 26-1-2.1-308
Special rights of creditors
Status: in_force

Sec. 308. (1) A creditor of a lessor in possession of goods subject to a lease contract may treat the lease contract as void if as against the creditor retention of possession by the lessor is fraudulent under any statute or rule of law, but retention of possession in good faith and current course of trade by the lessor for a commercially reasonable time after the lease contract becomes enforceable is not fraudulent.

(2) Nothing in IC 26-1-2.1 impairs the rights of creditors of a lessor if the lease contract:

(a) becomes enforceable, not in current course of trade but in satisfaction of or as security for a pre-existing claim for money, security, or the like; and

(b) is made under circumstances which under any statute or rule of law apart from IC 26-1-2.1 would constitute the transaction a fraudulent transfer or voidable preference.

(3) A creditor of a seller may treat a sale or an identification of goods to a contract for sale as void if as against the creditor retention of possession by the seller is fraudulent under any statute or rule of law, but retention of possession of the goods pursuant to a lease contract entered into by the seller as lessee and the buyer as lessor in connection with the sale or identification of the goods is not fraudulent if the buyer bought for value and in good faith.

As added by P.L.189-1991, SEC.3.
Ind. Code § 26-1-8.1-104 — Indiana Code / Title 26 / Article 1 / Chapter 8.1 / Section 26-1-8.1-104
Acquisition of a security or financial asset
Status: in_force

Sec. 104. (a) A person acquires a security or an interest therein, under IC 26-1-8.1, if:

(1) the person is a purchaser to whom a security is delivered under IC 26-1-8.1-301; or

(2) the person acquires a security entitlement to the security under IC 26-1-8.1-501.

(b) A person acquires a financial asset, other than a security, or an interest therein, under IC 26-1-8.1, if the person acquires a security entitlement to the financial asset.

(c) A person who acquires a security entitlement to a security or other financial asset has the rights specified in IC 26-1-8.1-501 through IC 26-1-8.1-511, but is a purchaser of any security, security entitlement, or other financial asset held by the securities intermediary only to the extent provided in IC 26-1-8.1-503.

(d) Unless the context shows that a different meaning is intended, a person who is required by other law, regulation, rule, or agreement to transfer, deliver, present, surrender, exchange, or otherwise put in the possession of another person a security or financial asset satisfies that requirement by causing the other person to acquire an interest in the security or financial asset under subsection (a) or (b).

As added by P.L.247-1995, SEC.10.
Ind. Code § 26-1-2-323 — Indiana Code / Title 26 / Article 1 / Chapter 2 / Section 26-1-2-323
Form of bill of lading required in overseas shipment; "overseas"
Status: in_force

Sec. 323. (1) Where the contract contemplates overseas shipment and contains a term C.I.F. or C.&F. or F.O.B. vessel, the seller, unless otherwise agreed, must obtain a negotiable bill of lading stating that the goods have been loaded on board or, in the case of a term C.I.F. or C.&F., received for shipment.

(2) Where in a case within subsection (1) a tangible bill of lading has been issued in a set of parts, unless otherwise agreed, if the documents are not to be sent from abroad, the buyer may demand tender of the full set. Otherwise, only one (1) part of the bill of lading need be tendered. Even if the agreement expressly requires a full set:

(a) due tender of a single part is acceptable within the provisions of IC 26-1-2-508(1) on cure of improper delivery; and

(b) even though the full set is demanded, if the documents are sent from abroad, the person tendering an incomplete set may nevertheless require payments upon furnishing an indemnity which the buyer in good faith deems adequate.

(3) A shipment by water or by air or a contract contemplating such shipment is "overseas" insofar as by usage of trade or agreement it is subject to the commercial, financing, or shipping practices characteristic of international deep water commerce.

Formerly: Acts 1963, c.317, s.2-323. As amended by P.L.152-1986, SEC.138; P.L.143-2007, SEC.11.
Ind. Code § 26-1-2.1-219 — Indiana Code / Title 26 / Article 1 / Chapter 2.1 / Section 26-1-2.1-219
Risk of loss
Status: in_force

Sec. 219. (1) Except in the case of a finance lease, risk of loss is retained by the lessor and does not pass to the lessee. In the case of a finance lease, risk of loss passes to the lessee.

(2) Subject to the provisions of IC 26-1-2.1 on the effect of default on risk of loss (IC 26-1-2.1-220), if risk of loss is to pass to the lessee and the time of passage is not stated, the following rules apply:

(a) If the lease contract requires or authorizes the goods to be shipped by carrier:

(i) and it does not require delivery at a particular destination, the risk of loss passes to the lessee when the goods are duly delivered to the carrier; but

(ii) if it does require delivery at a particular destination and the goods are there duly tendered while in the possession of the carrier, the risk of loss passes to the lessee when the goods are there duly so tendered as to enable the lessee to take delivery.

(b) If the goods are held by a bailee to be delivered without being moved, the risk of loss passes to the lessee on acknowledgment by the bailee of the lessee's right to possession of the goods.

(c) In any case not within subdivision (a) or (b), the risk of loss passes to the lessee on the lessee's receipt of the goods if the lessor, or, in the case of a finance lease, the supplier, is a merchant; otherwise the risk passes to the lessee on tender of delivery.

As added by P.L.189-1991, SEC.3.
Ind. Code § 26-1-9.1-332 — Indiana Code / Title 26 / Article 1 / Chapter 9.1 / Section 26-1-9.1-332
Transferee of money or of funds from a deposit account
Status: in_force

Sec. 332. (a) A transferee of money takes the money free of a security interest if the transferee receives possession of the money without acting in collusion with the debtor in violating the rights of the secured party.

(b) A transferee of funds from a deposit account takes the funds free of a security interest in the deposit account if the transferee receives the funds without acting in collusion with the debtor in violating the rights of the secured party.

As added by P.L.57-2000, SEC.45. Amended by P.L.199-2023, SEC.68.
Ind. Code § 26-1-9.1-804 — Indiana Code / Title 26 / Article 1 / Chapter 9.1 / Section 26-1-9.1-804
Effectiveness of action taken before July 1, 2013
Status: in_force

Sec. 804. (a) The filing of a financing statement before the amendments to this chapter made by P.L.54-2011 take effect (July 1, 2013) is effective to perfect a security interest to the extent the filing would satisfy the applicable requirements for perfection under this chapter, as amended by P.L.54-2011.

(b) The amendments to this chapter made by P.L.54-2011 do not render ineffective an effective financing statement that, before the amendments to this chapter made by P.L.54-2011 take effect (July 1, 2013), is filed and satisfies the applicable requirements for perfection under the law of the jurisdiction governing perfection provided in this chapter as it existed before it was amended by P.L.54-2011. However, except as otherwise provided in subsections (c) and (d) and IC 26-1-9.1-805, the financing statement ceases to be effective:

(1) if the financing statement is filed in this state, at the time the financing statement would have ceased to be effective had the amendments to this chapter made by P.L.54-2011 not taken effect; or

(2) if the financing statement is filed in another jurisdiction, at the earlier of:

(A) the time the financing statement would have ceased to be effective under the law of that jurisdiction; or

(B) June 30, 2018.

(c) The filing of a continuation statement after the amendments to this chapter made by P.L.54-2011 take effect (July 1, 2013) does not continue the effectiveness of a financing statement filed before the amendments to this chapter made by P.L.54-2011 take effect (July 1, 2013). However, upon the timely filing of a continuation statement after the amendments to this chapter made by P.L.54-2011 take effect (July 1, 2013) and in accordance with the law of the jurisdiction governing perfection as provided in this chapter as amended by P.L.54-2011, the effectiveness of a financing statement filed in the same office in that jurisdiction before the amendments to this chapter made by P.L.54-2011 take effect (July 1, 2013) continues for the period provided by the law of that jurisdiction.

(d) Subsection (b)(2)(B) applies to a financing statement that, before the amendments to this chapter made by P.L.54-2011 take effect (July 1, 2013), is filed against a transmitting utility and satisfies the applicable requirements for perfection under the law of the jurisdiction governing perfection as provided in this chapter as it existed before it was amended by P.L.54-2011, only to the extent that this chapter, as amended by P.L.54-2011, provides that the law of a jurisdiction other than the jurisdiction in which the financing statement is filed governs perfection of a security interest in collateral covered by the financing statement.

(e) A financing statement that includes a financing statement filed before the amendments to this chapter made by P.L.54-2011 take effect (July 1, 2013) and a continuation statement filed after the amendments to this chapter made by P.L.54-2011 take effect (July 1, 2013) is effective only to the extent that it satisfies the requirements of IC 26-1-9.1-501 through IC 26-1-9.1-527, as amended by P.L.54-2011, for an initial financing statement. A financing statement that indicates that the debtor is a decedent's estate indicates that the collateral is being administered by a personal representative within the meaning of IC 26-1-9.1-503(a)(2), as amended by P.L.54-2011. A financing statement that indicates that the debtor is a trust or is a trustee acting with respect to property held in trust indicates that the collateral is held in a trust within the meaning of IC 26-1-9.1-503(a)(3) as amended by P.L.54-2011.

As added by P.L.54-2011, SEC.23. Amended by P.L.6-2012, SEC.181.
Ind. Code § 26-1-2-301 — Indiana Code / Title 26 / Article 1 / Chapter 2 / Section 26-1-2-301
General obligations of parties
Status: in_force

Sec. 301. The obligation of the seller is to transfer and deliver and that of the buyer is to accept and pay in accordance with the contract.

Formerly: Acts 1963, c.317, s.2-301.
Ind. Code § 26-1-4-102 — Indiana Code / Title 26 / Article 1 / Chapter 4 / Section 26-1-4-102
Applicability
Status: in_force

Sec. 102. (a) To the extent that items within IC 26-1-4 are also within IC 26-1-3.1 and IC 26-1-8.1, they are subject to IC 26-1-3.1 and IC 26-1-8.1. If there is conflict, IC 26-1-4 governs IC 26-1-3.1, but IC 26-1-8.1 governs IC 26-1-4.

(b) The liability of a bank for action or nonaction with respect to an item handled by it for purposes of presentment, payment, or collection is governed by the law of the place where the bank is located. In the case of action or nonaction by or at a branch or separate office of a bank, its liability is governed by the law of the place where the branch or separate office is located.

Formerly: Acts 1963, c.317, s.4-102. As amended by P.L.152-1986, SEC.206; P.L.222-1993, SEC.7; P.L.247-1995, SEC.5.
Ind. Code § 26-4-8-4 — Indiana Code / Title 26 / Article 4 / Chapter 8 / Section 26-4-8-4
Violation of confidentiality
Status: in_force

Sec. 4. (a) A member of the board who knowingly violates the terms of a confidentiality agreement executed under this article commits a Class A misdemeanor.

(b) A person convicted of violating this section is ineligible to serve on the board.

As added by P.L.114-2025, SEC.78.
Ind. Code § 26-1-2.1-101 — Indiana Code / Title 26 / Article 1 / Chapter 2.1 / Section 26-1-2.1-101
Short title
Status: in_force

Sec. 101. IC 26-1-2.1 shall be known and may be cited as the Uniform Commercial Code-Leases.

As added by P.L.189-1991, SEC.3.
Ind. Code § 26-1-7-105 — Indiana Code / Title 26 / Article 1 / Chapter 7 / Section 26-1-7-105
Tangible substitute for electronic document of title
Status: in_force

Sec. 105. (a) Upon request of a person entitled under an electronic document of title, the issuer of the electronic document may issue a tangible document of title as a substitute for the electronic document if:

(1) the person entitled under the electronic document surrenders control of the document to the issuer; and

(2) the tangible document when issued contains a statement that it is issued in substitution for the electronic document.

(b) Upon issuance of a tangible document of title in substitution for an electronic document of title in accordance with subsection (a):

(1) the electronic document ceases to have any effect or validity; and

(2) the person that procured issuance of the tangible document warrants to all subsequent persons entitled under the tangible document that the warrantor was a person entitled under the electronic document when the warrantor surrendered control of the electronic document to the issuer.

(c) Upon request of a person entitled under a tangible document of title, the issuer of the tangible document may issue an electronic document of title as a substitute for the tangible document if:

(1) the person entitled under the tangible document surrenders possession of the document to the issuer; and

(2) the electronic document when issued contains a statement that it is issued in substitution for the tangible document.

(d) Upon issuance of an electronic document of title in substitution for a tangible document of title in accordance with subsection (c):

(1) the tangible document ceases to have any effect or validity; and

(2) the person that procured issuance of the electronic document warrants to all subsequent persons entitled under the electronic document that the warrantor was a person entitled under the tangible document when the warrantor surrendered possession of the tangible document to the issuer.

Formerly: Acts 1963, c.317, s.7-105. As amended by P.L.152-1986, SEC.247; P.L.143-2007, SEC.28.
Ind. Code § 26-1-9.1-509 — Indiana Code / Title 26 / Article 1 / Chapter 9.1 / Section 26-1-9.1-509
Persons entitled to file initial financing statement or amendment
Status: in_force

Sec. 509. (a) A person may file an initial financing statement, amendment that adds collateral covered by a financing statement, or amendment that adds a debtor to a financing statement only if:

(1) the debtor authorizes the filing in a signed record or under subsection (b) or (c); or

(2) the person holds an agricultural lien that has become effective at the time of filing and the financing statement covers only collateral in which the person holds an agricultural lien.

(b) By signing or becoming bound as debtor by a security agreement, a debtor or new debtor authorizes the filing of an initial financing statement, and an amendment, covering:

(1) the collateral described in the security agreement; and

(2) property that becomes collateral under IC 26-1-9.1-315(a)(2), whether or not the security agreement expressly covers proceeds.

(c) By acquiring collateral in which a security interest or agricultural lien continues under IC 26-1-9.1-315(a)(1), a debtor authorizes the filing of an initial financing statement, and an amendment, covering the collateral and property that becomes collateral under IC 26-1-9.1-315(a)(2).

(d) A person may file an amendment other than an amendment that adds collateral covered by a financing statement or an amendment that adds a debtor to a financing statement only if:

(1) the secured party of record authorizes the filing; or

(2) the amendment is a termination statement for a financing statement as to which the secured party of record has failed to file or send a termination statement as required by IC 26-1-9.1-513(a) or IC 26-1-9.1-513(c), the debtor authorizes the filing, and the termination statement indicates that the debtor authorized it to be filed.

(e) If there is more than one (1) secured party of record for a financing statement, each secured party of record may authorize the filing of an amendment under subsection (d).

As added by P.L.57-2000, SEC.45. Amended by P.L.165-2001, SEC.14; P.L.1-2010, SEC.108; P.L.199-2023, SEC.74.
Ind. Code § 26-1-8.1-209 — Indiana Code / Title 26 / Article 1 / Chapter 8.1 / Section 26-1-8.1-209
Issuer's lien
Status: in_force

Sec. 209. A lien in favor of an issuer upon a certificated security is valid against a purchaser only if the right of the issuer to the lien is noted conspicuously on the security certificate.

As added by P.L.247-1995, SEC.10.
Ind. Code § 26-1-9.1-404 — Indiana Code / Title 26 / Article 1 / Chapter 9.1 / Section 26-1-9.1-404
Rights acquired by assignee; claims and defenses against assignee
Status: in_force

Sec. 404. (a) Unless an account debtor has made an enforceable agreement not to assert defenses or claims, and subject to subsections (b) through (e), the rights of an assignee are subject to:

(1) all terms of the agreement between the account debtor and assignor and any defense or claim in recoupment arising from the transaction that gave rise to the contract; and

(2) any other defense or claim of the account debtor against the assignor which accrues before the account debtor receives a notification of the assignment signed by the assignor or the assignee.

(b) Subject to subsection (c) and except as otherwise provided in subsection (d), the claim of an account debtor against an assignor may be asserted against an assignee under subsection (a) only to reduce the amount the account debtor owes.

(c) This section is subject to law other than IC 26-1-9.1 that establishes a different rule for an account debtor who is an individual and who incurred the obligation primarily for personal, family, or household purposes.

(d) In a consumer transaction, if a record evidences the account debtor's obligation, law other than IC 26-1-9.1 requires that the record include a statement to the effect that the account debtor's recovery against an assignee with respect to claims and defenses against the assignor may not exceed amounts paid by the account debtor under the record, and the record does not include such a statement, the extent to which a claim of an account debtor against the assignor may be asserted against an assignee is determined as if the record included such a statement.

(e) This section does not apply to an assignment of a health-care-insurance receivable.

As added by P.L.57-2000, SEC.45. Amended by P.L.199-2023, SEC.71.
Ind. Code § 26-2-4-1 — Indiana Code / Title 26 / Article 2 / Chapter 4 / Section 26-2-4-1
Repealed
Status: repealed

Formerly: Acts 1875, c.3, s.1. As amended by P.L.152-1986, SEC.305. Repealed by P.L.243-1989, SEC.2.
Ind. Code § 26-1-4.1-302 — Indiana Code / Title 26 / Article 1 / Chapter 4.1 / Section 26-1-4.1-302
Obligations of receiving bank in execution of payment order
Status: in_force

Sec. 302. (a) Except as provided in subsections (b) through (d), if the receiving bank accepts a payment order pursuant to IC 26-1-4.1-209(a), the bank has the following obligations in executing the order:

(1) The receiving bank is obliged to issue, on the execution date, a payment order complying with the sender's order and to follow the sender's instructions concerning:

(i) any intermediary bank or funds-transfer system to be used in carrying out the funds transfer; or

(ii) the means by which payment orders are to be transmitted in the funds transfer.

If the originator's bank issues a payment order to an intermediary bank, the originator's bank is obliged to instruct the intermediary bank according to the instruction of the originator. An intermediary bank in the funds transfer is similarly bound by an instruction given to it by the sender of the payment order it accepts.

(2) If the sender's instruction states that the funds transfer is to be carried out telephonically or by wire transfer or otherwise indicates that the funds transfer is to be carried out by the most expeditious means, the receiving bank is obliged to transmit its payment order by the most expeditious available means, and to instruct any intermediary bank accordingly. If a sender's instruction states a payment date, the receiving bank is obliged to transmit its payment order at a time and by means reasonably necessary to allow payment to the beneficiary on the payment date or as soon thereafter as is feasible.

(b) Unless otherwise instructed, a receiving bank executing a payment order may (i) use any funds-transfer system if use of that system is reasonable in the circumstances, and (ii) issue a payment order to the beneficiary's bank or to an intermediary bank through which a payment order conforming to the sender's order can expeditiously be issued to the beneficiary's bank if the receiving bank exercises ordinary care in the selection of the intermediary bank. A receiving bank is not required to follow an instruction of the sender designating a funds-transfer system to be used in carrying out the funds transfer if the receiving bank, in good faith, determines that it is not feasible to follow the instruction or that following the instruction would unduly delay completion of the funds transfer.

(c) Unless subsection (a)(2) applies or the receiving bank is otherwise instructed, the bank may execute a payment order by transmitting its payment order by first class mail or by any means reasonable in the circumstances. If the receiving bank is instructed to execute the sender's order by transmitting its payment order by a particular means, the receiving bank may issue its payment order by the means stated or by any means as expeditious as the means stated.

(d) Unless instructed by the sender, (i) the receiving bank may not obtain payment of its charges for services and expenses in connection with the execution of the sender's order by issuing a payment order in an amount equal to the amount of the sender's order less the amount of the charges, and (ii) may not instruct a subsequent receiving bank to obtain payment of its charges in the same manner.

As added by P.L.189-1991, SEC.4.
Ind. Code § 26-1-10-103 — Indiana Code / Title 26 / Article 1 / Chapter 10 / Section 26-1-10-103
Repealed
Status: repealed

Formerly: Acts 1963, c.317, s.10-103. Repealed by P.L.93-1985, SEC.41.
Ind. Code § 26-2-8-104 — Indiana Code / Title 26 / Article 2 / Chapter 8 / Section 26-2-8-104
Agreement to conduct transaction electronically; variation by agreement
Status: in_force

Sec. 104. (a) This chapter does not require that a record or signature be created, generated, sent, communicated, received, stored, or otherwise processed or used by electronic means or in electronic form.

(b) This chapter only applies to transactions between parties each of which has agreed to conduct transactions electronically. An agreement to conduct transactions electronically is determined from the context and surrounding circumstances, including the parties' conduct. A constituent of a business entity and a business entity are presumed to have agreed to conduct organic actions electronically unless and to the extent:

(1) the governing documents of the business entity limit or prohibit, in whole or in part, the use of electronic signatures, electronic records, or both; or

(2) the business entity expressly states the method, means, or requirement by which a constituent may respond to or participate in any organic action, including imposing a requirement that participants use a specific form of writing, record, or signature.

Unless and to the extent limited or prohibited in the governing documents of a business entity, any electronic record or electronic signature to be sent to a constituent is properly sent if sent in the manner and to the electronic address or other means of receipt designated by the constituent to receive the electronic record or electronic signature as shown in the current records of the business entity. If the electronic record is a notice, it is effective when sent. Unless and to the extent limited or prohibited, any electronic record or electronic signature sent by a constituent to a business entity shall be considered properly sent if it is sent in a manner designated by the business entity to an electronic address or other location designated by the business entity in a publication or notice provided by the business entity to the constituent. If the electronic record is a notice, it is effective upon receipt. The publication or notice may be included in the governing documents of the business entity, may be communicated to the constituent in writing, or may be transmitted by any other means selected by the business entity that is reasonably likely to convey the information to the constituent. A constituent or business entity may revoke or change any instruction regarding the manner, electronic address, or means of receipt the person requires for electronic records or electronic signatures by sending notice of the change and the corresponding new information.

(c) If a party agrees to conduct a transaction electronically, this chapter does not prohibit the party from refusing to conduct other transactions electronically. This subsection may not be varied by agreement.

(d) Except as otherwise provided in this chapter, the effect of any provision of this chapter may be varied by agreement. The presence in certain provisions of this chapter of the words "unless otherwise agreed", or words of similar import, does not imply that the effect of other provisions may not be varied by agreement.

(e) Whether an electronic record or electronic signature has legal consequences is determined by this chapter, if applicable, and otherwise by other applicable law.

As added by P.L.62-2000, SEC.1. Amended by P.L.110-2008, SEC.11; P.L.133-2009, SEC.41.
Ind. Code § 26-1-4.1-501 — Indiana Code / Title 26 / Article 1 / Chapter 4.1 / Section 26-1-4.1-501
Variation by agreement and effect of funds transfer system rule
Status: in_force

Sec. 501. (a) Except as otherwise provided in IC 26-1-4.1, the rights and obligations of a party to a funds transfer may be varied by agreement of the affected party.

(b) "Funds-transfer system rule" means a rule of an association of banks (i) governing transmission of payment orders by means of a funds-transfer system of the association or rights and obligations with respect to those orders, or (ii) to the extent the rule governs rights and obligations between banks that are parties to a funds transfer in which a Federal Reserve Bank, acting as an intermediary bank, sends a payment order to the beneficiary's bank. Except as otherwise provided in IC 26-1-4.1, a funds-transfer system rule governing rights and obligations between participating banks using the system may be effective even if the rule conflicts with IC 26-1-4.1 and indirectly affects another party to the funds transfer who does not consent to the rule. A funds-transfer system rule may also govern rights and obligations of parties other than participating banks using the system to the extent stated in IC 26-1-4.1-404(c), IC 26-1-4.1-405(d), and IC 26-1-4.1-507(c).

As added by P.L.189-1991, SEC.4.
Ind. Code § 26-1-2-702 — Indiana Code / Title 26 / Article 1 / Chapter 2 / Section 26-1-2-702
Seller's remedies on discovery of buyer's insolvency
Status: in_force

Sec. 702. (1) Where the seller discovers the buyer to be insolvent he may refuse delivery except for cash including payment for all goods theretofore delivered under the contract, and stop delivery under IC 26-1-2-705.

(2) Where the seller discovers that the buyer has received goods on credit while insolvent he may reclaim the goods upon demand made within ten (10) days after the receipt, but if misrepresentation of solvency has been made to the particular seller in writing within three (3) months before delivery the ten (10) day limitation does not apply. Except as provided in this subsection the seller may not base a right to reclaim goods on the buyer's fraudulent or innocent misrepresentation of solvency or of intent to pay.

(3) The seller's right to reclaim under subsection (2) is subject to the rights of a buyer in ordinary course or other good faith purchaser under IC 26-1-2-403. Successful reclamation of goods excludes all other remedies with respect to them.

Formerly: Acts 1963, c.317, s.2-702. As amended by P.L.93-1985, SEC.5.
Ind. Code § 26-1-9.1-313 — Indiana Code / Title 26 / Article 1 / Chapter 9.1 / Section 26-1-9.1-313
When possession by or delivery to secured party perfects security interest without filing
Status: in_force

Sec. 313. (a) Except as otherwise provided in subsection (b), a secured party may perfect a security interest in goods, instruments, negotiable tangible documents, or money, by taking possession of the collateral. A secured party may perfect a security interest in certificated securities by taking delivery of the certificated securities under IC 26-1-8.1-301.

(b) With respect to goods covered by a certificate of title issued by this state, a secured party may perfect a security interest in the goods by taking possession of the goods only in the circumstances described in IC 26-1-9.1-316(e).

(c) With respect to collateral other than certificated securities and goods covered by a document, a secured party takes possession of collateral in the possession of a person other than the debtor, the secured party, or a lessee of the collateral from the debtor in the ordinary course of the debtor's business, when:

(1) the person in possession signs a record acknowledging that it holds possession of the collateral for the secured party's benefit; or

(2) the person takes possession of the collateral after having signed a record acknowledging that it will hold possession of the collateral for the secured party's benefit.

(d) If perfection of a security interest depends upon possession of the collateral by a secured party, perfection occurs not earlier than the time the secured party takes possession and continues only while the secured party retains possession.

(e) A security interest in a certificated security in registered form is perfected by delivery when delivery of the certificated security occurs under IC 26-1-8.1-301 and remains perfected by delivery until the debtor obtains possession of the security certificate.

(f) A person in possession of collateral is not required to acknowledge that it holds possession for a secured party's benefit.

(g) If a person acknowledges that it holds possession for the secured party's benefit:

(1) the acknowledgment is effective under subsection (c) or IC 26-1-8.1-301(a), even if the acknowledgment violates the rights of a debtor; and

(2) unless the person otherwise agrees or a law other than IC 26-1-9.1 otherwise provides, the person does not owe any duty to the secured party and is not required to confirm the acknowledgment to another person.

(h) A secured party having possession of collateral does not relinquish possession by delivering the collateral to a person other than the debtor or a lessee of the collateral from the debtor in the ordinary course of the debtor's business if the person was instructed before the delivery or is instructed contemporaneously with the delivery:

(1) to hold possession of the collateral for the secured party's benefit; or

(2) to redeliver the collateral to the secured party.

(i) A secured party does not relinquish possession, even if a delivery under subsection (h) violates the rights of a debtor. A person to which collateral is delivered under subsection (h) does not owe any duty to the secured party and is not required to confirm the delivery to another person unless the person otherwise agrees or law other than IC 26-1-9.1 otherwise provides.

As added by P.L.57-2000, SEC.45. Amended by P.L.143-2007, SEC.72; P.L.199-2023, SEC.58.
Ind. Code § 26-1-2-316 — Indiana Code / Title 26 / Article 1 / Chapter 2 / Section 26-1-2-316
Exclusion or modification of warranties
Status: in_force

Sec. 316. (1) Words or conduct relevant to the creation of an express warranty and words or conduct tending to negate or limit warranty shall be construed wherever reasonable as consistent with each other; but subject to the provisions of IC 26-1-2-202 on parol or extrinsic evidence, negation or limitation is inoperative to the extent that such construction is unreasonable.

(2) Subject to subsection (3), to exclude or modify the implied warranty of merchantability or any part of it the language must mention merchantability and in case of a writing must be conspicuous, and to exclude or modify any implied warranty of fitness the exclusion must be by a writing and conspicuous. Language to exclude all implied warranties of fitness is sufficient if it states, for example, that "There are no warranties which extend beyond the description on the face hereof."

(3) Notwithstanding subsection (2):

(a) unless the circumstances indicate otherwise, all implied warranties are excluded by expressions like "as is", "with all faults", or other language which in common understanding calls the buyer's attention to the exclusion of warranties and makes plain that there is no implied warranty; and

(b) when the buyer before entering into the contract has examined the goods or the sample or model as fully as he desired or has refused to examine the goods there is no implied warranty with regard to defects which an examination ought in the circumstances to have revealed to him; and

(c) an implied warranty can also be excluded or modified by course of dealing or course of performance or usage of trade; and

(d) with respect to the sale of cattle, hogs, or sheep, there is no implied warranty that the cattle, hogs, or sheep are free from disease, if the seller shows that all state and federal regulations concerning animal health have been complied with; and

(e) with respect to a sale of audio or visual entertainment products, as defined by IC 26-2-6-1, made as a result of a solicitation through a mail order catalog, it is sufficient to exclude all implied warranties in connection with the sale of any product in the catalog, if the contract is in writing and the language in the contract conspicuously states that:

(i) the product is sold "as is" or "with all faults"; and

(ii) the entire risk as to the quality and performance of the product is with the buyer.

(4) Remedies for breach of warranty can be limited in accordance with the provisions of IC 26-1-2-718 and IC 26-1-2-719 on liquidation or limitation of damages and on contractual modification of remedy.

Formerly: Acts 1963, c.317, s.2-316. As amended by Acts 1980, P.L.167, SEC.1; P.L.254-1983, SEC.1.
Ind. Code § 26-1-4-204 — Indiana Code / Title 26 / Article 1 / Chapter 4 / Section 26-1-4-204
Methods of sending and presenting; sending directly to payor bank
Status: in_force

Sec. 204. (a) A collecting bank shall send items by reasonably prompt method, taking into consideration relevant instructions, the nature of the item, the number of those items on hand, the cost of collection involved, and the method generally used by it or others to present those items.

(b) A collecting bank may send:

(1) an item directly to the payor bank;

(2) an item to a nonbank payor if authorized by its transferor; and

(3) an item other than documentary drafts to a nonbank payor, if authorized by Federal Reserve regulation or operating circular, clearing-house rule, or the like.

(c) Presentment may be made by a presenting bank at a place where the payor bank or other payor has requested that presentment be made.

Formerly: Acts 1963, c.317, s.4-204. As amended by P.L.222-1993, SEC.20.
Ind. Code § 26-1-9.1-204 — Indiana Code / Title 26 / Article 1 / Chapter 9.1 / Section 26-1-9.1-204
Security interest in after-acquired collateral; exceptions; future advances; proceeds
Status: in_force

Sec. 204. (a) Except as otherwise provided in subsection (b), a security agreement may create or provide for a security interest in after-acquired collateral.

(b) Subject to subsection (d), a security interest does not attach under a term constituting an after-acquired property clause to:

(1) consumer goods, other than an accession when given as additional security, unless the debtor acquires rights in them within ten (10) days after the secured party gives value; or

(2) a commercial tort claim.

(c) A security agreement may provide that collateral secures, or that accounts, chattel paper, payment intangibles, or promissory notes are sold in connection with, future advances or other value, whether or not the advances or value are given pursuant to commitment.

(d) Subsection (b) does not prevent a security interest from attaching:

(1) to consumer goods as proceeds under section 315(a) of this chapter or commingled goods under section 336(c) of this chapter;

(2) to a commercial tort claim as proceeds under section 315(a) of this chapter; or

(3) under an after-acquired property clause to property that is proceeds of consumer goods or a commercial tort claim.

As added by P.L.57-2000, SEC.45. Amended by P.L.199-2023, SEC.46.
Ind. Code § 26-4-1-5.5 — Indiana Code / Title 26 / Article 4 / Chapter 1 / Section 26-4-1-5.5
"Conflict of interest"
Status: in_force

Sec. 5.5. "Conflict of interest" means having or representing a person who has a direct or indirect financial interest in a licensee.

As added by P.L.208-2021, SEC.7.
Ind. Code § 26-1-2-602 — Indiana Code / Title 26 / Article 1 / Chapter 2 / Section 26-1-2-602
Manner and effect of rightful rejection
Status: in_force

Sec. 602. (1) Rejection of goods must be within a reasonable time after their delivery or tender. It is ineffective unless the buyer seasonably notifies the seller.

(2) Subject to the provisions of the sections on rejected goods (IC 26-1-2-603 and IC 26-1-2-604):

(a) after rejection, any exercise of ownership by the buyer with respect to any commercial unit is wrongful as against the seller; and

(b) if the buyer has before rejection taken physical possession of goods in which he does not have a security interest under the provisions of IC 26-1-2-711(3), he is under a duty after rejection to hold them with reasonable care at the seller's disposition for a time sufficient to permit the seller to remove them; but

(c) the buyer has no further obligations with regard to goods rightfully rejected.

(3) The seller's rights with respect to goods wrongfully rejected are governed by the provisions of IC 26-1-2-703 on seller's remedies in general.

Formerly: Acts 1963, c.317, s.2-602. As amended by P.L.152-1986, SEC.152.
Ind. Code § 26-1-1.5-1 — Indiana Code / Title 26 / Article 1 / Chapter 1.5 / Section 26-1-1.5-1
Format for filing
Status: in_force

Sec. 1. A format described in IC 26-1-9.1-521 may be used for filings under IC 26-1.

As added by P.L.57-2000, SEC.14. Amended by P.L.54-2011, SEC.2; P.L.177-2019, SEC.15.
Ind. Code § 26-2-9-0.2 — Indiana Code / Title 26 / Article 2 / Chapter 9 / Section 26-2-9-0.2
Application of certain amendments to prior law
Status: in_force

Sec. 0.2. The addition of IC 32-2-1.5 (before its repeal, now codified in this chapter) by P.L.275-1989 does not apply to credit agreements entered into before July 1, 1989.

As added by P.L.220-2011, SEC.419.
Ind. Code § 26-4-4-8 — Indiana Code / Title 26 / Article 4 / Chapter 4 / Section 26-4-4-8
Amount of fund; basis for suspension and reinstatement of producer premium collection; collection time frame
Status: in_force

Sec. 8. (a) The producer premiums required under section 4 of this chapter must be collected until the fund contains more than twenty-five million dollars ($25,000,000), as of June 30 of any given year.

(b) Except as provided in subsection (c), after the fund reaches twenty-five million dollars ($25,000,000), the board may not require the collection of additional producer premiums until the amount in the fund drops below twenty million dollars ($20,000,000), as determined under section 9 of this chapter. In a year when the board determines that the fund is at or below twenty million dollars ($20,000,000), the board shall reinstate the collection described in this chapter.

(c) The board shall reinstate the collection described in this chapter if as of May 1:

(1) the fund contains at least twenty million dollars ($20,000,000);

(2) the board is aware of the revocation of a license of a licensee; and

(3) the amount of compensation from the fund to cover producers' claims, as determined by the board, is equal to or greater than the amount of money in the fund.

(d) Collections must occur from September 1 through August 30 any year collections are made.

As added by P.L.250-1995, SEC.1. Amended by P.L.5-2009, SEC.3; P.L.60-2015, SEC.17; P.L.114-2025, SEC.69.
Ind. Code § 26-1-2.1-532 — Indiana Code / Title 26 / Article 1 / Chapter 2.1 / Section 26-1-2.1-532
Recovery by lessor for loss of or damage to residual interest
Status: in_force

Sec. 532. In addition to any other recovery permitted by IC 26-1-2.1 or other law, the lessor may recover from the lessee an amount that will fully compensate the lessor for any loss of or damage to the lessor's residual interest in the goods caused by the default of the lessee.

As added by P.L.189-1991, SEC.3.
Ind. Code § 26-3-7-16.3 — Indiana Code / Title 26 / Article 3 / Chapter 7 / Section 26-3-7-16.3
Annual reporting requirements; renewal fee
Status: in_force

Sec. 16.3. (a) A licensee shall, as a condition of licensure, submit to the agency on an annual basis, and not later than one hundred twenty (120) days after the end of the licensee's fiscal year, the following:

(1) A completed annual report in the form and as otherwise required in this chapter.

(2) A financial statement for the licensee's most recent fiscal year that complies with the requirements of this chapter.

(3) The applicable license fee, in a form and manner of payment acceptable to the agency.

(b) Before the anniversary date of the license, the licensee shall pay an annual fee in an amount equal to the amount required under section 4.4 of this chapter. The director may prorate the annual application fee for a license that is modified at least thirty (30) days after the anniversary date of the licensee's license.

(c) If a licensee's storage capacity changes between license renewals, the agency shall charge the licensee a fee of two hundred fifty dollars ($250).

As added by P.L.114-2025, SEC.24.
Ind. Code § 26-3-7-4.2 — Indiana Code / Title 26 / Article 3 / Chapter 7 / Section 26-3-7-4.2
Registered agent
Status: in_force

Sec. 4.2. (a) If an applicant for a license or a renewal of a license issued under this chapter does not regularly conduct business at a street address at which the applicant usually can be contacted in Indiana, the applicant shall include with the applicant's application a written appointment of a registered agent for service of process, notice, or demand.

(b) The designation of a registered agent and requirements for a registered agent must comply with the requirements under IC 23-0.5-4.

As added by P.L.145-2017, SEC.4. Amended by P.L.114-2025, SEC.7.
Ind. Code § 26-3-7-1.5 — Indiana Code / Title 26 / Article 3 / Chapter 7 / Section 26-3-7-1.5
Liberal construction
Status: in_force

Sec. 1.5. This chapter shall be liberally construed to effect its purposes.

As added by P.L.1-1989, SEC.54.
Ind. Code § 26-1-2-206 — Indiana Code / Title 26 / Article 1 / Chapter 2 / Section 26-1-2-206
Offer and acceptance in formation of contract
Status: in_force

Sec. 206. (1) Unless otherwise unambiguously indicated by the language or circumstances

(a) an offer to make a contract shall be construed as inviting acceptance in any manner and by any medium reasonable in the circumstances;

(b) an order or other offer to buy goods for prompt or current shipment shall be construed as inviting acceptance either by a prompt promise to ship or by the prompt or current shipment of conforming or non-conforming goods, but such a shipment of non-conforming goods does not constitute an acceptance if the seller seasonably notifies the buyer that the shipment is offered only as an accommodation to the buyer.

(2) Where the beginning of a requested performance is a reasonable mode of acceptance an offeror who is not notified of acceptance within a reasonable time may treat the offer as having lapsed before acceptance.

Formerly: Acts 1963, c.317, s.2-206.
Ind. Code § 26-1-2-614 — Indiana Code / Title 26 / Article 1 / Chapter 2 / Section 26-1-2-614
Substituted performance
Status: in_force

Sec. 614. (1) Where without fault of either party the agreed berthing, loading, or unloading facilities fail or an agreed type of carrier becomes unavailable or the agreed manner of delivery otherwise becomes commercially impracticable but a commercially reasonable substitute is available, such substitute performance must be tendered and accepted.

(2) If the agreed means or manner of payment fails because of domestic or foreign governmental regulation, the seller may withhold or stop delivery unless the buyer provides a means or manner of payment which is commercially a substantial equivalent. If delivery has already been taken, payment by the means or in the manner provided by the regulation discharges the buyer's obligation unless the regulation is discriminatory, oppressive or predatory.

Formerly: Acts 1963, c.317, s.2-614.
Ind. Code § 26-1-2-720 — Indiana Code / Title 26 / Article 1 / Chapter 2 / Section 26-1-2-720
Effect of "cancellation" or "rescission" on claims for antecedent breach
Status: in_force

Sec. 720. Unless the contrary intention clearly appears, expressions of "cancelation" or "rescission" of the contract or the like shall not be construed as a renunciation or discharge of any claim in damages for an antecedent breach.

Formerly: Acts 1963, c.317, s.2-720.
Ind. Code § 26-2-5-3 — Indiana Code / Title 26 / Article 2 / Chapter 5 / Section 26-2-5-3
Application of chapter
Status: in_force

Sec. 3. This chapter applies to a construction or design contract entered into after June 30, 1975.

As added by P.L.1-1989, SEC.53.
Ind. Code § 26-1-9.1-319 — Indiana Code / Title 26 / Article 1 / Chapter 9.1 / Section 26-1-9.1-319
Rights and title of consignee with respect to creditors and purchasers
Status: in_force

Sec. 319. (a) Except as otherwise provided in subsection (b), for purposes of determining the rights of creditors of, and purchasers for value of goods from, a consignee, while the goods are in the possession of the consignee, the consignee has rights and title to the goods identical to those the consignor had or had power to transfer.

(b) For purposes of determining the rights of a creditor of a consignee, law other than this article determines the rights and title of a consignee while goods are in the consignee's possession if, under IC 26-1-9.1-301 through IC 26-1-9.1-342, a perfected security interest held by the consignor would have priority over the rights of the creditor.

As added by P.L.57-2000, SEC.45. Amended by P.L.165-2001, SEC.7.
Ind. Code § 26-1-2.1-205 — Indiana Code / Title 26 / Article 1 / Chapter 2.1 / Section 26-1-2.1-205
Firm offers
Status: in_force

Sec. 205. An offer by a merchant to lease goods to or from another person in a signed record that by its terms gives assurance it will be held open is not revocable, for lack of consideration, during the time stated or, if no time is stated, for a reasonable time, but in no event may the period of irrevocability exceed three (3) months. Any such term of assurance on a form supplied by the offeree must be separately signed by the offeror.

As added by P.L.189-1991, SEC.3. Amended by P.L.199-2023, SEC.16.
Ind. Code § 26-1-9.1-107 — Indiana Code / Title 26 / Article 1 / Chapter 9.1 / Section 26-1-9.1-107
Control of letter-of-credit right
Status: in_force

Sec. 107. A secured party has control of a letter-of-credit right to the extent of any right to payment or performance by the issuer or any nominated person if the issuer or nominated person has consented to an assignment of proceeds of the letter of credit under IC 26-1-5.1-114(c) or otherwise applicable law or practice.

As added by P.L.57-2000, SEC.45.
Ind. Code § 26-1-4.1-403 — Indiana Code / Title 26 / Article 1 / Chapter 4.1 / Section 26-1-4.1-403
Payment by sender to receiving bank
Status: in_force

Sec. 403. (a) Payment of the sender's obligation under IC 26-1-4.1-402 to pay the receiving bank occurs as follows:

(1) If the sender is a bank, payment occurs when the receiving bank receives final settlement of the obligation through a Federal Reserve Bank or through a funds-transfer system.

(2) If the sender is a bank and the sender:

(i) credited an account of the receiving bank with the sender; or

(ii) caused an account of the receiving bank in another bank to be credited;

payment occurs when the credit is withdrawn or, if not withdrawn, at midnight of the day on which the credit is withdrawable and the receiving bank learns of that fact.

(3) If the receiving bank debits an account of the sender with the receiving bank, payment occurs when the debit is made to the extent the debit is covered by a withdrawable credit balance in the account.

(b) If the sender and receiving bank are members of a funds-transfer system that nets obligations multilaterally among participants, the receiving bank receives final settlement when settlement is complete in accordance with the rules of the system. The obligation of the sender to pay the amount of a payment order transmitted through the funds-transfer system may be satisfied, to the extent permitted by the rules of the system, by setting off and applying against the sender's obligation the right of the sender to receive payment from the receiving bank of the amount of any other payment order transmitted to the sender by the receiving bank through the funds-transfer system. The aggregate balance of obligations owed by each sender to each receiving bank in the funds-transfer system may be satisfied, to the extent permitted by the rules of the system, by setting off and applying against that balance the aggregate balance of obligations owed to the sender by other members of the system. The aggregate balance is determined after the right of setoff stated in the second sentence of this subsection has been exercised.

(c) If two banks transmit payment orders to each other under an agreement that settlement of the obligations of each bank to the other under IC 26-1-4.1-402 will be made at the end of the day or other period, the total amount owed with respect to all orders transmitted by one bank shall be set off against the total amount owed with respect to all orders transmitted by the other bank. To the extent of the setoff, each bank has made payment to the other.

(d) In a case not covered by subsection (a), the time when payment of the sender's obligation under IC 26-1-4.1-402(b) or IC 26-1-4.1-402(c) occurs is governed by applicable principles of law that determine when an obligation is satisfied.

As added by P.L.189-1991, SEC.4.
Ind. Code § 26-1-9.1-805 — Indiana Code / Title 26 / Article 1 / Chapter 9.1 / Section 26-1-9.1-805
When initial financing statement suffices to continue effectiveness of financing statement
Status: in_force

Sec. 805. (a) The filing of an initial financing statement in the office specified in IC 26-1-9.1-501 continues the effectiveness of a financing statement filed before the amendments to this chapter made by P.L.54-2011 take effect (July 1, 2013) if:

(1) the filing of an initial financing statement in that office would be effective to perfect a security interest under this chapter, as amended by P.L.54-2011;

(2) the pre-effective-date financing statement was filed in an office in another state; and

(3) the initial financing statement satisfies subsection (c).

(b) The filing of an initial financing statement under subsection (a) continues the effectiveness of the pre-effective-date financing statement:

(1) if the initial financing statement is filed before the amendments to this chapter made by P.L.54-2011 take effect (July 1, 2013), for the period provided in IC 26-1-9.1-515, before it was amended by P.L.54-2011, with respect to an initial financing statement; and

(2) if the initial financing statement is filed after the amendments to this chapter made by P.L.54-2011 take effect (July 1, 2013), for the period provided in IC 26-1-9.1-515, as amended by P.L.54-2011 with respect to an initial financing statement.

(c) To be effective for purposes of subsection (a), an initial financing statement must:

(1) satisfy the requirements of IC 26-1-9.1-501 through IC 26-1-9.1-527, as amended by P.L.54-2011 for an initial financing statement;

(2) identify the pre-effective-date financing statement by indicating the office in which the financing statement was filed and providing the dates of filing and file numbers, if any, of the financing statement and of the most recent continuation statement filed with respect to the financing statement; and

(3) indicate that the pre-effective-date financing statement remains effective.

As added by P.L.54-2011, SEC.24. Amended by P.L.6-2012, SEC.182.
Ind. Code § 26-1-7-501 — Indiana Code / Title 26 / Article 1 / Chapter 7 / Section 26-1-7-501
Form of negotiation and requirements of "due negotiation"
Status: in_force

Sec. 501. (a) The following rules apply to a negotiable tangible document of title:

(1) If the document's original terms run to the order of a named person, the document is negotiated by the named person's endorsement and delivery. After the named person's endorsement in blank or to bearer, any person may negotiate the document by delivery alone.

(2) If the negotiable document's original terms run to bearer, it is negotiated by delivery alone.

(3) If the document's original terms run to the order of a named person and it is delivered to the named person, the effect is the same as if the document had been negotiated.

(4) Negotiation of the document after it has been endorsed to a named person requires endorsement and delivery.

(5) A negotiable document of title is "duly negotiated" when it is negotiated in the manner stated in this section to a holder who purchases it in good faith without notice of any defense against or claim to it on the part of any person and for value, unless it is established that the negotiation is not in the regular course of business or financing or involves receiving the document in settlement or payment of a money obligation.

(b) The following rules apply to a negotiable electronic document of title:

(1) If the document's original terms run to the order of a named person or to bearer, the document is negotiated by delivery of the document to another person. Endorsement by the named person is not required to negotiate the document.

(2) If the document's original terms run to the order of a named person and the named person has control of the document, the effect is the same as if the document had been negotiated.

(3) A document is duly negotiated if it is negotiated in the manner stated in this subsection to a holder that purchases it in good faith, without notice of any defense against or claim to it on the part of any person, and for value, unless it is established that the negotiation is not in the regular course of business or financing or involves taking delivery of the document in settlement or payment of a monetary obligation.

(c) Endorsement of a nonnegotiable document of title neither makes it negotiable nor adds to the transferee's rights.

(d) The naming in a negotiable bill of lading of a person to be notified of the arrival of the goods does not limit the negotiability of the bill or constitute notice to a purchaser of the bill of any interest of that person in the goods.

Formerly: Acts 1963, c.317, s.7-501. As amended by P.L.143-2007, SEC.52.
Ind. Code § 26-1-1-0.5 — Indiana Code / Title 26 / Article 1 / Chapter 1 / Section 26-1-1-0.5
Status of certain security interests; conditions; lapsing of perfection; filing of financing statements
Status: in_force

Sec. 0.5. (a) If a security interest is perfected or has priority as of December 31, 1985, as to all persons or as to certain persons without any filing or recording, and if the filing of a financing statement would be required for the perfection or priority of the security interest against those persons under P.L.93-1985, the perfection and priority rights of the security interest continue until December 31, 1988. The perfection will then lapse unless a financing statement is filed as provided in subsection (d) or unless the security interest is perfected otherwise than by filing.

(b) If a security interest is perfected as of December 31, 1985, under a law other than this article, as effective on December 31, 1985, which requires no further filing, refiling, or recording to continue its perfection, perfection continues until and will lapse on December 31, 1988, unless:

(1) a financing statement is filed as provided in subsection (d);

(2) the security interest is perfected otherwise than by filing; or

(3) under IC 26-1-9-302(3), as amended by P.L.93-1985 and before its repeal, the other law continues to govern filing.

(c) If a security interest is perfected by a filing, refiling, or recording under a law repealed by P.L.93-1985, which required further filing, refiling, or recording to continue its perfection, perfection continues and will lapse on the date provided by the repealed law for the further filing, refiling, or recording unless a financing statement is filed as provided in subsection (d) or unless the security interest is perfected otherwise than by filing.

(d) A financing statement may be filed within six (6) months before the perfection of a security interest would otherwise lapse. Any such financing statement may be signed by either the debtor or the secured party. The financing statement must identify the security agreement, statement, or notice (however denominated in any statute or other law repealed or modified by P.L.93-1985), state the office where and the date when the last filing, refiling, or recording, if any, was made with respect to the security agreement, statement, or notice and the filing number, if any, or book and page, if any, of recording, and further state that the security agreement, statement, or notice, however denominated, in another filing office under this article, as amended by P.L.93-1985, or under any statute or other law repealed or modified by P.L.93-1985 is still effective. IC 26-1-9-401 and IC 26-1-9-103, as amended by P.L.93-1985 and before their repeal, determine the proper place to file such a financing statement. Except as specified in this subsection, the provisions of IC 26-1-9-403(3), as amended by P.L.93-1985 and before its repeal, for continuation statements apply to such a financing statement.

As added by P.L.220-2011, SEC.415.
Ind. Code § 26-2-6-1 — Indiana Code / Title 26 / Article 2 / Chapter 6 / Section 26-2-6-1
Definitions
Status: in_force

Sec. 1. The following definitions apply throughout this chapter:

(1) "Adequate service information" means facts sufficient to enable a service representative or independent service facility to repair a product, including detailed schematic diagrams, operational voltages, and parts identification.

(2) "Audio or visual entertainment product" means an electronic product that:

(A) generates electronic signals or uses amplification devices, such as a radio, an item of audio playback or recording equipment, a television, or a video playback or recording unit; and

(B) is purchased by a consumer primarily for personal, family, or household uses and not for business or agricultural uses.

(3) "Authorized service representative" means until July 1, 1996, any dealer of audio or visual entertainment products licensed under IC 25-36-1 (repealed) who has been designated by a manufacturer as one (1) of the dealers who will be reimbursed for service or repairs that the dealer may render, including labor or parts, in connection with an express warranty of the product made by the manufacturer.

(4) "Independent service facility" means any dealer of audio or visual entertainment products who:

(A) has not been designated an "authorized service representative" by a manufacturer;

(B) services audio or visual entertainment products without reimbursement from the manufacturer in connection with an express warranty made by the manufacturer; and

(C) until July 1, 1996, is licensed as a television and radio service technician under IC 25-36-1 (repealed).

As added by P.L.254-1983, SEC.2. Amended by P.L.234-1995, SEC.29; P.L.42-2011, SEC.59.
Ind. Code § 26-1-9.1-338 — Indiana Code / Title 26 / Article 1 / Chapter 9.1 / Section 26-1-9.1-338
Priority of security interest or agricultural lien perfected by filed financing statement providing certain incorrect information
Status: in_force

Sec. 338. If a security interest or agricultural lien is perfected by a filed financing statement providing information described in IC 26-1-9.1-516(b)(5) that is incorrect at the time the financing statement is filed:

(1) the security interest or agricultural lien is subordinate to a conflicting perfected security interest in the collateral to the extent that the holder of the conflicting security interest gives value in reasonable reliance upon the incorrect information; and

(2) a purchaser, other than a secured party, of the collateral takes free of the security interest or agricultural lien to the extent that, in reasonable reliance upon the incorrect information, the purchaser gives value and, in the case of tangible chattel paper, tangible documents, goods, instruments, or a security certificate, receives delivery of the collateral.

As added by P.L.57-2000, SEC.45. Amended by P.L.143-2007, SEC.75.
Ind. Code § 26-1-8.1-307 — Indiana Code / Title 26 / Article 1 / Chapter 8.1 / Section 26-1-8.1-307
Duties of transferor of security
Status: in_force

Sec. 307. Unless otherwise agreed, the transferor of a security on due demand shall supply the purchaser with proof of authority to transfer or with any other requisite necessary to obtain registration of the transfer of the security, but if the transfer is not for value, a transferor need not comply unless the purchaser pays the necessary expenses. If the transferor fails within a reasonable time to comply with the demand, the purchaser may reject or rescind the transfer.

As added by P.L.247-1995, SEC.10.
Ind. Code § 26-1-9.1-301 — Indiana Code / Title 26 / Article 1 / Chapter 9.1 / Section 26-1-9.1-301
Law governing perfection, effect of perfection or nonperfection, and priority of security interests in collateral
Status: in_force

Sec. 301. Except as otherwise provided in IC 26-1-9.1-303 through IC 26-1-9.1-306.2, the following rules determine the law governing perfection, the effect of perfection or nonperfection, and the priority of a security interest in collateral:

(1) Except as otherwise provided in this section, while a debtor is located in a jurisdiction, the local law of that jurisdiction governs perfection, the effect of perfection or nonperfection, and the priority of a security interest in collateral.

(2) While collateral is located in a jurisdiction, the local law of that jurisdiction governs perfection, the effect of perfection or nonperfection, and the priority of a possessory security interest in that collateral.

(3) Except as otherwise provided in subdivision (4), while negotiable tangible documents, goods, instruments, or money is located in a jurisdiction, the local law of that jurisdiction governs:

(A) perfection of a security interest in the goods by filing a fixture filing;

(B) perfection of a security interest in timber to be cut; and

(C) the effect of perfection or nonperfection and the priority of a nonpossessory security interest in the collateral.

(4) The local law of the jurisdiction in which the wellhead or minehead is located governs perfection, the effect of perfection or nonperfection, and the priority of a security interest in as-extracted collateral.

As added by P.L.57-2000, SEC.45. Amended by P.L.143-2007, SEC.69; P.L.199-2023, SEC.51.
Ind. Code § 26-1-7-402 — Indiana Code / Title 26 / Article 1 / Chapter 7 / Section 26-1-7-402
Duplicate receipt or bill; overissue
Status: in_force

Sec. 402. A duplicate or any other document of title purporting to cover goods already represented by an outstanding document of the same issuer does not confer any right in the goods, except as provided in the case of tangible bills of lading in a set of parts, overissue of documents for fungible goods, substitutes for lost, stolen or destroyed documents, or substitute documents issued under section 105 of this chapter. The issuer is liable for damages caused by its overissue or failure to identify a duplicate document by a conspicuous notation.

Formerly: Acts 1963, c.317, s.7-402. As amended by P.L.143-2007, SEC.49.
Ind. Code § 26-1-2.1-520 — Indiana Code / Title 26 / Article 1 / Chapter 2.1 / Section 26-1-2.1-520
Lessee's incidental and consequential damages
Status: in_force

Sec. 520. (1) Incidental damages resulting from a lessor's default include expenses reasonably incurred in inspection, receipt, transportation, and care and custody of goods rightfully rejected or goods the acceptance of which is justifiably revoked, any commercially reasonable charges, expenses or commissions in connection with effecting cover, and any other reasonable expense incident to the default.

(2) Consequential damages resulting from a lessor's default include:

(a) any loss resulting from general or particular requirements and needs of which the lessor at the time of contracting had reason to know and which could not reasonably be prevented by cover or otherwise; and

(b) injury to person or property proximately resulting from any breach of warranty.

As added by P.L.189-1991, SEC.3.
Ind. Code § 26-2-8-113 — Indiana Code / Title 26 / Article 2 / Chapter 8 / Section 26-2-8-113
Automated transaction
Status: in_force

Sec. 113. (a) If an offer evokes an electronic record in response, a contract may be formed in the same manner and with the same effect as if the record were not electronic, but an acceptance of the offer is effective, if at all, when received.

(b) In an automated transaction, the following rules apply:

(1) A contract may be formed by the interaction of electronic agents of the parties even if no individual was aware of or reviewed the electronic agents' actions or the resulting terms and agreements.

(2) A contract may be formed by the interaction of an electronic agent and an individual, acting on the individual's own behalf or for another person, including by an interaction in which the individual performs actions that the individual is free to refuse to perform and which the individual knows or has reason to know will cause the electronic agent to complete the transaction or performance.

(c) The terms of a contract are determined by the substantive law applicable to the particular contract.

As added by P.L.62-2000, SEC.1.
Ind. Code § 26-3-7-22 — Indiana Code / Title 26 / Article 3 / Chapter 7 / Section 26-3-7-22
Commingling of grain
Status: reserved

Sec. 22. Different lots of the same type of grain delivered to a licensee may be commingled by type of grain unless the receipt or ticket states that the identity of the lot of grain is to be preserved.

Formerly: Acts 1973, P.L.268, SEC.1. As amended by P.L.125-1997, SEC.44.
Ind. Code § 26-1-7-301 — Indiana Code / Title 26 / Article 1 / Chapter 7 / Section 26-1-7-301
Liability for nonreceipt or misdescription; "said to contain"; "shipper's load and count"; improper handling
Status: in_force

Sec. 301. (a) A consignee of a nonnegotiable bill of lading that has given value in good faith, or a holder to which a negotiable bill has been duly negotiated, relying upon the description of the goods in the bill or upon the date shown in the bill, may recover from the issuer damages caused by the misdating of the bill or the nonreceipt or misdescription of the goods, except to the extent that the bill indicates that the issuer does not know whether any part or all of the goods in fact were received or conform to the description, such as in a case in which the description is in terms of marks or labels or kind, quantity, or condition or the receipt or description is qualified by "contents or condition of contents of packages unknown", "said to contain", "shipper's weight, load, and count" or words of similar import, if that indication is true.

(b) If goods are loaded by the issuer of a bill of lading:

(1) the issuer shall count the packages of goods if shipped in packages and ascertain the kind and quantity if shipped in bulk; and

(2) words such as "shipper's weight, load, and count" or words of similar import indicating that the description was made by the shipper are ineffective except as to goods concealed in packages.

(c) If bulk goods are loaded by a shipper that makes available to the issuer of a bill of lading adequate facilities for weighing the goods, the issuer shall ascertain the kind and quantity within a reasonable time after receiving the shipper's request in a record to do so. In that case, "shipper's weight" or words of similar import are ineffective.

(d) The issuer of a bill of lading, by including in the bill the words "shipper's weight, load, and count" or words of similar import indicate that the goods were loaded by the shipper, and if the statement is true, the issuer is not liable for damages caused by the improper loading. However, omission of such words does not imply liability for damages caused by improper loading.

(e) A shipper guarantees to an issuer the accuracy at the time of shipment of the description, marks, labels, number, kind, quantity, condition, and weight, as furnished by the shipper, and the shipper shall indemnify the issuer against damage caused by inaccuracies in those particulars. This right of indemnity does not limit the issuer's responsibility or liability under the contract of carriage to any person other than the shipper.

Formerly: Acts 1963, c.317, s.7-301. As amended by P.L.143-2007, SEC.40.
Ind. Code § 26-3-7-3 — Indiana Code / Title 26 / Article 3 / Chapter 7 / Section 26-3-7-3
Powers and duties of director
Status: in_force

Sec. 3. (a) The director may do the following:

(1) Require any reports that are necessary to administer this chapter.

(2) Administer oaths, issue subpoenas, compel the attendance and testimony of witnesses, and compel the production of records in connection with any investigation, informal meeting, or hearing under this chapter.

(3) Prescribe all forms within the provisions of this chapter.

(4) Establish grain standards in accordance with the grain standards act and federal regulations promulgated under that act that must be used by warehouses.

(5) Investigate the activities required by this chapter including the storage, shipping, marketing, and handling of grain and complaints with respect to the storage, shipping, marketing, and handling of grain.

(6) Inspect a facility, the grain stored in a facility, and all property and records pertaining to a facility. All inspections of an applicant or licensee under this chapter must take into consideration the proprietary nature of an applicant's or licensee's commercial information. This chapter does not authorize the inspection of an applicant's or licensee's trade secret or intellectual property information.

(7) Determine whether a facility for which a license has been applied for or has been issued is suitable for the proper storage, shipping, and handling of the grain that is stored, shipped, or handled, or is expected to be stored, shipped, or handled.

(8) Require a licensee to terminate storage, shipping, marketing, and handling agreements upon revocation of a license.

(9) Attend and preside over any investigation, informal meeting, or hearing allowed or required under this chapter.

(10) Impose sanctions for violations of this article.

(11) Require all contracts for the purchase of grain from producers, except a flat price contract or a contract for the production of seed, to include the following notice immediately above the place on the contract where the seller of the grain must sign:

"NOTICE - SELLER IS CAUTIONED THAT CONTRACTING FOR THE SALE AND DELIVERY OF GRAIN INVOLVES RISKS. THESE RISKS MAY INCLUDE FUTURE PAYMENTS BY YOU TO MAINTAIN THIS CONTRACT, A LOWER SALES PRICE, AND OTHER RISKS NOT SPECIFIED.

INDIANA STATE LAW REQUIRES THAT ALL DEFERRED PRICED GRAIN MUST BE PRICED WITHIN THE CROP YEAR AS DEFINED BY IC 26-3-7-2(8). THIS CONTRACT MUST BE PRICED BY _(Insert Date)_.

COVERAGE UNDER THE INDIANA GRAIN INDEMNITY PROGRAM IS FOR GRAIN THAT HAS BEEN DELIVERED TO A FIRST PURCHASER LICENSEE WITHIN THE 15 MONTHS BEFORE THE DATE OF THE REVOCATION OF A LICENSE AND IS LIMITED TO 100% OF A LOSS FOR STORED GRAIN AND 80% OF A LOSS FOR OTHER COVERED CONTRACTS.

BE SURE YOU UNDERSTAND THE NATURE OF THIS CONTRACT AND THE ASSOCIATED RISKS.".

(12) Require all contracts executed for the production of seed to include the following notice, in conspicuous letters, immediately above the place on the contract or an addendum where the seller of the seed must sign:

"NOTICE - IF THE TERMS OF THIS CONTRACT STATE THAT THE CONTRACTOR RETAINS OWNERSHIP OF THE SEED AND ITS PRODUCTS, YOU MAY NOT BE ELIGIBLE FOR PARTICIPATION IN THE INDIANA GRAIN INDEMNITY PROGRAM. TO BE ELIGIBLE TO PARTICIPATE IN THE INDIANA GRAIN INDEMNITY PROGRAM, FARMERS MUST OWN AND SELL GRAIN OR SEED. BE SURE YOU UNDERSTAND THE NATURE OF THIS CONTRACT AND THE ASSOCIATED RISKS.".

(13) At any time, order an unannounced audit for compliance with this article.

(14) Require all grain buyers offering deferred pricing, delayed payments, or contracts linked to the commodity futures or commodity options market in connection with a grain purchase to document the agreement in writing not more than twenty-one (21) days after delivery.

(15) Receive and consider financial audits of a licensee conducted by an independent audit or accounting firm.

(16) Share information with board members regarding the financial status of a licensee, while the board is in executive session and without disclosing the name or any other identifying information of the licensee, including the following:

(A) Whether there is a risk that a licensee's license may be revoked.

(B) The financial impact to the fund if a licensee identified in clause (A) were to have the licensee's license revoked.

(C) The estimated number of potential claimants that could result from the revocation of a licensee identified in clause (A).

(D) Any other information the director determines is necessary to solicit the advice of the board regarding the financial status of a licensee.

However, the director may not share information under this subdivision with a board member who has not executed a confidentiality agreement.

(b) The director shall do the following:

(1) Establish standards to ensure that a grain buyer has a suitable financial position to conduct a business as a grain buyer.

(2) Require a person who conducts business as a grain buyer to first be licensed by the agency.

(c) The director may designate an employee to act for the director in the administration of this chapter. An employee designee may not:

(1) adopt rules; or

(2) act as the ultimate authority in the administration of this chapter.

(d) The director may designate an administrative law judge to act for the director in the administration of this chapter.

(e) The director may determine whether geographically separate facilities constitute a single warehouse or grain buyer and in making the determination may consider the following:

(1) The number of facilities involved.

(2) Whether full weighing equipment is present at the geographically separate facilities.

(3) The method of bookkeeping employed by the separate facilities.

(4) The hours of operation of the separate facilities.

(5) The personnel employed at the separate facilities.

(6) Other factors the director deems relevant.

(f) For purposes of determining whether a building or other protected enclosure constitutes a single warehouse that requires a single license under this chapter, the director may consider the following:

(1) The presence of a full weighing facility at geographically diverse warehouse facilities.

(2) The traditional method of record keeping with respect to the separate facilities.

(3) The hours, number of personnel, and activities of the separate facilities.

(4) Any other factor considered relevant.

In the absence of contradictory information, any warehouses owned and operated by the same person that are located within close proximity of each other are presumed to constitute a single warehouse.

(g) The director and the director's designated representative shall become members of the national grain regulatory organization and shall:

(1) work in partnership with other state grain regulatory officials;

(2) participate in national grain regulatory meetings; and

(3) provide expertise and education at national meetings.

(h) The director shall engage an independent third party firm to conduct a performance review of the agency's auditing practices and procedures at least once every five (5) years. The agency shall make reasonable efforts to implement any corrective measures identified in the performance review to enhance and improve the agency's auditing practices and procedures. The agency shall make the findings of the performance review available to the board.

(i) The director may subpoena or require that certain records located outside Indiana, if any, be brought to a specified location in Indiana for review by the agency.

Formerly: Acts 1973, P.L.268, SEC.1; Acts 1974, P.L.120, SEC.2. As amended by P.L.191-1991, SEC.2; P.L.1-1992, SEC.143; P.L.249-1995, SEC.1; P.L.139-1996, SEC.7; P.L.125-1997, SEC.20; P.L.173-1999, SEC.2; P.L.75-2010, SEC.11; P.L.60-2015, SEC.5; P.L.145-2017, SEC.2; P.L.208-2021, SEC.2; P.L.114-2025, SEC.3; P.L.23-2026, SEC.256.
Ind. Code § 26-1-2.1-527 — Indiana Code / Title 26 / Article 1 / Chapter 2.1 / Section 26-1-2.1-527
Lessor's rights to dispose of goods
Status: in_force

Sec. 527. (1) After a default by a lessee under the lease contract of the type described in IC 26-1-2.1-523(1) or IC 26-1-2.1-523(3)(a) or after the lessor refuses to deliver or takes possession of goods (IC 26-1-2.1-525 or IC 26-1-2.1-526), or, if agreed, after other default by the lessee, the lessor may dispose of the goods concerned or the undelivered balance thereof by lease, sale, or otherwise.

(2) Except as otherwise provided with respect to damages liquidated in the lease agreement (IC 26-1-2.1-504) or otherwise determined pursuant to agreement of the parties (IC 26-1-1-102(3) and IC 26-1-2.1-503), if the disposition is by lease agreement substantially similar to the original lease agreement and the new lease agreement is made in good faith and in a commercially reasonable manner, the lessor may recover from the lessee as damages (i) accrued and unpaid rent as of the date of the commencement of the term of the new lease agreement, (ii) the present value, as of the same date, of the total rent for the then remaining lease term of the original lease agreement minus the present value, as of the same date, of the rent under the new lease agreement applicable to that period of the new lease term which is comparable to the then remaining term of the original lease agreement, and (iii) any incidental damages allowed under IC 26-1-2.1-530, less expenses saved in consequence of the lessee's default.

(3) If the lessor's disposition is by lease agreement that for any reason does not qualify for treatment under subsection (2), or is by sale or otherwise, the lessor may recover from the lessee as if the lessor had elected not to dispose of the goods and IC 26-1-2.1-528 governs.

(4) A subsequent buyer or lessee who buys or leases from the lessor in good faith for value as a result of a disposition under this section takes the goods free of the original lease contract and any rights of the original lessee even though the lessor fails to comply with one or more of the requirements of IC 26-1-2.1.

(5) The lessor is not accountable to the lessee for any profit made on any disposition. A lessee who has rightfully rejected or justifiably revoked acceptance shall account to the lessor for any excess over the amount of the lessee's security interest (IC 26-1-2.1-508(5)).

As added by P.L.189-1991, SEC.3.
Ind. Code § 26-1-3.1-306 — Indiana Code / Title 26 / Article 1 / Chapter 3.1 / Section 26-1-3.1-306
Claims to an instrument
Status: in_force

Sec. 306. A person taking an instrument, other than a person having rights of a holder in due course, is subject to a claim of a property or possessory right in the instrument or its proceeds, including a claim to rescind a negotiation and to recover the instrument or its proceeds. A person having rights of a holder in due course takes free of the claim to the instrument.

As added by P.L.222-1993, SEC.5.
Ind. Code § 26-1-9.1-608 — Indiana Code / Title 26 / Article 1 / Chapter 9.1 / Section 26-1-9.1-608
Application of proceeds of collection or enforcement; liability for deficiency and right to surplus
Status: in_force

Sec. 608. (a) If a security interest or agricultural lien secures payment or performance of an obligation, the following rules apply:

(1) A secured party shall apply or pay over for application the cash proceeds of collection or enforcement under IC 26-1-9.1-607 in the following order to:

(A) the reasonable expenses of collection and enforcement and, to the extent provided for by agreement and not prohibited by law, reasonable attorney's fees and legal expenses incurred by the secured party;

(B) the satisfaction of obligations secured by the security interest or agricultural lien under which the collection or enforcement is made; and

(C) the satisfaction of obligations secured by any subordinate security interest in or other lien on the collateral subject to the security interest or agricultural lien under which the collection or enforcement is made if the secured party receives a signed demand for proceeds before distribution of the proceeds is completed.

(2) If requested by a secured party, a holder of a subordinate security interest or other lien shall furnish reasonable proof of the interest or lien within a reasonable time. Unless the holder complies, the secured party need not comply with the holder's demand under subdivision (1)(C).

(3) A secured party need not apply or pay over for application noncash proceeds of collection and enforcement under IC 26-1-9.1-607 unless the failure to do so would be commercially unreasonable. A secured party that applies or pays over for application noncash proceeds shall do so in a commercially reasonable manner.

(4) A secured party shall account to and pay a debtor for any surplus, and the obligor is liable for any deficiency.

(b) If the underlying transaction is a sale of accounts, chattel paper, payment intangibles, or promissory notes, the debtor is not entitled to any surplus, and the obligor is not liable for any deficiency.

As added by P.L.57-2000, SEC.45. Amended by P.L.199-2023, SEC.78.
Ind. Code § 26-1-4-213 — Indiana Code / Title 26 / Article 1 / Chapter 4 / Section 26-1-4-213
Medium and time of settlement by bank
Status: in_force

Sec. 213. (a) With respect to settlement by a bank, the medium and time of settlement may be prescribed by Federal Reserve regulations or circulars, clearing-house rules, and the like, or agreement. In the absence of such prescription:

(1) the medium of settlement is cash or credit to an account in a Federal Reserve bank of or specified by the person to receive settlement; and

(2) the time of settlement is:

(A) with respect to tender of settlement by cash, a cashier's check, or teller's check, when the cash or check is sent or delivered;

(B) with respect to tender of settlement by credit in an account in a Federal Reserve Bank, when the credit is made;

(C) with respect to tender of settlement by a credit or debit to an account in a bank, when the credit or debit is made or, in the case of tender of settlement by authority to charge an account, when the authority is sent or delivered; or

(D) with respect to tender of settlement by a funds transfer, when payment is made under IC 26-1-4.1-406(a) to the person receiving settlement.

(b) If the tender of settlement is not by a medium authorized by subsection (a) or the time of settlement is not fixed by subsection (a), no settlement occurs until the tender of settlement is accepted by the person receiving settlement.

(c) If settlement for an item is made by cashier's check or teller's check and the person receiving settlement, before its midnight deadline:

(1) presents or forwards the check for collection, settlement is final when the check is finally paid; or

(2) fails to present or forward the check for collection, settlement is final at the midnight deadline of the person receiving settlement.

(d) If settlement for an item is made by giving authority to charge the account of the bank giving settlement in the bank receiving settlement, settlement is final when the charge is made by the bank receiving settlement if there are funds available in the account for the amount of the item.

Formerly: Acts 1963, c.317, s.4-213. As amended by P.L.152-1986, SEC.220; P.L.243-1989, SEC.1; P.L.222-1993, SEC.29.
Ind. Code § 26-4-4-5 — Indiana Code / Title 26 / Article 4 / Chapter 4 / Section 26-4-4-5
Notice of producer premium deductions
Status: in_force

Sec. 5. The agency shall notify each grain buyer licensed under IC 26-3-7 that producer premiums described in section 4 of this chapter shall be deducted from the purchase price of the grain on and after the date specified in the notice. The notice must be sent by first class mail.

As added by P.L.250-1995, SEC.1. Amended by P.L.75-2010, SEC.25.
Ind. Code § 26-2-8-105 — Indiana Code / Title 26 / Article 2 / Chapter 8 / Section 26-2-8-105
Construction and application
Status: in_force

Sec. 105. This chapter must be construed and applied:

(1) to facilitate electronic transactions consistent with other applicable law;

(2) to be consistent with reasonable practices concerning electronic transactions and with the continued expansion of those practices; and

(3) to effectuate its general purpose to make uniform the law with respect to the subject of this chapter among states enacting it.

As added by P.L.62-2000, SEC.1.
Ind. Code § 26-1-2-718 — Indiana Code / Title 26 / Article 1 / Chapter 2 / Section 26-1-2-718
Liquidation or limitation of damages; deposits
Status: in_force

Sec. 718. (1) Damages for breach by either party may be liquidated in the agreement, but only at an amount which is reasonable in the light of the anticipated or actual harm caused by the breach, the difficulties of proof of loss, and the inconvenience or nonfeasibility of otherwise obtaining an adequate remedy. A term fixing unreasonably large liquidated damages is void as a penalty.

(2) Where the seller justifiably withholds delivery of goods because of the buyer's breach, the buyer is entitled to restitution of any amount by which the sum of his payments exceeds:

(a) the amount to which the seller is entitled by virtue of terms liquidating the seller's damages in accordance with subsection (1); or

(b) in the absence of such terms, twenty percent (20%) of the value of the total performance for which the buyer is obligated under the contract or five hundred dollars ($500), whichever is smaller.

(3) The buyer's right to restitution under subsection (2) is subject to offset to the extent that the seller establishes:

(a) a right to recover damages under the provisions of IC 26-1-2 other than subsection (1); and

(b) the amount or value of any benefits received by the buyer directly or indirectly by reason of the contract.

(4) Where a seller has received payment in goods, their reasonable value or the proceeds of their resale shall be treated as payments for the purposes of subsection (2), but if the seller has notice of the buyer's breach before reselling goods received in part performance, his resale is subject to the conditions laid down in IC 26-1-2-706 on resale by an aggrieved seller.

Formerly: Acts 1963, c.317, s.2-718. As amended by P.L.152-1986, SEC.173.
Ind. Code § 26-1-9.1-403 — Indiana Code / Title 26 / Article 1 / Chapter 9.1 / Section 26-1-9.1-403
Agreement not to assert defenses against assignee
Status: in_force

Sec. 403. (a) As used in this section, "value" has the meaning provided in IC 26-1-3-303(a).

(b) Except as otherwise provided in this section, an agreement between an account debtor and an assignor not to assert against an assignee any claim or defense that the account debtor may have against the assignor is enforceable by an assignee that takes an assignment:

(1) for value;

(2) in good faith;

(3) without notice of a claim of a property or possessory right to the property assigned; and

(4) without notice of a defense or claim in recoupment of the type that may be asserted against a person entitled to enforce a negotiable instrument under IC 26-1-3.1-305(a).

(c) Subsection (b) does not apply to defenses of a type that may be asserted against a holder in due course of a negotiable instrument under IC 26-1-3.1-305(b).

(d) In a consumer transaction, if a record evidences the account debtor's obligation, law other than IC 26-1-9.1 requires that the record include a statement to the effect that the rights of an assignee are subject to claims or defenses that the account debtor could assert against the original obligee, and the record does not include such a statement:

(1) the record has the same effect as if the record included such a statement; and

(2) the account debtor may assert against an assignee those claims and defenses that would have been available if the record included such a statement.

(e) This section is subject to law other than IC 26-1-9.1 that establishes a different rule for an account debtor who is an individual and who incurred the obligation primarily for personal, family, or household purposes.

(f) Except as otherwise provided in subsection (d), this section does not displace law other than IC 26-1-9.1 which gives effect to an agreement by an account debtor not to assert a claim or defense against an assignee.

As added by P.L.57-2000, SEC.45.
Ind. Code § 26-1-12.5-201 — Indiana Code / Title 26 / Article 1 / Chapter 12.5 / Section 26-1-12.5-201
Validity of transactions entered into before July 1, 2023
Status: in_force

Sec. 201. Except as provided in sections 301 through 306 of this chapter, a transaction validly entered into before July 1, 2023, and the rights, duties, and interests flowing from the transaction remain valid after June 30, 2023, and may be terminated, completed, consummated, or enforced as required or permitted by law other than IC 26-1 or, if applicable, by IC 26-1 as though the act had not taken effect.

As added by P.L.199-2023, SEC.91.
Ind. Code § 26-1-5.1-115 — Indiana Code / Title 26 / Article 1 / Chapter 5.1 / Section 26-1-5.1-115
Statute of limitations
Status: in_force

Sec. 115. An action to enforce a right or obligation arising under IC 26-1-5.1 must be commenced within one (1) year after the expiration date of the relevant letter of credit or one (1) year after the cause of action accrues, whichever occurs later. A cause of action accrues when the breach occurs, regardless of the aggrieved party's lack of knowledge of the breach.

As added by P.L.183-1996, SEC.4.
Ind. Code § 26-3-7-19 — Indiana Code / Title 26 / Article 3 / Chapter 7 / Section 26-3-7-19
Receipt of grain; ownership of deposited grain
Status: in_force

Sec. 19. (a) A licensee shall issue a receipt or ticket for grain received. Grain received by a licensee shall be credited to the depositor on the books of the licensee within seven (7) days from the date of its delivery. If a ticket is issued on delivery of the grain for storage, a receipt shall be issued on demand, but no receipt shall be issued on grain bank grain.

(b) The licensee is a bailee with respect to all stored grain. The person whose name appears on a receipt or a ticket has title to the stored grain evidenced by the receipt or ticket.

Formerly: Acts 1973, P.L.268, SEC.1. As amended by Acts 1979, P.L.249, SEC.14; Acts 1982, P.L.155, SEC.13; P.L.125-1997, SEC.41.
Ind. Code § 26-3-7-18 — Indiana Code / Title 26 / Article 3 / Chapter 7 / Section 26-3-7-18
Revocation of license; effect upon operation
Status: in_force

Sec. 18. When a license is revoked, the licensee shall terminate in the manner prescribed by the director all arrangements covering the grain in the facility covered by the license, but shall be permitted, under the direction and supervision of the director or the director's designated representative, to deliver grain previously received.

Formerly: Acts 1973, P.L.268, SEC.1; Acts 1974, P.L.120, SEC.11. As amended by Acts 1979, P.L.249, SEC.13; Acts 1982, P.L.155, SEC.12; P.L.191-1991, SEC.11; P.L.125-1997, SEC.40; P.L.114-2025, SEC.29.
Ind. Code § 26-1-2.1-517 — Indiana Code / Title 26 / Article 1 / Chapter 2.1 / Section 26-1-2.1-517
Revocation of acceptance of goods
Status: in_force

Sec. 517. (1) A lessee may revoke acceptance of a lot or commercial unit whose nonconformity substantially impairs its value to the lessee if the lessee has accepted it:

(a) except in the case of a finance lease, on the reasonable assumption that its nonconformity would be cured and it has not been seasonably cured; or

(b) without discovery of the nonconformity if the lessee's acceptance was reasonably induced either by the lessor's assurances or, except in the case of a finance lease, by the difficulty of discovery before acceptance.

(2) Except in the case of a finance lease that is not a consumer lease, a lessee may revoke acceptance of a lot or commercial unit if the lessor defaults under the lease contract and the default substantially impairs the value of that lot or commercial unit to the lessee.

(3) If the lease agreement so provides, the lessee may revoke acceptance of a lot or commercial unit because of other defaults by the lessor.

(4) Revocation of acceptance must occur within a reasonable time after the lessee discovers or should have discovered the ground for it and before any substantial change in condition of the goods which is not caused by the nonconformity. Revocation is not effective until the lessee notifies the lessor.

(5) A lessee who so revokes has the same rights and duties with regard to the goods involved as if the lessee had rejected them.

As added by P.L.189-1991, SEC.3.
Ind. Code § 26-3-7-14.4 — Indiana Code / Title 26 / Article 3 / Chapter 7 / Section 26-3-7-14.4
Minimum positive tangible net worth, curing deficiencies; informal meeting, revocation of license; fines
Status: in_force

Sec. 14.4. (a) As demonstrated by the licensee's financial statement submitted to the agency, a licensee under this chapter shall maintain a minimum positive tangible net worth, as required under this section.

(b) A licensee shall maintain a minimum positive tangible net worth as follows:

(1) For a grain bank license, at least one hundred thousand dollars ($100,000).

(2) For a warehouse license, an amount at least equal to the sum of:

(A) one hundred thousand dollars ($100,000); and

(B) ten cents ($0.10) multiplied by the total bushel storage capacity of the facility or facilities covered by the warehouse license.

(3) For a grain buyer license, an amount at least equal to the greater of:

(A) one hundred thousand dollars ($100,000); or

(B) five cents ($0.05) multiplied by the total number of bushels of grain purchased under the grain buyer license during the grain buyer's most recent fiscal year.

(4) For a buyer-warehouse license, where the buyer-warehouse license has one (1) or more facilities with a total bushel storage capacity of less than one million (1,000,000) bushels or at which the buyer-warehouse's total annual purchases are less than one million (1,000,000) bushels of grain, an amount at least equal to the greater of:

(A) the sum of:

(i) one hundred fifty thousand dollars ($150,000); and

(ii) ten cents ($0.10) multiplied by the total bushel storage capacity of the facility or facilities covered by the buyer-warehouse license; or

(B) five cents ($0.05) multiplied by the total number of bushels of grain purchased under the buyer-warehouse license during the buyer-warehouse's most recent fiscal year.

(5) For a buyer-warehouse license, where the buyer-warehouse license has one (1) or more facilities with a total bushel storage capacity of at least one million (1,000,000) bushels or at which the buyer-warehouse's annual purchases are at least one million (1,000,000) bushels of grain, an amount at least equal to the greater of:

(A) the sum of:

(i) two hundred thousand dollars ($200,000); and

(ii) ten cents ($0.10) multiplied by the total bushel storage capacity of the facility or facilities covered by the buyer-warehouse license; or

(B) five cents ($0.05) multiplied by the total number of bushels of grain purchased under the buyer-warehouse license during the buyer-warehouse's most recent fiscal year.

(c) If a licensee has more than one (1) license, the licensee shall maintain a minimum positive tangible net worth that is at least equal to the sum of the minimum positive net worth amounts required under subsection (b) for each individual license held by the licensee.

(d) A licensee that fails to be above eighty-five percent (85%) of the minimum positive tangible net worth required under this section, as demonstrated by the licensee's financial statement submitted to the agency, may cure the minimum positive tangible net worth deficiency by adding to the amount of the deposit, bond, or other security required under this chapter an amount equal to the difference between the required minimum positive tangible net worth and the licensee's demonstrated net worth.

(e) A licensee may cure the minimum positive tangible net worth deficiency by submitting to the agency:

(1) a financial statement, in compliance with the requirements of this chapter, and current as of a date within the time specified to cure the deficiency under this section, demonstrating that the licensee meets the required minimum positive tangible net worth; or

(2) a new financial statement, in compliance with the requirements of this chapter, and current as of a date within the time specified to cure the deficiency under this section, demonstrating that the licensee's demonstrated net worth is at least equal to the amount or amounts specified in subsection (b), and by adding to the amount of the deposit, bond, or other security required under this chapter an amount equal to the difference between the required minimum positive tangible net worth and the licensee's demonstrated net worth.

(f) The director may, in accordance with this section, require a licensee that has failed to meet the minimum positive tangible net worth requirement to add to the amount of the deposit, bond, or other security required under this section an amount the director deems necessary and appropriate to respond to the minimum positive tangible net worth deficiency. The addition by the licensee of an amount required under this subsection does not itself constitute or effect a cure of a minimum positive tangible net worth deficiency.

(g) If the licensee's demonstrated current net worth is less than the required amount but greater than eighty-five percent (85%) of the required amount, then:

(1) the director or the director's designated representative shall issue a notice of deficiency to the licensee; and

(2) the licensee shall cure the current net worth deficiency within ninety (90) days from the receipt of the deficiency notice.

(h) If the licensee's demonstrated current net worth is less than or equal to eighty-five percent (85%) of the required amount or has not cured the ratio deficiency as required in subsection (d), then the director shall hold an informal meeting in accordance with this chapter and, within thirty (30) days of the conclusion of the informal meeting, issue either:

(1) a consent agreement that requires the licensee to take certain actions within a set period, not to exceed twelve (12) months, to remedy the current net worth deficiency, as the director deems necessary and appropriate; or

(2) an order that revokes the license or licenses of the licensee.

(i) If a licensee, after an informal meeting in subsection (h):

(1) does not meet the requirements in subsection (h)(1), the director shall revoke; or

(2) has a net worth that has continued to decline, the director may revoke;

the license or licenses of the licensee.

(j) Subject to section 31.8 of this chapter, the director shall assess a fine of one thousand dollars ($1,000) on a licensee that does not maintain the net worth requirement under subsection (b).

As added by P.L.114-2025, SEC.22.