Ind. Code § 26-4-4-1 — Indiana Code / Title 26 / Article 4 / Chapter 4 / Section 26-4-4-1
Establishment of fund; fiscal year
Status: in_force

Sec. 1. (a) The Indiana grain indemnity fund is established for the purpose of providing money to pay producers for losses incurred due to the revocation of a license of a grain buyer or warehouse operator licensed under IC 26-3-7. The fund shall be administered by the board of the corporation.

(b) The fund consists of money collected under this chapter.

(c) The fund shall operate on a fiscal year of July 1 to June 30.

As added by P.L.250-1995, SEC.1. Amended by P.L.173-1999, SEC.18; P.L.75-2010, SEC.24; P.L.60-2015, SEC.14; P.L.114-2025, SEC.64.
Ind. Code § 26-1-8.1-507 — Indiana Code / Title 26 / Article 1 / Chapter 8.1 / Section 26-1-8.1-507
Duty of securities intermediary to comply with entitlement order; liability for wrongful transfer
Status: in_force

Sec. 507. (a) A securities intermediary shall comply with an entitlement order if the entitlement order is originated by the appropriate person, the securities intermediary has had reasonable opportunity to assure itself that the entitlement order is genuine and authorized, and the securities intermediary has had reasonable opportunity to comply with the entitlement order. A securities intermediary satisfies the duty if:

(1) the securities intermediary acts with respect to the duty as agreed upon by the entitlement holder and the securities intermediary; or

(2) in the absence of agreement, the securities intermediary exercises due care in accordance with reasonable commercial standards to comply with the entitlement order.

(b) If a securities intermediary transfers a financial asset under an ineffective entitlement order, the securities intermediary shall reestablish a security entitlement in favor of the person entitled to it, and pay or credit any payments or distributions that the person did not receive as a result of the wrongful transfer. If the securities intermediary does not reestablish a security entitlement, the securities intermediary is liable to the entitlement holder for damages.

As added by P.L.247-1995, SEC.10.
Ind. Code § 26-1-2.1-401 — Indiana Code / Title 26 / Article 1 / Chapter 2.1 / Section 26-1-2.1-401
Insecurity; adequate assurance of performance
Status: in_force

Sec. 401. (1) A lease contract imposes an obligation on each party that the other's expectation of receiving due performance will not be impaired.

(2) If reasonable grounds for insecurity arise with respect to the performance of either party, the insecure party may demand in writing adequate assurance of due performance. Until the insecure party receives that assurance, if commercially reasonable the insecure party may suspend any performance for which the insecure party has not already received the agreed return.

(3) A repudiation of the lease contract occurs if assurance of due performance adequate under the circumstances of the particular case is not provided to the insecure party within a reasonable time, not to exceed thirty (30) days after receipt of a demand by the other party.

(4) Between merchants, the reasonableness of grounds for insecurity and the adequacy of any assurance offered must be determined according to commercial standards.

(5) Acceptance of any nonconforming delivery or payment does not prejudice the aggrieved party's right to demand adequate assurance of future performance.

As added by P.L.189-1991, SEC.3.
Ind. Code § 26-2-6-4 — Indiana Code / Title 26 / Article 2 / Chapter 6 / Section 26-2-6-4
Actions by consumers to recover damages
Status: in_force

Sec. 4. A consumer may bring an action on his own behalf to recover damages resulting from a violation of this chapter. In addition to any other remedies available to the consumer, the court may:

(1) order replacement of the audio or visual entertainment product, the cost of which is to be borne by the manufacturer, manufacturer's agent or importer; or

(2) order damages in an amount equal to three (3) times the damages sustained due to the violation, plus reasonable attorney's fees.

As added by P.L.254-1983, SEC.2.
Ind. Code § 26-1-8.1-203 — Indiana Code / Title 26 / Article 1 / Chapter 8.1 / Section 26-1-8.1-203
Notice of defects
Status: in_force

Sec. 203. After an act or event, other than a call that has been revoked, creating a right to immediate performance of the principal obligation represented by a certificated security or setting a date on or after which the security is to be presented or surrendered for redemption or exchange, a purchaser is charged with notice of any defect in its issue or defense of the issuer, if the act or event:

(1) requires the payment of money, the delivery of a certificated security, the registration of transfer of an uncertificated security, or any of them on presentation or surrender of the security certificate, the money or security is available on the date set for payment or exchange, and the purchaser takes the security more than one (1) year after that date; or

(2) is not covered by subdivision (1) and the purchaser takes the security more than two (2) years after the date set for surrender or presentation or the date on which performance became due.

As added by P.L.247-1995, SEC.10.
Ind. Code § 26-2-8-101 — Indiana Code / Title 26 / Article 2 / Chapter 8 / Section 26-2-8-101
Short title
Status: in_force

Sec. 101. IC 26-2-8 may be cited as the Uniform Electronic Transactions Act.

As added by P.L.62-2000, SEC.1.
Ind. Code § 26-1-8.1-509 — Indiana Code / Title 26 / Article 1 / Chapter 8.1 / Section 26-1-8.1-509
Standards for performance of duties by securities intermediary
Status: in_force

Sec. 509. (a) If the substance of a duty imposed upon a securities intermediary by IC 26-1-8.1-504 through IC 26-1-8.1-508 is the subject of other statute, regulation, or rule, compliance with that statute, regulation, or rule satisfies the duty.

(b) To the extent that specific standards for the performance of the duties of a securities intermediary or the exercise of the rights of an entitlement holder are not specified by other statute, regulation, or rule or by agreement between the securities intermediary and entitlement holder, the securities intermediary shall perform its duties and the entitlement holder shall exercise its rights in a commercially reasonable manner.

(c) The obligation of a securities intermediary to perform the duties imposed by IC 26-1-8.1-504 through IC 26-1-8.1-508 is subject to:

(1) rights of the securities intermediary arising out of a security interest under a security agreement with the entitlement holder or otherwise; and

(2) rights of the securities intermediary under other law, regulation, rule, or agreement to withhold performance of its duties as a result of unfulfilled obligations of the entitlement holder to the securities intermediary.

(d) IC 26-1-8.1-504 through IC 26-1-8.1-508 do not require a securities intermediary to take any action that is prohibited by other statute, regulation, or rule.

As added by P.L.247-1995, SEC.10.
Ind. Code § 26-1-4-216 — Indiana Code / Title 26 / Article 1 / Chapter 4 / Section 26-1-4-216
Insolvency and preference
Status: in_force

Sec. 216. (a) If an item is in or comes into the possession of a payor or collecting bank that suspends payment and the item has not been finally paid, the item must be returned by the receiver, trustee, or agent in charge of the closed bank to the presenting bank or the closed bank's customer.

(b) If a payor bank finally pays an item and suspends payments without making a settlement for the item with its customer or the presenting bank which settlement is or becomes final, the owner of the item has a preferred claim against the payor bank.

(c) If a payor bank gives or a collecting bank gives or receives a provisional settlement for an item and thereafter suspends payments, the suspension does not prevent or interfere with the settlement's becoming final if the finality occurs automatically upon the lapse of certain time or the happening of certain events.

(d) If a collecting bank receives from subsequent parties settlement for an item, which settlement is or becomes final and the bank suspends payments without making a settlement for the item with its customer which settlement is or becomes final, the owner of the item has a preferred claim against the collecting bank.

As added by P.L.222-1993, SEC.32.
Ind. Code § 26-1-4-105 — Indiana Code / Title 26 / Article 1 / Chapter 4 / Section 26-1-4-105
"Bank"; "depositary bank"; "payor bank"; "intermediary bank"; "collecting bank"; "presenting bank"
Status: in_force

Sec. 105. In IC 26-1-4:

(1) "Bank" means a person engaged in the business of banking, including a savings bank, savings association, credit union, or trust company.

(2) "Depositary bank" means the first bank to take an item even though it is also the payor bank, unless the item is presented for immediate payment over the counter.

(3) "Payor bank" means a bank that is the drawee of a draft.

(4) "Intermediary bank" means a bank to which an item is transferred in course of collection except the depositary or payor bank.

(5) "Collecting bank" means a bank handling an item for collection except the payor bank.

(6) "Presenting bank" means a bank presenting an item except a payor bank.

Formerly: Acts 1963, c.317, s.4-105. As amended by P.L.152-1986, SEC.210; P.L.222-1993, SEC.10; P.L.79-1998, SEC.28.
Ind. Code § 26-3-2-3 — Indiana Code / Title 26 / Article 3 / Chapter 2 / Section 26-3-2-3
Issuance of duplicate or additional negotiable receipt with former receipt outstanding
Status: in_force

Sec. 3. A warehouseman, or any officer, agent, or servant of a warehouseman, who issues a duplicate or additional negotiable receipt for goods, knowing that a former negotiable receipt for the same goods or any part of them is outstanding and uncanceled, without plainly placing upon the face thereof the word "Duplicate," except in case of a lost, stolen, or destroyed receipt, commits a Level 6 felony.

Formerly: Acts 1921, c.100, s.52. As amended by Acts 1978, P.L.2, SEC.2603; P.L.158-2013, SEC.294.
Ind. Code § 26-1-3.1-410 — Indiana Code / Title 26 / Article 1 / Chapter 3.1 / Section 26-1-3.1-410
Acceptance varying draft
Status: in_force

Sec. 410. (a) If the terms of a drawee's acceptance vary from the terms of the draft as presented, the holder may refuse the acceptance and treat the draft as dishonored. In that case, the drawee may cancel the acceptance.

(b) The terms of a draft are not varied by an acceptance to pay at a particular bank or place in the United States, unless the acceptance states that the draft is to be paid only at that bank or place.

(c) If the holder assents to an acceptance varying the terms of a draft, the obligation of each drawer and endorser that does not expressly assent to the acceptance is discharged.

As added by P.L.222-1993, SEC.5.
Ind. Code § 26-1-2.1-104 — Indiana Code / Title 26 / Article 1 / Chapter 2.1 / Section 26-1-2.1-104
Leases subject to other statutes
Status: in_force

Sec. 104. (1) A lease, although subject to IC 26-1-2.1, is also subject to any applicable:

(a) certificate of title statute of this state;

(b) certificate of title statute of another jurisdiction (IC 26-1-2.1-105); or

(c) consumer protection statute of this state, or final consumer protection decision of a court of this state existing on the effective date of IC 26-1-2.1.

(2) In case of conflict between IC 26-1-2.1, other than IC 26-1-2.1-105, IC 26-1-2.1-304(3), and IC 26-1-2.1-305(3), and a statute or decision referred to in subsection (1), the statute or decision controls.

(3) Failure to comply with an applicable law has only the effect specified therein.

As added by P.L.189-1991, SEC.3. Amended by P.L.1-1992, SEC.134.
Ind. Code § 26-1-4.1-102 — Indiana Code / Title 26 / Article 1 / Chapter 4.1 / Section 26-1-4.1-102
Subject matter
Status: in_force

Sec. 102. Except as otherwise provided in IC 26-1-4.1-108, this chapter applies to funds transfers defined in IC 26-1-4.1-104.

As added by P.L.189-1991, SEC.4.
Ind. Code § 26-1-2.1-407 — Indiana Code / Title 26 / Article 1 / Chapter 2.1 / Section 26-1-2.1-407
Irrevocable promises; finance leases
Status: in_force

Sec. 407. (1) In the case of a finance lease that is not a consumer lease the lessee's promises under the lease contract become irrevocable and independent upon the lessee's acceptance of the goods.

(2) A promise that has become irrevocable and independent under subsection (1):

(a) is effective and enforceable between the parties, and by or against third parties including assignees of the parties; and

(b) is not subject to cancellation, termination, modification, repudiation, excuse, or substitution without the consent of the party to whom the promise runs.

(3) This section does not affect the validity under any other law of a covenant in any lease contract making the lessee's promises irrevocable and independent upon the lessee's acceptance of the goods.

As added by P.L.189-1991, SEC.3.
Ind. Code § 26-4-5-2 — Indiana Code / Title 26 / Article 4 / Chapter 5 / Section 26-4-5-2
Reentry into program; conditions; date coverage commences
Status: in_force

Sec. 2. (a) A producer who has received a refund of a producer premium under section 1 of this chapter after June 30, 2015, and has made a request for reentry may reenter the grain indemnity program if the following conditions are satisfied:

(1) The producer petitions the board for approval of reentry into the grain indemnity program by hand delivering or sending by certified mail, return receipt requested, a written request in a form required by the board.

(2) The board reviews the producer's petition for reentry and approves the petition.

(3) The producer pays into the fund:

(A) all previous producer premium refunds; and

(B) interest on the refunds;

as determined by the board.

(b) A producer that reenters the grain indemnity program under subsection (a)(3) is protected by the program from the time all previous producer premium refunds that were claimed after June 30, 2015, and interest on the refunds, are paid to the fund.

(c) A producer who reenters the grain indemnity program may not make a claim on the fund that arises from the revocation of a license that occurs until six (6) months after the producer meets the requirements for reentry described in subsection (a).

As added by P.L.250-1995, SEC.1. Amended by P.L.145-2017, SEC.19; P.L.114-2025, SEC.71.
Ind. Code § 26-1-7-403 — Indiana Code / Title 26 / Article 1 / Chapter 7 / Section 26-1-7-403
Obligation of warehouse or carrier to deliver; excuse
Status: in_force

Sec. 403. (a) A bailee shall deliver the goods to a person entitled under a document of title if the person complies with subsections (b) and (c), unless and to the extent that the bailee establishes any of the following:

(1) Delivery of the goods to a person whose receipt was rightful as against the claimant.

(2) Damage to or delay, loss, or destruction of the goods for which the bailee is not liable.

(3) Previous sale or other disposition of the goods in lawful enforcement of a lien or on a warehouse's lawful termination of storage.

(4) The exercise by a seller of its right to stop delivery pursuant to the provisions of IC 26-1-2-705 or by a lessor of its right to stop delivery under IC 26-1-2.1-526.

(5) A diversion, reconsignment, or other disposition pursuant to section 303 of this chapter.

(6) Release, satisfaction, or any other personal defense against the claimant.

(7) Any other lawful excuse.

(b) A person claiming goods covered by a document of title shall satisfy the bailee's lien if the bailee so requests or if the bailee is prohibited by law from delivering the goods until the charges are paid.

(c) Unless a person claiming the goods is a person against which the document of title does not confer a right under section 503(a) of this chapter:

(1) the person claiming the goods under a document shall surrender possession or control of any outstanding negotiable document covering the goods for cancellation or indication of partial deliveries; and

(2) the bailee shall cancel the document or conspicuously indicate in the document the partial delivery or the bailee is liable to any person to which the document is duly negotiated.

Formerly: Acts 1963, c.317, s.7-403; Acts 1973, P.L.265, SEC.1. As amended by P.L.152-1986, SEC.255; P.L.143-2007, SEC.50.
Ind. Code § 26-1-2.1-109 — Indiana Code / Title 26 / Article 1 / Chapter 2.1 / Section 26-1-2.1-109
Option to accelerate at will
Status: in_force

Sec. 109. (1) A term providing that one party or that party's successor in interest may accelerate payment or performance or require collateral or additional collateral "at will" or "when the party deems the party insecure" or in words of similar import must be construed to mean that the party has power to do so only if the party in good faith believes that the prospect of payment or performance is impaired.

(2) With respect to a consumer lease, the burden of establishing good faith under subsection (1) is on the party who exercised the power; otherwise the burden of establishing lack of good faith is on the party against whom the power has been exercised.

As added by P.L.189-1991, SEC.3.
Ind. Code § 26-1-2.1-530 — Indiana Code / Title 26 / Article 1 / Chapter 2.1 / Section 26-1-2.1-530
Lessor's incidental damages
Status: in_force

Sec. 530. Incidental damages to an aggrieved lessor include any commercially reasonable charges, expenses, or commissions incurred in stopping delivery, in the transportation, care and custody of goods after the lessee's default, in connection with return or disposition of the goods, or otherwise resulting from the default.

As added by P.L.189-1991, SEC.3.
Ind. Code § 26-1-4.1-506 — Indiana Code / Title 26 / Article 1 / Chapter 4.1 / Section 26-1-4.1-506
Rate of interest
Status: in_force

Sec. 506. (a) If, under IC 26-1-4.1, a receiving bank is obliged to pay interest with respect to a payment order issued to the bank, the amount payable may be determined (i) by agreement of the sender and receiving bank, or (ii) by a funds-transfer system rule if the payment order is transmitted through a funds-transfer system.

(b) If the amount of interest is not determined by an agreement or rule as stated in subsection (a), the amount is calculated by multiplying the applicable Federal Funds rate by the amount on which interest is payable, and then multiplying the product by the number of days for which interest is payable. The applicable Federal Funds rate is the average of the Federal Funds rates published by the Federal Reserve Bank of New York for each of the days for which interest is payable divided by three hundred sixty (360). The Federal Funds rate for any day on which a published rate is not available is the same as the published rate for the next preceding day for which there is a published rate. If a receiving bank that accepted a payment order is required to refund payment to the sender of the order because the funds transfer was not completed, but the failure to complete was not due to any fault by the bank, the interest payable is reduced by a percentage equal to the reserve requirement on deposits of the receiving bank.

As added by P.L.189-1991, SEC.4.
Ind. Code § 26-2-6-7 — Indiana Code / Title 26 / Article 2 / Chapter 6 / Section 26-2-6-7
Actions by service representatives or facilities to recover for violations
Status: in_force

Sec. 7. An authorized service representative or independent service facility may bring an action on his own behalf to recover for a violation of this chapter, and, in addition to other remedies, may obtain damages in an amount equal to three (3) times the damages sustained due to the violation, plus reasonable attorney fees.

As added by P.L.254-1983, SEC.2.
Ind. Code § 26-1-4.1-212 — Indiana Code / Title 26 / Article 1 / Chapter 4.1 / Section 26-1-4.1-212
Liability and duty of receiving bank regarding unaccepted payment order
Status: in_force

Sec. 212. If a receiving bank fails to accept a payment order that it is obliged by express agreement to accept, the bank is liable for breach of the agreement to the extent provided in the agreement or in IC 26-1-4.1, but does not otherwise have any duty to accept a payment order or, before acceptance, to take any action, or refrain from taking action, with respect to the order except as provided in IC 26-1-4.1 or by express agreement. Liability based on acceptance arises only when acceptance occurs as stated in IC 26-1-4.1-209, and liability is limited to that provided in IC 26-1-4.1. A receiving bank is not the agent of the sender or beneficiary of the payment order it accepts, or of any other party to the funds transfer, and the bank owes no duty to any party to the funds transfer except as provided in IC 26-1-4.1 or by express agreement.

As added by P.L.189-1991, SEC.4. Amended by P.L.1-1992, SEC.139.
Ind. Code § 26-1-8.1-115 — Indiana Code / Title 26 / Article 1 / Chapter 8.1 / Section 26-1-8.1-115
Liability of securities intermediary, broker, or other agent or bailee
Status: reserved

Sec. 115. A securities intermediary that has transferred a financial asset under an effective entitlement order, or a broker or other agent or bailee that has dealt with a financial asset at the direction of its customer or principal, is not liable to a person having an adverse claim to the financial asset, unless the securities intermediary, or broker or other agent or bailee:

(1) took the action after it had been served with an injunction, restraining order, or other legal process enjoining it from doing so, issued by a court of competent jurisdiction, and had a reasonable opportunity to act on the injunction, restraining order, or other legal process;

(2) acted in collusion with the wrongdoer in violating the rights of the adverse claimant; or

(3) in the case of a security certificate that has been stolen, acted with notice of the adverse claim.

As added by P.L.247-1995, SEC.10.
Ind. Code § 26-4-1-21 — Indiana Code / Title 26 / Article 4 / Chapter 1 / Section 26-4-1-21
"United States Warehouse Act"
Status: in_force

Sec. 21. "United States Warehouse Act" means the United States Warehouse Act, enacted August 11, 1916, as amended.

As added by P.L.250-1995, SEC.1.
Ind. Code § 26-1-4.1-209 — Indiana Code / Title 26 / Article 1 / Chapter 4.1 / Section 26-1-4.1-209
Acceptance of payment order
Status: in_force

Sec. 209. (a) Subject to subsection (d), a receiving bank other than the beneficiary's bank accepts a payment order when it executes the order.

(b) Subject to subsections (c) and (d), a beneficiary's bank accepts a payment order at the earliest of the following times:

(1) when the bank:

(i) pays the beneficiary as stated in IC 26-1-4.1-405(a) or IC 26-1-4.1-405(b); or

(ii) notifies the beneficiary of receipt of the order or that the account of the beneficiary has been credited with respect to the order unless the notice indicates that the bank is rejecting the order or that funds with respect to the order may not be withdrawn or used until receipt of payment from the sender of the order;

(2) when the bank receives payment of the entire amount of the sender's order pursuant to IC 26-1-4.1-403(a)(1) or IC 26-1-4.1-403(a)(2); or

(3) the opening of the next funds-transfer business day of the bank following the payment date of the order if, at that time, the amount of the sender's order is fully covered by a withdrawable credit balance in an authorized account of the sender or the bank has otherwise received full payment from the sender, unless the order was rejected before that time or is rejected within:

(i) one (1) hour after that time; or

(ii) one (1) hour after the opening of the next business day of the sender following the payment date if that time is later.

If notice of rejection is received by the sender after the payment date and the authorized account of the sender does not bear interest, the bank is obliged to pay interest to the sender on the amount of the order for the number of days elapsing after the payment date to the day the sender receives notice or learns that the order was not accepted, counting that day as an elapsed day. If the withdrawable credit balance during that period falls below the amount of the order, the amount of interest payable is reduced accordingly.

(c) Acceptance of a payment order cannot occur before the order is received by the receiving bank. Acceptance does not occur under subsection (b)(2) or (b)(3) if the beneficiary of the payment order does not have an account with the receiving bank, the account has been closed, or the receiving bank is not permitted by law to receive credits for the beneficiary's account.

(d) A payment order issued to the originator's bank cannot be accepted until the payment date if the bank is the beneficiary's bank, or the execution date if the bank is not the beneficiary's bank. If the originator's bank executes the originator's payment order before the execution date or pays the beneficiary of the originator's payment order before the payment date and the payment order is subsequently canceled pursuant to IC 26-1-4.1-211(b), the bank may recover from the beneficiary any payment received to the extent allowed by the law governing mistake and restitution.

As added by P.L.189-1991, SEC.4.
Ind. Code § 26-1-9.1-619 — Indiana Code / Title 26 / Article 1 / Chapter 9.1 / Section 26-1-9.1-619
Transfer of record or legal title to collateral
Status: in_force

Sec. 619. (a) In this section, "transfer statement" means a record signed by a secured party stating:

(1) that the debtor has defaulted in connection with an obligation secured by specified collateral;

(2) that the secured party has exercised its post-default remedies with respect to the collateral;

(3) that, by reason of the exercise, a transferee has acquired the rights of the debtor in the collateral; and

(4) the name and mailing address of the secured party, debtor, and transferee.

(b) A transfer statement entitles the transferee to the transfer of record of all rights of the debtor in the collateral specified in the statement in any official filing, recording, registration, or certificate-of-title system covering the collateral. If a transfer statement is presented with the applicable fee and request form to the official or office responsible for maintaining the system, the official or office shall:

(1) accept the transfer statement;

(2) promptly amend its records to reflect the transfer; and

(3) if applicable, issue a new appropriate certificate of title in the name of transferee.

(c) A transfer of the record or legal title to collateral to a secured party under subsection (b) or otherwise is not of itself a disposition of collateral under IC 26-1-9.1 and does not of itself relieve the secured party of its duties under IC 26-1-9.1.

As added by P.L.57-2000, SEC.45. Amended by P.L.199-2023, SEC.84.
Ind. Code § 26-1-8.1-107 — Indiana Code / Title 26 / Article 1 / Chapter 8.1 / Section 26-1-8.1-107
Effectiveness of endorsement, instruction, or entitlement order
Status: in_force

Sec. 107. (a) "Appropriate person" means:

(1) with respect to an endorsement, the person specified by a security certificate or by an effective special endorsement to be entitled to the security;

(2) with respect to an instruction, the registered owner of an uncertificated security;

(3) with respect to an entitlement order, the entitlement holder;

(4) if the person designated in subdivision (1), (2), or (3) is deceased, the designated person's successor taking under other law or the designated person's personal representative acting for the estate of the decedent; or

(5) if the person designated in subdivision (1), (2), or (3) lacks capacity, the designated person's guardian, conservator, or other similar representative who has power under other law to transfer the security or financial asset.

(b) An endorsement, instruction, or entitlement order is effective if:

(1) it is made by the appropriate person;

(2) it is made by a person who has power under the law of agency to transfer the security or financial asset on behalf of the appropriate person, including, in the case of an instruction or entitlement order, a person who has control under IC 26-1-8.1-106(c)(2) or IC 26-1-8.1-106(d)(2); or

(3) the appropriate person has ratified it or is otherwise precluded from asserting its ineffectiveness.

(c) An endorsement, instruction, or entitlement order made by a representative is effective even if:

(1) the representative has failed to comply with a controlling instrument or with the law of the state having jurisdiction of the representative relationship, including any law requiring the representative to obtain court approval of the transaction; or

(2) the representative's action in making the endorsement, instruction, or entitlement order or using the proceeds of the transaction is otherwise a breach of duty.

(d) If a security is registered in the name of or specially endorsed to a person described as a representative, or if a securities account is maintained in the name of a person described as a representative, an endorsement, instruction, or entitlement order made by the person is effective even though the person is no longer serving in the described capacity.

(e) Effectiveness of an endorsement, instruction, or entitlement order is determined as of the date the endorsement, instruction, or entitlement order is made, and an endorsement, instruction, or entitlement order does not become ineffective by reason of any later change of circumstances.

As added by P.L.247-1995, SEC.10.
Ind. Code § 26-4-3-3 — Indiana Code / Title 26 / Article 4 / Chapter 3 / Section 26-4-3-3
Board of directors; term; vacancies
Status: in_force

Sec. 3. (a) A member of the board appointed under section 2(b) of this chapter:

(1) serves for a four (4) year term;

(2) is entitled to the same per diem and mileage allowances provided by law for state employees; and

(3) may be reappointed.

(b) A vacancy created by a member described in subsection (a) shall be filled by the appointing body of the person who created the vacancy. The replacement board member shall fill the vacancy for the unexpired term of the previous member.

(c) A vacancy in the membership of the board does not impair the right of a quorum to exercise all the rights and perform all the duties of the board and corporation.

As added by P.L.250-1995, SEC.1.
Ind. Code § 26-1-3.1-116 — Indiana Code / Title 26 / Article 1 / Chapter 3.1 / Section 26-1-3.1-116
Joint and several liability; contribution
Status: in_force

Sec. 116. (a) Except as otherwise provided in the instrument, two (2) or more persons who have the same liability on an instrument as makers, drawers, acceptors, endorsers who endorse as joint payees, or anomalous endorsers are jointly and severally liable in the capacity in which they sign.

(b) Except as provided in IC 26-1-3.1-419(f) or by agreement of the affected parties, a party having joint and several liability who pays the instrument is entitled to receive from any party having the same joint and several liability contribution in accordance with applicable law.

As added by P.L.222-1993, SEC.5. Amended by P.L.135-2009, SEC.4.
Ind. Code § 26-4-3-1 — Indiana Code / Title 26 / Article 4 / Chapter 3 / Section 26-4-3-1
Establishment as a public body corporate
Status: in_force

Sec. 1. The Indiana grain indemnity corporation is established. The corporation is a public body corporate and politic, and though it is separate from the state, the exercise by the corporation of its powers constitutes an essential governmental function. The corporation may sue and be sued and plead and be impleaded.

As added by P.L.250-1995, SEC.1.
Ind. Code § 26-1-4.1-202 — Indiana Code / Title 26 / Article 1 / Chapter 4.1 / Section 26-1-4.1-202
Authorized and verified payment orders; security procedures; commercial reasonableness
Status: in_force

Sec. 202. (a) A payment order received by the receiving bank is the authorized order of the person identified as sender if that person authorized the order or is otherwise bound by it under the law of agency.

(b) If a bank and its customer have agreed that the authenticity of payment orders issued to the bank in the name of the customer as sender will be verified pursuant to a security procedure, a payment order received by the receiving bank is effective as the order of the customer, whether or not authorized, if (i) the security procedure is a commercially reasonable method of providing security against unauthorized payment orders, and (ii) the bank proves that it accepted the payment order in good faith and in compliance with the bank's obligations under the security procedure and any agreement or instruction of the customer, evidenced by a record, restricting acceptance of payment orders issued in the name of the customer. The bank is not required to follow an instruction that violates an agreement with the customer, evidenced by a record, or notice of which is not received at a time and in a manner affording the bank a reasonable opportunity to act on it before the payment order is accepted.

(c) Commercial reasonableness of a security procedure is a question of law to be determined by considering the wishes of the customer expressed to the bank, the circumstances of the customer known to the bank, including the size, type, and frequency of payment orders normally issued by the customer to the bank, alternative security procedures offered to the customer, and security procedures in general use by customers and receiving banks similarly situated. A security procedure is deemed to be commercially reasonable if (i) the security procedure was chosen by the customer after the bank offered, and the customer refused, a security procedure that was commercially reasonable for that customer, and (ii) the customer expressly agreed in a record to be bound by any payment order, whether or not authorized, issued in its name and accepted by the bank in compliance with the bank's obligations under the security procedure chosen by the customer.

(d) The term "sender" in IC 26-1-4.1 includes the customer in whose name a payment order is issued if the order is the authorized order of the customer under subsection (a), or it is effective as the order of the customer under subsection (b).

(e) This section applies to amendments and cancellations of payment orders to the same extent it applies to payment orders.

(f) Except as provided in this section and in IC 26-1-4.1-203(a)(1), rights and obligations arising under this section or IC 26-1-4.1-203 may not be varied by agreement.

As added by P.L.189-1991, SEC.4. Amended by P.L.199-2023, SEC.24.
Ind. Code § 26-1-3.1-401 — Indiana Code / Title 26 / Article 1 / Chapter 3.1 / Section 26-1-3.1-401
Signature
Status: in_force

Sec. 401. A person is not liable on an instrument unless:

(1) the person signed the instrument; or

(2) the person is represented by an agent or representative who signed the instrument and the signature is binding on the represented person under IC 26-1-3.1-402.

As added by P.L.222-1993, SEC.5. Amended by P.L.199-2023, SEC.20.
Ind. Code § 26-3-7-6.8 — Indiana Code / Title 26 / Article 3 / Chapter 7 / Section 26-3-7-6.8
License application documents; approval timeline and procedures
Status: in_force

Sec. 6.8. (a) A person that desires to conduct business as a grain buyer, warehouse operator, or buyer-warehouse in Indiana shall submit to the director the following:

(1) A completed license application in the form required by the agency.

(2) A financial statement that complies with the requirements of this chapter and that reflects the applicant's financial situation on a date not more than fifteen (15) months before the date the applicant first submits any of the license application materials required under this subsection.

(3) A completed certificate of deposit, a bond, or other security, in the form required by the agency, and proof of the deposit, bond, or other security sufficient to demonstrate compliance with the requirements of this section, including, as applicable, complete and accurate copies of all instruments, documents, or materials related to the deposit, bond, or other security.

(4) A completed certificate of insurance, in the form required by the agency, and proof of insurance sufficient to demonstrate compliance with the requirements of this section.

(5) Proof of compliance with the scale certification requirements.

(6) A certificate of good standing or other documentation sufficient to demonstrate that the applicant is licensed to do business in Indiana, including a current copy of the applicant's business information that is maintained by the secretary of state.

(7) Examples of grain delivery tickets, settlement sheets, purchase agreements, storage agreements, and other similar agreements that comply with the requirements of this chapter, that are to be used by the applicant in conducting business as a licensee in Indiana.

(8) Any other documentation that the director determines is necessary to demonstrate that the applicant is in compliance with the requirements for a license under this chapter.

(b) Within ninety (90) days of the receipt of all license application materials required under subsection (a), the director or director's designated representative shall review the license application and determine whether the applicant has demonstrated compliance with the requirements for a license under this chapter.

(c) An on-premises inspection of each applicable facility located within Indiana is required.

(d) The application must be denied if the applicant is not in full compliance with this chapter.

(e) If a license application is denied for any reason under this section, the notice of denial must set forth each reason for the denial, including any failure by the applicant to comply with the requirements of this chapter.

(f) An applicant may appeal a decision of the director to deny a license under IC 4-21.5-3.

As added by P.L.114-2025, SEC.14.
Ind. Code § 26-1-9.1-627 — Indiana Code / Title 26 / Article 1 / Chapter 9.1 / Section 26-1-9.1-627
Determination of whether conduct was commercially reasonable
Status: in_force

Sec. 627. (a) The fact that a greater amount could have been obtained by a collection, enforcement, disposition, or acceptance at a different time or in a different method from that selected by the secured party is not of itself sufficient to preclude the secured party from establishing that the collection, enforcement, disposition, or acceptance was made in a commercially reasonable manner.

(b) A disposition of collateral is made in a commercially reasonable manner if the disposition is made:

(1) in the usual manner on any recognized market;

(2) at the price current in any recognized market at the time of the disposition; or

(3) otherwise in conformity with reasonable commercial practices among dealers in the type of property that was the subject of the disposition.

(c) A collection, enforcement, disposition, or acceptance is commercially reasonable if it has been approved:

(1) in a judicial proceeding;

(2) by a bona fide creditors' committee;

(3) by a representative of creditors; or

(4) by an assignee for the benefit of creditors.

(d) Approval under subsection (c) need not be obtained, and lack of approval does not mean that the collection, enforcement, disposition, or acceptance is not commercially reasonable.

As added by P.L.57-2000, SEC.45.
Ind. Code § 26-1-4-210 — Indiana Code / Title 26 / Article 1 / Chapter 4 / Section 26-1-4-210
Security interest of collecting bank in items, accompanying documents, and proceeds
Status: in_force

Sec. 210. (a) A collecting bank has a security interest in an item and any accompanying documents or the proceeds of either:

(1) in the case of an item deposited in an account, to the extent to which credit given for the item has been withdrawn or applied;

(2) in the case of an item for which it has given credit available for withdrawal as of right, to the extent of the credit given, whether or not the credit is drawn upon or there is a right of charge-back; or

(3) if it makes an advance on or against the item.

(b) If credit given for several items received at one (1) time or under a single agreement is withdrawn or applied in part, the security interest remains upon all the items, any accompanying documents, or the proceeds of either. For the purpose of this section, credits first given are first withdrawn.

(c) Receipt by a collecting bank of a final settlement for an item is a realization on its security interest in the item, accompanying documents, and proceeds. So long as the bank does not receive final settlement for the item or give up possession of the item or possession or control of the accompanying documents for purposes other than collection, the security interest continues to that extent and is subject to IC 26-1-9.1, but:

(1) no security agreement is necessary to make the security interest enforceable (IC 26-1-9.1-203(b)(3)(A));

(2) no filing is required to perfect the security interest; and

(3) the security interest has priority over conflicting perfected security interests in the item, accompanying documents, or proceeds.

Formerly: Acts 1963, c.317, s.4-210. As amended by P.L.152-1986, SEC.218; P.L.222-1993, SEC.26; P.L.57-2000, SEC.29; P.L.1-2002, SEC.100; P.L.143-2007, SEC.23.
Ind. Code § 26-1-2-603 — Indiana Code / Title 26 / Article 1 / Chapter 2 / Section 26-1-2-603
Merchant buyer's duties as to rightfully rejected goods
Status: in_force

Sec. 603. (1) Subject to any security interest in the buyer (IC 26-1-2-711(3)), when the seller has no agent or place of business at the market of rejection, a merchant buyer is under a duty after rejection of goods in his possession or control to follow any reasonable instructions received from the seller with respect to the goods and in the absence of such instructions to make reasonable efforts to sell them for the seller's account if they are perishable or threaten to decline in value speedily. Instructions are not reasonable if on demand indemnity for expenses is not forthcoming.

(2) When the buyer sells goods under subsection (1), he is entitled to reimbursement from the seller or out of the proceeds for reasonable expenses of caring for and selling them, and if the expenses include no selling commission then to such commission as is usual in the trade or if there is none to a reasonable sum not exceeding ten percent (10%) on the gross proceeds.

(3) In complying with this section, the buyer is held only to good faith and good faith conduct hereunder is neither acceptance nor conversion nor the basis of an action for damages.

Formerly: Acts 1963, c.317, s.2-603. As amended by P.L.152-1986, SEC.153.
Ind. Code § 26-1-2.1-524 — Indiana Code / Title 26 / Article 1 / Chapter 2.1 / Section 26-1-2.1-524
Lessor's right to identify goods to lease contract
Status: in_force

Sec. 524. (1) After default by the 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, if agreed, after other default by the lessee, the lessor may:

(a) identify to the lease contract conforming goods not already identified if at the time the lessor learned of the default they were in the lessor's or the supplier's possession or control; and

(b) dispose of goods (IC 26-1-2.1-527(1)) that demonstrably have been intended for the particular lease contract even though those goods are unfinished.

(2) If the goods are unfinished, in the exercise of reasonable commercial judgment for the purposes of avoiding loss and of effective realization, an aggrieved lessor or the supplier may either complete manufacture and wholly identify the goods to the lease contract or cease manufacture and lease, sell, or otherwise dispose of the goods for scrap or salvage value or proceed in any other reasonable manner.

As added by P.L.189-1991, SEC.3.
Ind. Code § 26-1-3.1-202 — Indiana Code / Title 26 / Article 1 / Chapter 3.1 / Section 26-1-3.1-202
Negotiation subject to rescission
Status: in_force

Sec. 202. (a) Negotiation is effective even if obtained:

(1) from an infant, a corporation exceeding its powers, or a person without capacity;

(2) by fraud, duress, or mistake; or

(3) in breach of duty or as part of an illegal transaction.

(b) To the extent permitted by other law, negotiation may be rescinded or may be subject to other remedies, but those remedies may not be asserted against a subsequent holder in due course or a person paying the instrument in good faith and without knowledge of facts that are a basis for rescission or other remedy.

As added by P.L.222-1993, SEC.5.
Ind. Code § 26-4-1-14 — Indiana Code / Title 26 / Article 4 / Chapter 1 / Section 26-4-1-14
"Grain buyer"
Status: in_force

Sec. 14. "Grain buyer" means a person licensed under IC 26-3-7 who is engaged in Indiana in the business of buying grain from producers.

As added by P.L.250-1995, SEC.1. Amended by P.L.75-2010, SEC.19.
Ind. Code § 26-1-8.1-206 — Indiana Code / Title 26 / Article 1 / Chapter 8.1 / Section 26-1-8.1-206
Enforceability of incomplete or incorrect certificate
Status: in_force

Sec. 206. (a) If a security certificate contains the signatures necessary to its issue or transfer but is incomplete in any other respect:

(1) any person may complete it by filling in the blanks as authorized; and

(2) even if the blanks are incorrectly filled in, the security certificate as completed is enforceable by a purchaser who took it for value and without notice of the incorrectness.

(b) A complete security certificate that has been improperly altered, even if fraudulently, remains enforceable, but only according to its original terms.

As added by P.L.247-1995, SEC.10.
Ind. Code § 26-3-7-31 — Indiana Code / Title 26 / Article 3 / Chapter 7 / Section 26-3-7-31
Grain shortages; appointment of receiver; notice of actions and orders
Status: in_force

Sec. 31. (a) Whenever it appears to the satisfaction of the director that a licensee cannot meet the licensee's outstanding grain obligations owed to depositors, or when a licensee refuses to submit the licensee's records or property to lawful inspection, the director shall give notice to the licensee to do one (1) or more of the following:

(1) Cover the shortage with grain that is fully paid for.

(2) Give additional bond, letter of credit, or cash deposit as required by the director.

(3) Submit to inspection as the director may deem necessary.

(b) If the licensee fails to comply with the terms of the notice within five (5) business days from the date of its issuance, or within an extension of time that the director may allow, the director may petition the circuit court, superior court, or probate court of the Indiana county where the licensee's principal place of business is located seeking the appointment of a receiver. If the court determines in accordance with IC 32-30-5 that a receiver should be appointed, upon the request of the licensee the court may appoint the agency or its representative to act as receiver. The agency or its representative may not be appointed as receiver except upon the request of the licensee. If the agency or its representative is appointed, any person interested in an action as described in IC 32-30-5-2 may after twenty (20) days request that the agency or its representative be removed as receiver. If the agency or its representative is not serving as receiver, the receiver appointed shall meet and confer with representatives of the agency regarding the licensee's grain related obligations and, before taking any actions regarding those obligations, the receiver and the court shall consider the agency's views and comments.

(c) The director shall inform the corporation of any:

(1) notice or order issued; or

(2) action taken;

under this section.

Formerly: Acts 1973, P.L.268, SEC.1; Acts 1974, P.L.120, SEC.17. As amended by Acts 1979, P.L.249, SEC.15; P.L.125-1997, SEC.51; P.L.1-1998, SEC.139; P.L.173-1999, SEC.14; P.L.2-2002, SEC.80; P.L.84-2016, SEC.115; P.L.145-2017, SEC.10; P.L.114-2025, SEC.35.
Ind. Code § 26-1-12.5-303 — Indiana Code / Title 26 / Article 1 / Chapter 12.5 / Section 26-1-12.5-303
Security interest enforceable but unperfected on June 30, 2023; conditions and time frame for continued enforceability; conditions and effective date for perfection
Status: in_force

Sec. 303. A security interest that is enforceable on June 30, 2023, but is unperfected on June 30, 2023:

(1) remains an enforceable security interest until the adjustment date;

(2) remains enforceable on or after the adjustment date if the security interest becomes enforceable under IC 26-1-9.1-203, as amended by the act, on July 1, 2023, or before the adjustment date; and

(3) becomes perfected;

(A) without further action on July 1, 2023, if the requirements for perfection under the act are satisfied before or on July 1, 2023; or

(B) when the requirements for perfection under the act are satisfied if the requirements are satisfied after July 1, 2023.

As added by P.L.199-2023, SEC.91.
Ind. Code § 26-3-7-30 — Indiana Code / Title 26 / Article 3 / Chapter 7 / Section 26-3-7-30
Receipt forms; requests; cost; requisites for accountability
Status: in_force

Sec. 30. All receipt forms shall be supplied by the director except where the director, in writing, approves the form and gives permission to a warehouse operator to have receipts printed. Requests for receipts shall be on forms furnished by the director and shall be accompanied by payment to cover the estimated cost of printing, packaging, and shipping, as determined by the director. Where privately printed, the printer shall furnish the director an affidavit showing the amount of the receipts printed, and the serial numbers thereof. All receipts remaining unused shall be recovered by the director or the director's designated representative if the license required by this chapter is revoked.

Formerly: Acts 1973, P.L.268, SEC.1; Acts 1974, P.L.120, SEC.16. As amended by P.L.173-1999, SEC.13; P.L.64-2009, SEC.9; P.L.114-2025, SEC.34.
Ind. Code § 26-1-9.1-306 — Indiana Code / Title 26 / Article 1 / Chapter 9.1 / Section 26-1-9.1-306
Law governing perfection and priority of security interests in letter-of-credit rights
Status: in_force

Sec. 306. (a) Subject to subsection (c), the local law of the issuer's jurisdiction or a nominated person's jurisdiction governs perfection, the effect of perfection or nonperfection, and the priority of a security interest in a letter-of-credit right if the issuer's jurisdiction or nominated person's jurisdiction is a state.

(b) For purposes of IC 26-1-9.1-301 through IC 26-1-9.1-342, an issuer's jurisdiction or nominated person's jurisdiction is the jurisdiction whose law governs the liability of the issuer or nominated person with respect to the letter-of-credit right as provided in IC 26-1-5.1-116.

(c) This section does not apply to a security interest that is perfected only under IC 26-1-9.1-308(d).

As added by P.L.57-2000, SEC.45. Amended by P.L.165-2001, SEC.4.
Ind. Code § 26-4-4-4 — Indiana Code / Title 26 / Article 4 / Chapter 4 / Section 26-4-4-4
Producer premiums
Status: in_force

Sec. 4. (a) Except as provided in section 8 of this chapter, beginning on July 1, 2015, the producers of grain shall be charged a producer premium equal to two-tenths percent (0.2%) of the price on all marketed grain that is sold to a first purchaser licensee.

(b) The producer premiums required under this section are in addition to any other fees or assessments required by law.

(c) The amount of the producer premium must be calculated using the gross sales price of the grain, including all premiums and discounts for moisture, quality, variety, or any other characteristic of the grain. The producer premium must be calculated before the deduction of marketing assessments, storage, drying, cleaning, or any other service charge.

As added by P.L.250-1995, SEC.1. Amended by P.L.60-2015, SEC.16; P.L.145-2017, SEC.17; P.L.114-2025, SEC.66.
Ind. Code § 26-1-9.1-330 — Indiana Code / Title 26 / Article 1 / Chapter 9.1 / Section 26-1-9.1-330
Priority of purchases of chattel paper or instrument
Status: in_force

Sec. 330. (a) A purchaser of chattel paper has priority over a security interest in the chattel paper which is claimed merely as proceeds of inventory subject to a security interest if:

(1) in good faith and in the ordinary course of the purchaser's business, the purchaser gives new value, takes possession of each authoritative tangible copy of the record evidencing the chattel paper, and obtains control under section 105 of this chapter of each authoritative electronic copy of the record evidencing the chattel paper; and

(2) the authoritative copies of the record evidencing the chattel paper do not indicate that the chattel paper has been assigned to an identified assignee other than the purchaser.

(b) A purchaser of chattel paper has priority over a security interest in the chattel paper which is claimed other than merely as proceeds of inventory subject to a security interest if the purchaser gives new value, takes possession of each authoritative tangible copy of the record evidencing the chattel paper, and obtains control under section 105 of this chapter of each authoritative electronic copy of the record evidencing the chattel paper in good faith, in the ordinary course of the purchaser's business, and without knowledge that the purchase violates the rights of the secured party.

(c) Except as otherwise provided in IC 26-1-9.1-327, a purchaser having priority in chattel paper under subsection (a) or (b) also has priority in proceeds of the chattel paper to the extent that:

(1) IC 26-1-9.1-322 provides for priority in the proceeds; or

(2) the proceeds consist of the specific goods covered by the chattel paper or cash proceeds of the specific goods, even if the purchaser's security interest in the proceeds is unperfected.

(d) Except as otherwise provided in IC 26-1-9.1-331(a), a purchaser of an instrument has priority over a security interest in the instrument perfected by a method other than possession if the purchaser gives value and takes possession of the instrument in good faith and without knowledge that the purchase violates the rights of the secured party.

(e) For purposes of subsections (a) and (b), the holder of a purchase-money security interest in inventory gives new value for chattel paper constituting proceeds of the inventory.

(f) For purposes of subsections (b) and (d), if the authoritative copies of the record evidencing chattel paper or an instrument indicates that the chattel paper or instrument has been assigned to an identified secured party other than the purchaser, a purchaser of the chattel paper or instrument has knowledge that the purchase violates the rights of the secured party.

As added by P.L.57-2000, SEC.45. Amended by P.L.199-2023, SEC.66.
Ind. Code § 26-1-4-406 — Indiana Code / Title 26 / Article 1 / Chapter 4 / Section 26-1-4-406
Customer's duty to discover and report unauthorized signature or alteration
Status: in_force

Sec. 406. (a) A bank that sends or makes available to a customer a statement of account showing payment of items for the account shall either return or make available to the customer the items paid or provide information in the statement of account sufficient to allow the customer reasonably to identify the items paid. The statement of account provides sufficient information if the item is described by item number, amount, and date of payment.

(b) If the items are not returned to the customer, the person retaining the items shall either retain the items or, if the items are destroyed, maintain the capacity to furnish legible copies of the items until the expiration of seven (7) years after receipt of the items. A customer may request an item from the bank that paid the item, and that bank must provide in a reasonable time either the item or, if the item has been destroyed or is not otherwise obtainable, a legible copy of the item.

(c) If a bank sends or makes available a statement of account or items under subsection (a), the customer must exercise reasonable promptness in examining the statement or the items to determine whether any payment was not authorized because of an alteration of an item or because a purported signature by or on behalf of the customer was not authorized. If, based on the statement or items provided, the customer should reasonably have discovered the unauthorized payment, the customer must promptly notify the bank of the relevant facts.

(d) If the bank proves that the customer failed, with respect to an item, to comply with the duties imposed on the customer by subsection (c) the customer is precluded from asserting against the bank:

(1) the customer's unauthorized signature or any alteration on the item, if the bank also proves that it suffered a loss by reason of the failure; and

(2) the customer's unauthorized signature or alteration by the same wrongdoer on any other item paid in good faith by the bank if the payment was made before the bank received notice from the customer of the unauthorized signature or alteration and after the customer had been afforded a reasonable period of time, not exceeding thirty (30) days, in which to examine the item or statement of account and notify the bank.

(e) If subsection (d) applies and the customer proves that the bank failed to exercise ordinary care in paying the item and that the failure substantially contributed to loss, the loss is allocated between the customer precluded and the bank asserting the preclusion according to the extent to which the failure of the customer to comply with subsection (c) and the failure of the bank to exercise ordinary care contributed to the loss. If the customer proves that the bank did not pay the item in good faith, the preclusion under subsection (d) does not apply.

(f) Without regard to care or lack of care of either the customer or the bank, a customer who does not within one (1) year after the statement or items are made available to the customer (subsection (a)) discover and report the customer's unauthorized signature on or any alteration on the item is precluded from asserting against the bank the unauthorized signature or alteration. If there is a preclusion under this subsection, the payor bank may not recover for breach of warranty under IC 26-1-4-208 with respect to the unauthorized signature or alteration to which the preclusion applies.

Formerly: Acts 1963, c.317, s.4-406. As amended by P.L.222-1993, SEC.40.
Ind. Code § 26-4-1-17 — Indiana Code / Title 26 / Article 4 / Chapter 1 / Section 26-4-1-17
"Person"
Status: in_force

Sec. 17. "Person" means a natural person, partnership, firm, association, corporation, limited liability company, or other business organization.

As added by P.L.250-1995, SEC.1.
Ind. Code § 26-3-7-14.2 — Indiana Code / Title 26 / Article 3 / Chapter 7 / Section 26-3-7-14.2
Current liability ratio; informal meeting; revocation of license; fines
Status: in_force

Sec. 14.2. (a) A licensee under this chapter shall maintain a minimum current ratio of one to one (1:1) or better. The current ratio is determined by dividing a licensee's current assets by the licensee's current liabilities, as demonstrated by the licensee's financial statement submitted to the agency, the quotient of which is rounded to the nearest ten-thousandth (0.0001) decimal place.

(b) For purposes of subsection (a), a better ratio includes the absence of a current ratio where the value of a licensee's current liabilities, as demonstrated by the licensee's financial statement submitted to the agency, is zero (0).

(c) The addition by the licensee of an amount required under this section does not itself constitute or effect a cure of a current ratio deficiency.

(d) If the licensee's demonstrated current ratio 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 ratio deficiency within ninety (90) days from the receipt of the deficiency notice.

(e) If the licensee's demonstrated current ratio 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)(2), 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 ratio deficiency, as the director deems necessary and appropriate; or

(2) an order that revokes the license or licenses of the licensee.

(f) If a licensee, after an informal meeting in subsection (e):

(1) does not meet the requirements in subsection (e)(1), the director shall revoke; or

(2) has an asset to liability ratio that has continued to decline, the director may revoke;

the license or licenses of the licensee.

(g) Subject to section 31.8 of this chapter, the director shall assess a fine of one thousand dollars ($1,000) against a licensee that does not maintain the minimum ratio requirement under subsection (a).

As added by P.L.114-2025, SEC.21.
Ind. Code § 26-1-9.1-308 — Indiana Code / Title 26 / Article 1 / Chapter 9.1 / Section 26-1-9.1-308
When security interest or agricultural lien is perfected; continuity of perfection
Status: in_force

Sec. 308. (a) Except as otherwise provided in this section and IC 26-1-9.1-309, a security interest is perfected if it has attached and all of the applicable requirements for perfection in IC 26-1-9.1-310 through IC 26-1-9.1-316 have been satisfied. A security interest is perfected when it attaches if the applicable requirements are satisfied before the security interest attaches.

(b) An agricultural lien is perfected if it has become effective and all of the applicable requirements for perfection in IC 26-1-9.1-310 have been satisfied. An agricultural lien is perfected when it becomes effective if the applicable requirements are satisfied before the agricultural lien becomes effective.

(c) A security interest or agricultural lien is perfected continuously if it is originally perfected by one method under IC 26-1-9.1 and is later perfected by another method under IC 26-1-9.1, without an intermediate period when it was unperfected.

(d) Perfection of a security interest in collateral also perfects a security interest in a supporting obligation for the collateral.

(e) Perfection of a security interest in a right to payment or performance also perfects a security interest in a security interest, mortgage, or other lien on personal or real property securing the right.

(f) Perfection of a security interest in a securities account also perfects a security interest in the security entitlements carried in the securities account.

(g) Perfection of a security interest in a commodity account also perfects a security interest in the commodity contracts carried in the commodity account.

As added by P.L.57-2000, SEC.45.
Ind. Code § 26-2-3-12 — Indiana Code / Title 26 / Article 2 / Chapter 3 / Section 26-2-3-12
Bill payable out of state; effect of provision of means for discharge within state
Status: in_force

Sec. 12. On any bill drawn or negotiated in this state, and payable at any place without the state, but in regard to which it shall appear that it was not to be presented for acceptance or payment at that place, if means were provided for its discharge within the state, no damages or charges for protest shall be allowed.

Formerly: Acts 1861, c.75, s.12.
Ind. Code § 26-1-9.1-326 — Indiana Code / Title 26 / Article 1 / Chapter 9.1 / Section 26-1-9.1-326
Priority of security interests created by new debtor
Status: in_force

Sec. 326. (a) Subject to subsection (b), a security interest that is created by a new debtor in collateral in which the new debtor has or acquires rights and is perfected solely by a filed financing statement that would be ineffective to perfect the security interest but for the application of IC 26-1-9.1-316(i)(1) or IC 26-1-9.1-508 is subordinate to a security interest in the same collateral that is perfected by another method.

(b) The other provisions of IC 26-1-9.1-301 through IC 26-1-9.1-342 determine the priority among conflicting security interests in the same collateral perfected by filed financing statements described in subsection (a). However, if the security agreements to which a new debtor became bound as a debtor were not entered into by the same original debtor, the conflicting security interests rank according to priority in time of the new debtor's having become bound.

As added by P.L.57-2000, SEC.45. Amended by P.L.54-2011, SEC.9.
Ind. Code § 26-1-4.1-305 — Indiana Code / Title 26 / Article 1 / Chapter 4.1 / Section 26-1-4.1-305
Liability for late or improper execution or failure to execute payment order
Status: in_force

Sec. 305. (a) If a funds transfer is completed but execution of a payment order by the receiving bank in breach of IC 26-1-4.1-302 results in delay in payment to the beneficiary, the bank is obliged to pay interest to either the originator or the beneficiary of the funds transfer for the period of delay caused by the improper execution. Except as provided in subsection (c), additional damages are not recoverable.

(b) If execution of a payment order by a receiving bank in breach of IC 26-1-4.1-302 results in (i) noncompletion of the funds transfer, (ii) failure to use an intermediary bank designated by the originator, or (iii) issuance of a payment order that does not comply with the terms of the payment order of the originator, the bank is liable to the originator for its expenses in the funds transfer and for incidental expenses and interest losses, to the extent not covered by subsection (a), resulting from the improper execution. Except as provided in subsection (c), additional damages are not recoverable.

(c) In addition to the amounts payable under subsections (a) and (b), damages, including consequential damages, are recoverable to the extent provided in an express agreement of the receiving bank, evidenced by a record.

(d) If a receiving bank fails to execute a payment order it was obliged by express agreement to execute, the receiving bank is liable to the sender for its expenses in the transaction and for incidental expenses and interest losses resulting from the failure to execute. Additional damages, including consequential damages, are recoverable to the extent provided in an express agreement of the receiving bank, evidenced by a record, but are not otherwise recoverable.

(e) Reasonable attorney's fees are recoverable if demand for compensation under subsection (a) or (b) is made and refused before an action is brought on the claim. If a claim is made for breach of an agreement under subsection (d) and the agreement does not provide for damages, reasonable attorney's fees are recoverable if demand for compensation under subsection (d) is made and refused before an action is brought on the claim.

(f) Except as stated in this section, the liability of a receiving bank under subsections (a) and (b) may not be varied by agreement.

As added by P.L.189-1991, SEC.4. Amended by P.L.199-2023, SEC.30.
Ind. Code § 26-1-2-608 — Indiana Code / Title 26 / Article 1 / Chapter 2 / Section 26-1-2-608
Revocation of acceptance in whole or in part
Status: in_force

Sec. 608. (1) The buyer may revoke his acceptance of a lot or commercial unit whose non-conformity substantially impairs its value to him if he has accepted it

(a) on the reasonable assumption that its non-conformity would be cured and it has not been seasonably cured; or

(b) without discovery of such non-conformity if his acceptance was reasonably induced either by the difficulty of discovery before acceptance or by the seller's assurances.

(2) Revocation of acceptance must occur within a reasonable time after the buyer discovers or should have discovered the ground for it and before any substantial change in condition of the goods which is not caused by their own defects. It is not effective until the buyer notifies the seller of it.

(3) A buyer who so revokes has the same rights and duties with regard to the goods involved as if he had rejected them.

Formerly: Acts 1963, c.317, s.2-608.
Ind. Code § 26-4-6-7 — Indiana Code / Title 26 / Article 4 / Chapter 6 / Section 26-4-6-7
Denial of claim
Status: in_force

Sec. 7. The board shall deny the payment of compensation under this chapter to a claimant who has incurred a financial loss or storage loss due to the revocation of a license of a warehouse or grain buyer when the board determines the existence of any of the following:

(1) The claimant as payee has failed to present for payment a negotiable instrument issued as payment for grain within ninety (90) days from the date the negotiable instrument is tendered to the claimant in satisfaction of obligations for grain purchased by the licensed grain establishment.

(2) The claimant has engaged in conduct or practices that differ from generally accepted marketing practices within the grain industry, as determined by a majority of the board, to an extent that the claimant's actions have substantially contributed to the claimant's loss. The Indiana grain indemnity board may consider whether contracts not excluded under IC 26-3-7 are to be generally accepted marketing practices within the grain industry.

As added by P.L.250-1995, SEC.1. Amended by P.L.139-1996, SEC.13; P.L.114-2025, SEC.76.
Ind. Code § 26-1-9.1-101 — Indiana Code / Title 26 / Article 1 / Chapter 9.1 / Section 26-1-9.1-101
Short title
Status: in_force

Sec. 101. IC 26-1-9.1 may be cited as Uniform Commercial Code–Secured Transactions.

As added by P.L.57-2000, SEC.45.
Ind. Code § 26-1-12-103 — Indiana Code / Title 26 / Article 1 / Chapter 12 / Section 26-1-12-103
Preemption by statute concerning secured transactions; applicability of laws governing consumer transactions
Status: in_force

Sec. 103. (a) If there is a conflict between this chapter and IC 26-1-9.1, IC 26-1-9.1 governs.

(b) A transaction subject to this chapter is subject to:

(1) any applicable rule of law that establishes a different rule for consumers; and

(2) any:

(A) other statute or regulation that regulates the rates, charges, agreements, and practices for loans, credit sales, or other extensions of credit, including IC 37-2 and IC 37-3; and

(B) consumer protection statute or regulation.

As added by P.L.199-2023, SEC.90. Amended by P.L.115-2026, SEC.48.
Ind. Code § 26-4-6-6 — Indiana Code / Title 26 / Article 4 / Chapter 6 / Section 26-4-6-6
Subrogation of claim
Status: in_force

Sec. 6. A claimant compensated under this chapter is required to subrogate to the board or corporation all the claimant's rights to collect on a bond issued under IC 26-3-7 or the United States Warehouse Act and all the claimant's rights to any other compensation arising from the revocation of a license of the grain buyer or warehouse operator. The claimant shall assign all the claimant's rights, title, and interest in any judgment concerning the revocation of a license to the board or corporation.

As added by P.L.250-1995, SEC.1. Amended by P.L.173-1999, SEC.20; P.L.75-2010, SEC.30; P.L.145-2017, SEC.22; P.L.114-2025, SEC.75.
Ind. Code § 26-1-2.1-210 — Indiana Code / Title 26 / Article 1 / Chapter 2.1 / Section 26-1-2.1-210
Express warranties
Status: in_force

Sec. 210. (1) Express warranties by the lessor are created as follows:

(a) Any affirmation of fact or promise made by the lessor to the lessee which relates to the goods and becomes part of the basis of the bargain creates an express warranty that the goods will conform to the affirmation or promise.

(b) Any description of the goods which is made part of the basis of the bargain creates an express warranty that the goods will conform to the description.

(c) Any sample or model that is made part of the basis of the bargain creates an express warranty that the whole of the goods will conform to the sample or model.

(2) It is not necessary to the creation of an express warranty that the lessor use formal words, such as "warrant" or "guarantee," or that the lessor have a specific intention to make a warranty, but an affirmation merely of the value of the goods or a statement purporting to be merely the lessor's opinion or commendation of the goods does not create a warranty.

As added by P.L.189-1991, SEC.3.
Ind. Code § 26-1-2-613 — Indiana Code / Title 26 / Article 1 / Chapter 2 / Section 26-1-2-613
Casualty to identified goods
Status: in_force

Sec. 613. Where the contract requires for its performance goods identified when the contract is made, and the goods suffer casualty without fault of either party before the risk of loss passes to the buyer, or in a proper case under a "no arrival, no sale" term (IC 26-1-2-324), then:

(a) if the loss is total, the contract is avoided; and

(b) if the loss is partial or the goods have so deteriorated as no longer to conform to the contract, the buyer may nevertheless demand inspection and at his option either treat the contract as avoided or accept the goods with due allowance from the contract price for the deterioration or deficiency in quantity but without further right against the seller.

Formerly: Acts 1963, c.317, s.2-613. As amended by P.L.152-1986, SEC.159.
Ind. Code § 26-1-9.1-306.1 — Indiana Code / Title 26 / Article 1 / Chapter 9.1 / Section 26-1-9.1-306.1
Law governing perfection, effect of perfection or nonperfection, and priority of security interests in chattel paper; chattel paper's jurisdiction
Status: in_force

Sec. 306.1. (a) Except as provided in subsection (d), if chattel paper is evidenced only by an authoritative electronic copy of the chattel paper or is evidenced by an authoritative electronic copy and an authoritative tangible copy, the local law of the chattel paper's jurisdiction governs perfection, the effect of perfection or nonperfection, and the priority of a security interest in the chattel paper, even if the transaction does not bear any relation to the chattel paper's jurisdiction.

(b) The following rules govern the chattel paper's jurisdiction under this section:

(1) If the authoritative electronic copy of the record evidencing chattel paper, or a record that is attached to or logically associated with the electronic copy and that is readily available for review, expressly provides that a particular jurisdiction is the chattel paper's jurisdiction for purposes of this section, this chapter, or IC 26-1, that jurisdiction is the chattel paper's jurisdiction.

(2) If subdivision (1) does not apply, and the rules of the system in which the authoritative electronic copy is recorded are readily available for review and expressly provide that a particular jurisdiction is the chattel paper's jurisdiction for purposes of this section, this chapter, or IC 26-1, that jurisdiction is the chattel paper's jurisdiction.

(3) If subdivisions (1) and (2) do not apply, and the authoritative electronic copy, or a record that is attached to or logically associated with the electronic copy and that is readily available for review, expressly provides that the chattel paper is governed by the law of a particular jurisdiction, that jurisdiction is the chattel paper's jurisdiction.

(4) If subdivisions (1) through (3) do not apply, and the rules of the system in which the authoritative electronic copy is recorded are readily available for review and expressly provide that the chattel paper or the system is governed by the law of a particular jurisdiction, that jurisdiction is the chattel paper's jurisdiction.

(5) If subdivisions (1) through (4) do not apply, the chattel paper's jurisdiction is the jurisdiction in which the debtor is located.

(c) If an authoritative tangible copy of a record evidences chattel paper and the chattel paper is not evidenced by an authoritative electronic copy, while the authoritative tangible copy of the record evidencing the chattel paper is located in a jurisdiction, the local law of that jurisdiction governs:

(1) perfection of a security interest in the chattel paper by possession under section 314.1 of this chapter; and

(2) the effect of perfection or nonperfection and the priority of a security interest in the chattel paper.

(d) The local law of the jurisdiction in which the debtor is located governs perfection of a security interest in chattel paper by filing.

As added by P.L.199-2023, SEC.54.
Ind. Code § 26-1-9.1-520 — Indiana Code / Title 26 / Article 1 / Chapter 9.1 / Section 26-1-9.1-520
Acceptance and refusal to accept record
Status: in_force

Sec. 520. (a) A filing office shall refuse to accept a record for filing for a reason set forth in IC 26-1-9.1-516(b) and may refuse to accept a record for filing only for a reason set forth in IC 26-1-9.1-516(b).

(b) If a filing office refuses to accept a record for filing, it shall communicate to the person that presented the record the fact of and reason for the refusal and the date and time the record would have been filed had the filing office accepted it. The communication must be made at the time and in the manner prescribed by filing-office rule, but in the case of a filing office described in IC 26-1-9.1-501(a)(2), in no event more than two (2) business days after the filing office receives the record.

(c) A filed financing statement satisfying IC 26-1-9.1-502(a) and IC 26-1-9.1-502(b) is effective, even if the filing office is required to refuse to accept it for filing under subsection (a). However, IC 26-1-9.1-338 applies to 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.

(d) If a record communicated to a filing office provides information that relates to more than one (1) debtor, IC 26-1-9.1-501 through IC 26-1-9.1-527 apply as to each debtor separately.

As added by P.L.57-2000, SEC.45.
Ind. Code § 26-4-1-19.7 — Indiana Code / Title 26 / Article 4 / Chapter 1 / Section 26-4-1-19.7
"Storage"
Status: in_force

Sec. 19.7. "Storage" has the meaning set forth in IC 26-3-7-2.

As added by P.L.114-2025, SEC.56.
Ind. Code § 26-1-9.1-703 — Indiana Code / Title 26 / Article 1 / Chapter 9.1 / Section 26-1-9.1-703
Security interest perfected before effective date
Status: in_force

Sec. 703. (a) A security interest that is enforceable immediately before IC 26-1-9.1 takes effect and would have priority over the rights of a person that becomes a lien creditor at that time is a perfected security interest under IC 26-1-9.1 if, when IC 26-1-9.1 takes effect, the applicable requirements for enforceability and perfection under IC 26-1-9.1 are satisfied without further action.

(b) Except as otherwise provided in IC 26-1-9.1-705, if, immediately before IC 26-1-9.1 takes effect, a security interest is enforceable and would have priority over the rights of a person that becomes a lien creditor at that time, but the applicable requirements for enforceability or perfection under IC 26-1-9.1 are not satisfied when IC 26-1-9.1 takes effect, the security interest:

(1) is a perfected security interest for one (1) year after IC 26-1-9.1 takes effect;

(2) remains enforceable thereafter only if the security interest becomes enforceable under IC 26-1-9.1-203 before the year expires; and

(3) remains perfected thereafter only if the applicable requirements for perfection under IC 26-1-9.1 are satisfied before the year expires.

As added by P.L.57-2000, SEC.45.
Ind. Code § 26-2-3-13 — Indiana Code / Title 26 / Article 2 / Chapter 3 / Section 26-2-3-13
Exclusion of notes discounted by bank
Status: in_force

Sec. 13. The provisions of this chapter relating to damages on bills of exchange shall not apply to promissory notes discounted by a bank, and protested for nonpayment.

Formerly: Acts 1861, c.75, s.13. As amended by P.L.152-1986, SEC.304.
Ind. Code § 26-4-3-8.5 — Indiana Code / Title 26 / Article 4 / Chapter 3 / Section 26-4-3-8.5
Confidentiality; conflict of interest; recusal
Status: in_force

Sec. 8.5. (a) A board member may not discuss any pending claim or potential claim except with another board member, at a board meeting, including at an executive session of the board.

(b) If a board member reasonably believes that a conflict of interest exists with respect to the exercise of the board member's official duties in a particular case, the board member:

(1) shall disclose that a conflict of interest exists to the board and the agency; and

(2) is recused from the proceeding.

As added by P.L.208-2021, SEC.12. Amended by P.L.114-2025, SEC.62.
Ind. Code § 26-3-2-1 — Indiana Code / Title 26 / Article 3 / Chapter 2 / Section 26-3-2-1
Issuance of receipt for goods not received
Status: in_force

Sec. 1. A warehouseman, or any officer, agent, or servant of a warehouseman, who issues a receipt, knowing that the goods for which the receipt is issued have not been actually received by the warehouseman, or are not under the warehouseman's actual control at the time of issuing the receipt, commits a Level 6 felony.

Formerly: Acts 1921, c.100, s.50. As amended by Acts 1978, P.L.2, SEC.2601; P.L.158-2013, SEC.293.
Ind. Code § 26-2-8-301 — Indiana Code / Title 26 / Article 2 / Chapter 8 / Section 26-2-8-301
Severability clause
Status: in_force

Sec. 301. If any provision of this chapter or its application to any person or circumstance is held invalid, the invalidity does not affect other provisions or applications of this chapter that can be given effect without the invalid provision or application, and to this end the provisions of this chapter are severable.

As added by P.L.62-2000, SEC.1.
Ind. Code § 26-2-3-11 — Indiana Code / Title 26 / Article 2 / Chapter 3 / Section 26-2-3-11
Necessity of consideration
Status: in_force

Sec. 11. No holder of a bill of exchange shall recover damages thereon, if he has not given for the same, or for some interest therein, a valuable consideration.

Formerly: Acts 1861, c.75, s.11.
Ind. Code § 26-1-4.1-211 — Indiana Code / Title 26 / Article 1 / Chapter 4.1 / Section 26-1-4.1-211
Cancellation and amendment of payment order
Status: in_force

Sec. 211. (a) A communication of the sender of a payment order canceling or amending the order may be transmitted to the receiving bank orally or in a record. If a security procedure is in effect between the sender and the receiving bank, the communication is not effective to cancel or amend the order unless the communication is verified pursuant to the security procedure or the bank agrees to the cancellation or amendment.

(b) Subject to subsection (a), a communication by the sender canceling or amending a payment order is effective to cancel or amend the order if notice of the communication is received at a time and in a manner affording the receiving bank a reasonable opportunity to act on the communication before the bank accepts the payment order.

(c) After a payment order has been accepted, cancellation or amendment of the order is not effective unless the receiving bank agrees or a funds-transfer system rule allows cancellation or amendment without agreement of the bank.

(1) With respect to a payment order accepted by a receiving bank other than the beneficiary's bank, cancellation or amendment is not effective unless a conforming cancellation or amendment of the payment order issued by the receiving bank is also made.

(2) With respect to a payment order accepted by the beneficiary's bank, cancellation or amendment is not effective unless the order was issued in execution of an unauthorized payment order, or because of a mistake by a sender in the funds transfer which resulted in the issuance of a payment order:

(i) that is a duplicate of a payment order previously issued by the sender;

(ii) that orders payment to a beneficiary not entitled to receive payment from the originator; or

(iii) that orders payment in an amount greater than the amount the beneficiary was entitled to receive from the originator. If the payment order is canceled or amended, the beneficiary's bank is entitled to recover from the beneficiary any amount paid to the beneficiary to the extent allowed by the law governing mistake and restitution.

(d) An unaccepted payment order is canceled by operation of law at the close of the fifth funds-transfer business day of the receiving bank after the execution date or payment date of the order.

(e) A canceled payment order cannot be accepted. If an accepted payment order is canceled, the acceptance is nullified and no person has any right or obligation based on the acceptance. Amendment of a payment order is deemed to be cancellation of the original order at the time of amendment and issue of a new payment order in the amended form at the same time.

(f) Unless otherwise provided in an agreement of the parties or in a funds-transfer system rule, if the receiving bank, after accepting a payment order, agrees to cancellation or amendment of the order by the sender or is bound by a funds-transfer system rule allowing cancellation or amendment without the bank's agreement, the sender, whether or not cancellation or amendment is effective, is liable to the bank for any loss and expenses, including reasonable attorney's fees, incurred by the bank as a result of the cancellation or amendment or attempted cancellation or amendment.

(g) A payment order is not revoked by the death or legal incapacity of the sender unless the receiving bank knows of the death or of an adjudication of incapacity by a court of competent jurisdiction and has reasonable opportunity to act before acceptance of the order.

(h) A funds-transfer system rule is not effective to the extent it conflicts with subsection (c)(2).

As added by P.L.189-1991, SEC.4. Amended by P.L.199-2023, SEC.29.
Ind. Code § 26-1-7-302 — Indiana Code / Title 26 / Article 1 / Chapter 7 / Section 26-1-7-302
Through bills of lading and similar documents
Status: in_force

Sec. 302. (a) The issuer of a through bill of lading or other document of title embodying an undertaking to be performed in part by a person acting as its agent or by a performing carrier is liable to any person entitled to recover on the bill or other document for any breach by the other person or the performing carrier of its obligation under the bill or other document. However, to the extent that the bill or other document covers an undertaking to be performed overseas or in territory not contiguous to the continental United States or an undertaking including matters other than transportation, this liability for breach by the other person or the performing carrier may be varied by agreement of the parties.

(b) If goods covered by a through bill of lading or other document of title embodying an undertaking to be performed in part by a person other than the issuer are received by that person, the person is subject, with respect to its own performance while the goods are in its possession, to the obligation of the issuer. The person's obligation is discharged by delivery of the goods to another person pursuant to the bill or other document and does not include liability for breach by any other person or by the issuer.

(c) The issuer of a through bill of lading or other document of title described in subsection (b) is entitled to recover from the performing carrier or other person in possession of the goods when the breach of the obligation under the bill or other document occurred:

(1) the amount it may be required to pay to any person entitled to recover on the bill or other document for the breach, as may be evidenced by any receipt, judgment, or transcript of judgment; and

(2) the amount of any expense reasonably incurred by the issuer in defending any action commenced by any person entitled to recover on the bill or other document for the breach.

Formerly: Acts 1963, c.317, s.7-302. As amended by P.L.143-2007, SEC.41.
Ind. Code § 26-1-4-503 — Indiana Code / Title 26 / Article 1 / Chapter 4 / Section 26-1-4-503
Responsibility of presenting bank for documents and goods; report of reasons for dishonor; referee in case needed
Status: in_force

Sec. 503. Unless otherwise instructed and except as provided in IC 26-1-5.1, a bank presenting a documentary draft:

(1) must deliver the documents to the drawee on acceptance of the draft if it is payable more than three (3) days after presentment; otherwise, only on payment; and

(2) upon dishonor, either in the case of presentment for acceptance or presentment for payment, may seek and follow instructions from any referee in case of need designated in the draft, or if the presenting bank does not choose to utilize the referee's services, it must use diligence and good faith to ascertain the reason for dishonor, must notify its transferor of the dishonor and of the results of its effort to ascertain the reasons therefor, and must request instructions.

However the presenting bank is under no obligation with respect to goods represented by the documents except to follow any reasonable instructions seasonably received. It has a right to reimbursement for any expense incurred in following instructions and to prepayment of or indemnity for those expenses.

Formerly: Acts 1963, c.317, s.4-503. As amended by P.L.152-1986, SEC.226; P.L.222-1993, SEC.44; P.L.183-1996, SEC.3.
Ind. Code § 26-1-9.1-507 — Indiana Code / Title 26 / Article 1 / Chapter 9.1 / Section 26-1-9.1-507
Effect of certain events on effectiveness of financing statement
Status: in_force

Sec. 507. (a) A filed financing statement remains effective with respect to collateral that is sold, exchanged, leased, licensed, or otherwise disposed of and in which a security interest or agricultural lien continues, even if the secured party knows of or consents to the disposition.

(b) Except as otherwise provided in subsection (c) and IC 26-1-9.1-508, a financing statement is not rendered ineffective if, after the financing statement is filed, the information provided in the financing statement becomes seriously misleading under IC 26-1-9.1-506.

(c) If the name that a filed financing statement provides for a debtor becomes insufficient as the name of the debtor under IC 26-1-9.1-503(a) so that the financing statement becomes seriously misleading under IC 26-1-9.1-506:

(1) the financing statement is effective to perfect a security interest in collateral acquired by the debtor before, or within four (4) months after, the filed financing statement becomes seriously misleading; and

(2) the financing statement is not effective to perfect a security interest in collateral acquired by the debtor more than four (4) months after the filed financing statement becomes seriously misleading, unless an amendment to the financing statement which renders the financing statement not seriously misleading is filed within four months (4) after the financing statement became seriously misleading.

As added by P.L.57-2000, SEC.45. Amended by P.L.54-2011, SEC.14.
Ind. Code § 26-1-9.1-329 — Indiana Code / Title 26 / Article 1 / Chapter 9.1 / Section 26-1-9.1-329
Priority of security interests in letter-of-credit rights
Status: in_force

Sec. 329. The following rules govern priority among conflicting security interests in the same letter-of-credit right:

(1) A security interest held by a secured party having control of the letter-of-credit right under IC 26-1-9.1-107 has priority to the extent of its control over a conflicting security interest held by a secured party that does not have control.

(2) Security interests perfected by control under IC 26-1-9.1-314 rank according to priority in time of obtaining control.

As added by P.L.57-2000, SEC.45.
Ind. Code § 26-2-9-1 — Indiana Code / Title 26 / Article 2 / Chapter 9 / Section 26-2-9-1
"Credit agreement"
Status: in_force

Sec. 1. (a) As used in this chapter, "credit agreement" means an agreement to:

(1) lend or forbear repayment of money, goods, or things in action;

(2) otherwise extend credit; or

(3) make any other financial accommodation.

(b) The term includes an agreement to:

(1) amend or modify an agreement;

(2) enter into a new agreement;

(3) forbear from exercising rights under an agreement; or

(4) grant an extension under an agreement;

described in subsection (a).

[Pre-2002 Title 32 Recodification Citation: 32-2-1.5-1.]

As added by P.L.2-2002, SEC.79. Amended by P.L.10-2006, SEC.25 and P.L.57-2006, SEC.25; P.L.76-2011, SEC.1.
Ind. Code § 26-1-3.1-107 — Indiana Code / Title 26 / Article 1 / Chapter 3.1 / Section 26-1-3.1-107
Instrument payable in foreign money
Status: in_force

Sec. 107. Unless the instrument otherwise provides, an instrument that states the amount payable in foreign money may be paid in the foreign money or in an equivalent amount in dollars calculated by using the current bank-offered spot rate at the place of payment for the purchase of dollars on the day on which the instrument is paid.

As added by P.L.222-1993, SEC.5.
Ind. Code § 26-3-7-32.5 — Indiana Code / Title 26 / Article 3 / Chapter 7 / Section 26-3-7-32.5
Notice requirements
Status: in_force

Sec. 32.5. If the director or the director's designated representative is required or permitted to give notice under this chapter, the notice must contain, in addition to information or content required to be included in the notice under this chapter, the following:

(1) The date on which the notice is issued.

(2) The full name and contact information, including telephone number and electronic mail address, for the director, the director's designated representative, or the other employee or agent of the agency responsible for the notice.

(3) The full name and contact information, as available to the agency, for the recipient of the notice.

(4) The reasons for the notice, including the applicable sections of this chapter under which the fine has been assessed.

(5) Any deadlines or other times within which the recipient of the notice may or must act under this chapter.

(6) A list of each person to whom the notice is being sent.

(7) A list of any enclosures included with the notice.

(8) The signature of the director, the director's designated representative, or the other employee or agent of the agency responsible for the notice.

As added by P.L.114-2025, SEC.39. Amended by P.L.23-2026, SEC.259.
Ind. Code § 26-3-7-2.2 — Indiana Code / Title 26 / Article 3 / Chapter 7 / Section 26-3-7-2.2
Determination of a single warehouse
Status: in_force

Sec. 2.2. 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.

As added by P.L.64-2009, SEC.2.
Ind. Code § 26-1-9.1-525 — Indiana Code / Title 26 / Article 1 / Chapter 9.1 / Section 26-1-9.1-525
Fees
Status: in_force

Sec. 525. (a) Beginning on October 1, 2019, and except as otherwise provided in subsection (e), the fee for filing and indexing a record under IC 26-1-9.1-501 through IC 26-1-9.1-527, other than an initial financing statement of the kind described in IC 26-1-9.1-502(a), is:

(1) twelve dollars ($12) if the record is communicated in writing; and

(2) no statutory fee if the record is communicated by electronic filing.

(b) Except as otherwise provided in subsection (e), the fee for filing and indexing an initial financing statement of the kind described in IC 26-1-9.1-502(a) is:

(1) twelve dollars ($12) if the financing statement indicates that it is filed in connection with a public-finance transaction; and

(2) twelve dollars ($12) if the financing statement indicates that it is filed in connection with a manufactured-home transaction.

(c) The number of names under which a record must be indexed does not affect the amount of a fee under subsection (a) or (b).

(d) The fee for responding to a request for information from the filing office, including for issuing a certificate showing whether there is on file any financing statement naming a particular debtor, is:

(1) five dollars ($5) if the request is communicated in writing; and

(2) no statutory fee if the request is communicated electronically.

(e) This section does not require a fee with respect to a record of a mortgage which is effective as a financing statement filed as a fixture filing or as a financing statement covering as-extracted collateral or timber to be cut under IC 26-1-9.1-502(c). However, the recording and satisfaction fees that otherwise would be applicable to the record of the mortgage apply.

As added by P.L.57-2000, SEC.45. Amended by P.L.165-2001, SEC.16; P.L.277-2001, SEC.26; P.L.177-2019, SEC.17; P.L.206-2021, SEC.12.
Ind. Code § 26-3-8-8 — Indiana Code / Title 26 / Article 3 / Chapter 8 / Section 26-3-8-8
"Rental agreement"
Status: in_force

Sec. 8. As used in this chapter, "rental agreement" means any written agreement or lease that establishes or modifies the terms under which a renter may store personal property in a rented space in a self-service storage facility.

As added by P.L.265-1987, SEC.1.
Ind. Code § 26-1-4-207 — Indiana Code / Title 26 / Article 1 / Chapter 4 / Section 26-1-4-207
Transfer warranties
Status: in_force

Sec. 207. (a) A customer or collecting bank that transfers an item and receives a settlement or other consideration warrants to the transferee and to any subsequent collecting bank that:

(1) the warrantor is a person entitled to enforce the item;

(2) all signatures on the item are authentic and authorized;

(3) the item has not been altered;

(4) the item is not subject to a defense or claim in recoupment (IC 26-1-3.1-305(a)) of any party that can be asserted against the warrantor;

(5) the warrantor has no knowledge of any insolvency proceeding commenced with respect to the maker or acceptor or, in the case of an unaccepted draft, the drawer; and

(6) with respect to a remotely-created consumer item, the person on whose account the item is drawn authorized the issuance of the item in the amount for which the item is drawn.

(b) If an item is dishonored, a customer or collecting bank transferring the item and receiving settlement or other consideration is obliged to pay the amount due on the item:

(1) according to the terms of the item at the time it was transferred; or

(2) if the transfer was of an incomplete item, according to its terms when completed as stated in IC 26-1-3.1-115 and IC 26-1-3.1-407.

The obligation of a transferor is owed to the transferee and to any subsequent collecting bank that takes the item in good faith. A transferor cannot disclaim its obligation under this subsection by an endorsement stating that it is made "without recourse" or otherwise disclaiming liability.

(c) A person to whom the warranties under subsection (a) are made and who took the item in good faith may recover from the warrantor as damages for breach of warranty an amount equal to the loss suffered as a result of the breach, but not more than the amount of the item plus expenses and loss of interest incurred as a result of the breach.

(d) The warranties stated in subsection (a) cannot be disclaimed with respect to checks. Unless notice of a claim for breach of warranty is given to the warrantor within thirty (30) days after the claimant has reason to know of the breach and the identity of the warrantor, the warrantor is discharged to the extent of any loss caused by the delay in giving notice of the claim.

(e) A cause of action for breach of warranty under this section accrues when the claimant has reason to know of the breach.

Formerly: Acts 1963, c.317, s.4-207. As amended by P.L.222-1993, SEC.23; P.L.135-2009, SEC.16.
Ind. Code § 26-1-7-207 — Indiana Code / Title 26 / Article 1 / Chapter 7 / Section 26-1-7-207
Goods must be kept separate; fungible goods
Status: in_force

Sec. 207. (a) Unless the warehouse receipt otherwise provides, a warehouse shall keep separate the goods covered by each receipt so as to permit at all times identification and delivery of those goods. However, different lots of fungible goods may be commingled.

(b) If different lots of fungible goods are commingled, the goods are owned in common by the persons entitled thereto and the warehouse is severally liable to each owner for that owner's share. If because of overissue, a mass of fungible goods is insufficient to meet all the receipts the warehouse has issued against it, the persons entitled include all holders to which overissued receipts have been duly negotiated.

Formerly: Acts 1963, c.317, s.7-207. As amended by P.L.143-2007, SEC.36.
Ind. Code § 26-1-4-303 — Indiana Code / Title 26 / Article 1 / Chapter 4 / Section 26-1-4-303
When items subject to notice, stop-payment order, legal process, or setoff; order in which items may be charged or certified
Status: in_force

Sec. 303. (a) Any knowledge, notice, or stop-payment order received by, legal process served upon, or setoff exercised by a payor bank comes too late to terminate, suspend, or modify the bank's right or duty to pay an item or to charge its customer's account for the item if the knowledge, notice, stop-payment order, or legal process is received or served and a reasonable time for the bank to act thereon expires or the setoff is exercised after the earliest of the following:

(1) The bank accepts or certifies the item.

(2) The bank pays the item in cash.

(3) The bank settles for the item without having a right to revoke the settlement under statute, clearing-house rule, or agreement.

(4) The bank becomes accountable for the amount of the item under IC 26-1-4-302 dealing with the payor bank's responsibility for late return of items.

(5) With respect to checks, a cutoff hour not earlier than one (1) hour after the opening of the next banking day after the banking day on which the bank received the check and not later than the close of that next banking day or, if no cutoff hour is fixed, the close of the next banking day after the banking day on which the bank received the check.

(b) Subject to subsection (a), items may be accepted, paid, certified, or charged to the indicated account of its customer in any order.

Formerly: Acts 1963, c.317, s.4-303. As amended by P.L.152-1986, SEC.224; P.L.222-1993, SEC.35.
Ind. Code § 26-1-2.1-516 — Indiana Code / Title 26 / Article 1 / Chapter 2.1 / Section 26-1-2.1-516
Effect of acceptance of goods; notice of default; burden of establishing
Status: in_force

Sec. 516. (1) A lessee must pay rent for any goods accepted in accordance with the lease contract, with due allowance for goods rightfully rejected or not delivered.

(2) A lessee's acceptance of goods precludes rejection of the goods accepted. In the case of a finance lease, if made with knowledge of a nonconformity, acceptance cannot be revoked because of it. In any other case, if made with knowledge of a nonconformity, acceptance cannot be revoked because of it unless the acceptance was on the reasonable assumption that the nonconformity would be seasonably cured. Acceptance does not of itself impair any other remedy provided by IC 26-1-2.1 or the lease agreement for nonconformity.

(3) If a tender has been accepted:

(a) within a reasonable time after the lessee discovers or should have discovered any default, the lessee shall notify the lessor and the supplier, if any, or be barred from any remedy against the party not notified;

(b) except in the case of a consumer lease, within a reasonable time after the lessee receives notice of litigation for infringement or the like (IC 26-1-2.1-211) the lessee shall notify the lessor or be barred from any remedy over for liability established by the litigation; and

(c) the burden is on the lessee to establish any default.

(4) If a lessee is sued for breach of a warranty or other obligation for which a lessor or a supplier is answerable over the following apply:

(a) The lessee may give the lessor or the supplier, or both, written notice of the litigation. If the notice states that the person notified may come in and defend and that if the person notified does not do so that person will be bound in any action against that person by the lessee by any determination of fact common to the two (2) litigations, then unless the person notified after seasonable receipt of the notice does come in and defend that person is so bound.

(b) The lessor or the supplier may demand in writing that the lessee turn over control of the litigation including settlement if the claim is one for infringement or the like (IC 26-1-2.1-211) or else be barred from any remedy over. If the demand states that the lessor or the supplier agrees to bear all expense and to satisfy any adverse judgment, then unless the lessee after seasonable receipt of the demand does turn over control the lessee is so barred.

(5) Subsections (3) and (4) apply to any obligation of a lessee to hold the lessor or the supplier harmless against infringement or the like (IC 26-1-2.1-211).

As added by P.L.189-1991, SEC.3.
Ind. Code § 26-1-9.1-526 — Indiana Code / Title 26 / Article 1 / Chapter 9.1 / Section 26-1-9.1-526
Filing—office rules
Status: in_force

Sec. 526. (a) The secretary of state shall adopt and publish rules to implement IC 26-1-9.1. The filing-office rules must be consistent with IC 26-1-9.1.

(b) To keep the filing-office rules and practices of the filing office in harmony with the rules and practices of filing offices in other jurisdictions that enact substantially IC 26-1-9.1-501 through IC 26-1-9.1-527, and to keep the technology used by the filing office compatible with the technology used by filing offices in other jurisdictions that enact substantially IC 26-1-9.1-501 through IC 26-1-9.1-527, the secretary of state, so far as is consistent with the purposes, policies, and provisions of IC 26-1-9.1, in adopting, amending, and repealing filing-office rules, shall:

(1) consult with filing offices in other jurisdictions that enact substantially IC 26-1-9.1-501 through IC 26-1-9.1-527;

(2) consult the most recent version of the Model Rules promulgated by the International Association of Corporate Administrators or any successor organization; and

(3) take into consideration the rules and practices of, and the technology used by, filing offices in other jurisdictions that enact substantially IC 26-1-9.1-501 through IC 26-1-9.1-527.

As added by P.L.57-2000, SEC.45. Amended by P.L.165-2001, SEC.17.
Ind. Code § 26-3-7-25 — Indiana Code / Title 26 / Article 3 / Chapter 7 / Section 26-3-7-25
Terms of receipts
Status: in_force

Sec. 25. Every warehouse receipt issued, whether paper or electronic, shall embody within its terms the following:

(1) The type, grade, and quantity of the grain stored as established by the official grain standards of the United States, unless:

(A) the identity of the grain is preserved in a special pile or special bin or otherwise; and

(B) a mark identifying the preserved grain appears on the face of the receipt.

(2) A statement that the receipt is issued subject to the Indiana Grain Buyers and Warehouse Licensing and Bonding Law, IC 26-3-7, and rules adopted under the Indiana Grain Buyers and Warehouse Licensing and Bonding Law.

(3) A clause that reserves to the licensee the right to terminate storage and collect outstanding charges against any lot of grain that remains in storage after June 30 following the date of the receipt.

(4) A clause that reserves to the licensee the right to terminate storage, shipping, and handling arrangements and collect outstanding charges upon the revocation of the licensee's license.

(5) Other terms and conditions as provided in the Uniform Warehouse Receipts Acts. However, nothing contained in the Uniform Warehouse Receipts Act shall require a receipt issued for grain to specifically state the variety of the grain by name.

(6) A clause that terminates storage on the date the license held by the licensee when the receipt was issued expires and reserves to the licensee the right to collect outstanding charges against any lot of grain.

(7) Other provisions prescribed by the director.

Formerly: Acts 1973, P.L.268, SEC.1; Acts 1974, P.L.120, SEC.13. As amended by P.L.125-1997, SEC.47; P.L.173-1999, SEC.11.
Ind. Code § 26-1-8.1-109 — Indiana Code / Title 26 / Article 1 / Chapter 8.1 / Section 26-1-8.1-109
Warranties made by and to a securities intermediary
Status: in_force

Sec. 109. (a) A person who originates an entitlement order to a securities intermediary warrants to the securities intermediary that:

(1) the entitlement order is made by an appropriate person, or if the entitlement order is by an agent, the agent has actual authority to act on behalf of the appropriate person; and

(2) there is no adverse claim to the security entitlement.

(b) A person who delivers a security certificate to a securities intermediary for credit to a securities account or originates an instruction with respect to an uncertificated security directing that the uncertificated security be credited to a securities account makes to the securities intermediary the warranties specified in IC 26-1-8.1-108(a) or IC 26-1-8.1-108(b).

(c) If a securities intermediary delivers a security certificate to its entitlement holder or causes its entitlement holder to be registered as the owner of an uncertificated security, the securities intermediary makes to the entitlement holder the warranties specified in IC 26-1-8.1-108(a) or IC 26-1-8.1-108(b).

As added by P.L.247-1995, SEC.10.
Ind. Code § 26-1-2-107 — Indiana Code / Title 26 / Article 1 / Chapter 2 / Section 26-1-2-107
Goods to be severed from realty; recording
Status: in_force

Sec. 107. (1) A contract for the sale of minerals or the like (including oil and gas) or a structure or its materials to be removed from realty is a contract for the sale of goods within IC 26-1-2 if they are to be severed by the seller but until severance a purported present sale thereof which is not effective as a transfer of an interest in land is effective only as a contract to sell.

(2) A contract for the sale apart from the land of growing crops or other things attached to realty and capable of severance without material harm thereto but not described in subsection (1) or of timber to be cut is a contract for the sale of goods within IC 26-1-2 whether the subject matter is to be severed by the buyer or by the seller even though it forms part of the realty at the time of contracting, and the parties can by identification effect a present sale before severance.

(3) The provisions of this section are subject to any third party rights provided by the law relating to realty records, and the contract for sale may be executed and recorded as a document transferring an interest in land and shall then constitute notice to third parties of the buyer's rights under the contract for sale.

Formerly: Acts 1963, c.317, s.2-107. As amended by P.L.93-1985, SEC.4.
Ind. Code § 26-1-8.1-204 — Indiana Code / Title 26 / Article 1 / Chapter 8.1 / Section 26-1-8.1-204
Restrictions on transfer
Status: in_force

Sec. 204. A restriction on transfer of a security imposed by the issuer, even if otherwise lawful, is ineffective against a person without knowledge of the restriction unless:

(1) the security is certificated and the restriction is noted conspicuously on the security certificate; or

(2) the security is uncertificated and the registered owner has been notified of the restriction.

As added by P.L.247-1995, SEC.10.
Ind. Code § 26-3-7-31.8 — Indiana Code / Title 26 / Article 3 / Chapter 7 / Section 26-3-7-31.8
Notice of fines
Status: in_force

Sec. 31.8. (a) If a fine is assessed under this chapter, the director shall issue a notice to the person or licensee containing the following:

(1) The reasons the director assessed the fine, including citations to the applicable provisions of this chapter under which the fine has been assessed.

(2) The amount of the assessed fine.

(3) The requirement that the assessed fine must be fully paid within thirty (30) days of the notice being sent.

(4) The manners of payment acceptable to the agency and any other necessary payment instructions.

(5) A full copy of this section.

(b) If a person or licensee fails to pay the assessed fine under this section, the director may apply any penalty authorized in this chapter, including revocation of a license.

As added by P.L.114-2025, SEC.38.
Ind. Code § 26-1-4-111 — Indiana Code / Title 26 / Article 1 / Chapter 4 / Section 26-1-4-111
Statute of limitations
Status: in_force

Sec. 111. An action to enforce an obligation, duty, or right arising under IC 26-1-4 must be commenced within three (3) years after the cause of action accrues.

As added by P.L.222-1993, SEC.16.
Ind. Code § 26-1-3.1-406 — Indiana Code / Title 26 / Article 1 / Chapter 3.1 / Section 26-1-3.1-406
Negligence contributing to forged signature or alteration of instrument
Status: in_force

Sec. 406. (a) A person whose failure to exercise ordinary care substantially contributes to an alteration of an instrument or to the making of a forged signature on an instrument is precluded from asserting the alteration or the forgery against a person who, in good faith, pays the instrument or takes it for value or for collection.

(b) Under subsection (a), if the person asserting the preclusion fails to exercise ordinary care in paying or taking the instrument and that failure substantially contributes to loss, the loss is allocated between the person precluded and the person asserting the preclusion according to the extent to which the failure of each to exercise ordinary care contributed to the loss.

(c) Under subsection (a), the burden of proving failure to exercise ordinary care is on the person asserting the preclusion. Under subsection (b), the burden of proving failure to exercise ordinary care is on the person precluded.

As added by P.L.222-1993, SEC.5.
Ind. Code § 26-1-9.1-612 — Indiana Code / Title 26 / Article 1 / Chapter 9.1 / Section 26-1-9.1-612
Timeliness of notification before disposition of collateral
Status: in_force

Sec. 612. (a) Except as otherwise provided in subsection (b), whether a notification is sent within a reasonable time is a question of fact.

(b) In a transaction other than a consumer transaction, a notification of disposition sent after default and ten (10) days or more before the earliest time of disposition set forth in the notification is sent within a reasonable time before the disposition.

As added by P.L.57-2000, SEC.45.
Ind. Code § 26-4-1-20 — Indiana Code / Title 26 / Article 4 / Chapter 1 / Section 26-4-1-20
"Storage loss"
Status: in_force

Sec. 20. "Storage loss" means a loss to a storage depositor resulting from a warehouse operator:

(1) whose license has been revoked; and

(2) who has not fully satisfied the warehouse operator's storage obligation to the depositor, net of any outstanding charges against the grain.

As added by P.L.250-1995, SEC.1. Amended by P.L.75-2010, SEC.20; P.L.114-2025, SEC.57.
Ind. Code § 26-1-2.1-305 — Indiana Code / Title 26 / Article 1 / Chapter 2.1 / Section 26-1-2.1-305
Sale or sublease of goods by lessee
Status: reserved

Sec. 305. (1) Subject to the provisions of IC 26-1-2.1-303, a buyer or sublessee from the lessee of goods under an existing lease contract obtains, to the extent of the interest transferred, the leasehold interest in the goods that the lessee had or had power to transfer, and except as provided in subsection (2) and IC 26-1-2.1-511(4), takes subject to the existing lease contract. A lessee with a voidable leasehold interest has power to transfer a good leasehold interest to a good faith buyer for value or a good faith sublessee for value, but only to the extent set forth in the preceding sentence. When goods have been delivered under a transaction of lease the lessee has that power even though:

(a) the lessor was deceived as to the identity of the lessee;

(b) the delivery was in exchange for a check which is later dishonored; or

(c) the delivery was procured through fraud punishable as larcenous under the criminal law.

(2) A buyer in the ordinary course of business or a sublessee in the ordinary course of business from a lessee who is a merchant dealing in goods of that kind to whom the goods were entrusted by the lessor obtains, to the extent of the interest transferred, all of the lessor's and lessee's rights to the goods, and takes free of the existing lease contract.

(3) A buyer or sublessee from the lessee of goods that are subject to an existing lease contract and are covered by a certificate of title issued under a statute of this state or of another jurisdiction takes no greater rights than those provided both by this section and by the certificate of title statute.

As added by P.L.189-1991, SEC.3.
Ind. Code § 26-1-9.1-602 — Indiana Code / Title 26 / Article 1 / Chapter 9.1 / Section 26-1-9.1-602
Waiver and variance of rights and duties
Status: in_force

Sec. 602. Except as otherwise provided in IC 26-1-9.1-624, to the extent that they give rights to a debtor or obligor and impose duties on a secured party, the debtor or obligor may not waive or vary the rules stated in the following listed sections:

(1) IC 26-1-9.1-207(b)(4)(C), which deals with use and operation of the collateral by the secured party.

(2) IC 26-1-9.1-210, which deals with requests for an accounting and requests concerning a list of collateral and statement of account.

(3) IC 26-1-9.1-607(c), which deals with collection and enforcement of collateral.

(4) IC 26-1-9.1-608(a) and IC 26-1-9.1-615(c) to the extent that they deal with application or payment of noncash proceeds of collection, enforcement, or disposition.

(5) IC 26-1-9.1-608(a) and IC 26-1-9.1-615(d) to the extent that they require accounting for or payment of surplus proceeds of collateral.

(6) IC 26-1-9.1-609 to the extent that it imposes upon a secured party that takes possession of collateral without judicial process the duty to do so without breach of the peace.

(7) IC 26-1-9.1-610(b), IC 26-1-9.1-611, IC 26-1-9.1-613, and IC 26-1-9.1-614, which deal with disposition of collateral.

(8) IC 26-1-9.1-615(f), which deals with calculation of a deficiency or surplus when a disposition is made to the secured party, a person related to the secured party, or a secondary obligor.

(9) IC 26-1-9.1-616, which deals with explanation of the calculation of a surplus or deficiency.

(10) IC 26-1-9.1-620, IC 26-1-9.1-621, and IC 26-1-9.1-622, which deal with acceptance of collateral in satisfaction of obligation.

(11) IC 26-1-9.1-623, which deals with redemption of collateral.

(12) IC 26-1-9.1-624, which deals with permissible waivers.

(13) IC 26-1-9.1-625 and IC 26-1-9.1-626, which deal with the secured party's liability for failure to comply with IC 26-1-9.1.

As added by P.L.57-2000, SEC.45.
Ind. Code § 26-1-2-712 — Indiana Code / Title 26 / Article 1 / Chapter 2 / Section 26-1-2-712
"Cover"; buyer's procurement of substitute goods
Status: in_force

Sec. 712. (1) After a breach within IC 26-1-2-711, the buyer may "cover" by making in good faith and without unreasonable delay any reasonable purchase of or contract to purchase goods in substitution for those due from the seller.

(2) The buyer may recover from the seller as damages the difference between the cost of cover and the contract price together with any incidental or consequential damages as hereinafter defined (IC 26-1-2-715), but less expenses saved in consequence of the seller's breach.

(3) Failure of the buyer to effect cover within this section does not bar him from any other remedy.

Formerly: Acts 1963, c.317, s.2-712. As amended by P.L.152-1986, SEC.170.
Ind. Code § 26-1-7-404 — Indiana Code / Title 26 / Article 1 / Chapter 7 / Section 26-1-7-404
No liability for good faith delivery upon receipt or bill
Status: in_force

Sec. 404. A bailee that in good faith has received goods and delivered or otherwise disposed of the goods according to the terms of a document of title or pursuant to this chapter is not liable for the goods even if:

(1) the person from which the bailee received the goods did not have authority to procure the document or to dispose of the goods; or

(2) the person to which the bailee delivered the goods did not have authority to receive the goods.

Formerly: Acts 1963, c.317, s.7-404. As amended by P.L.152-1986, SEC.256; P.L.143-2007, SEC.51.
Ind. Code § 26-1-7-507 — Indiana Code / Title 26 / Article 1 / Chapter 7 / Section 26-1-7-507
Warranties on negotiation or transfer of receipt or bill
Status: in_force

Sec. 507. If a person negotiates or delivers a document of title for value, otherwise than as a mere intermediary under section 508 of this chapter, unless otherwise agreed, the transferor, in addition to any warranty made in selling or leasing the goods, warrants to its immediate purchaser only that:

(1) the document is genuine;

(2) the transferor has no knowledge of any fact that would impair the document's validity or worth; and

(3) the negotiation or delivery is rightful and fully effective with respect to the title to the document and the goods it represents.

Formerly: Acts 1963, c.317, s.7-507. As amended by P.L.152-1986, SEC.260; P.L.143-2007, SEC.58.
Ind. Code § 26-4-5-1 — Indiana Code / Title 26 / Article 4 / Chapter 5 / Section 26-4-5-1
Refunds; form, restrictions, extension, notice
Status: in_force

Sec. 1. (a) A producer upon and against whom a producer premium is charged and collected under the provisions of this chapter may demand of and by complying with this chapter receive from the fund through the board a refund of the producer premiums collected from the producer.

(b) The board shall develop the form on which a demand for a refund must be filed. The board shall make the form available to grain buyers, producers, and the public upon request.

(c) Except as provided in subsection (d), a demand for a refund under this section is only valid if:

(1) made in writing and:

(A) hand delivered; or

(B) sent by first class mail;

to the board; and

(2) delivered or sent to the board not more than twelve (12) months after the premium was collected.

(d) The board may for good cause grant an extension for filing a demand for a refund under this chapter.

(e) A producer that requests and receives a refund under this section after June 30, 2015, is not protected and will not be compensated by the grain indemnity program. The board may not consider any refunds claimed before July 1, 2015, in determining whether a producer is covered by the fund.

(f) A producer who requests a refund of producer premiums paid is not eligible to be a claimant as of the date the refund check is issued to the producer by the board.

(g) Before January 1 of each year in which producer premiums were collected during the immediately preceding calendar year, the board shall send a notice to each producer who requested a refund of producer premiums in any previous year. The notice must inform the producer of the time frame in which a request for a refund must be made and the method of filing for a refund.

As added by P.L.250-1995, SEC.1. Amended by P.L.145-2017, SEC.18; P.L.114-2025, SEC.70.
Ind. Code § 26-1-9.1-523 — Indiana Code / Title 26 / Article 1 / Chapter 9.1 / Section 26-1-9.1-523
Information from filing office; sale or license of records
Status: in_force

Sec. 523. (a) If a person that files a written record requests an acknowledgment of the filing, the filing office shall send to the person an image of the record showing the number assigned to the record pursuant to IC 26-1-9.1-519(a)(1) and the date and time of the filing of the record. However, if the person furnishes a copy of the record to the filing office, the filing office may instead:

(1) note upon the copy the number assigned to the record pursuant to IC 26-1-9.1-519(a)(1) and the date and time of the filing of the record; and

(2) send the copy to the person.

(b) If a person files a record other than a written record, the filing office shall communicate to the person an acknowledgment that provides:

(1) the information in the record;

(2) the number assigned to the record pursuant to IC 26-1-9.1-519(a)(1); and

(3) the date and time of the filing of the record.

(c) The filing office shall communicate or otherwise make available in a record the following information to any person that requests it:

(1) whether there is on file on a date and time specified by the filing office, but not a date earlier than three (3) business days before the filing office receives the request, any financing statement that:

(A) designates a particular debtor or, if the request so states, designates a particular debtor at the address specified in the request;

(B) has not lapsed under IC 26-1-9.1-515 with respect to all secured parties of record; and

(C) if the request so states, has lapsed under IC 26-1-9.1-515 and a record of which is maintained by the filing office under IC 26-1-9.1-522(a);

(2) the date and time of filing of each financing statement; and

(3) the information provided in each financing statement.

(d) In complying with its duty under subsection (c), the filing office may communicate information in any medium. However, if requested, the filing office shall communicate information by issuing its written certificate.

(e) The filing office shall perform the acts required by subsections (a) through (d) 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 request.

(f) At least weekly, the secretary of state shall offer to sell or license to the public on a nonexclusive basis, in bulk, copies of all records filed in it under IC 26-1-9.1-501 through IC 26-1-9.1-527, in every medium from time to time available to the filing office.

As added by P.L.57-2000, SEC.45. Amended by P.L.165-2001, SEC.15.
Ind. Code § 26-3-7-39 — Indiana Code / Title 26 / Article 3 / Chapter 7 / Section 26-3-7-39
Attorney general
Status: in_force

Sec. 39. The office of the attorney general shall provide legal assistance to the division as requested by the director, including representation for petition for reviews filed under IC 4-21.5.

As added by P.L.114-2025, SEC.42.
Ind. Code § 26-1-1-107 — Indiana Code / Title 26 / Article 1 / Chapter 1 / Section 26-1-1-107
Waiver or renunciation of claim or right after breach
Status: in_force

Sec. 107. Any claim or right arising out of an alleged breach can be discharged in whole or in part without consideration by a written waiver or renunciation signed and delivered by the aggrieved party.

Formerly: Acts 1963, c.317, s.1-107.
Ind. Code § 26-1-9.1-407 — Indiana Code / Title 26 / Article 1 / Chapter 9.1 / Section 26-1-9.1-407
Restrictions on creation or enforcement of security interest in leasehold interest or in lessor's residual interest
Status: in_force

Sec. 407. (a) Except as otherwise provided in subsection (b), a term in a lease agreement is ineffective to the extent that it:

(1) prohibits, restricts, or requires the consent of a party to the lease to the assignment, transfer, creation, attachment, perfection, or enforcement of a security interest in an interest of a party under the lease contract or in the lessor's residual interest in the goods; or

(2) provides that the assignment, transfer, creation, attachment, perfection, or enforcement of the security interest may give rise to a default, breach, right of recoupment, claim, defense, termination, right of termination, or remedy under the lease.

(b) Except as otherwise provided in IC 26-1-2.1-303(7), a term described in subsection (a)(2) is effective to the extent that there is:

(1) a transfer by the lessee of the lessee's right of possession or use of the goods in violation of the term; or

(2) a delegation of a material performance of either party to the lease contract in violation of the term.

(c) The creation, attachment, perfection, or enforcement of a security interest in the lessor's interest under the lease contract or the lessor's residual interest in the goods is not a transfer that materially impairs the lessee's prospect of obtaining return performance or materially changes the duty of or materially increases the burden or risk imposed on the lessee within the purview of IC 26-1-2.1-303(4) unless, and then only to the extent that, enforcement actually results in a delegation of material performance of the lessor.

As added by P.L.57-2000, SEC.45.
Ind. Code § 26-2-10-5 — Indiana Code / Title 26 / Article 2 / Chapter 10 / Section 26-2-10-5
"Watercraft"
Status: in_force

Sec. 5. As used in this chapter, "watercraft" has the meaning set forth in IC 9-13-2-198.5.

As added by P.L.38-2009, SEC.1.
Ind. Code § 26-1-2.1-306 — Indiana Code / Title 26 / Article 1 / Chapter 2.1 / Section 26-1-2.1-306
Priority of certain liens arising by operation of law
Status: in_force

Sec. 306. If a person in the ordinary course of the person's business furnishes services or materials with respect to goods subject to a lease contract, a lien upon those goods in the possession of that person given by statute or rule of law for those materials or services takes priority over any interest of the lessor or lessee under the lease contract or IC 26-1-2.1 unless the lien is created by statute and the statute provides otherwise or unless the lien is created by rule of law and the rule of law provides otherwise.

As added by P.L.189-1991, SEC.3.
Ind. Code § 26-4-7-2 — Indiana Code / Title 26 / Article 4 / Chapter 7 / Section 26-4-7-2
Disciplinary action
Status: in_force

Sec. 2. This article does not limit the authority of the director of the agency to take disciplinary action against a grain buyer or warehouse operator licensed under IC 26-3-7 for a violation of IC 26-3-7, this article, or the rules of the agency.

As added by P.L.250-1995, SEC.1. Amended by P.L.75-2010, SEC.32.
Ind. Code § 26-1-8.1-0.3 — Indiana Code / Title 26 / Article 1 / Chapter 8.1 / Section 26-1-8.1-0.3
Perfection of certain security interests; continuation of perfection
Status: in_force

Sec. 0.3. If a security interest in a security is perfected before July 1, 1996, and the action by which the security interest was perfected would suffice to perfect a security interest under this chapter, as added by P.L.247-1995, no further action is required to continue perfection. If a security interest in a security is perfected on July 1, 1996, but the action by which the security interest was perfected would not suffice to perfect a security interest under this chapter, as added by P.L.247-1995, the security interest remains perfected for a period of four (4) months after the effective date and continues perfected thereafter if appropriate action to perfect this chapter, as added by P.L.247-1995, is taken within that period. If a security interest is perfected on July 1, 1996, and the security interest can be perfected by filing under this chapter, as added by P.L.247-1995, a financing statement signed by the secured party instead of the debtor may be filed within that period to continue perfection or thereafter to perfect.

As added by P.L.220-2011, SEC.418.
Ind. Code § 26-2-3-6 — Indiana Code / Title 26 / Article 2 / Chapter 3 / Section 26-2-3-6
Negotiability of notes payable to order or bearer in a bank
Status: in_force

Sec. 6. Notes payable to order or bearer in a bank in this state shall be negotiable as inland bills of exchange, and the payees and endorsees thereof may recover as in case of such bills.

Formerly: Acts 1861, c.75, s.6.
Ind. Code § 26-1-2.1-214 — Indiana Code / Title 26 / Article 1 / Chapter 2.1 / Section 26-1-2.1-214
Exclusion or modification of warranties
Status: in_force

Sec. 214. (1) Words or conduct relevant to the creation of an express warranty and words or conduct tending to negate or limit a warranty must be construed wherever reasonable as consistent with each other; but, subject to the provisions of IC 26-1-2.1-202 on parol or extrinsic evidence, negation or limitation is inoperative to the extent that the 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", be by a writing, and be conspicuous. Subject to subsection (3), to exclude or modify any implied warranty of fitness the exclusion must be by a writing and be conspicuous. Language to exclude all implied warranties of fitness is sufficient if it is in writing, is conspicuous and states, for example, "There is no warranty that the goods will be fit for a particular purpose".

(3) Notwithstanding subsection (2), but subject to subsection (4):

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

(b) if the lessee before entering into the lease contract has examined the goods or the sample or model as fully as desired or has refused to examine the goods, there is no implied warranty with regard to defects that an examination ought in the circumstances to have revealed; and

(c) an implied warranty may also be excluded or modified by course of dealing, course of performance, or usage of trade.

(4) To exclude or modify a warranty against interference or against infringement (IC 26-1-2.1-211) or any part of it, the language must be specific, be by a writing, and be conspicuous, unless the circumstances, including course of performance, course of dealing, or usage of trade, give the lessee reason to know that the goods are being leased subject to a claim or interest of any person.

As added by P.L.189-1991, SEC.3.
Ind. Code § 26-1-7-602 — Indiana Code / Title 26 / Article 1 / Chapter 7 / Section 26-1-7-602
Attachment of goods covered by a negotiable document
Status: in_force

Sec. 602. Unless a document of title was originally issued upon delivery of the goods by a person that did not have power to dispose of them, a lien does not attach by virtue of any judicial process to goods in the possession of a bailee for which a negotiable document of title is outstanding unless possession or control of the document is first surrendered to the bailee or the document's negotiation is enjoined. The bailee may not be compelled to deliver the goods pursuant to process until possession or control of the document is surrendered to the bailee or the court. A purchaser of the document for value without notice of the process or injunction takes free of the lien imposed by judicial process.

Formerly: Acts 1963, c.317, s.7-602. As amended by P.L.143-2007, SEC.62.
Ind. Code § 26-1-9.1-628 — Indiana Code / Title 26 / Article 1 / Chapter 9.1 / Section 26-1-9.1-628
Nonliability and limitation on liability of secured party; exception for controllable accounts, controllable electronic records, and controllable payment intangibles
Status: in_force

Sec. 628. (a) Subject to subsection (f), unless a secured party knows that a person is a debtor or obligor, knows the identity of the person, and knows how to communicate with the person:

(1) the secured party is not liable to the person, or to a secured party or lienholder that has filed a financing statement against the person, for failure to comply with IC 26-1-9.1; and

(2) the secured party's failure to comply with IC 26-1-9.1 does not affect the liability of the person for a deficiency.

(b) Subject to subsection (f), a secured party is not liable because of its status as secured party:

(1) to a person that is a debtor or obligor, unless the secured party knows:

(A) that the person is a debtor or obligor;

(B) the identity of the person; and

(C) how to communicate with the person; or

(2) to a secured party or lienholder that has filed a financing statement against a person, unless the secured party knows:

(A) that the person is a debtor; and

(B) the identity of the person.

(c) A secured party is not liable to any person, and a person's liability for a deficiency is not affected, because of any act or omission arising out of the secured party's reasonable belief that a transaction is not a consumer-goods transaction or a consumer transaction or that goods are not consumer goods, if the secured party's belief is based on its reasonable reliance on:

(1) a debtor's representation concerning the purpose for which collateral was to be used, acquired, or held; or

(2) an obligor's representation concerning the purpose for which a secured obligation was incurred.

(d) A secured party is not liable to any person under IC 26-1-9.1-625(c)(2) for its failure to comply with IC 26-1-9.1-616.

(e) A secured party is not liable under IC 26-1-9.1-625(c)(2) more than once with respect to any one secured obligation.

(f) Subsections (a) and (b) do not apply to limit the liability of a secured party to a person if, at the time the secured party obtains control of collateral that is a controllable account, controllable electronic record, or controllable payment intangible or at the time the security interest attaches to the collateral, whichever is later:

(1) the person is a debtor or obligor; and

(2) the secured party knows that the information in subsection (b)(1)(A), (b)(1)(B), or (b)(1)(C) relating to the person is not provided by the collateral, a record attached to or logically associated with the collateral, or the system in which the collateral is recorded.

As added by P.L.57-2000, SEC.45. Amended by P.L.199-2023, SEC.88.
Ind. Code § 26-1-1-108.1 — Indiana Code / Title 26 / Article 1 / Chapter 1 / Section 26-1-1-108.1
Powers of secretary of state; filing; acceptance of payment for fees
Status: in_force

Sec. 108.1. (a) The secretary of state may provide that a document required to be filed under this article with the secretary of state may be filed by electronic transmission meeting the requirements established by the secretary of state.

(b) The secretary of state may accept payment of a filing fee for a document filed by electronic transmission by credit card, debit card, charge card, or similar method. However, if the filing fee is paid by credit card, debit card, charge card, or similar method, the liability is not finally discharged until the secretary of state receives payment or credit from the institution responsible for making the payment or credit.

(c) The secretary of state may contract with a bank or credit card vendor for acceptance of bank or credit cards. However, if there is a vendor transaction charge or discount fee, whether billed to the secretary of state or charged directly to the secretary of state's account, the secretary of state or the credit card vendor may collect from the person using the bank or credit card a fee that may not exceed the highest transaction charge or discount fee charged to the secretary of state by the bank or credit card vendor during the most recent collection period. The fee may be collected regardless of any agreement between the bank and a credit card vendor or regardless of any internal policy of the credit card vendor that may prohibit this type of fee. The fee is a permitted additional charge under IC 37-2-4-5.

As added by P.L.11-1996, SEC.33. Amended by P.L.177-2019, SEC.14; P.L.115-2026, SEC.47.
Ind. Code § 26-1-1-109 — Indiana Code / Title 26 / Article 1 / Chapter 1 / Section 26-1-1-109
Repealed
Status: repealed

Formerly: Acts 1963, c.317, s.1-109. Repealed by P.L.16-1983, SEC.23(a).
Ind. Code § 26-1-9.1-601 — Indiana Code / Title 26 / Article 1 / Chapter 9.1 / Section 26-1-9.1-601
Rights after default; judicial enforcement; consignor or buyer of accounts, chattel paper, payment intangibles, or promissory notes
Status: in_force

Sec. 601. (a) After default, a secured party has the rights provided in this section through IC 26-1-9.1-628 and, except as otherwise provided in IC 26-1-9.1-602, those provided by agreement of the parties. A secured party:

(1) may reduce a claim to judgment, foreclose, or otherwise enforce the claim, security interest, or agricultural lien by any available judicial procedure; and

(2) if the collateral is documents, may proceed either as to the documents or as to the goods they cover.

(b) A secured party in possession of collateral or control of collateral under IC 26-1-7-106, IC 26-1-9.1-104, IC 26-1-9.1-105, IC 26-1-9.1-106, IC 26-1-9.1-107, or IC 26-1-9.1-107.1 has the rights and duties provided in IC 26-1-9.1-207.

(c) The rights under subsections (a) and (b) are cumulative and may be exercised simultaneously.

(d) Except as otherwise provided in subsection (g) and IC 26-1-9.1-605, after default, a debtor and an obligor have the rights provided in IC 26-1-9.1-601 through IC 26-1-9.1-628 and by agreement of the parties.

(e) If a secured party has reduced its claim to judgment, the lien of any levy that may be made upon the collateral by virtue of an execution based upon the judgment relates back to the earliest of:

(1) the date of perfection of the security interest or agricultural lien in the collateral;

(2) the date of filing a financing statement covering the collateral; or

(3) any date specified in a statute under which the agricultural lien was created.

(f) A sale pursuant to an execution is a foreclosure of the security interest or agricultural lien by judicial procedure within the meaning of this section. A secured party may purchase at the sale and thereafter hold the collateral free of any other requirements of IC 26-1-9.1.

(g) Except as otherwise provided in IC 26-1-9.1-607(c), IC 26-1-9.1-601 through IC 26-1-9.1-628 impose no duties upon a secured party that is a consignor or is a buyer of accounts, chattel paper, payment intangibles, or promissory notes.

As added by P.L.57-2000, SEC.45. Amended by P.L.143-2007, SEC.76; P.L.199-2023, SEC.76.
Ind. Code § 26-1-3.1-420 — Indiana Code / Title 26 / Article 1 / Chapter 3.1 / Section 26-1-3.1-420
Conversion of instrument
Status: in_force

Sec. 420. (a) The law applicable to conversion of personal property applies to instruments. An instrument is also converted if it is taken by transfer, other than a negotiation, from a person not entitled to enforce the instrument or a bank makes or obtains payment with respect to the instrument for a person not entitled to enforce the instrument or receive payment. An action for conversion of an instrument may not be brought by:

(1) the issuer or acceptor of the instrument; or

(2) a payee or endorsee who did not receive delivery of the instrument either directly or through delivery to an agent or a co-payee.

(b) Notwithstanding IC 34-24-3-1 or any other statute providing a measure of damages for conversion, in an action under subsection (a) for conversion of an instrument, the measure of liability is presumed to be the amount payable on the instrument, but recovery may not exceed the amount of the plaintiff's interest in the instrument.

(c) A representative, other than a depositary bank, who has in good faith dealt with an instrument or its proceeds on behalf of one who was not the person entitled to enforce the instrument is not liable in conversion to that person beyond the amount of any proceeds that it has not paid out.

As added by P.L.222-1993, SEC.5. Amended by P.L.1-1998, SEC.135.
Ind. Code § 26-1-4-103 — Indiana Code / Title 26 / Article 1 / Chapter 4 / Section 26-1-4-103
Variation by agreement; measure of damages; action constituting ordinary care
Status: in_force

Sec. 103. (a) The effect of the provisions of IC 26-1-4 may be varied by agreement, but the parties to the agreement cannot disclaim a bank's responsibility for its lack of good faith or failure to exercise ordinary care or limit the measure of damages for the lack or failure. However, the parties may determine by agreement the standards by which the bank's responsibility is to be measured if those standards are not manifestly unreasonable.

(b) Federal reserve regulations and operating circulars, clearing-house rules, and the like have the effect of agreements under subsection (a), whether or not specifically assented to by all parties interested in items handled.

(c) Action or nonaction approved by IC 26-1-4 or pursuant to federal reserve regulations or operating circulars is the exercise of ordinary care and, in the absence of special instructions, action or nonaction consistent with clearing-house rules and the like or with a general banking usage not disapproved by IC 26-1-4 is prima facie the exercise of ordinary care.

(d) The specification or approval of certain procedures by IC 26-1-4 is not disapproval of other procedures that may be reasonable under the circumstances.

(e) The measure of damages for failure to exercise ordinary care in handling an item is the amount of the item reduced by an amount that could not have been realized by the exercise of ordinary care. If there is also bad faith it includes any other damages the party suffered as a proximate consequence.

Formerly: Acts 1963, c.317, s.4-103. As amended by P.L.152-1986, SEC.208; P.L.222-1993, SEC.8.
Ind. Code § 26-1-2-314 — Indiana Code / Title 26 / Article 1 / Chapter 2 / Section 26-1-2-314
Implied warranty; merchantability; usage of trade
Status: in_force

Sec. 314. (1) Unless excluded or modified (IC 26-1-2-316), a warranty that the goods shall be merchantable is implied in a contract for their sale if the seller is a merchant with respect to goods of that kind. Under this section the serving for value of food or drink to be consumed either on the premises or elsewhere is a sale.

(2) Goods to be merchantable must at least be such as:

(a) pass without objection in the trade under the contract description; and

(b) in the case of fungible goods, are of fair, average quality within the description; and

(c) are fit for the ordinary purposes for which such goods are used; and

(d) run, within the variations permitted by the agreement, of even kind, quality, and quantity within each unit and among all units involved; and

(e) are adequately contained, packaged, and labeled as the agreement may require; and

(f) conform to the promises or affirmations of fact made on the container or label if any.

(3) Unless excluded or modified (IC 26-1-2-316), other implied warranties may arise from course of dealing or usage of trade.

Formerly: Acts 1963, c.317, s.2-314. As amended by P.L.152-1986, SEC.135.
Ind. Code § 26-1-9.1-328 — Indiana Code / Title 26 / Article 1 / Chapter 9.1 / Section 26-1-9.1-328
Priority of security interests in investment property
Status: in_force

Sec. 328. The following rules govern priority among conflicting security interests in the same investment property:

(1) A security interest held by a secured party having control of investment property under IC 26-1-9.1-106 has priority over a security interest held by a secured party that does not have control of the investment property.

(2) Except as otherwise provided in subdivisions (3) and (4), conflicting security interests held by secured parties each of which has control under IC 26-1-9.1-106 rank according to priority in time of:

(A) if the collateral is a security, obtaining control;

(B) if the collateral is a security entitlement carried in a securities account and:

(i) if the secured party obtained control under IC 26-1-8.1-106(d)(1), the secured party's becoming the person for which the securities account is maintained;

(ii) if the secured party obtained control under IC 26-1-8.1-106(d)(2), the securities intermediary's agreement to comply with the secured party's entitlement orders with respect to security entitlements carried or to be carried in the securities account; or

(iii) if the secured party obtained control through another person under IC 26-1-8.1-106(d)(3), the time on which priority would be based under this subdivision if the other person were the secured party; or

(C) if the collateral is a commodity contract carried with a commodity intermediary, the satisfaction of the requirement for control specified in IC 26-1-9.1-106(b)(2) with respect to commodity contracts carried or to be carried with the commodity intermediary.

(3) A security interest held by a securities intermediary in a security entitlement or a securities account maintained with the securities intermediary has priority over a conflicting security interest held by another secured party.

(4) A security interest held by a commodity intermediary in a commodity contract or a commodity account maintained with the commodity intermediary has priority over a conflicting security interest held by another secured party.

(5) A security interest in a certificated security in registered form which is perfected by taking delivery under IC 26-1-9.1-313(a) and not by control under IC 26-1-9.1-314 has priority over a conflicting security interest perfected by a method other than control.

(6) Conflicting security interests created by a broker, securities intermediary, or commodity intermediary, which are perfected without control under IC 26-1-9.1-106 rank equally.

(7) In all other cases, priority among conflicting security interests in investment property is governed by IC 26-1-9.1-322 and IC 26-1-9.1-323.

As added by P.L.57-2000, SEC.45.
Ind. Code § 26-1-8.1-116 — Indiana Code / Title 26 / Article 1 / Chapter 8.1 / Section 26-1-8.1-116
Determination of securities intermediary as purchaser for value
Status: in_force

Sec. 116. A securities intermediary that receives a financial asset and establishes a security entitlement to the financial asset in favor of an entitlement holder is a purchaser for value of the financial asset. A securities intermediary that acquires a security entitlement to a financial asset from another securities intermediary acquires the security entitlement for value if the securities intermediary acquiring the security entitlement establishes a security entitlement to the financial asset in favor of an entitlement holder.

As added by P.L.247-1995, SEC.10.
Ind. Code § 26-1-2-205 — Indiana Code / Title 26 / Article 1 / Chapter 2 / Section 26-1-2-205
Firm offers
Status: in_force

Sec. 205. An offer by a merchant to buy or sell goods in a signed record which by its terms gives assurance that 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 such period of irrevocability exceed three (3) months; but any such term of assurance on a form supplied by the offeree must be separately signed by the offeror.

Formerly: Acts 1963, c.317, s.2-205. As amended by P.L.199-2023, SEC.8.
Ind. Code § 26-1-4.1-505 — Indiana Code / Title 26 / Article 1 / Chapter 4.1 / Section 26-1-4.1-505
Preclusion of objection to debit of customer's account
Status: in_force

Sec. 505. If a receiving bank has received payment from its customer with respect to a payment order issued in the name of the customer as sender and accepted by the bank, and the customer received notification reasonably identifying the order, the customer is precluded from asserting that the bank is not entitled to retain the payment unless the customer notifies the bank of the customer's objection to the payment within one (1) year after the notification was received by the customer.

As added by P.L.189-1991, SEC.4.
Ind. Code § 26-1-5.1-101 — Indiana Code / Title 26 / Article 1 / Chapter 5.1 / Section 26-1-5.1-101
Short title; scope
Status: in_force

Sec. 101. (a) IC 26-1-5.1 shall be known and may be cited as Uniform Commercial Code ─ Letters of Credit.

(b) IC 26-1-5.1 applies to a letter of credit that is issued after June 30, 1996, and does not apply to a transaction, event, obligation, or duty arising out of or associated with a letter of credit that was issued before July 1, 1996.

(c) A transaction arising out of or associated with a letter of credit that was issued before July 1, 1996, and the rights, obligations, and interests flowing from that transaction:

(1) are governed by IC 26-1-5 (before its repeal) and any other law amended by senate enrolled act 193 of the 1996 regular session of the general assembly as if repeal or amendment had not occurred; and

(2) may be terminated, completed, consummated, or enforced under IC 26-1-5 (before its repeal) or other law (before its amendment by senate enrolled act 193 of the 1996 regular session of the general assembly).

As added by P.L.183-1996, SEC.4.
Ind. Code § 26-1-3.1-309 — Indiana Code / Title 26 / Article 1 / Chapter 3.1 / Section 26-1-3.1-309
Enforcement of lost, destroyed, or stolen instrument
Status: in_force

Sec. 309. (a) A person not in possession of an instrument is entitled to enforce the instrument if:

(1) the person seeking to enforce the instrument:

(A) was entitled to enforce the instrument when loss of possession occurred; or

(B) has directly or indirectly acquired ownership of the instrument from a person who was entitled to enforce the instrument when loss of possession occurred;

(2) the loss of possession was not the result of a transfer by the person or a lawful seizure; and

(3) the person cannot reasonably obtain possession of the instrument because the instrument was destroyed, its whereabouts cannot be determined, or it is in the wrongful possession of an unknown person or a person that cannot be found or is not amenable to service of process.

(b) A person seeking enforcement of an instrument under subsection (a) must prove the terms of the instrument and the person's right to enforce the instrument. If that proof is made, IC 26-1-3.1-308 applies to the case as if the person seeking enforcement had produced the instrument. The court may not enter judgment in favor of the person seeking enforcement unless it finds that the person required to pay the instrument is adequately protected against loss that might occur by reason of a claim by another person to enforce the instrument. Adequate protection may be provided by any reasonable means.

As added by P.L.222-1993, SEC.5. Amended by P.L.135-2009, SEC.7.
Ind. Code § 26-2-6-5 — Indiana Code / Title 26 / Article 2 / Chapter 6 / Section 26-2-6-5
Injunctive relief
Status: in_force

Sec. 5. (a) The attorney general may bring an action on behalf of the state to obtain an injunction to enjoin noncompliance with this chapter. In this action the court may:

(1) order replacement of the audio or visual entertainment product, the cost of which is to be borne by the manufacturer, manufacturer's agent or importer;

(2) order a person who violates section 2 or section 3 of this chapter to pay restitution to the aggrieved party; or

(3) void or limit the application of:

(A) contracts; or

(B) contract clauses;

that are in conflict with this chapter.

(b) The court issuing an injunction under this chapter shall retain jurisdiction and the cause shall be continued.

As added by P.L.254-1983, SEC.2.
Ind. Code § 26-1-9.1-206 — Indiana Code / Title 26 / Article 1 / Chapter 9.1 / Section 26-1-9.1-206
Security interest arising in purchase or delivery of financial asset
Status: in_force

Sec. 206. (a) A security interest in favor of a securities intermediary attaches to a person's security entitlement if:

(1) the person buys a financial asset through the securities intermediary in a transaction in which the person is obligated to pay the purchase price to the securities intermediary at the time of the purchase; and

(2) the securities intermediary credits the financial asset to the buyer's securities account before the buyer pays the securities intermediary.

(b) The security interest described in subsection (a) secures the person's obligation to pay for the financial asset.

(c) A security interest in favor of a person that delivers a certificated security or other financial asset represented by a writing attaches to the security or other financial asset if:

(1) the security or other financial asset:

(A) in the ordinary course of business is transferred by delivery with any necessary endorsement or assignment; and

(B) is delivered under an agreement between persons in the business of dealing with such securities or financial assets; and

(2) the agreement calls for delivery against payment.

(d) The security interest described in subsection (c) secures the obligation to make payment for the delivery.

As added by P.L.57-2000, SEC.45.
Ind. Code § 26-1-7-104 — Indiana Code / Title 26 / Article 1 / Chapter 7 / Section 26-1-7-104
Negotiable and nonnegotiable warehouse receipt, bill of lading, and other document of title
Status: in_force

Sec. 104. (a) Except as otherwise provided in subsection (c), a document of title is negotiable if by its terms the goods are to be delivered to bearer or to the order of a named person.

(b) A document of title other than one described in subsection (a) is nonnegotiable. A bill of lading that states that the goods are consigned to a named person is not made negotiable by a provision that the goods are to be delivered only against an order in a record signed by the same or another named person.

(c) A document of title is nonnegotiable if, at the time it is issued, the document has a conspicuous legend, however expressed, that it is nonnegotiable.

Formerly: Acts 1963, c.317, s.7-104. As amended by P.L.143-2007, SEC.27.
Ind. Code § 26-1-2.1-513 — Indiana Code / Title 26 / Article 1 / Chapter 2.1 / Section 26-1-2.1-513
Cure by lessor of improper tender or delivery; replacement
Status: repealed

Sec. 513. (1) If any tender or delivery by the lessor or the supplier is rejected because nonconforming and the time for performance has not yet expired, the lessor or the supplier may seasonably notify the lessee of the lessor's or the supplier's intention to cure and may then make a conforming delivery within the time provided in the lease contract.

(2) If the lessee rejects a nonconforming tender that the lessor or the supplier had reasonable grounds to believe would be acceptable with or without money allowance, the lessor or the supplier may have a further reasonable time to substitute a conforming tender if the lessor or the supplier seasonably notifies the lessee.

As added by P.L.189-1991, SEC.3.
Ind. Code § 26-1-8.1-103 — Indiana Code / Title 26 / Article 1 / Chapter 8.1 / Section 26-1-8.1-103
Classification as security or financial asset
Status: in_force

Sec. 103. (a) A share or similar equity interest issued by a corporation, business trust, joint stock company, or similar entity is a security.

(b) An "investment company security" is a security. "Investment company security" means a share or similar equity interest issued by an entity that is registered as an investment company under the federal investment company laws, an interest in a unit investment trust that is so registered, or a face amount certificate issued by a face amount certificate company that is so registered. Investment company security does not include an insurance policy or endowment policy or annuity contract issued by an insurance company.

(c) An interest in a partnership or limited liability company is not a security unless it is dealt in or traded on securities exchanges or in securities markets, its terms expressly provide that it is a security governed by IC 26-1-8.1, or it is an investment company security. However, an interest in a partnership or limited liability company is a financial asset if it is held in a securities account.

(d) A writing that is a security certificate is governed by IC 26-1-8.1 and not by IC 26-1-3.1, even though it also meets the requirements of that article. However, a negotiable instrument governed by IC 26-1-3.1 is a financial asset if it is held in a securities account.

(e) An option or a similar obligation issued by a clearing corporation to its participants is not a security, but it is a financial asset.

(f) A commodity contract (as defined in IC 26-1-9.1-102(a)(15)) is not a security or a financial asset.

(g) A document of title is not a financial asset unless section 102(a)(9)(iii) of this chapter applies.

(h) A controllable account, a controllable electronic record, or a controllable payment intangible is not a financial asset unless section 102(a)(9)(iii) of this chapter applies.

As added by P.L.247-1995, SEC.10. Amended by P.L.57-2000, SEC.38; P.L.143-2007, SEC.64; P.L.199-2023, SEC.36.
Ind. Code § 26-3-7-8 — Indiana Code / Title 26 / Article 3 / Chapter 7 / Section 26-3-7-8
Repealed
Status: repealed

Formerly: Acts 1973, P.L.268, SEC.1; Acts 1975, P.L.277, SEC.5. As amended by P.L.125-1997, SEC.26. Repealed by P.L.114-2025, SEC.16.
Ind. Code § 26-1-8.1-303 — Indiana Code / Title 26 / Article 1 / Chapter 8.1 / Section 26-1-8.1-303
"Protected purchaser" defined; acquisition of interest free of adverse claims
Status: in_force

Sec. 303. (a) "Protected purchaser" means a purchaser of a certificated or uncertificated security, or of an interest therein, who:

(1) gives value;

(2) does not have notice of any adverse claim to the security; and

(3) obtains control of the certificated or uncertificated security.

(b) A protected purchaser also acquires its interest in the security free of any adverse claim.

As added by P.L.247-1995, SEC.10. Amended by P.L.199-2023, SEC.39.
Ind. Code § 26-1-8.1-207 — Indiana Code / Title 26 / Article 1 / Chapter 8.1 / Section 26-1-8.1-207
Registered owner to exercise all rights and powers of owner absent appropriate notice of transfer
Status: in_force

Sec. 207. (a) Before due presentment for registration of transfer of a certificated security in registered form or of an instruction requesting registration of transfer of an uncertificated security, the issuer or indenture trustee may treat the registered owner as the person exclusively entitled to vote, receive notifications, and otherwise exercise all the rights and powers of an owner.

(b) IC 26-1-8.1 does not affect the liability of the registered owner of a security for a call, an assessment, or the like.

As added by P.L.247-1995, SEC.10.
Ind. Code § 26-2-6-2 — Indiana Code / Title 26 / Article 2 / Chapter 6 / Section 26-2-6-2
Duty of manufacturer under express warranty
Status: in_force

Sec. 2. A manufacturer who makes an express warranty in connection with the sale of an audio or visual entertainment product shall do the following:

(1) Authorize a representative within a designated service area to provide any service or repair required under the terms of the warranty.

(2) Reimburse the authorized service representative for any service or repair, including labor and parts, made in connection with the express warranty in an amount negotiated between the manufacturer and the authorized service representative. However, reimbursement or exchange for all parts used in such warranty repairs shall include all transportation costs and a reasonable fee for handling. The handling fee is to be negotiated as part of the authorization proceedings.

(3) Except for audio or visual entertainment products having a retail selling price less than fifty dollars ($50), make available to service representatives or independent service facilities adequate service information and replacement parts for the audio or visual entertainment product for at least seven (7) years after the date that product model or type was manufactured, regardless of whether the product is still under warranty.

(4) Make available any service part to service representatives or independent service facilities within forty-five (45) days of receipt of an order for that part, regardless of whether the product is still under warranty; however, if a delay in providing that part is caused by conditions beyond the control of the manufacturer, the manufacturer shall provide the service representative or independent service facility with a replacement part promptly upon termination of the condition causing the delay.

As added by P.L.254-1983, SEC.2.
Ind. Code § 26-3-7-8.5 — Indiana Code / Title 26 / Article 3 / Chapter 7 / Section 26-3-7-8.5
Licensing requirements of successor owner
Status: in_force

Sec. 8.5. (a) If the ownership of a facility or business licensed under this chapter passes to a successor owner, the obligations under this chapter of the original licensee do not cease until the successor owner is properly licensed and has executed a successor's agreement with the agency.

(b) A license issued under this chapter is not transferable or assignable to any person, including successors in interest to the licensee.

As added by P.L.125-1997, SEC.27. Amended by P.L.114-2025, SEC.17.
Ind. Code § 26-2-2-3 — Indiana Code / Title 26 / Article 2 / Chapter 2 / Section 26-2-2-3
Duty to receipt for payments made
Status: in_force

Sec. 3. It shall be the duty of the holder of any mortgage on household goods, or the agent of such holder or mortgagee whose duty it is to receive money on such mortgage, when any money, check or anything taken in payment on such mortgage or interest due thereon, is received by them from the mortgagor or from any person acting for the mortgagor, to give to the mortgagor or person making the payment a receipt specifying the amount paid and stating the unpaid balance, if any. However, no receipt is required where payment is made by check. If any such holder or mortgagee or the agent of such holder or mortgagee whose duty it is to receive such payments, shall fail to execute and deliver such receipt to the mortgagor, such mortgage shall be void.

Formerly: Acts 1897, c.176, s.3; Acts 1957, c.188, s.1; Acts 1973, P.L.267, SEC.1. As amended by Acts 1977, P.L.279, SEC.1.
Ind. Code § 26-1-2-101 — Indiana Code / Title 26 / Article 1 / Chapter 2 / Section 26-1-2-101
Short title
Status: in_force

Sec. 101. IC 26-1-2 shall be known and may be cited as Uniform Commercial Code ─ Sales.

Formerly: Acts 1963, c.317, s.2-101. As amended by P.L.152-1986, SEC.119.
Ind. Code § 26-1-8.1-113 — Indiana Code / Title 26 / Article 1 / Chapter 8.1 / Section 26-1-8.1-113
Enforceability of contracts for sale or purchase of a security
Status: in_force

Sec. 113. A contract or modification of a contract for the sale or purchase of a security is enforceable whether or not there is a writing signed or record authenticated by a party against whom enforcement is sought, even if the contract or modification is not capable of performance within one (1) year of its making.

As added by P.L.247-1995, SEC.10.
Ind. Code § 26-4-8-2 — Indiana Code / Title 26 / Article 4 / Chapter 8 / Section 26-4-8-2
Other violations
Status: in_force

Sec. 2. A person who knowingly makes any false statement, representation, or certification, or who knowingly fails to make any statement, representation, or certification, in any record, report, or other document filed or required to be filed or maintained by the director, agency, board, or corporation commits a Class A misdemeanor.

As added by P.L.250-1995, SEC.1.
Ind. Code § 26-1-5.1-117 — Indiana Code / Title 26 / Article 1 / Chapter 5.1 / Section 26-1-5.1-117
Rights of subrogation
Status: in_force

Sec. 117. (a) An issuer that honors a beneficiary's presentation is subrogated to the rights of the beneficiary to the same extent as if the issuer were a secondary obligor of the underlying obligation owed to the beneficiary and of the applicant to the same extent as if the issuer were the secondary obligor of the underlying obligation owed to the applicant.

(b) An applicant that reimburses an issuer is subrogated to the rights of the issuer against any beneficiary, presenter, or nominated person to the same extent as if the applicant were the secondary obligor of the obligations owed to the issuer and has the rights of subrogation of the issuer to the rights of the beneficiary stated in subsection (a).

(c) A nominated person who pays or gives value against a draft or demand presented under a letter of credit is subrogated to the rights of:

(1) the issuer against the applicant to the same extent as if the nominated person were a secondary obligor of the obligation owed to the issuer by the applicant;

(2) the beneficiary to the same extent as if the nominated person were a secondary obligor of the underlying obligation owed to the beneficiary; and

(3) the applicant to the same extent as if the nominated person were a secondary obligor of the underlying obligation owed to the applicant.

(d) Notwithstanding any agreement or term to the contrary, the rights of subrogation stated in subsections (a) and (b) do not arise until the issuer honors the letter of credit or otherwise pays, and the rights in subsection (c) do not arise until the nominated person pays or otherwise gives value. Until then, the issuer, the nominated person, and the applicant do not derive under this section present or prospective rights forming the basis of a claim, defense, or excuse.

As added by P.L.183-1996, SEC.4.
Ind. Code § 26-1-2.1-402 — Indiana Code / Title 26 / Article 1 / Chapter 2.1 / Section 26-1-2.1-402
Anticipatory repudiation
Status: in_force

Sec. 402. If either party repudiates a lease contract with respect to a performance not yet due under the lease contract, the loss of which performance will substantially impair the value of the lease contract to the other, the aggrieved party may:

(a) for a commercially reasonable time, await retraction of repudiation and performance by the repudiating party;

(b) make demand pursuant to IC 26-1-2.1-401 and await assurance of future performance adequate under the circumstances of the particular case; or

(c) resort to any right or remedy upon default under the lease contract or IC 26-1-2.1, even though the aggrieved party has notified the repudiating party that the aggrieved party would await the repudiating party's performance and assurance and has urged retraction. In addition, whether or not the aggrieved party is pursuing one of the foregoing remedies, the aggrieved party may suspend performance or, if the aggrieved party is the lessor, proceed in accordance with the provisions of IC 26-1-2.1 on the lessor's right to identify goods to the lease contract notwithstanding default or to salvage unfinished goods (IC 26-1-2.1-524).

As added by P.L.189-1991, SEC.3.
Ind. Code § 26-1-9.1-610 — Indiana Code / Title 26 / Article 1 / Chapter 9.1 / Section 26-1-9.1-610
Disposition of collateral after default
Status: in_force

Sec. 610. (a) After default, a secured party may sell, lease, license, or otherwise dispose of any or all of the collateral in its present condition or following any commercially reasonable preparation or processing.

(b) Every aspect of a disposition of collateral, including the method, manner, time, place, and other terms, must be commercially reasonable. If commercially reasonable, a secured party may dispose of collateral by public or private proceedings, by one or more contracts, as a unit or in parcels, and at any time and place and on any terms.

(c) A secured party may purchase collateral:

(1) at a public disposition; or

(2) at a private disposition only if the collateral is of a kind that is customarily sold on a recognized market or the subject of widely distributed standard price quotations.

(d) A contract for sale, lease, license, or other disposition includes the warranties relating to title, possession, quiet enjoyment, and the like, which by operation of law accompany a voluntary disposition of property of the kind subject to the contract.

(e) A secured party may disclaim or modify warranties under subsection (d):

(1) in a manner that would be effective to disclaim or modify the warranties in a voluntary disposition of property of the kind subject to the contract of disposition; or

(2) by communicating to the purchaser a record evidencing the contract for disposition and including an express disclaimer or modification of the warranties.

(f) A record is sufficient to disclaim warranties under subsection (e) if it indicates "There is no warranty relating to title, possession, quiet enjoyment, or the like in this disposition" or uses words of similar import.

As added by P.L.57-2000, SEC.45.
Ind. Code § 26-2-10-6 — Indiana Code / Title 26 / Article 2 / Chapter 10 / Section 26-2-10-6
Information required to be provided before repossession of a motor vehicle or watercraft
Status: in_force

Sec. 6. (a) A motor vehicle repossession agent who repossesses or intends to repossess a motor vehicle or watercraft must provide the following information, if available, to the sheriff's department of the county having jurisdiction in the location where the motor vehicle repossession agent believes that the motor vehicle or watercraft will be found:

(1) The identity of the repossession company.

(2) A description of the motor vehicle or watercraft.

(3) The name and address of the person believed to be currently in possession of the motor vehicle or watercraft (if the repossession has not yet occurred), or believed to have been in possession of the motor vehicle (if the repossession has already occurred).

(4) The address where the motor vehicle repossession agent believes that the motor vehicle or watercraft will be found (if the repossession has not yet occurred), or the address where the motor vehicle was found when it was repossessed.

(b) A motor vehicle repossession agent must provide the information described in subsection (a):

(1) before the repossession occurs; or

(2) not later than two (2) hours after the repossession.

As added by P.L.38-2009, SEC.1.
Ind. Code § 26-1-9.1-620 — Indiana Code / Title 26 / Article 1 / Chapter 9.1 / Section 26-1-9.1-620
Acceptance of collateral in full or partial satisfaction of obligation; compulsory disposition of collateral
Status: in_force

Sec. 620. (a) Except as otherwise provided in subsection (g), a secured party may accept collateral in full or partial satisfaction of the obligation it secures only if:

(1) the debtor consents to the acceptance under subsection (c);

(2) the secured party does not receive, within the time set forth in subsection (d), a notification of objection to the proposal signed by:

(A) a person to which the secured party was required to send a proposal under IC 26-1-9.1-621; or

(B) any other person, other than the debtor, holding an interest in the collateral subordinate to the security interest that is the subject of the proposal;

(3) if the collateral is consumer goods, the collateral is not in the possession of the debtor when the debtor consents to the acceptance; and

(4) subsection (e) does not require the secured party to dispose of the collateral or the debtor waives the requirement pursuant to IC 26-1-9.1-624.

(b) A purported or apparent acceptance of collateral under this section is ineffective unless:

(1) the secured party consents to the acceptance in a signed record or sends a proposal to the debtor; and

(2) the conditions of subsection (a) are met.

(c) For purposes of this section:

(1) a debtor consents to an acceptance of collateral in partial satisfaction of the obligation it secures only if the debtor agrees to the terms of the acceptance in a record signed after default; and

(2) a debtor consents to an acceptance of collateral in full satisfaction of the obligation it secures only if the debtor agrees to the terms of the acceptance in a record signed after default or the secured party:

(A) sends to the debtor after default a proposal that is unconditional or subject only to a condition that collateral not in the possession of the secured party be preserved or maintained;

(B) in the proposal, proposes to accept collateral in full satisfaction of the obligation it secures; and

(C) does not receive a notification of objection signed by the debtor within twenty (20) days after the proposal is sent.

(d) To be effective under subsection (a)(2), a notification of objection must be received by the secured party:

(1) in the case of a person to which the proposal was sent pursuant to IC 26-1-9.1-621, within twenty (20) days after notification was sent to that person; and

(2) in other cases:

(A) within twenty (20) days after the last notification was sent pursuant to IC 26-1-9.1-621; or

(B) if a notification was not sent, before the debtor consents to the acceptance under subsection (c).

(e) A secured party that has taken possession of collateral shall dispose of the collateral pursuant to IC 26-1-9.1-610 within the time specified in subsection (f) if:

(1) sixty percent (60%) of the cash price has been paid in the case of a purchase-money security interest in consumer goods; or

(2) sixty percent (60%) of the principal amount of the obligation secured has been paid in the case of a non-purchase-money security interest in consumer goods.

(f) To comply with subsection (e), the secured party shall dispose of the collateral:

(1) within ninety (90) days after taking possession; or

(2) within any longer period to which the debtor and all secondary obligors have agreed in an agreement to that effect entered into and signed after default.

(g) In a consumer transaction, a secured party may not accept collateral in partial satisfaction of the obligation it secures.

As added by P.L.57-2000, SEC.45. Amended by P.L.199-2023, SEC.85.
Ind. Code § 26-1-9.1-609 — Indiana Code / Title 26 / Article 1 / Chapter 9.1 / Section 26-1-9.1-609
Secured party's right to take possession after default
Status: in_force

Sec. 609. (a) After default, a secured party:

(1) may take possession of the collateral; and

(2) without removal, may render equipment unusable and dispose of collateral on a debtor's premises under IC 26-1-9.1-610.

(b) A secured party may proceed under subsection (a):

(1) pursuant to judicial process; or

(2) without judicial process, if it proceeds without breach of the peace.

(c) If so agreed, and in any event after default, a secured party may require the debtor to assemble the collateral and make it available to the secured party at a place to be designated by the secured party which is reasonably convenient to both parties.

As added by P.L.57-2000, SEC.45.
Ind. Code § 26-1-9.1-104 — Indiana Code / Title 26 / Article 1 / Chapter 9.1 / Section 26-1-9.1-104
Control of deposit account
Status: in_force

Sec. 104. (a) A secured party has control of a deposit account if:

(1) the secured party is the bank with which the deposit account is maintained;

(2) the debtor, secured party, and bank have agreed in a signed record that the bank will comply with instructions originated by the secured party directing disposition of the funds in the account without further consent by the debtor;

(3) the secured party becomes the bank's customer with respect to the deposit account; or

(4) another person, other than the debtor:

(A) has control of the deposit account and acknowledges that it has control on behalf of the secured party; or

(B) obtains control of the deposit account after having acknowledged that it will obtain control of the deposit account on behalf of the secured party.

(b) A secured party that has satisfied subsection (a) has control, even if the debtor retains the right to direct the disposition of funds from the deposit account.

As added by P.L.57-2000, SEC.45. Amended by P.L.199-2023, SEC.41.
Ind. Code § 26-1-4.1-406 — Indiana Code / Title 26 / Article 1 / Chapter 4.1 / Section 26-1-4.1-406
Payment by originator to beneficiary; discharge of underlying obligation
Status: in_force

Sec. 406. (a) Subject to IC 26-1-4.1-211(e), IC 26-1-4.1-405(d), and IC 26-1-4.1-405(e), the originator of a funds transfer pays the beneficiary of the originator's payment order (i) at the time a payment order for the benefit of the beneficiary is accepted by the beneficiary's bank in the funds transfer and (ii) in an amount equal to the amount of the order accepted by the beneficiary's bank, but not more than the amount of the originator's order.

(b) If payment under subsection (a) is made to satisfy an obligation, the obligation is discharged to the same extent discharge would result from payment to the beneficiary of the same amount in money, unless (i) the payment under subsection (a) was made by a means prohibited by the contract of the beneficiary with respect to the obligation, (ii) the beneficiary, within a reasonable time after receiving notice of receipt of the order by the beneficiary's bank, notified the originator of the beneficiary's refusal of the payment, (iii) funds with respect to the order were not withdrawn by the beneficiary or applied to a debt of the beneficiary, and (iv) the beneficiary would suffer a loss that could reasonably have been avoided if payment had been made by a means complying with the contract. If payment by the originator does not result in discharge under this section, the originator is subrogated to the rights of the beneficiary to receive payment from the beneficiary's bank under IC 26-1-4.1-404(a).

(c) For the purpose of determining whether discharge of an obligation occurs under subsection (b), if the beneficiary's bank accepts a payment order in an amount equal to the amount of the originator's payment order less charges of one or more receiving banks in the funds transfer, payment to the beneficiary is deemed to be in the amount of the originator's order unless upon demand by the beneficiary the originator does not pay the beneficiary the amount of the deducted charges.

(d) Rights of the originator or of the beneficiary of a funds transfer under this section may be varied only by agreement of the originator and the beneficiary.

As added by P.L.189-1991, SEC.4.
Ind. Code § 26-1-2.1-507 — Indiana Code / Title 26 / Article 1 / Chapter 2.1 / Section 26-1-2.1-507
Proof of market rent; time and place
Status: in_force

Sec. 507. (1) Damages based on market rent (IC 26-1-2.1-519 or IC 26-1-2.1-528) are determined according to the rent for the use of the goods concerned for a lease term identical to the remaining lease term of the original lease agreement and prevailing at the time of the default.

(2) If evidence of rent for the use of the goods concerned for a lease term identical to the remaining lease term of the original lease agreement and prevailing at the times or places described in IC 26-1-2.1 is not readily available, the rent prevailing within any reasonable time before or after the time described or at any other place or for a different lease term which in commercial judgment or under usage of trade would serve as a reasonable substitute for the one described may be used, making any proper allowance for the difference, including the cost of transporting the goods to or from the other place.

(3) Evidence of a relevant rent prevailing at a time or place or for a lease term other than the one described in IC 26-1-2.1 offered by one party is not admissible unless and until the party has given the other party notice the court finds sufficient to prevent unfair surprise.

(4) If the prevailing rent or value of any goods regularly leased in any established market is in issue, reports in official publications or trade journals or in newspapers or periodicals of general circulation published as the reports of that market are admissible in evidence. The circumstances of the preparation of the report may be shown to affect its weight but not its admissibility.

As added by P.L.189-1991, SEC.3.
Ind. Code § 26-1-12.5-306 — Indiana Code / Title 26 / Article 1 / Chapter 12.5 / Section 26-1-12.5-306
Determination of priority of conflicting claims to controllable accounts, controllable electronic records, and controllable payment intangibles
Status: in_force

Sec. 306. (a) Subject to subsections (b) and (c), chapter 12 determines the priority of conflicting claims to chapter 12 property when the priority rules of IC 26-1-9.1, as amended by the act, do not apply.

(b) Subject to subsection (c), when the priority rules of IC 26-1-9.1, as amended by the act, do not apply and the priorities of claims to chapter 12 property were established before July 1, 2023, law other than chapter 12 determines priority.

(c) When the priority rules of IC 26-1-9.1, as amended by the act, do not apply, to the extent the priorities determined by the act modify the priorities established before July 1, 2023, the priorities of claims to chapter 12 property established before July 1, 2023, cease to apply on the adjustment date.

As added by P.L.199-2023, SEC.91.
Ind. Code § 26-1-2-509 — Indiana Code / Title 26 / Article 1 / Chapter 2 / Section 26-1-2-509
Risk of loss in the absence of breach
Status: in_force

Sec. 509. (1) Where the contract requires or authorizes the seller to ship the goods by carrier:

(a) if it does not require him to deliver them at a particular destination, the risk of loss passes to the buyer when the goods are duly delivered to the carrier even though the shipment is under reservation (IC 26-1-2-505); but

(b) if it does require him to deliver them 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 buyer when the goods are there duly so tendered as to enable the buyer to take delivery.

(2) Where the goods are held by a bailee to be delivered without being moved, the risk of loss passes to the buyer:

(a) on his receipt of possession or control of a negotiable document of title covering the goods; or

(b) on acknowledgment by the bailee of the buyer's right to possession of the goods; or

(c) after his receipt of possession or control of a nonnegotiable document of title or other direction to deliver in a record, as provided in IC 26-1-2-503(4)(b).

(3) In any case not within subsection (1) or (2), the risk of loss passes to the buyer on his receipt of the goods if the seller is a merchant. Otherwise the risk passes to the buyer on tender of delivery.

(4) The provisions of this section are subject to contrary agreement of the parties and to the provisions of IC 26-1-2-327 on sale on approval and IC 26-1-2-510 on effect of breach on risk of loss.

Formerly: Acts 1963, c.317, s.2-509. As amended by P.L.152-1986, SEC.147; P.L.143-2007, SEC.16.
Ind. Code § 26-3-8-15 — Indiana Code / Title 26 / Article 3 / Chapter 8 / Section 26-3-8-15
Sale of personal property at physical location or through Internet; owner as buyer; proceeds of sale
Status: in_force

Sec. 15. (a) Any sale of the personal property under this chapter shall be held:

(1) at the self-service storage facility or, if that facility is not a suitable place for a sale, at the suitable place nearest to where the property is held or stored; or

(2) through a publicly accessible Internet web site.

(b) The owner may buy the personal property at any sale under this chapter.

(c) An owner may satisfy the owner's lien from the proceeds of a sale under this chapter. If the proceeds of a sale under this chapter exceed the amount of the owner's lien, the owner shall hold the balance for delivery, upon demand, to the renter. If the renter does not claim the balance of the proceeds within one (1) year after the sale, the balance shall be treated as unclaimed property under IC 32-34-1.5.

As added by P.L.265-1987, SEC.1. Amended by P.L.31-1995, SEC.6; P.L.2-2002, SEC.81; P.L.144-2014, SEC.7; P.L.141-2021, SEC.12.
Ind. Code § 26-2-8-107 — Indiana Code / Title 26 / Article 2 / Chapter 8 / Section 26-2-8-107
Provision of information in writing; presentation of records
Status: in_force

Sec. 107. (a) If parties have agreed to conduct transactions electronically and a law requires a person to provide, send, or deliver information in writing to another person, that requirement is satisfied if the information is provided, sent, or delivered, as the case may be, in an electronic record and the information is capable of retention by the recipient at the time the information is received.

(b) If a law other than this chapter requires a record (i) to be posted or displayed in a certain manner, (ii) to be sent, communicated, or transmitted by a specified method, or (iii) to contain information that is formatted in a certain manner, the following rules apply:

(1) The record must be posted or displayed in the manner specified in the other law.

(2) Except as otherwise provided in subsection (d)(2), the record must be sent, communicated, or transmitted by the method specified in the other law.

(3) The record must contain the information formatted in the manner specified in the other law.

(c) An electronic record may not be sent, communicated, or transmitted by an information processing system that inhibits the ability to print or download the information in the electronic record.

(d) This section may not be varied by agreement, but:

(1) a requirement under a law other than this chapter to provide information in writing may be varied by agreement to the extent permitted by the other law; and

(2) a requirement under a law other than this chapter to send, communicate, or transmit a record by first class mail, may be varied by agreement to the extent permitted by the other law.

As added by P.L.62-2000, SEC.1.
Ind. Code § 26-1-2-510 — Indiana Code / Title 26 / Article 1 / Chapter 2 / Section 26-1-2-510
Effect of breach on risk of loss
Status: in_force

Sec. 510. (1) Where a tender or delivery of goods so fails to conform to the contract as to give a right of rejection the risk of their loss remains on the seller until cure or acceptance.

(2) Where the buyer rightfully revokes acceptance he may to the extent of any deficiency in his effective insurance coverage treat the risk of loss as having rested on the seller from the beginning.

(3) Where the buyer as to conforming goods already identified to the contract for sale repudiates or is otherwise in breach before risk of their loss has passed to him, the seller may to the extent of any deficiency in his effective insurance coverage treat the risk of loss as resting on the buyer for a commercially reasonable time.

Formerly: Acts 1963, c.317, s.2-510.
Ind. Code § 26-1-8.1-506 — Indiana Code / Title 26 / Article 1 / Chapter 8.1 / Section 26-1-8.1-506
Duty of securities intermediary to exercise rights as directed by entitlement holder
Status: in_force

Sec. 506. A securities intermediary shall exercise rights with respect to a financial asset if directed to do so by an entitlement holder. A securities intermediary satisfies the duty if:

(1) the securities intermediary acts with respect to the duty as agreed upon by the entitlement holder and the securities intermediary; or

(2) in the absence of agreement, the securities intermediary either places the entitlement holder in a position to exercise the rights directly or exercises due care in accordance with reasonable commercial standards to follow the direction of the entitlement holder.

As added by P.L.247-1995, SEC.10.
Ind. Code § 26-1-2-324 — Indiana Code / Title 26 / Article 1 / Chapter 2 / Section 26-1-2-324
"No arrival, no sale"
Status: in_force

Sec. 324. Under a term "no arrival, no sale" or terms of like meaning, unless otherwise agreed:

(a) the seller must properly ship conforming goods, and if they arrive by any means he must tender them on arrival, but he assumes no obligation that the goods will arrive unless he has caused the nonarrival; and

(b) where without fault of the seller the goods are in part lost or have so deteriorated as no longer to conform to the contract or arrive after the contract time, the buyer may proceed as if there had been casualty to identified goods (IC 26-1-2-613).

Formerly: Acts 1963, c.317, s.2-324. As amended by P.L.152-1986, SEC.139.
Ind. Code § 26-1-4-208 — Indiana Code / Title 26 / Article 1 / Chapter 4 / Section 26-1-4-208
Presentment warranties
Status: in_force

Sec. 208. (a) If an unaccepted draft is presented to the drawee for payment or acceptance and the drawee pays or accepts the draft, (i) the person obtaining payment or acceptance, at the time of presentment, and (ii) a previous transferor of the draft, at the time of transfer, warrant to the drawee that pays or accepts the draft in good faith that:

(1) the warrantor is, or was, at the time the warrantor transferred the draft, a person entitled to enforce the draft or authorized to obtain payment or acceptance of the draft on behalf of a person entitled to enforce the draft;

(2) the draft has not been altered;

(3) the warrantor has no knowledge that the signature of the purported drawer of the draft is unauthorized; and

(4) with respect to a remotely-created consumer item, the person on whose account the item is drawn authorized the issuance of the item in the amount for which the item is drawn.

(b) A drawee making payment may recover from a warrantor damages for breach of warranty equal to the amount paid by the drawee less the amount the drawee received or is entitled to receive from the drawer because of the payment. In addition, the drawee is entitled to compensation for expenses and loss of interest resulting from the breach. The right of the drawee to recover damages under this subsection is not affected by any failure of the drawee to exercise ordinary care in making payment. If the drawee accepts the draft:

(1) breach of warranty is a defense to the obligation of the acceptor; and

(2) if the acceptor makes payment with respect to the draft, the acceptor is entitled to recover from a warrantor for breach of warranty the amounts stated in this subsection.

(c) If a drawee asserts a claim for breach of warranty under subsection (a) based on an unauthorized endorsement of the draft or an alteration of the draft, the warrantor may defend by proving that the endorsement is effective under IC 26-1-3.1-404 or IC 26-1-3.1-405 or the drawer is precluded under IC 26-1-3.1-406 or IC 26-1-4-406 from asserting against the drawee the unauthorized endorsement or alteration.

(d) If:

(1) a dishonored draft is presented for payment to the drawer or an endorser; or

(2) any other item is presented for payment to a party obliged to pay the item;

and the item is paid, the person obtaining payment and a prior transferor of the item warrant to the person making payment in good faith that the warrantor is, or was, at the time the warrantor transferred the item, a person entitled to enforce the item or authorized to obtain payment on behalf of a person entitled to enforce the item. The person making payment may recover from any warrantor for breach of warranty an amount equal to the amount paid plus expenses and loss of interest resulting from the breach.

(e) The warranties stated in subsections (a) and (d) cannot be disclaimed with respect to checks. Unless notice of a claim for breach of warranty is given to the warrantor within thirty (30) days after the claimant has reason to know of the breach and the identity of the warrantor, the warrantor is discharged to the extent of any loss caused by the delay in giving notice of the claim.

(f) A cause of action for breach of warranty under this section accrues when the claimant has reason to know of the breach.

Formerly: Acts 1963, c.317, s.4-208. As amended by P.L.152-1986, SEC.216; P.L.222-1993, SEC.24; P.L.135-2009, SEC.17.
Ind. Code § 26-1-2-610 — Indiana Code / Title 26 / Article 1 / Chapter 2 / Section 26-1-2-610
Anticipatory repudiation
Status: in_force

Sec. 610. When either party repudiates the contract with respect to a performance not yet due, the loss of which will substantially impair the value of the contract to the other, the aggrieved party may:

(a) for a commercially reasonable time await performance by the repudiating party; or

(b) resort to any remedy for breach (IC 26-1-2-703 or IC 26-1-2-711), even though he has notified the repudiating party that he would await the latter's performance and has urged retraction; and

(c) in either case suspend his own performance or proceed in accordance with the provisions of IC 26-1-2-704 on the seller's right to identify goods to the contract notwithstanding breach or to salvage unfinished goods.

Formerly: Acts 1963, c.317, s.2-610. As amended by P.L.152-1986, SEC.157.
Ind. Code § 26-2-7-3 — Indiana Code / Title 26 / Article 2 / Chapter 7 / Section 26-2-7-3
Notice of nonpayment
Status: in_force

Sec. 3. For purposes of this chapter, notice that a check has not been paid by a financial institution is considered as having been given at the time that the notice was deposited in the regular United States mail, if the notice was addressed to either of the following:

(1) The address printed on the check.

(2) The address given by the person in writing to the payee or holder at the time the check was issued or delivered.

As added by P.L.42-1993, SEC.18.