Ind. Code § 26-1-4-107 — Indiana Code / Title 26 / Article 1 / Chapter 4 / Section 26-1-4-107
Separate office of bank
Status: in_force

Sec. 107. A branch or separate office of a bank is a separate bank for the purpose of computing the time within which and determining the place at or to which action may be taken or notices or orders must be given under IC 26-1-4 and under IC 26-1-3.1.

Formerly: Acts 1963, c.317, s.4-107. As amended by Acts 1977, P.L.278, SEC.1; P.L.263-1987, SEC.2; P.L.222-1993, SEC.12.
Ind. Code § 26-1-4-501 — Indiana Code / Title 26 / Article 1 / Chapter 4 / Section 26-1-4-501
Handling of documentary drafts; duty to send for presentment and to notify customer of dishonor
Status: in_force

Sec. 501. A bank that takes a documentary draft for collection shall present or send the draft and accompanying documents for presentment and, upon learning that the draft has not been paid or accepted in due course, shall seasonably notify its customer of the fact even though it may have discounted or bought the draft or extended credit available for withdrawal as of right.

Formerly: Acts 1963, c.317, s.4-501. As amended by P.L.222-1993, SEC.42.
Ind. Code § 26-1-2-616 — Indiana Code / Title 26 / Article 1 / Chapter 2 / Section 26-1-2-616
Procedure on notice claiming excuse
Status: in_force

Sec. 616. (1) Where the buyer receives notification of a material or indefinite delay or an allocation justified under IC 26-1-2-615, he may by written notification to the seller as to any delivery concerned, and where the prospective deficiency substantially impairs the value of the whole contract under the provisions of IC 26-1-2-612 relating to breach of installment contracts, then also as to the whole:

(a) terminate and thereby discharge any unexecuted portion of the contract; or

(b) modify the contract by agreeing to take his available quota in substitution.

(2) If after receipt of such notification from the seller the buyer fails so to modify the contract within a reasonable time not exceeding thirty (30) days, the contract lapses with respect to any deliveries affected.

(3) The provisions of this section may not be negated by agreement except insofar as the seller has assumed a greater obligation under IC 26-1-2-615.

Formerly: Acts 1963, c.317, s.2-616. As amended by P.L.152-1986, SEC.160.
Ind. Code § 26-3-8-9 — Indiana Code / Title 26 / Article 3 / Chapter 8 / Section 26-3-8-9
"Self-service storage facility"
Status: in_force

Sec. 9. As used in this chapter, "self-service storage facility" means any real property designed and used for the renting of space under a rental agreement that provides a renter access to rented space for the storage and retrieval of personal property.

As added by P.L.265-1987, SEC.1.
Ind. Code § 26-1-9.1-801 — Indiana Code / Title 26 / Article 1 / Chapter 9.1 / Section 26-1-9.1-801
Transactions or liens entered into or created before July 1, 2013
Status: in_force

Sec. 801. (a) Except as otherwise provided in this section through IC 26-1-9.1-808, amendments to this chapter made by P.L.54-2011 apply to a transaction or lien with its scope, even if the transaction or lien was entered into or created before the amendments to this chapter made by P.L.54-2011 take effect (July 1, 2013).

(b) The amendments to this chapter made by P.L.54-2011 do not affect an action, case, or proceeding commenced before the amendments to this chapter made by P.L.54-2011 take effect (July 1, 2013).

As added by P.L.54-2011, SEC.20. Amended by P.L.6-2012, SEC.178.
Ind. Code § 26-3-8-4 — Indiana Code / Title 26 / Article 3 / Chapter 8 / Section 26-3-8-4
"Rented space"
Status: in_force

Sec. 4. As used in this chapter, "rented space" means the individual storage space at a self-service storage facility that is rented to a renter under a rental agreement.

As added by P.L.265-1987, SEC.1.
Ind. Code § 26-4-4-6 — Indiana Code / Title 26 / Article 4 / Chapter 4 / Section 26-4-4-6
Submission of producer premiums to finance fund
Status: in_force

Sec. 6. (a) When purchasing grain, a grain buyer, a grain buyer's agent, or a grain buyer's representative shall:

(1) deduct the producer premium described in section 4 of this chapter from the producer's payment; and

(2) document the producer premium paid by the producer.

(b) A grain buyer shall submit producer premiums collected under subsection (a) to the board for the purpose of financing or contributing to the financing of the fund by:

(1) October 31 for producer premiums collected during the months of July, August, and September;

(2) January 31 for producer premiums collected during the months of October, November, and December;

(3) April 30 for producer premiums collected during the months of January, February, and March; and

(4) July 31 for producer premiums collected during the months of April, May, and June.

Each grain buyer shall, in accordance with the time frame set forth in this subsection, remit to the corporation the producer premium along with the remittance form provided by the corporation and completed by the grain buyer.

As added by P.L.250-1995, SEC.1. Amended by P.L.114-2025, SEC.67.
Ind. Code § 26-1-4-301 — Indiana Code / Title 26 / Article 1 / Chapter 4 / Section 26-1-4-301
Deferred posting; recovery of payment by return of items; time of dishonor; return of items by payor bank
Status: in_force

Sec. 301. (a) If a payor bank settles for a demand item other than a documentary draft presented otherwise than for immediate payment over the counter before midnight of the banking day of receipt, the payor bank may revoke the settlement and recover the settlement if, before it has made final payment and before its midnight deadline, it:

(1) returns the item;

(2) returns an image of the item, if the party to which the return is made has entered into an agreement to accept an image as a return of the item and the image is returned in accordance with that agreement; or

(3) sends a record providing notice of dishonor or nonpayment if the item is unavailable for return.

(b) If a demand item is received by a payor bank for credit on its books, it may return the item or send notice of dishonor and may revoke any credit given or recover the amount thereof withdrawn by its customer, if it acts within the time limit and in the manner specified in subsection (a).

(c) Unless previous notice of dishonor has been sent, an item is dishonored at the time when for purposes of dishonor it is returned or notice sent in accordance with this section.

(d) An item is returned:

(1) as to an item received through a clearing-house, when it is delivered to the presenting or last collecting bank or to the clearing-house or is sent or delivered in accordance with its rules; or

(2) in all other cases, when it is sent or delivered to the bank's customer or transferor or pursuant to instructions.

Formerly: Acts 1963, c.317, s.4-301. As amended by P.L.152-1986, SEC.222; P.L.222-1993, SEC.33; P.L.135-2009, SEC.19.
Ind. Code § 26-3-7-5 — Indiana Code / Title 26 / Article 3 / Chapter 7 / Section 26-3-7-5
Inspection and certification of scales
Status: in_force

Sec. 5. All scales used to weigh grain for purchase or storage must be inspected and certified as to accuracy at least once each year.

Formerly: Acts 1973, P.L.268, SEC.1. As amended by P.L.2-1992, SEC.781; P.L.125-1997, SEC.22.
Ind. Code § 26-1-4-504 — Indiana Code / Title 26 / Article 1 / Chapter 4 / Section 26-1-4-504
Privilege of presenting bank to deal with goods; security interest for expenses
Status: in_force

Sec. 504. (a) A presenting bank that, following the dishonor of a documentary draft, has seasonably requested instructions but does not receive them within a reasonable time may store, sell, or otherwise deal with the goods in any reasonable manner.

(b) For its reasonable expenses incurred by action under subsection (a) the presenting bank has a lien upon the goods or their proceeds, which may be foreclosed in the same manner as an unpaid seller's lien.

Formerly: Acts 1963, c.317, s.4-504. As amended by P.L.222-1993, SEC.45.
Ind. Code § 26-3-4-2 — Indiana Code / Title 26 / Article 3 / Chapter 4 / Section 26-3-4-2
Transfer of purported warehouse receipt with knowledge of nonexistence of warehouse or nonexistence of goods
Status: in_force

Sec. 2. It shall be unlawful for any corporation, firm, limited liability company, or person, their agents or employees, to issue, sell, pledge, assign or transfer, in this state, any receipt, certificate or other written instrument for goods, wares or merchandise claimed to be stored or deposited in any warehouse, public or private, in any other state, knowing that there is no such warehouse located at the place named in such receipt, certificate or other written instrument, or if there be a warehouse at such place, knowing that there are no goods, wares or merchandise stored or deposited in the warehouse as specified in such report, certificate or other written instrument.

Formerly: Acts 1897, c.124, s.2. As amended by P.L.8-1993, SEC.406; P.L.136-2018, SEC.143.
Ind. Code § 26-1-2-501 — Indiana Code / Title 26 / Article 1 / Chapter 2 / Section 26-1-2-501
Insurable interest in goods; manner of identification of goods
Status: in_force

Sec. 501. (1) The buyer obtains a special property and an insurable interest in goods by identification of existing goods as goods to which the contract refers even though the goods so identified are nonconforming and he has an option to return or reject them. Such identification can be made at any time and in any manner explicitly agreed to by the parties. In the absence of explicit agreement identification occurs

(a) when the contract is made if it is for the sale of goods already existing and identified;

(b) if the contract is for the sale of future goods other than those described in paragraph (c), when goods are shipped, marked or otherwise designated by the seller as goods to which the contract refers;

(c) when the crops are planted or otherwise become growing crops or the young are conceived if the contract is for the sale of unborn young to be born within twelve (12) months after contracting or for the sale of crops to be harvested within twelve (12) months or the next normal harvest season after contracting whichever is longer.

(2) The seller retains an insurable interest in goods so long as title to or any security interest in the goods remains in him and where the identification is by the seller alone he may until default or insolvency or notification to the buyer that the identification is final substitute other goods for those identified.

(3) Nothing in this section impairs any insurable interest recognized under any other statute or rule of law.

Formerly: Acts 1963, c.317, s.2-501.
Ind. Code § 26-1-9.1-109 — Indiana Code / Title 26 / Article 1 / Chapter 9.1 / Section 26-1-9.1-109
Scope
Status: in_force

Sec. 109. (a) Except as otherwise provided in subsections (c) and (d), IC 26-1-9.1 applies to:

(1) a transaction, regardless of its form, that creates a security interest in personal property or fixtures by contract;

(2) an agricultural lien;

(3) a sale of accounts, chattel paper, payment intangibles, or promissory notes;

(4) a consignment;

(5) a security interest arising under IC 26-1-2-401, IC 26-1-2-505, IC 26-1-2-711(3), or IC 26-1-2.1-508(5), as provided in IC 26-1-9.1-110;

(6) a security interest arising under IC 26-1-4-210 or IC 26-1-5.1-118; and

(7) a transfer of an interest or a claim in a contractual right of a person to receive commissions or other compensation payable by an insurer (as defined in IC 27-1-2-3).

(b) The application of IC 26-1-9.1 to a security interest in a secured obligation is not affected by the fact that the obligation is itself secured by a transaction or interest to which IC 26-1-9.1 does not apply.

(c) IC 26-1-9.1 does not apply to the extent that:

(1) a statute, regulation, or treaty of the United States preempts IC 26-1-9.1; or

(2) the rights of a transferee beneficiary or nominated person under a letter of credit are independent and superior under IC 26-1-5.1-114.

(d) IC 26-1-9.1 does not apply to:

(1) a landlord's lien, other than an agricultural lien;

(2) a lien, other than an agricultural lien, given by statute or other rule of law for services or materials, but IC 26-1-9.1-333 applies with respect to priority of the lien;

(3) an assignment of a claim for wages, salary, or other compensation of an employee;

(4) a sale of accounts, chattel paper, payment intangibles, or promissory notes as part of a sale of the business out of which they arose;

(5) an assignment of accounts, chattel paper, payment intangibles, or promissory notes that is for the purpose of collection only;

(6) an assignment of a right to payment under a contract to an assignee that is also obligated to perform under the contract;

(7) an assignment of a single account, payment intangible, or promissory note to an assignee in full or partial satisfaction of a preexisting indebtedness;

(8) a transfer of an interest in or an assignment of a claim under a policy of insurance, other than a transfer described in subsection (a)(7), or an assignment by or to a health-care provider of a health-care-insurance receivable and any subsequent assignment of the right to payment, but IC 26-1-9.1-315 and IC 26-1-9.1-322 apply with respect to proceeds and priorities in proceeds;

(9) an assignment of a right represented by a judgment, other than a judgment taken on a right to payment that was collateral;

(10) a right of recoupment or set-off, but:

(A) IC 26-1-9.1-340 applies with respect to the effectiveness of rights of recoupment or set-off against deposit accounts; and

(B) IC 26-1-9.1-404 applies with respect to defenses or claims of an account debtor;

(11) the creation or transfer of an interest in or lien on real property, including a lease or rents thereunder, except to the extent that provision is made for:

(A) liens on real property in IC 26-1-9.1-203 and IC 26-1-9.1-308;

(B) fixtures in IC 26-1-9.1-334;

(C) fixture filings in IC 26-1-9.1-501, IC 26-1-9.1-502, IC 26-1-9.1-512, IC 26-1-9.1-516, and IC 26-1-9.1-519; and

(D) security agreements covering personal and real property in IC 26-1-9.1-604;

(12) an assignment of a claim arising in tort, other than a commercial tort claim, but IC 26-1-9.1-315 and IC 26-1-9.1-322 apply with respect to proceeds and priorities in proceeds;

(13) an assignment of a deposit account in a consumer transaction, but IC 26-1-9.1-315 and IC 26-1-9.1-322 apply with respect to proceeds and priorities in proceeds;

(14) the creation, perfection, priority, or enforcement of a security interest created by the state, another state, or a foreign country, or a governmental unit of the state, another state or a foreign country;

(15) a pledge of revenues, other money, or property made under IC 5-1-14-4;

(16) a claim or right to receive compensation for injuries or sickness as described in 26 U.S.C. 104(a)(1) or (a)(2); or

(17) a claim or right to receive benefits under a special need trust as described in 42 U.S.C. 1396p(d)(4).

As added by P.L.57-2000, SEC.45. Amended by P.L.165-2001, SEC.1.
Ind. Code § 26-1-2-202 — Indiana Code / Title 26 / Article 1 / Chapter 2 / Section 26-1-2-202
Record intended as final expression of parties' agreement; parol or extrinsic evidence
Status: in_force

Sec. 202. Terms with respect to which the confirmatory memoranda of the parties agree or which are otherwise set forth in a record intended by the parties as a final expression of their agreement with respect to such terms as are included therein may not be contradicted by evidence of any prior agreement or of a contemporaneous oral agreement but may be explained or supplemented:

(a) by course of dealing or usage of trade (IC 26-1-1-205) or by course of performance (IC 26-1-1-205); and

(b) by evidence of consistent additional terms, unless the court finds the record to have been intended also as a complete and exclusive statement of the terms of the agreement.

Formerly: Acts 1963, c.317, s.2-202. As amended by P.L.152-1986, SEC.126; P.L.143-2007, SEC.9; P.L.199-2023, SEC.6.
Ind. Code § 26-1-4-212 — Indiana Code / Title 26 / Article 1 / Chapter 4 / Section 26-1-4-212
Presentment by notice of item not payable by, through, or at bank; liability of drawer or endorser
Status: in_force

Sec. 212. (a) Unless otherwise instructed, a collecting bank may present an item not payable by, through, or at a bank by sending to the party to accept or pay a record providing notice that the bank holds the item for acceptance or payment. The notice must be sent in time to be received on or before the day when presentment is due and the bank must meet any requirement of the party to accept or pay under IC 26-1-3.1-501 by the close of the bank's next banking day after it knows of the requirement.

(b) If presentment is made by notice and payment, acceptance, or request for compliance with a requirement under IC 26-1-3.1-501 is not received by the close of business on the day after maturity or, in the case of demand items, by the close of business on the third banking day after notice was sent, the presenting bank may treat the item as dishonored and charge any drawer or endorser by sending it notice of the facts.

Formerly: Acts 1963, c.317, s.4-212. As amended by P.L.152-1986, SEC.219; P.L.222-1993, SEC.28; P.L.135-2009, SEC.18.
Ind. Code § 26-2-3-4 — Indiana Code / Title 26 / Article 2 / Chapter 3 / Section 26-2-3-4
Assignee's right of action against endorsers; defenses
Status: in_force

Sec. 4. Any such assignee, having used due diligence in the premises, shall have his action against his immediate or any remote endorser, and in suit against a remote endorser, he shall have any defense which he might have had in a suit brought by his immediate assignee.

Formerly: Acts 1861, c.75, s.4.
Ind. Code § 26-1-9.1-621 — Indiana Code / Title 26 / Article 1 / Chapter 9.1 / Section 26-1-9.1-621
Acceptance of collateral in full or partial satisfaction of obligation; notification of proposal
Status: in_force

Sec. 621. (a) A secured party that desires to accept collateral in full or partial satisfaction of the obligation it secures shall send its proposal to:

(1) any person from which the secured party has received, before the debtor consented to the acceptance, a signed notification of a claim of an interest in the collateral;

(2) any other secured party or lienholder that, ten (10) days before the debtor consented to the acceptance, held a security interest in or other lien on the collateral perfected by the filing of a financing statement that:

(A) identified the collateral;

(B) was indexed under the debtor's name as of that date; and

(C) was filed in the office or offices in which to file a financing statement against the debtor covering the collateral as of that date; and

(3) any other secured party that, ten (10) days before the debtor consented to the acceptance, held a security interest in the collateral perfected by compliance with a statute, regulation, or treaty described in IC 26-1-9.1-311(a).

(b) A secured party that desires to accept collateral in partial satisfaction of the obligation it secures shall send its proposal to any secondary obligor in addition to the persons described in subsection (a).

As added by P.L.57-2000, SEC.45. Amended by P.L.199-2023, SEC.86.
Ind. Code § 26-1-2-321 — Indiana Code / Title 26 / Article 1 / Chapter 2 / Section 26-1-2-321
C.I.F. or C.&F.; "net landed weights"; payment on arrival; warranty of condition on arrival
Status: in_force

Sec. 321. Under a contract containing a term C.I.F. or C.&F.

(1) Where the price is based on or is to be adjusted according to "net landed weights", "delivered weights", "out turn" quantity or quality or the like, unless otherwise agreed the seller must reasonably estimate the price. The payment due on tender of the documents called for by the contract is the amount so estimated, but after final adjustment of the price a settlement must be made with commercial promptness.

(2) An agreement described in subsection (1) or any warranty of quality or condition of the goods on arrival places upon the seller the risk of ordinary deterioration, shrinkage and the like in transportation but has no effect on the place or time of identification to the contract for sale or delivery or on the passing of the risk of loss.

(3) Unless otherwise agreed where the contract provides for payment on or after arrival of the goods the seller must before payment allow such preliminary inspection as is feasible; but if the goods are lost delivery of the documents and payment are due when the goods should have arrived.

Formerly: Acts 1963, c.317, s.2-321.
Ind. Code § 26-1-8.1-110 — Indiana Code / Title 26 / Article 1 / Chapter 8.1 / Section 26-1-8.1-110
Governing local law; determination of jurisdiction of issuer or securities intermediary
Status: in_force

Sec. 110. (a) The local law of the issuer's jurisdiction, as specified in subsection (d), governs:

(1) the validity of a security;

(2) the rights and duties of the issuer with respect to registration of transfer;

(3) the effectiveness of registration of transfer by the issuer;

(4) whether the issuer owes any duties to an adverse claimant to a security; and

(5) whether an adverse claim can be asserted against a person to whom transfer of a certificated or uncertificated security is registered or a person who obtains control of an uncertificated security.

(b) The local law of the securities intermediary's jurisdiction, as specified in subsection (e), governs:

(1) acquisition of a security entitlement from the securities intermediary;

(2) the rights and duties of the securities intermediary and entitlement holder arising out of a security entitlement;

(3) whether the securities intermediary owes any duties to an adverse claimant to a security entitlement; and

(4) whether an adverse claim can be asserted against a person who acquires a security entitlement from the securities intermediary or a person who purchases a security entitlement or interest therein from an entitlement holder.

(c) The local law of the jurisdiction in which a security certificate is located at the time of delivery governs whether an adverse claim can be asserted against a person to whom the security certificate is delivered.

(d) "Issuer's jurisdiction" means the jurisdiction under which the issuer of the security is organized or, if permitted by the law of that jurisdiction, the law of another jurisdiction specified by the issuer. An issuer organized under the law of this state may specify the law of another jurisdiction as the law governing the matters specified in subsection (a)(2) through (a)(5).

(e) The following rules determine a "securities intermediary's jurisdiction" for purposes of this section:

(1) If an agreement between the securities intermediary and its entitlement holder governing the securities account expressly provides that a particular jurisdiction is the securities intermediary's jurisdiction for purposes of IC 26-1-8.1-101 through IC 26-1-8.1-116, that jurisdiction is the securities intermediary's jurisdiction.

(2) If subdivision (1) does not apply, and an agreement between the securities intermediary and its entitlement holder expressly provides that the agreement is governed by the law of a particular jurisdiction, that jurisdiction is the securities intermediary's jurisdiction.

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

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

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

(f) A securities intermediary's jurisdiction is not determined by the physical location of certificates representing financial assets, or by the jurisdiction in which is organized the issuer of the financial asset with respect to which an entitlement holder has a security entitlement, or by the location of facilities for data processing or other record keeping concerning the account.

(g) The local law of the issuer's jurisdiction or the securities intermediary's jurisdiction governs a matter or transaction specified in subsection (a) or (b) even if the matter or transaction does not bear any relation to the jurisdiction.

As added by P.L.247-1995, SEC.10. Amended by P.L.57-2000, SEC.41; P.L.199-2023, SEC.38.
Ind. Code § 26-1-2.1-307 — Indiana Code / Title 26 / Article 1 / Chapter 2.1 / Section 26-1-2.1-307
Priority of liens related to lease contract
Status: in_force

Sec. 307. (1) Except as otherwise provided in IC 26-1-2.1-306, a creditor of a lessee takes subject to the lease contract.

(2) Except as otherwise provided in subsection (3) and in IC 26-1-2.1-306 and IC 26-1-2.1-308, a creditor of a lessor takes subject to the lease contract unless the creditor holds a lien that attached to the goods before the lease contract became enforceable.

(3) Except as otherwise provided in IC 26-1-9.1-317, IC 26-1-9.1-321, and IC 26-1-9.1-323, a lessee takes a leasehold interest subject to a security interest held by a creditor of the lessor.

As added by P.L.189-1991, SEC.3. Amended by P.L.57-2000, SEC.25.
Ind. Code § 26-1-4-102.5 — Indiana Code / Title 26 / Article 1 / Chapter 4 / Section 26-1-4-102.5
Application of bank provisions to supervised financial organizations
Status: in_force

Sec. 102.5. (a) As used in this section, "supervised financial organization" means a person, other than an insurance company or other organization primarily engaged in an insurance business, that is:

(1) organized, chartered, or holding an authorization certificate under the laws of a state or of the United States that authorizes the person to make loans and to receive deposits, including a savings, share, certificate, or deposit account; and

(2) subject to supervision by an official or agency of a state or of the United States.

(b) The provisions of IC 26-1-4 which apply to a bank apply equally to any supervised financial organization which is authorized by state or federal law to permit persons to make withdrawals or payments from accounts by negotiable instruments.

As added by Acts 1981, P.L.231, SEC.2. Amended by P.L.152-1986, SEC.207; P.L.35-2010, SEC.95.
Ind. Code § 26-2-7-5 — Indiana Code / Title 26 / Article 2 / Chapter 7 / Section 26-2-7-5
Extent of liability for stopping payment or permitting dishonor of checks
Status: in_force

Sec. 5. A person liable under section 4 of this chapter is also liable for all of the following:

(1) Interest at the rate of eighteen percent (18%) per annum on the face amount of the check from the date of the check's execution until payment is made in full.

(2) Court costs incurred in prosecuting an action that may be brought by the holder to collect on the check.

(3) Reasonable attorney's fees incurred by the holder if the responsibility for collection is referred to an attorney who is not a salaried employee of the holder. If legal action is filed to effect collection and the collection on the check is referred to an attorney who is not a salaried employee of the holder, the holder of the check is entitled to minimum attorney's fees of not less than one hundred dollars ($100).

(4) Actual travel expenses not otherwise reimbursed under subdivisions (1) through (3) and incurred by the holder to do either of the following:

(A) Have the holder or an employee or agent of the holder file papers and attend court proceedings related to the recovery of a judgment under this chapter.

(B) Provide witnesses to testify in court proceedings related to the recovery of a judgment under this chapter.

(5) A reasonable amount to compensate the holder for time used to do either of the following:

(A) File papers and attend court proceedings related to the recovery of a judgment under this chapter.

(B) Travel to and from activities described in clause (A).

(6) Actual direct and indirect expenses incurred by the holder to compensate employees and agents for time used to do either of the following:

(A) File papers and attend court proceedings related to the recovery of a judgment under this section.

(B) Travel to and from activities described in clause (A).

(7) All other reasonable costs of collection.

As added by P.L.42-1993, SEC.18.
Ind. Code § 26-3-7-28 — Indiana Code / Title 26 / Article 3 / Chapter 7 / Section 26-3-7-28
Records and accounts; retention
Status: in_force

Sec. 28. A licensee shall keep in a place of safety complete and correct records and accounts pertaining to the licensee's grain business. The licensee shall retain records and accounts for not less than five (5) years from the date of the final settlement of the transaction.

Formerly: Acts 1973, P.L.268, SEC.1; Acts 1974, P.L.120, SEC.14. As amended by P.L.125-1997, SEC.49; P.L.114-2025, SEC.33.
Ind. Code § 26-1-2-313 — Indiana Code / Title 26 / Article 1 / Chapter 2 / Section 26-1-2-313
Express warranties by affirmation, promise, description, and sample
Status: in_force

Sec. 313. (1) Express warranties by the seller are created as follows:

(a) any affirmation of fact or promise made by the seller to the buyer which relates to the goods and becomes part of the basis of the bargain creates an express warranty that the goods shall 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 shall conform to the description.

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

(2) It is not necessary to the creation of an express warranty that the seller use formal words such as "warrant" or "guarantee" or that he 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 seller's opinion or commendation of the goods does not create a warranty.

Formerly: Acts 1963, c.317, s.2-313.
Ind. Code § 26-1-4.1-203 — Indiana Code / Title 26 / Article 1 / Chapter 4.1 / Section 26-1-4.1-203
Unenforceability of certain verified payment orders
Status: in_force

Sec. 203. (a) If an accepted payment order is not, under IC 26-1-4.1-202(a), an authorized order of a customer identified as sender, but is effective as an order of the customer pursuant to IC 26-1-4.1-202(b), the following rules apply:

(1) By express agreement, evidenced by a record, the receiving bank may limit the extent to which it is entitled to enforce or retain payment of the payment order.

(2) The receiving bank is not entitled to enforce or retain payment of the payment order if the customer proves that the order was not caused, directly or indirectly, by a person:

(i) entrusted at any time with duties to act for the customer with respect to payment orders or the security procedure; or

(ii) who obtained access to transmitting facilities of the customer or who obtained, from a source controlled by the customer and without authority of the receiving bank, information facilitating breach of the security procedure, regardless of how the information was obtained or whether the customer was at fault. Information includes any access device, computer software, or the like.

(b) This section applies to amendments of payment orders to the same extent it applies to payment orders.

As added by P.L.189-1991, SEC.4. Amended by P.L.199-2023, SEC.25.
Ind. Code § 26-1-9.1-307 — Indiana Code / Title 26 / Article 1 / Chapter 9.1 / Section 26-1-9.1-307
Location of debtor
Status: in_force

Sec. 307. (a) In this section, "place of business" means a place where a debtor conducts its affairs.

(b) Except as otherwise provided in this section, the following rules determine a debtor's location:

(1) A debtor who is an individual is located at the individual's principal residence.

(2) A debtor that is an organization and has only one (1) place of business is located at its place of business.

(3) A debtor that is an organization and has more than one (1) place of business is located at its chief executive office.

(c) Subsection (b) applies only if a debtor's residence, place of business, or chief executive office, as applicable, is located in a jurisdiction whose law generally requires information concerning the existence of a nonpossessory security interest to be made generally available in a filing, recording, or registration system as a condition or result of the security interest's obtaining priority over the rights of a lien creditor with respect to the collateral. If subsection (b) does not apply, the debtor is located in the District of Columbia.

(d) A person that ceases to exist, have a residence, or have a place of business continues to be located in the jurisdiction specified by subsections (b) and (c).

(e) A registered organization that is organized under the law of a state is located in that state.

(f) Except as otherwise provided in subsection (i), a registered organization that is organized under the law of the United States and a branch or agency of a bank that is not organized under the law of the United States or a state are located:

(1) in the state that the law of the United States designates, if the law designates a state of location;

(2) in the state that the registered organization, branch, or agency designates, if the law of the United States authorizes the registered organization, branch, or agency to designate its state of location, including by designating its main office, home office, or other comparable office; or

(3) in the District of Columbia, if neither paragraph (1) nor paragraph (2) applies.

(g) A registered organization continues to be located in the jurisdiction specified by subsection (e) or (f) notwithstanding:

(1) the suspension, revocation, forfeiture, or lapse of the registered organization's status as such in its jurisdiction of organization; or

(2) the dissolution, winding up, or cancellation of the existence of the registered organization.

(h) The United States is located in the District of Columbia.

(i) A branch or agency of a bank that is not organized under the law of the United States or a state is located in the state in which the branch or agency is licensed, if all branches and agencies of the bank are licensed in only one (1) state.

(j) A foreign air carrier under the Federal Aviation Administration Authorization Act of 1994 (49 U.S.C. 40102(21)) is located at the designated office of the agent upon which service of process may be made on behalf of the carrier.

(k) This section applies only for purposes of IC 26-1-9.1-301 through IC 26-1-9.1-342.

As added by P.L.57-2000, SEC.45. Amended by P.L.165-2001, SEC.5; P.L.54-2011, SEC.5; P.L.7-2015, SEC.49.
Ind. Code § 26-1-9.1-605 — Indiana Code / Title 26 / Article 1 / Chapter 9.1 / Section 26-1-9.1-605
Unknown debtor or secondary obligor; no duty owed by secured party; exception for controllable account, controllable electronic record, or controllable payment intangible
Status: in_force

Sec. 605. (a) Except as provided in subsection (b), a secured party does not owe a duty based on 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.

(b) A secured party owes a duty based on its status as secured party to a person if, at the time the secured party obtains control of collateral that is a controllable account, a controllable electronic record, or a 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 (a)(1)(A), (a)(1)(B), or (a)(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.77.
Ind. Code § 26-1-9.1-616 — Indiana Code / Title 26 / Article 1 / Chapter 9.1 / Section 26-1-9.1-616
Explanation of calculation of surplus or deficiency
Status: in_force

Sec. 616. (a) As used in this section:

(1) "Explanation" means a record that:

(A) states the amount of the surplus or deficiency;

(B) provides an explanation in accordance with subsection (c) of how the secured party calculated the surplus or deficiency;

(C) states, if applicable, that future debits, credits, charges, including additional credit service charges or interest, rebates, and expenses may affect the amount of the surplus or deficiency; and

(D) provides a telephone number or mailing address from which additional information concerning the transaction is available.

(2) "Request" means a record:

(A) signed by a debtor or consumer obligor;

(B) requesting that the recipient provide an explanation; and

(C) sent after disposition of the collateral under IC 26-1-9.1-610.

(b) In a consumer-goods transaction in which the debtor is entitled to a surplus or a consumer obligor is liable for a deficiency under IC 26-1-9.1-615, the secured party shall:

(1) send an explanation to the debtor or consumer obligor, as applicable, after the disposition and:

(A) before or when the secured party accounts to the debtor and pays any surplus or first makes demand in a record on the consumer obligor after the disposition for payment of the deficiency; and

(B) within fourteen (14) days after receipt of a request; or

(2) in the case of a consumer obligor who is liable for a deficiency, within fourteen (14) days after receipt of a request, send to the consumer obligor a record waiving the secured party's right to a deficiency.

(c) To comply with subsection (a)(1)(B), an explanation must provide the following information in the following order:

(1) the aggregate amount of obligations secured by the security interest under which the disposition was made, and, if the amount reflects a rebate of unearned interest or credit service charge, an indication of that fact, calculated as of a specified date:

(A) if the secured party takes or receives possession of the collateral after default, not more than thirty-five (35) days before the secured party takes or receives possession; or

(B) if the secured party takes or receives possession of the collateral before default or does not take possession of the collateral, not more than thirty-five (35) days before the disposition;

(2) the amount of proceeds of the disposition;

(3) the aggregate amount of the obligations after deducting the amount of proceeds;

(4) the amount, in the aggregate or by type, and types of expenses, including expenses of retaking, holding, preparing for disposition, processing, and disposing of the collateral, and attorney's fees secured by the collateral that are known to the secured party and relate to the current disposition;

(5) the amount, in the aggregate or by type, and types of credits, including rebates of interest or credit service charges, to which the obligor is known to be entitled and that are not reflected in the amount in paragraph (1); and

(6) the amount of the surplus or deficiency.

(d) A particular phrasing of the explanation is not required. An explanation complying substantially with the requirements of subsection (a) is sufficient, even if it includes minor errors that are not seriously misleading.

(e) A debtor or consumer obligor is entitled without charge to one (1) response to a request under this section during any six (6) month period in which the secured party did not send to the debtor or consumer obligor an explanation pursuant to subsection (b)(1). The secured party may require payment of a charge not exceeding twenty-five dollars ($25) for each additional response.

As added by P.L.57-2000, SEC.45. Amended by P.L.199-2023, SEC.83.
Ind. Code § 26-1-2.1-204 — Indiana Code / Title 26 / Article 1 / Chapter 2.1 / Section 26-1-2.1-204
Formation in general
Status: in_force

Sec. 204. (1) A lease contract may be made in any manner sufficient to show agreement, including conduct by both parties which recognizes the existence of a lease contract.

(2) An agreement sufficient to constitute a lease contract may be found although the moment of its making is undetermined.

(3) Although one (1) or more terms are left open, a lease contract does not fail for indefiniteness if the parties have intended to make a lease contract and there is a reasonably certain basis for giving an appropriate remedy.

As added by P.L.189-1991, SEC.3.
Ind. Code § 26-1-2.1-106 — Indiana Code / Title 26 / Article 1 / Chapter 2.1 / Section 26-1-2.1-106
Limitation on power of parties to consumer lease to choose applicable law and judicial forum
Status: in_force

Sec. 106. (1) If the law chosen by the parties to a consumer lease is that of a jurisdiction other than a jurisdiction in which the lessee resides at the time the lease agreement becomes enforceable or within thirty (30) days thereafter or in which the goods are to be used, the choice is not enforceable.

(2) If the judicial forum chosen by the parties to a consumer lease is a forum that would not otherwise have jurisdiction over the lessee, the choice is not enforceable.

As added by P.L.189-1991, SEC.3.
Ind. Code § 26-4-4-3 — Indiana Code / Title 26 / Article 4 / Chapter 4 / Section 26-4-4-3
Premiums held in trust; investment of fund; interest; reversion
Status: in_force

Sec. 3. (a) All producer premiums submitted to the board by a grain buyer under section 6(b) of this chapter shall be held by the corporation in trust in the fund for carrying out the purposes of this article. The treasurer of state shall invest the money in the fund not currently needed to meet the obligations of the fund in the same manner as other public funds may be invested. Interest earned from these investments shall be credited to the fund.

(b) Money in the fund at the end of a state fiscal year does not revert to the state general fund.

As added by P.L.250-1995, SEC.1.
Ind. Code § 26-1-3.1-302 — Indiana Code / Title 26 / Article 1 / Chapter 3.1 / Section 26-1-3.1-302
Holder in due course
Status: in_force

Sec. 302. (a) Subject to subsection (c) and IC 26-1-3.1-106(d), "holder in due course" means the holder of an instrument if:

(1) the instrument when issued or negotiated to the holder does not bear such apparent evidence of forgery or alteration or is not otherwise so irregular or incomplete as to call into question its authenticity; and

(2) the holder took the instrument:

(A) for value;

(B) in good faith;

(C) without notice that the instrument is overdue or has been dishonored or that there is an uncured default with respect to payment of another instrument issued as part of the same series;

(D) without notice that the instrument contains an unauthorized signature or has been altered;

(E) without notice of any claim to the instrument described in IC 26-1-3.1-306; and

(F) without notice that any party has a defense or claim in recoupment described in IC 26-1-3.1-305(a).

(b) Notice of discharge of a party, other than discharge in an insolvency proceeding, is not notice of a defense under subsection (a), but discharge is effective against a person who became a holder in due course with notice of the discharge. Public filing or recording of a document does not of itself constitute notice of a defense, claim in recoupment, or claim to the instrument.

(c) Except to the extent a transferor or predecessor in interest has rights as a holder in due course, a person does not acquire rights of a holder in due course of an instrument taken:

(1) by legal process or by purchase in an execution, bankruptcy, or creditor's sale or similar proceeding;

(2) by purchase as part of a bulk transaction not in ordinary course of business of the transferor; or

(3) as the successor in interest to an estate or other organization.

(d) If, under IC 26-1-3.1-303(a)(1), the promise of performance that is the consideration for an instrument has been partially performed, the holder may assert rights as a holder in due course of the instrument only to the fraction of the amount payable under the instrument equal to the value of the partial performance divided by the value of the promised performance.

(e) If:

(1) the person entitled to enforce an instrument has only a security interest in the instrument; and

(2) the person obliged to pay the instrument has a defense, claim in recoupment, or claim to the instrument that may be asserted against the person who granted the security interest;

the person entitled to enforce the instrument may assert rights as a holder in due course only to an amount payable under the instrument which, at the time of enforcement of the instrument, does not exceed the amount of the unpaid obligation secured.

(f) To be effective, notice must be received at a time and in a manner that gives a reasonable opportunity to act on it.

(g) This section is subject to any law limiting status as a holder in due course in particular classes of transactions.

As added by P.L.222-1993, SEC.5.
Ind. Code § 26-1-7-103 — Indiana Code / Title 26 / Article 1 / Chapter 7 / Section 26-1-7-103
Relation of chapter to other laws
Status: in_force

Sec. 103. (a) This chapter is subject to any treaty or statute of the United States or regulatory statute of this state to the extent the treaty, statute, or regulatory statute applies.

(b) This chapter does not modify or repeal any law prescribing the form or content of a document of title or the services or facilities to be afforded by a bailee, or otherwise regulating a bailee's business in respects not specifically treated in this article. However, violation of such a law does not affect the status of a document of title that otherwise is within the definition of a document of title.

(c) This chapter modifies, limits, and supersedes the federal Electronic Signatures in Global and National Commerce Act (15 U.S.C. 7001 et seq.) but does not modify, limit, or supersede Section 101(c) of that act (15 U.S.C. 7001(c)) or authorize electronic delivery of any of the notices described in section 103(b) of that act (15 U.S.C. 7003(b)).

(d) To the extent there is a conflict between IC 26-2-8 and this chapter, this chapter governs.

Formerly: Acts 1963, c.317, s.7-103. As amended by P.L.152-1986, SEC.246; P.L.143-2007, SEC.26.
Ind. Code § 26-1-2-717 — Indiana Code / Title 26 / Article 1 / Chapter 2 / Section 26-1-2-717
Deduction of damages from the price
Status: in_force

Sec. 717. The buyer on notifying the seller of his intention so to do may deduct all or any part of the damages resulting from any breach of the contract from any part of the price still due under the same contract.

Formerly: Acts 1963, c.317, s.2-717.
Ind. Code § 26-2-11-5 — Indiana Code / Title 26 / Article 2 / Chapter 11 / Section 26-2-11-5
"Repossession"
Status: in_force

Sec. 5. As used in this chapter, "repossession" means to take physical possession of personal property that was used as collateral.

As added by P.L.81-2026, SEC.7.
Ind. Code § 26-1-2-607 — Indiana Code / Title 26 / Article 1 / Chapter 2 / Section 26-1-2-607
Effect of acceptance; notice of breach; burden of establishing breach after acceptance; notice of claim or litigation to person answerable over
Status: in_force

Sec. 607. (1) The buyer must pay at the contract rate for any goods accepted.

(2) Acceptance of goods by the buyer precludes rejection of the goods accepted, and if made with knowledge of a nonconformity cannot be revoked because of it unless the acceptance was on the reasonable assumption that the nonconformity would be seasonably cured, but acceptance does not of itself impair any other remedy provided by IC 26-1-2 for nonconformity.

(3) Where a tender has been accepted:

(a) the buyer must, within a reasonable time after he discovers or should have discovered any breach, notify the seller of breach or be barred from any remedy; and

(b) if the claim is one for infringement or the like (IC 26-1-2-312(3)) and the buyer is sued as a result of such a breach, he must so notify the seller within a reasonable time after he receives notice of the litigation or be barred from any remedy over for liability established by the litigation.

(4) The burden is on the buyer to establish any breach with respect to the goods accepted.

(5) Where the buyer is sued for breach of a warranty or other obligation for which his seller is answerable over:

(a) He may give his seller written notice of the litigation. If the notice states that the seller may come in and defend and that if the seller does not do so he will be bound in any action against him by his buyer by any determination of fact common to the two (2) litigations, then unless the seller after seasonable receipt of the notice does come in and defend he is so bound.

(b) If the claim is one for infringement or the like (IC 26-1-2-312(3)), the original seller may demand in writing that his buyer turn over to him control of the litigation including settlement or else be barred from any remedy over, and if he also agrees to bear all expense and to satisfy any adverse judgment, then unless the buyer after seasonable receipt of the demand does turn over control, the buyer is so barred.

(6) The provisions of subsections (3), (4), and (5) apply to any obligation of a buyer to hold the seller harmless against infringement or the like (IC 26-1-2-312(3)).

Formerly: Acts 1963, c.317, s.2-607. As amended by P.L.152-1986, SEC.156.
Ind. Code § 26-1-9.1-305 — Indiana Code / Title 26 / Article 1 / Chapter 9.1 / Section 26-1-9.1-305
Law governing perfection and priority of security interests in investment property
Status: in_force

Sec. 305. (a) Except as otherwise provided in subsection (c), the following rules apply:

(1) While a security certificate is located in a jurisdiction, the local law of that jurisdiction governs perfection, the effect of perfection or nonperfection, and the priority of a security interest in the certificated security represented thereby.

(2) The local law of the issuer's jurisdiction as specified in IC 26-1-8.1-110(d) governs perfection, the effect of perfection or nonperfection, and the priority of a security interest in an uncertificated security.

(3) The local law of the securities intermediary's jurisdiction as specified in IC 26-1-8.1-110(e) governs perfection, the effect of perfection or nonperfection, and the priority of a security interest in a security entitlement or securities account.

(4) The local law of the commodity intermediary's jurisdiction governs perfection, the effect of perfection or nonperfection, and the priority of a security interest in a commodity contract or commodity account.

(5) Subdivisions (2) through (4) apply even if the transaction does not bear any relation to the jurisdiction.

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

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

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

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

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

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

(c) The local law of the jurisdiction in which the debtor is located governs:

(1) perfection of a security interest in investment property by filing;

(2) automatic perfection of a security interest in investment property created by a broker or securities intermediary; and

(3) automatic perfection of a security interest in a commodity contract or commodity account created by a commodity intermediary.

As added by P.L.57-2000, SEC.45. Amended by P.L.165-2001, SEC.3; P.L.199-2023, SEC.53.
Ind. Code § 26-1-9.1-108 — Indiana Code / Title 26 / Article 1 / Chapter 9.1 / Section 26-1-9.1-108
Sufficiency of description
Status: in_force

Sec. 108. (a) Except as otherwise provided in subsections (c), (d), and (e), a description of personal or real property is sufficient, whether or not it is specific, if it reasonably identifies what is described.

(b) Except as otherwise provided in subsection (d), a description of collateral reasonably identifies the collateral if it identifies the collateral by:

(1) specific listing;

(2) category;

(3) except as otherwise provided in subsection (e), a type of collateral defined in IC 26-1;

(4) quantity;

(5) computational or allocational formula or procedure; or

(6) except as otherwise provided in subsection (c), any other method, if the identity of the collateral is objectively determinable.

(c) A description of collateral as "all the debtor's assets" or "all the debtor's personal property" or using words of similar import does not reasonably identify the collateral.

(d) Except as otherwise provided in subsection (e), a description of a security entitlement, securities account, or commodity account is sufficient if it describes:

(1) the collateral by those terms or as investment property; or

(2) the underlying financial asset or commodity contract.

(e) A description only by type of collateral defined in IC 26-1 is an insufficient description of:

(1) a commercial tort claim; or

(2) in a consumer transaction, consumer goods, a security entitlement, a securities account, or a commodity account.

As added by P.L.57-2000, SEC.45.
Ind. Code § 26-1-7-503 — Indiana Code / Title 26 / Article 1 / Chapter 7 / Section 26-1-7-503
Form of negotiation and requirements of "due negotiation"
Status: in_force

Sec. 503. (a) A document of title confers no right in goods against a person that before issuance of the document had a legal interest or a perfected security interest in the goods and that did not:

(1) deliver or entrust the goods or any document of title covering the goods to the bailor or the bailor's nominee with:

(A) actual or apparent authority to ship, store, or sell;

(B) power to obtain delivery under section 403 of this chapter; or

(C) power of disposition under IC 26-1-2-403, IC 26-1-9.1-320, or other statute or rule of law; or

(2) acquiesce in the procurement by the bailor or its nominee of any document.

(b) Title to goods based upon an unaccepted delivery order is subject to the rights of any person to which a negotiable warehouse receipt or bill of lading covering the goods has been duly negotiated. That title may be defeated under section 504 of this chapter to the same extent as the rights of the issuer or a transferee from the issuer.

(c) Title to goods based upon a bill of lading issued to a freight forwarder is subject to the rights of any person to which a bill issued by the freight forwarder is duly negotiated. However, delivery by the carrier in accordance with sections 401 through 404 of this chapter pursuant to its own bill of lading discharges the carrier's obligation to deliver.

Formerly: Acts 1963, c.317, s.7-503. As amended by P.L.152-1986, SEC.258; P.L.57-2000, SEC.37; P.L.143-2007, SEC.54.
Ind. Code § 26-1-1-0.4 — Indiana Code / Title 26 / Article 1 / Chapter 1 / Section 26-1-1-0.4
Status of certain financing statements and continuation statements; effectiveness of certain financing statements; requirement for new financing statements; status of records of certain real estate mortgages
Status: in_force

Sec. 0.4. (a) A financing statement or continuation statement filed before January 1, 1986, that has not lapsed before January 1, 1986, remains effective for the period provided in this article, as effective on December 31, 1985, but not less than five (5) years after the filing.

(b) With respect to any collateral acquired by the debtor after December 31, 1985, any effective financing statement or continuation statement described in this section applies only if the filing or filings are in the office or offices that would be appropriate to perfect the security interests in the new collateral under P.L.93-1985.

(c) The effectiveness of any financing statement or continuation statement filed before January 1, 1986, may be continued by a continuation statement as permitted by P.L.93-1985 except that if P.L.93-1985 requires a filing in an office where there was no previous financing statement, a new financing statement conforming to section 0.5 of this chapter must be filed in that office.

(d) If the record of a mortgage of real estate would have been effective as a fixture filing of goods described in the mortgage if P.L.93-1985 had been in effect on the date of recording the mortgage, the mortgage is considered effective as a fixture filing as to such goods under IC 26-1-9-402(6), as amended by P.L.93-1985 and before its repeal, on January 1, 1986.

As added by P.L.220-2011, SEC.414.
Ind. Code § 26-1-2.1-218 — Indiana Code / Title 26 / Article 1 / Chapter 2.1 / Section 26-1-2.1-218
Insurance and proceeds
Status: in_force

Sec. 218. (1) A lessee obtains an insurable interest when existing goods are identified to the lease contract even though the goods identified are nonconforming and the lessee has an option to reject them.

(2) If a lessee has an insurable interest only by reason of the lessor's identification of the goods, the lessor, until default or insolvency or notification to the lessee that identification is final, may substitute other goods for those identified.

(3) Notwithstanding a lessee's insurable interest under subsections (1) and (2), the lessor retains an insurable interest until an option to buy has been exercised by the lessee and risk of loss has passed to the lessee.

(4) Nothing in this section impairs any insurable interest recognized under any other statute or rule of law.

(5) The parties by agreement may determine that one or more parties have an obligation to obtain and pay for insurance covering the goods and by agreement may determine the beneficiary of the proceeds of the insurance.

As added by P.L.189-1991, SEC.3.
Ind. Code § 26-1-9.1-708 — Indiana Code / Title 26 / Article 1 / Chapter 9.1 / Section 26-1-9.1-708
Persons entitled to file initial financing statement or continuation statement
Status: in_force

Sec. 708. A person may file an initial financing statement or a continuation statement under IC 26-1-9.1-701 through IC 26-1-9.1-709 if:

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

(2) the filing is necessary under IC 26-1-9.1-701 through IC 26-1-9.1-709:

(A) to continue the effectiveness of a financing statement filed before IC 26-1-9.1 takes effect; or

(B) to perfect or continue the perfection of a security interest.

As added by P.L.57-2000, SEC.45.
Ind. Code § 26-1-3.1-205 — Indiana Code / Title 26 / Article 1 / Chapter 3.1 / Section 26-1-3.1-205
Special endorsement; blank endorsement; anomalous endorsement
Status: in_force

Sec. 205. (a) If an endorsement is made by the holder of an instrument, whether payable to an identified person or payable to bearer, and the endorsement identifies a person to whom it makes the instrument payable, it is a "special endorsement". When specially endorsed, an instrument becomes payable to the identified person and may be negotiated only by the endorsement of that person. The principles stated in IC 26-1-3.1-110 apply to special endorsements.

(b) If an endorsement is made by the holder of an instrument and it is not a special endorsement, it is a "blank endorsement". When endorsed in blank, an instrument becomes payable to bearer and may be negotiated by transfer of possession alone until specially endorsed.

(c) The holder may convert a blank endorsement that consists only of a signature into a special endorsement by writing, above the signature of the endorser, words identifying the person to whom the instrument is made payable.

(d) "Anomalous endorsement" means an endorsement made by a person who is not the holder of the instrument. An anomalous endorsement does not affect the manner in which the instrument may be negotiated.

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

Sec. 5. "Claimant" means a producer that:

(1) is a participant in the grain indemnity program;

(2) possesses a claim resulting from the revocation of a license of a licensed grain buyer or warehouse; and

(3) can provide written documented proof of the type of loss and price at which the financial loss was calculated.

As added by P.L.250-1995, SEC.1. Amended by P.L.75-2010, SEC.15; P.L.114-2025, SEC.47.
Ind. Code § 26-3-8-9.5 — Indiana Code / Title 26 / Article 3 / Chapter 8 / Section 26-3-8-9.5
"Verified mail"
Status: in_force

Sec. 9.5. As used in this chapter, "verified mail" means any method of mailing that:

(1) is offered by the United States Postal Service or a private delivery service; and

(2) provides evidence of mailing.

As added by P.L.144-2014, SEC.4.
Ind. Code § 26-1-7-305 — Indiana Code / Title 26 / Article 1 / Chapter 7 / Section 26-1-7-305
Destination bills
Status: in_force

Sec. 305. (a) Instead of issuing a bill of lading to the consignor at the place of shipment, a carrier may at the request of the consignor procure the bill to be issued at a destination or at any other place designated in the request.

(b) Upon request of any person entitled as against a carrier to control the goods while in transit and on surrender of possession or control of any outstanding bill of lading or other receipt covering the goods, the issuer, subject to section 105 of this chapter, may procure a substitute bill to be issued at any place designated in the request.

Formerly: Acts 1963, c.317, s.7-305. As amended by P.L.143-2007, SEC.44.
Ind. Code § 26-1-2.1-211 — Indiana Code / Title 26 / Article 1 / Chapter 2.1 / Section 26-1-2.1-211
Warranties against interference and against infringement; lessee's obligation against infringement
Status: in_force

Sec. 211. (1) There is in a lease contract a warranty that for the lease term no person holds a claim to or interest in the goods that arose from an act or omission of the lessor, other than a claim by way of infringement or the like, which will interfere with the lessee's enjoyment of its leasehold interest.

(2) Except in a finance lease there is in a lease contract by a lessor who is a merchant regularly dealing in goods of the kind a warranty that the goods are delivered free of the rightful claim of any person by way of infringement or the like.

(3) A lessee who furnishes specifications to a lessor or a supplier shall hold the lessor and the supplier harmless against any claim by way of infringement or the like that arises out of compliance with the specifications.

As added by P.L.189-1991, SEC.3.
Ind. Code § 26-1-3.1-206 — Indiana Code / Title 26 / Article 1 / Chapter 3.1 / Section 26-1-3.1-206
Restrictive endorsement
Status: in_force

Sec. 206. (a) An endorsement limiting payment to a particular person or otherwise prohibiting further transfer or negotiation of the instrument is not effective to prevent further transfer or negotiation of the instrument.

(b) An endorsement stating a condition to the right of the endorsee to receive payment does not affect the right of the endorsee to enforce the instrument. A person paying the instrument or taking it for value or collection may disregard the condition, and the rights and liabilities of that person are not affected by whether the condition has been fulfilled.

(c) If an instrument bears an endorsement (i) described in IC 26-1-4-201(b), or (ii) in blank or to a particular bank using the words "for deposit", "for collection", or other words indicating a purpose of having the instrument collected by a bank for the endorser or for a particular account, the following rules apply:

(1) A person, other than a bank, who purchases the instrument when so endorsed converts the instrument unless the amount paid for the instrument is received by the endorser or applied consistently with the endorsement.

(2) A depositary bank that purchases the instrument or takes it for collection when so endorsed converts the instrument unless the amount paid by the bank with respect to the instrument is received by the endorser or applied consistently with the endorsement.

(3) A payor bank that is also the depositary bank or that takes the instrument for immediate payment over the counter from a person other than a collecting bank converts the instrument unless the proceeds of the instrument are received by the endorser or applied consistently with the endorsement.

(4) Except as otherwise provided in subdivision (3), a payor bank or intermediary bank may disregard the endorsement and is not liable if the proceeds of the instrument are not received by the endorser or applied consistently with the endorsement.

(d) Except for an endorsement covered by subsection (c), if an instrument bears an endorsement using words to the effect that payment is to be made to the endorsee as agent, trustee, or other fiduciary for the benefit of the endorser or another person, the following rules apply:

(1) Unless there is notice of breach of fiduciary duty as provided in IC 26-1-3.1-307, a person who purchases the instrument from the endorsee or takes the instrument from the endorsee for collection or payment may pay the proceeds of payment or the value given for the instrument to the endorsee without regard to whether the endorsee violates a fiduciary duty to the endorser.

(2) A subsequent transferee of the instrument or person who pays the instrument is neither given notice nor otherwise affected by the restriction in the endorsement unless the transferee or payor knows that the fiduciary dealt with the instrument or its proceeds in breach of fiduciary duty.

(e) The presence on an instrument of an endorsement to which this section applies does not prevent a purchaser of the instrument from becoming a holder in due course of the instrument unless the purchaser is a converter under subsection (c) or has notice or knowledge of breach of fiduciary duty as stated in subsection (d).

(f) In an action to enforce the obligation of a party to pay the instrument, the obligor has a defense if payment would violate an endorsement to which this section applies and the payment is not permitted by this section.

As added by P.L.222-1993, SEC.5.
Ind. Code § 26-1-9.1-325 — Indiana Code / Title 26 / Article 1 / Chapter 9.1 / Section 26-1-9.1-325
Priority of security interests in transferred collateral
Status: reserved

Sec. 325. (a) Except as otherwise provided in subsection (b), a security interest created by a debtor is subordinate to a security interest in the same collateral created by another person if:

(1) the debtor acquired the collateral subject to the security interest created by the other person;

(2) the security interest created by the other person was perfected when the debtor acquired the collateral; and

(3) there is no period thereafter when the security interest is unperfected.

(b) Subsection (a) subordinates a security interest only if the security interest:

(1) otherwise would have priority solely under IC 26-1-9.1-322(a) or IC 26-1-9.1-324; or

(2) arose solely under IC 26-1-2-711(3) or IC 26-1-2.1-508(5).

As added by P.L.57-2000, SEC.45.
Ind. Code § 26-3-8-5 — Indiana Code / Title 26 / Article 3 / Chapter 8 / Section 26-3-8-5
"Renter"
Status: in_force

Sec. 5. As used in this chapter, "renter" means:

(1) a person who is entitled to the use of a rented space in a self-service storage facility under a rental agreement; or

(2) the sublessee, successor, or assignee of a person described in subdivision (1).

As added by P.L.265-1987, SEC.1.
Ind. Code § 26-1-2.1-510 — Indiana Code / Title 26 / Article 1 / Chapter 2.1 / Section 26-1-2.1-510
Installment lease contracts; rejection and default
Status: in_force

Sec. 510. (1) Under an installment lease contract a lessee may reject any delivery that is nonconforming if the nonconformity substantially impairs the value of that delivery and cannot be cured or the nonconformity is a defect in the required documents; but if the nonconformity does not fall within subsection (2) and the lessor or the supplier gives adequate assurance of its cure, the lessee must accept that delivery.

(2) Whenever nonconformity or default with respect to one or more deliveries substantially impairs the value of the installment lease contract as a whole there is a default with respect to the whole. But, the aggrieved party reinstates the installment lease contract as a whole if the aggrieved party accepts a nonconforming delivery without seasonably notifying of cancellation or brings an action with respect only to past deliveries or demands performance as to future deliveries.

As added by P.L.189-1991, SEC.3.
Ind. Code § 26-3-7-31.2 — Indiana Code / Title 26 / Article 3 / Chapter 7 / Section 26-3-7-31.2
Procedures for informal meetings; consent agreements
Status: in_force

Sec. 31.2. (a) If the director determines that an informal meeting under this chapter is necessary or appropriate, the following procedures apply:

(1) The director shall send a notice of an informal meeting to the licensee. The notice shall set forth the following:

(A) Each reason underlying the director's determination that an informal meeting is necessary.

(B) The subject matter to be discussed at the informal meeting.

(C) A place and time mutually agreed upon, within thirty (30) days of the date of the notice.

(D) If appropriate, any documents, information, or other materials to be produced in a manner and at a time and place designated in the notice.

(2) The director and the recipient may, at any time before an informal meeting, hold a telephone conference or other informal discussion as necessary to determine the location, date, and time of the informal meeting.

(3) An informal meeting under this section must be conducted in person or via a virtual conference with audio, video, and the ability to share, review, and edit documents or other materials in real time.

(4) Minutes summarizing the topics and points discussed, including proposed agreements or remedial actions raised or discussed by the informal meeting participants, must be taken by the agency. A copy of the minutes and any other materials from the informal meeting must be distributed to all participants within five (5) days of the informal meeting.

(b) A consent agreement may be entered into by the agency and the licensee in which the licensee agrees to take or refrain from certain actions in relation to the subject matter of the informal meeting. Any consent agreement at a minimum must contain the following:

(1) Specific description of the underlying facts giving rise to the consent agreement.

(2) Specific steps to be taken by the licensee to rectify or address the subject matter of the informal meeting.

(3) Specific deadlines or periods by or within which the licensee is to act, refrain from acting, or perform under the consent agreement.

(4) Specific deadlines by which the licensee is to notify the agency that the licensee has performed, in whole or in part, under the consent agreement and, as applicable, that the licensee believes it has addressed the subject matter of the informal meeting.

(5) Specific acts or omissions that will constitute a breach of the agreement and specific remedies available to the agency and the licensee to address a breach of the agreement.

(c) The existence and content of an informal meeting under subsection (a), along with the minutes of the meeting and any other related documents, information, or material, and a consent agreement under subsection (b) is confidential.

(d) Any offers or discussions from an informal hearing under subsection (a) are protected under the Indiana Trial Rules of Evidence Trial Rule 408.

As added by P.L.114-2025, SEC.36.
Ind. Code § 26-1-9.1-105 — Indiana Code / Title 26 / Article 1 / Chapter 9.1 / Section 26-1-9.1-105
Control of authoritative electronic copy of a record evidencing chattel paper; exclusive power; control on behalf of purchaser
Status: in_force

Sec. 105. (a) A purchaser has control of an authoritative electronic copy of a record evidencing chattel paper if a system employed for evidencing the assignment of interests in the chattel paper reliably establishes the purchaser as the person to which the authoritative electronic copy was assigned.

(b) A system satisfies subsection (a) if the record or records evidencing the chattel paper are created, stored, and assigned in a manner that:

(1) a single authoritative copy of the record or records exists which is unique, identifiable and, except as otherwise provided in subdivisions (4), (5), and (6), unalterable;

(2) the authoritative copy identifies the purchaser as the assignee of the record or records;

(3) the authoritative copy is communicated to and maintained by the purchaser or its designated custodian;

(4) copies or amendments that add or change an identified assignee of the authoritative copy can be made only with the consent of the purchaser;

(5) each copy of the authoritative copy and any copy of a copy is readily identifiable as a copy that is not the authoritative copy; and

(6) any amendment of the authoritative copy is readily identifiable as authorized or unauthorized.

(c) A system satisfies subsection (a), and a purchaser has control of an authoritative electronic copy of a record evidencing chattel paper, if the electronic copy, a record attached to or logically associated with the electronic copy, or a system in which the electronic copy is recorded:

(1) enables the purchaser readily to identify each electronic copy as either an authoritative copy or a nonauthoritative copy;

(2) enables the purchaser readily to identify itself in any way, including by name, identifying number, cryptographic key, office, or account number, as the assignee of the authoritative electronic copy; and

(3) gives the purchaser exclusive power, subject to subsection (d), to:

(A) prevent others from adding or changing an identified assignee of the authoritative electronic copy; and

(B) transfer control of the authoritative electronic copy.

(d) Subject to subsection (e), a power is exclusive under subsection (c)(3)(A) and (c)(3)(B) even if:

(1) the authoritative electronic copy, a record attached to or logically associated with the authoritative electronic copy, or a system in which the authoritative electronic copy is recorded limits the use of the authoritative electronic copy or has a protocol programmed to cause a change, including a transfer or loss of control; or

(2) the power is shared with another person.

(e) A power of a purchaser is not shared with another person under subsection (d)(2), and the purchaser's power is not exclusive if:

(1) the purchaser can exercise the power only if the power also is exercised by the other person; and

(2) the other person:

(A) can exercise the power without exercise of the power by the purchaser; or

(B) is the transferor to the purchaser of an interest in the chattel paper.

(f) If a purchaser has the powers specified in subsection (c)(3)(A) and (c)(3)(B), the powers are presumed to be exclusive.

(g) A purchaser has control of an authoritative electronic copy of a record evidencing chattel paper if another person, other than the transferor to the purchaser of an interest in the chattel paper:

(1) has control of the authoritative electronic copy and acknowledges that it has control on behalf of the purchaser; or

(2) obtains control of the authoritative electronic copy after having acknowledged that it will obtain control of the authoritative electronic copy on behalf of the purchaser.

As added by P.L.57-2000, SEC.45. Amended by P.L.54-2011, SEC.4; P.L.199-2023, SEC.42.
Ind. Code § 26-4-1-15 — Indiana Code / Title 26 / Article 4 / Chapter 1 / Section 26-4-1-15
"Grain indemnity program"
Status: in_force

Sec. 15. "Grain indemnity program" means the system created by this article in which the board pays money out of the fund to producers having financial losses due to a license revocation.

As added by P.L.250-1995, SEC.1. Amended by P.L.114-2025, SEC.53.
Ind. Code § 26-1-2-709 — Indiana Code / Title 26 / Article 1 / Chapter 2 / Section 26-1-2-709
Action for the price
Status: in_force

Sec. 709. (1) When the buyer fails to pay the price as it becomes due, the seller may recover, together with any incidental damages under IC 26-1-2-710, the price:

(a) of goods accepted or of conforming goods lost or damaged within a commercially reasonable time after risk of their loss has passed to the buyer; and

(b) of goods identified to the contract if the seller is unable after reasonable effort to resell them at a reasonable price or the circumstances reasonably indicate that such effort will be unavailing.

(2) Where the seller sues for the price, he must hold for the buyer any goods which have been identified to the contract and are still in his control, except that if resale becomes possible he may resell them at any time prior to the collection of the judgment. The net proceeds of any such resale must be credited to the buyer and payment of the judgment entitles him to any goods not resold.

(3) After the buyer has wrongfully rejected or revoked acceptance of the goods or has failed to make a payment due or has repudiated (IC 26-1-2-610), a seller who is held not entitled to the price under this section shall nevertheless be awarded damages for nonacceptance under IC 26-1-2-708.

Formerly: Acts 1963, c.317, s.2-709. As amended by P.L.152-1986, SEC.168.
Ind. Code § 26-3-4-1 — Indiana Code / Title 26 / Article 3 / Chapter 4 / Section 26-3-4-1
Transfer of purported warehouse receipt not issued by warehouseman
Status: in_force

Sec. 1. It shall be unlawful for any corporation, firm, limited liability company, or person, their agents or employees, to issue, sell, pledge, assign, or transfer, in this state, any receipt, certificate or other written instrument purporting to be a warehouse receipt, or in the similitude of a warehouse receipt, or designed to be understood as a warehouse receipt, for goods, wares or merchandise stored or deposited, or claimed to be stored or deposited, in any warehouse, public or private, in any other state, unless such receipt, certificate or other written instrument shall have been issued by the warehouseman operating such warehouse.

Formerly: Acts 1897, c.124, s.1. As amended by P.L.8-1993, SEC.405.
Ind. Code § 26-1-4-401 — Indiana Code / Title 26 / Article 1 / Chapter 4 / Section 26-1-4-401
When bank may charge customer's account
Status: in_force

Sec. 401. (a) A bank may charge against the account of a customer an item that is properly payable from that account even though the charge creates an overdraft. An item is properly payable if it is authorized by the customer and is in accordance with any agreement between the customer and the bank.

(b) A customer is not liable for the amount of an overdraft if the customer neither signed the item nor benefited from the proceeds of the item.

(c) A bank may charge against the account of a customer a check that is otherwise properly payable from the account, even though payment was made before the date of the check, unless the customer has given notice to the bank of the postdating describing the check with reasonable certainty. The notice is effective for the period stated in IC 26-1-4-403(b) for stop-payment orders, and must be received at such time and in such manner as to afford the bank a reasonable opportunity to act on it before the bank takes any action with respect to the check described in IC 26-1-4-303. If a bank charges against the account of a customer a check before the date stated in the notice of postdating, the bank is liable for damages for the loss resulting from its act. The loss may include damages for dishonor of subsequent items under IC 26-1-4-402.

(d) A bank that in good faith makes payment to a holder may charge the indicated account of its customer according to:

(1) the original terms of the altered item; or

(2) the terms of the completed item, even though the bank knows the item has been completed unless the bank has notice that the completion was improper.

Formerly: Acts 1963, c.317, s.4-401. As amended by P.L.222-1993, SEC.36.
Ind. Code § 26-1-4-404 — Indiana Code / Title 26 / Article 1 / Chapter 4 / Section 26-1-4-404
Bank not obligated to pay check more than six months old
Status: in_force

Sec. 404. A bank is under no obligation to a customer having a checking account to pay a check, other than a certified check, which is presented more than six (6) months after its date, but it may charge its customer's account for a payment made thereafter in good faith.

Formerly: Acts 1963, c.317, s.4-404.
Ind. Code § 26-1-4-405 — Indiana Code / Title 26 / Article 1 / Chapter 4 / Section 26-1-4-405
Death or incompetence of customer
Status: in_force

Sec. 405. (a) A payor or collecting bank's authority to accept, pay, or collect an item or to account for proceeds of its collection, if otherwise effective, is not rendered ineffective by the mental incompetence of a customer of either bank existing at the time the item is issued or its collection is undertaken if the bank does not know of an adjudication of incompetence. Neither death nor mental incompetence of a customer revokes the authority to accept, pay, collect, or account until the bank knows of the fact of death or of an adjudication of incompetence and has reasonable opportunity to act on it.

(b) Even with knowledge, a bank may for ten (10) days after the date of death pay or certify checks drawn on or before that date unless ordered to stop payment by a person claiming an interest in the account.

Formerly: Acts 1963, c.317, s.4-405. As amended by P.L.33-1989, SEC.25; P.L.222-1993, SEC.39.
Ind. Code § 26-1-9.1-327 — Indiana Code / Title 26 / Article 1 / Chapter 9.1 / Section 26-1-9.1-327
Priority of security interests in deposit account
Status: in_force

Sec. 327. The following rules govern priority among conflicting security interests in the same deposit account:

(1) A security interest held by a secured party having control of the deposit account under IC 26-1-9.1-104 has priority over a conflicting security interest held by a secured party that does not have control.

(2) Except as otherwise provided in subdivisions (3) and (4), security interests perfected by control under IC 26-1-9.1-314 rank according to priority in time of obtaining control.

(3) Except as otherwise provided in subdivision (4), a security interest held by the bank with which the deposit account is maintained has priority over a conflicting security interest held by another secured party.

(4) A security interest perfected by control under IC 26-1-9.1-104(a)(3) has priority over a security interest held by the bank with which the deposit account is maintained.

As added by P.L.57-2000, SEC.45.
Ind. Code § 26-1-2.1-511 — Indiana Code / Title 26 / Article 1 / Chapter 2.1 / Section 26-1-2.1-511
Merchant lessee's duties as to rightfully rejected goods
Status: in_force

Sec. 511. (1) Subject to any security interest of a lessee (IC 26-1-2.1-508(5)), if a lessor or a supplier has no agent or place of business at the market of rejection, a merchant lessee, after rejection of goods in the merchant lessee's possession or control, shall follow any reasonable instructions received from the lessor or the supplier with respect to the goods. In the absence of those instructions, a merchant lessee shall make reasonable efforts to sell, lease, or otherwise dispose of the goods for the lessor's account if they threaten to decline in value speedily. Instructions are not reasonable if on demand indemnity for expenses is not forthcoming.

(2) If a merchant lessee (subsection (1)) or any other lessee (IC 26-1-2.1-512) disposes of goods, the merchant lessee is entitled to reimbursement either from the lessor or the supplier or out of the proceeds for reasonable expenses of caring for and disposing of the goods and, if the expenses include no disposition commission, to such commission as is usual in the trade, or if there is none, to a reasonable sum not exceeding ten percent (10%) of the gross proceeds.

(3) In complying with this section or IC 26-1-2.1-512, the lessee is held only to good faith. Good faith conduct hereunder is neither acceptance or conversion nor the basis of an action for damages.

(4) A purchaser who purchases in good faith from a lessee pursuant to this section or IC 26-1-2.1-512 takes the goods free of any rights of the lessor and the supplier even though the lessee fails to comply with one or more of the requirements of IC 26-1-2.1.

As added by P.L.189-1991, SEC.3.
Ind. Code § 26-1-2-701 — Indiana Code / Title 26 / Article 1 / Chapter 2 / Section 26-1-2-701
Remedies for breach of collateral contracts not impaired
Status: in_force

Sec. 701. Remedies for breach of any obligation or promise collateral or ancillary to a contract for sale are not impaired by the provisions of IC 26-1-2.

Formerly: Acts 1963, c.317, s.2-701. As amended by P.L.152-1986, SEC.161.
Ind. Code § 26-4-4-9 — Indiana Code / Title 26 / Article 4 / Chapter 4 / Section 26-4-4-9
Certification of fund balance; discretion of board to suspend collection
Status: in_force

Sec. 9. (a) At the July meeting required under IC 26-4-3-5, the board shall certify the amount of money in the fund on June 30.

(b) Except as provided in section 8(c) of this chapter, the board may not require the collection of a producer premium during a fiscal year when the board certifies under subsection (a) that the fund has money in excess of twenty million dollars ($20,000,000). If the fund is at or below twenty million dollars ($20,000,000), the board shall reinstate the collection.

As added by P.L.250-1995, SEC.1. Amended by P.L.5-2009, SEC.4; P.L.75-2010, SEC.26; P.L.60-2015, SEC.18.
Ind. Code § 26-1-9.1-405 — Indiana Code / Title 26 / Article 1 / Chapter 9.1 / Section 26-1-9.1-405
Modification of assigned contract
Status: in_force

Sec. 405. (a) A modification of or substitution for an assigned contract is effective against an assignee if made in good faith. The assignee acquires corresponding rights under the modified or substituted contract. The assignment may provide that the modification or substitution is a breach of contract by the assignor. This subsection is subject to subsections (b) through (d).

(b) Subsection (a) applies to the extent that:

(1) the right to payment or a part thereof under an assigned contract has not been fully earned by performance; or

(2) the right to payment or a part thereof has been fully earned by performance and the account debtor has not received notification of the assignment under IC 26-1-9.1-406(a).

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

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

As added by P.L.57-2000, SEC.45.
Ind. Code § 26-1-9.1-625 — Indiana Code / Title 26 / Article 1 / Chapter 9.1 / Section 26-1-9.1-625
Remedies for secured party's failure to comply with chapter
Status: in_force

Sec. 625. (a) If it is established that a secured party is not proceeding in accordance with IC 26-1-9.1, a court may order or restrain collection, enforcement, or disposition of collateral on appropriate terms and conditions.

(b) Subject to subsections (c), (d), and (f), a person is liable for damages in the amount of any loss caused by a failure to comply with IC 26-1-9.1. Loss caused by a failure to comply may include loss resulting from the debtor's inability to obtain, or increased costs of, alternative financing.

(c) Except as otherwise provided in IC 26-1-9.1-628:

(1) a person that, at the time of the failure, was a debtor, was an obligor, or held a security interest in or other lien on the collateral may recover damages under subsection (b) for its loss; and

(2) if the collateral is consumer goods, a person that was a debtor or a secondary obligor at the time a secured party failed to comply with IC 26-1-9.1-601 through IC 26-1-9.1-628 may recover for that failure in any event an amount not less than the credit service charge plus ten percent (10%) of the principal amount of the obligation or the time-price differential plus ten percent (10%) of the cash price.

(d) A debtor whose deficiency is eliminated under IC 26-1-9.1-626 may recover damages for the loss of any surplus. However, a debtor or secondary obligor whose deficiency is eliminated or reduced under IC 26-1-9.1-626 may not otherwise recover under subsection (b) for noncompliance with the provisions of IC 26-1-9.1-601 through IC 26-1-9.1-628 relating to collection, enforcement, disposition, or acceptance.

(e) In addition to any damages recoverable under subsection (b), the debtor, consumer obligor, or person named as a debtor in a filed record, as applicable, may recover five hundred dollars ($500) in each case from a person that:

(1) fails to comply with IC 26-1-9.1-208;

(2) fails to comply with IC 26-1-9.1-209;

(3) files a record that the person is not entitled to file under IC 26-1-9.1-509(a);

(4) fails to cause the secured party of record to file or send a termination statement as required by IC 26-1-9.1-513(a) or IC 26-1-9.1-513(c);

(5) fails to comply with IC 26-1-9.1-616(b)(1) and whose failure is part of a pattern or consistent with a practice, of noncompliance; or

(6) fails to comply with IC 26-1-9.1-616(b)(2).

(f) A debtor or consumer obligor may recover damages under subsection (b) and, in addition, five hundred dollars ($500) in each case from a person that, without reasonable cause, fails to comply with a request under IC 26-1-9.1-210. A recipient of a request under IC 26-1-9.1-210 that never claimed an interest in the collateral or obligations that are the subject of a request under that section has a reasonable excuse for failure to comply with the request within the meaning of this subsection.

(g) If a secured party fails to comply with a request regarding a list of collateral or a statement of account under IC 26-1-9.1-210, the secured party may claim a security interest only as shown in the list or statement included in the request as against a person that is reasonably misled by the failure.

As added by P.L.57-2000, SEC.45. Amended by P.L.165-2001, SEC.18; P.L.158-2022, SEC.12.
Ind. Code § 26-1-9.1-615 — Indiana Code / Title 26 / Article 1 / Chapter 9.1 / Section 26-1-9.1-615
Application of proceeds of disposition; liability for deficiency and right to surplus
Status: in_force

Sec. 615. (a) A secured party shall apply or pay over for application the cash proceeds of disposition under IC 26-1-9.1-610 in the following order to:

(1) the reasonable expenses of retaking, holding, preparing for disposition, processing, and disposing, and, to the extent provided for by agreement and not prohibited by law, reasonable attorney's fees and legal expenses incurred by the secured party;

(2) the satisfaction of obligations secured by the security interest or agricultural lien under which the disposition is made;

(3) the satisfaction of obligations secured by any subordinate security interest in or other subordinate lien on the collateral if:

(A) the secured party receives from the holder of the subordinate security interest or other lien a signed demand for proceeds before distribution of the proceeds is completed; and

(B) in a case in which a consignor has an interest in the collateral, the subordinate security interest or other lien is senior to the interest of the consignor; and

(4) a secured party that is a consignor of the collateral if the secured party receives from the consignor a signed demand for proceeds before distribution of the proceeds is completed.

(b) If requested by a secured party, a holder of a subordinate security interest or other lien shall furnish reasonable proof of the interest or lien within a reasonable time. Unless the holder does so, the secured party need not comply with the holder's demand under subsection (a)(3).

(c) A secured party need not apply or pay over for application noncash proceeds of disposition under IC 26-1-9.1-610 unless the failure to do so would be commercially unreasonable. A secured party that applies or pays over for application noncash proceeds shall do so in a commercially reasonable manner.

(d) If the security interest under which a disposition is made secures payment or performance of an obligation, after making the payments and applications required by subsection (a) and permitted by subsection (c):

(1) unless subsection (a)(4) requires the secured party to apply or pay over cash proceeds to a consignor, the secured party shall account to and pay a debtor for any surplus; and

(2) the obligor is liable for any deficiency.

(e) If the underlying transaction is a sale of accounts, chattel paper, payment intangibles, or promissory notes:

(1) the debtor is not entitled to any surplus; and

(2) the obligor is not liable for any deficiency.

(f) The surplus or deficiency following a disposition is calculated based on the amount of proceeds that would have been realized in a disposition complying with IC 26-1-9.1-601 through IC 26-1-9.1-628 to a transferee other than the secured party, a person related to the secured party, or a secondary obligor if:

(1) the transferee in the disposition is the secured party, a person related to the secured party, or a secondary obligor; and

(2) the amount of proceeds of the disposition is significantly below the range of proceeds that a complying disposition to a person other than the secured party, a person related to the secured party, or a secondary obligor would have brought.

(g) A secured party that receives cash proceeds of a disposition in good faith and without knowledge that the receipt violates the rights of the holder of a security interest or other lien that is not subordinate to the security interest or agricultural lien under which the disposition is made:

(1) takes the cash proceeds free of the security interest or other lien;

(2) is not obligated to apply the proceeds of the disposition to the satisfaction of obligations secured by the security interest or other lien; and

(3) is not obligated to account to or pay the holder of the security interest or other lien for any surplus.

As added by P.L.57-2000, SEC.45. Amended by P.L.199-2023, SEC.82.
Ind. Code § 26-3-7-6.5 — Indiana Code / Title 26 / Article 3 / Chapter 7 / Section 26-3-7-6.5
Disclosure of information; investigations
Status: in_force

Sec. 6.5. (a) The names, locations, respective counties, and license status of licensees may be disclosed.

(b) Unless in accordance with a judicial order, the director, the agency, its counsel, auditors, or its other employees or agents shall not divulge any other information disclosed by the applications or reports filed or inspections performed under the provisions of this chapter. However, information may be divulged to agents and employees of the agency, the board, as required by subsection (d), the state board of accounts or another entity retained under subsection (f), or to any other legal representative of the state or federal government otherwise empowered to see or review the information.

(c) Except as provided in subsection (d), the director may disclose the information described in subsection (b) only in the form of an information summary or profile, or statistical study based upon data provided with respect to more than one (1) warehouse, grain buyer, or buyer-warehouse that does not identify the warehouse, grain buyer, or buyer-warehouse to which the information applies.

(d) The director shall disclose to the board, while the board is in executive session, the status and inspection results of any licensee that poses a significant risk of the director revoking the licensee's license or that has failed to meet the minimum requirements in section 14.4 of this chapter. The director may not include any identifying information regarding the licensee. The director may not disclose the information to a board member who has not executed a confidentiality agreement presented by the agency.

(e) The director shall provide the board with records of previous license revocations to analyze the factors that have led to previous licenses being revoked.

(f) The director may use the services of the state board of accounts or retain another entity to assist the agency in investigating any audit results or other factors which indicate the potential for the revocation of a licensee's license. The director may seek the advice and guidance of the board on selecting an entity or on any other matter.

Formerly: Acts 1975, P.L.277, SEC.4. As amended by Acts 1979, P.L.249, SEC.3; P.L.12-1984, SEC.5; P.L.139-1996, SEC.9; P.L.125-1997, SEC.24; P.L.64-2009, SEC.6; P.L.60-2015, SEC.9; P.L.145-2017, SEC.5; P.L.208-2021, SEC.4; P.L.114-2025, SEC.13.
Ind. Code § 26-4-4-10 — Indiana Code / Title 26 / Article 4 / Chapter 4 / Section 26-4-4-10
Repealed
Status: repealed

As added by P.L.250-1995, SEC.1. Repealed by P.L.268-2001, SEC.2.
Ind. Code § 26-1-5.1-108 — Indiana Code / Title 26 / Article 1 / Chapter 5.1 / Section 26-1-5.1-108
Issuer's duty and privilege to honor; standard practice; issuer's rights upon honor of presentation
Status: in_force

Sec. 108. (a) Except as otherwise provided in IC 26-1-5.1-109, an issuer shall honor a presentation that, as determined by the standard practice referred to in subsection (e), appears on its face strictly to comply with the terms and conditions of the letter of credit. Except as otherwise provided in IC 26-1-5.1-113 and unless otherwise agreed with the applicant, an issuer shall dishonor a presentation that does not appear so to comply.

(b) An issuer has a reasonable time after presentation, but not beyond the end of the seventh business day of the issuer after the day of its receipt of documents:

(1) to honor;

(2) if the letter of credit provides for honor to be completed more than seven (7) business days after presentation, to accept a draft or incur a deferred obligation; or

(3) to give notice to the presenter of discrepancies in the presentation.

(c) Except as otherwise provided in subsection (d), an issuer is precluded from asserting as a basis for dishonor any discrepancy if timely notice is not given, or any discrepancy not stated in the notice if timely notice is given.

(d) Failure to give the notice specified in subsection (b) or to mention fraud, forgery, or expiration in the notice does not preclude the issuer from asserting as a basis for dishonor fraud or forgery as described in IC 26-1-5.1-109(a) or expiration of the letter of credit before presentation.

(e) An issuer shall observe standard practice of financial institutions that regularly issue letters of credit. Determination of the issuer's observance of the standard practice is a matter of interpretation for the court. The court shall offer the parties a reasonable opportunity to present evidence of the standard practice.

(f) An issuer is not responsible for:

(1) the performance or nonperformance of the underlying contract, arrangement, or transaction;

(2) an act or omission of others; or

(3) observance or knowledge of the usage of a particular trade other than the standard practice referred to in subsection (e).

(g) If an undertaking constituting a letter of credit under IC 26-1-5.1-102(a)(10) contains nondocumentary conditions, an issuer shall disregard the nondocumentary conditions and treat them as if they were not stated.

(h) An issuer that has dishonored a presentation shall return the documents or hold them at the disposal of, and send advice to that effect to, the presenter.

(i) An issuer that has honored a presentation as permitted or required by IC 26-1-5.1:

(1) is entitled to be reimbursed by the applicant in immediately available funds not later than the date of its payment of funds;

(2) takes the documents free of claims of the beneficiary or presenter;

(3) is precluded from asserting a right of recourse on a draft under IC 26-1-3.1-414 and IC 26-1-3.1-415;

(4) except as otherwise provided in IC 26-1-5.1-110 and IC 26-1-5.1-117, is precluded from restitution of money paid or other value given by mistake to the extent the mistake concerns discrepancies in the documents or tender which are apparent on the face of the presentation; and

(5) is discharged to the extent of its performance under the letter of credit unless the issuer honored a presentation in which a required signature of a beneficiary was forged.

As added by P.L.183-1996, SEC.4.
Ind. Code § 26-4-6-3 — Indiana Code / Title 26 / Article 4 / Chapter 6 / Section 26-4-6-3
Compensation from fund; extension
Status: in_force

Sec. 3. (a) Except as provided in subsection (b), within ninety (90) days of the board's approval of a claim, the board shall compensate from the fund, in an amount described in section 4 of this chapter and in the manner described in subsection (c), a claimant who has incurred a financial loss or storage loss due to the revocation of a license of a grain buyer or warehouse operator licensed under IC 26-3-7.

(b) The time for payment may be extended if the board and claimant mutually agree and put the terms of the payment in writing.

(c) If:

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

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

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

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

the board may compensate the claimant described in subdivision (1) in the amount to which the claimant is entitled under section 4 of this chapter by causing the issuance of a check payable jointly to the order of the claimant and any secured party described in subdivision (1) who has given the notices described in subdivision (2). If only one (1) secured party described in subdivision (1) is a payee, the rights of the secured party in the check shall be to the extent of the indebtedness of the claimant to the secured party. If two (2) or more secured parties described in subdivision (1) are payees, the nature, extent, and priority of their respective rights in the check are determined in the same manner as the nature, extent, and priority of their respective security interest under IC 26-1-9.1.

As added by P.L.250-1995, SEC.1. Amended by P.L.115-1999, SEC.5; P.L.1-2002, SEC.102; P.L.75-2010, SEC.28; P.L.114-2025, SEC.73.
Ind. Code § 26-1-8.1-208 — Indiana Code / Title 26 / Article 1 / Chapter 8.1 / Section 26-1-8.1-208
Warranties by security certificate authenticating signatory
Status: in_force

Sec. 208. (a) A person signing a security certificate as authenticating trustee, registrar, transfer agent, or the like, warrants to a purchaser for value of the certificated security, if the purchaser is without notice of a particular defect, that:

(1) the certificate is genuine;

(2) the person's own participation in the issue of the security is within the person's capacity and within the scope of the authority received by the person from the issuer; and

(3) the person has reasonable grounds to believe that the certificated security is in the form and within the amount the issuer is authorized to issue.

(b) Unless otherwise agreed, a person signing under subsection (a) does not assume responsibility for the validity of the security in other respects.

As added by P.L.247-1995, SEC.10.
Ind. Code § 26-3-7.5-8 — Indiana Code / Title 26 / Article 3 / Chapter 7.5 / Section 26-3-7.5-8
Rulemaking
Status: in_force

Sec. 8. (a) The agency may adopt rules under IC 4-22-2 to administer this chapter.

(b) A copy of this chapter and the rules adopted under this chapter must be posted in a conspicuous manner at every commercial grain buying site.

As added by P.L.114-2025, SEC.43.
Ind. Code § 26-1-9.1-501 — Indiana Code / Title 26 / Article 1 / Chapter 9.1 / Section 26-1-9.1-501
Filing office
Status: in_force

Sec. 501. (a) Except as otherwise provided in subsections (b), (c), and (d), if the local law of this state governs perfection of a security interest or agricultural lien, the office in which to file a financing statement to perfect the security interest or agricultural lien is:

(1) the office designated for the filing or recording of a record of a mortgage on the related real property, if:

(A) the collateral is as-extracted collateral or timber to be cut; or

(B) the financing statement is filed as a fixture filing and the collateral is goods that are or are to become fixtures; or

(2) the office of the secretary of state, in all other cases, including a case in which the collateral is goods that are or are to become fixtures and the financing statement is not filed as a fixture filing.

(b) The office in which to file a financing statement to perfect a security interest in collateral, including fixtures, of a transmitting utility is the office of the secretary of state. The financing statement also constitutes a fixture filing as to the collateral indicated in the financing statement which is or is to become fixtures.

(c) Before July 1, 2002, the requirements for perfection of an agricultural lien are as prescribed in the statute establishing the agricultural lien.

(d) Before July 1, 2002, the office in which to file a financing statement to perfect a security interest in equipment used in a farming operation, a farm product, or an account or a general intangible arising from or relating to the sale of a farm product by a farmer is:

(1) the office of the county recorder in the county of the debtor's principal residence, if the debtor is an individual with the debtor's principal residence in Indiana;

(2) the office of the county recorder in the county of the debtor's place of business, if the debtor is an organization with one (1) place of business in Indiana;

(3) the office of the county recorder in the county of the debtor's chief executive office, if the debtor is an organization with two (2) or more places of business in Indiana and the debtor's chief executive office is in Indiana; and

(4) the office of the county recorder in the county in which the collateral is located, for equipment used in a farming operation or farm product, or the office of the secretary of state, for an account or a general intangible arising from or relating to the sale of a farm product by a farmer, in all other cases.

(e) A financing statement filed under subsection (d) is effective for five (5) years after the date the financing statement is filed.

(f) After June 30, 2001, and before July 1, 2002, a financing statement filed under subsection (d) may be amended only by filing an amendment in the same office of county recorder as the office in which the financing statement being amended was filed.

(g) After June 30, 2002, a financing statement filed under subsection (d) may be amended only if a replacement financing statement is filed in the office of the secretary of state. The replacement financing statement must:

(1) satisfy the requirements of IC 26-1-9.1 for an initial financing statement;

(2) identify the earlier financing statement filed under subsection (d) by:

(A) indicating the office in which the earlier financing statement was filed; and

(B) providing the dates of filing and file numbers, if any, of:

(i) the earlier financing statement filed under subsection (d); and

(ii) the most recent amendment filed with respect to the financing statement filed under subsection (d); and

(3) indicate that the earlier financing statement filed under subsection (d) remains effective.

(h) The filing of a replacement financing statement under subsection (g) is effective as a continuation statement of the earlier financing statement filed under subsection (d) if it is filed:

(1) after June 30, 2002; and

(2) before the lapse of the earlier financing statement filed under subsection (d).

The filing of a replacement financing statement under subsection (g) continues the effectiveness of the earlier financing statement filed under subsection (d) for five (5) years after the date the replacement financing statement is filed.

(i) After June 30, 2002, a financing statement filed under subsection (d) may be terminated:

(1) by filing a termination statement in the office in which the initial financing statement has been filed if no replacement financing statement has been filed under subsection (g); or

(2) by filing a termination statement in the office of the secretary of state if a replacement financing statement has been filed under subsection (g).

(j) After June 30, 2002, a financing statement filed under subsection (d) may be assigned only if:

(1) a replacement financing statement is filed under subsection (g); and

(2) an assignment of record is filed that satisfies IC 26-1-9.1-514.

(k) After June 30, 2002, a financing statement filed under subsection (c) may be amended (for purposes other than continuation, termination, or assignment) only if:

(1) a replacement financing statement is filed under subsection (g); and

(2) an amendment is filed that satisfies IC 26-1-9.1-512.

As added by P.L.57-2000, SEC.45. Amended by P.L.165-2001, SEC.11.
Ind. Code § 26-1-5.1-109 — Indiana Code / Title 26 / Article 1 / Chapter 5.1 / Section 26-1-5.1-109
Fraud and forgery
Status: in_force

Sec. 109. (a) If a presentation is made that appears on its face strictly to comply with the terms and conditions of the letter of credit, but a required document is forged or materially fraudulent, or honor of the presentation would facilitate a material fraud by the beneficiary on the issuer or applicant:

(1) the issuer shall honor the presentation, if honor is demanded by:

(i) a nominated person who has given value in good faith and without notice of forgery or material fraud;

(ii) a confirmer who has honored its confirmation in good faith;

(iii) a holder in due course of a draft drawn under the letter of credit which was taken after acceptance by the issuer or nominated person; or

(iv) an assignee of the issuer's or nominated person's deferred obligation that was taken for value and without notice of forgery or material fraud after the obligation was incurred by the issuer or nominated person; and

(2) the issuer, acting in good faith, may honor or dishonor the presentation in any other case.

(b) If an applicant claims that a required document is forged or materially fraudulent or that honor of the presentation would facilitate a material fraud by the beneficiary on the issuer or applicant, a court of competent jurisdiction may temporarily or permanently enjoin the issuer from honoring a presentation or grant similar relief against the issuer or other persons only if the court finds that:

(1) the relief is not prohibited under the law applicable to an accepted draft or deferred obligation incurred by the issuer;

(2) a beneficiary, issuer, or nominated person who may be adversely affected is adequately protected against loss that it may suffer because the relief is granted;

(3) all of the conditions to entitle a person to the relief under the law of Indiana have been met; and

(4) on the basis of the information submitted to the court, the applicant is more likely than not to succeed under its claim of forgery or material fraud and the person demanding honor does not qualify for protection under subsection (a)(1).

As added by P.L.183-1996, SEC.4.
Ind. Code § 26-1-10-102 — Indiana Code / Title 26 / Article 1 / Chapter 10 / Section 26-1-10-102
Specific repealer
Status: repealed

Sec. 102. (1) To the extent that the following statutes are inconsistent with IC 26-1-7, the statutes are repealed:

IC 32-33-14, dealing with liens for warehousing and forwarding.

IC 26-3-4, prescribing requirements of warehouse receipts for goods stored in another state.

(2) To the extent that the following statutes are inconsistent with IC 26-1, the statutes are repealed:

IC 26-2-3, governing the rights of parties on certain negotiable and non-negotiable instruments.

IC 30-2-4-3, concerning fiduciaries.

(3) To the extent that IC 34-1-2-1 (before its repeal), IC 34-1-2-2 (before its repeal), and IC 34-11-2 prescribe statutes of limitations inconsistent with IC 26-1-2-725, IC 26-1-2-725 prevails.

Formerly: Acts 1963, c.317, s.10-102. As amended by P.L.93-1985, SEC.39; P.L.1-1991, SEC.164; P.L.1-1998, SEC.136; P.L.2-2002, SEC.78.
Ind. Code § 26-4-3-5 — Indiana Code / Title 26 / Article 4 / Chapter 3 / Section 26-4-3-5
Board of directors; meetings
Status: in_force

Sec. 5. The board shall meet at least two (2) times each year. One (1) meeting of the board must be held in July.

As added by P.L.250-1995, SEC.1. Amended by P.L.75-2010, SEC.23.
Ind. Code § 26-1-4.1-502 — Indiana Code / Title 26 / Article 1 / Chapter 4.1 / Section 26-1-4.1-502
Creditor process served on receiving bank; setoff by beneficiary's bank
Status: in_force

Sec. 502. (a) As used in this section, "creditor process" means levy, attachment, garnishment, notice of lien, sequestration, or similar process issued by or on behalf of a creditor or other claimant with respect to an account.

(b) This subsection applies to creditor process with respect to an authorized account of the sender of a payment order if the creditor process is served on the receiving bank. For the purpose of determining rights with respect to the creditor process, if the receiving bank accepts the payment order the balance in the authorized account is deemed to be reduced by the amount of the payment order to the extent the bank did not otherwise receive payment of the order, unless the creditor process is served at a time and in a manner affording the bank a reasonable opportunity to act on it before the bank accepts the payment order.

(c) If a beneficiary's bank has received a payment order for payment to the beneficiary's account in the bank, the following rules apply:

(1) The bank may credit the beneficiary's account. The amount credited may be set off against an obligation owed by the beneficiary to the bank or may be applied to satisfy creditor process served on the bank with respect to the account.

(2) The bank may credit the beneficiary's account and allow withdrawal of the amount credited unless creditor process with respect to the account is served at a time and in a manner affording the bank a reasonable opportunity to act to prevent withdrawal.

(3) If creditor process with respect to the beneficiary's account has been served and the bank has had a reasonable opportunity to act on it, the bank may not reject the payment order except for a reason unrelated to the service of process.

(d) Creditor process with respect to a payment by the originator to the beneficiary pursuant to a funds transfer may be served only on the beneficiary's bank with respect to the debt owed by that bank to the beneficiary. Any other bank served with the creditor process is not obliged to act with respect to the process.

As added by P.L.189-1991, SEC.4.
Ind. Code § 26-1-8.1-108 — Indiana Code / Title 26 / Article 1 / Chapter 8.1 / Section 26-1-8.1-108
Warranties upon purchase or transfer of security
Status: in_force

Sec. 108. (a) A person who transfers a certificated security to a purchaser for value warrants to the purchaser, and an endorser, if the transfer is by endorsement, warrants to any subsequent purchaser, that:

(1) the certificate is genuine and has not been materially altered;

(2) the transferor or endorser does not know of any fact that might impair the validity of the security;

(3) there is no adverse claim to the security;

(4) the transfer does not violate any restriction on transfer;

(5) if the transfer is by endorsement, the endorsement is made by an appropriate person, or if the endorsement is by an agent, the agent has actual authority to act on behalf of the appropriate person; and

(6) the transfer is otherwise effective and rightful.

(b) A person who originates an instruction for registration of transfer of an uncertificated security to a purchaser for value warrants to the purchaser that:

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

(2) the security is valid;

(3) there is no adverse claim to the security; and

(4) at the time the instruction is presented to the issuer:

(i) the purchaser will be entitled to the registration of transfer;

(ii) the transfer will be registered by the issuer free from all liens, security interests, restrictions, and claims other than those specified in the instruction;

(iii) the transfer will not violate any restriction on transfer; and

(iv) the requested transfer will otherwise be effective and rightful.

(c) A person who transfers an uncertificated security to a purchaser for value and does not originate an instruction in connection with the transfer warrants that:

(1) the uncertificated security is valid;

(2) there is no adverse claim to the security;

(3) the transfer does not violate any restriction on transfer; and

(4) the transfer is otherwise effective and rightful.

(d) A person who endorses a security certificate warrants to the issuer that:

(1) there is no adverse claim to the security; and

(2) the endorsement is effective.

(e) A person who originates an instruction for registration of transfer of an uncertificated security warrants to the issuer that:

(1) the instruction is effective; and

(2) at the time the instruction is presented to the issuer the purchaser will be entitled to the registration of transfer.

(f) A person who presents a certificated security for registration of transfer or for payment or exchange warrants to the issuer that the person is entitled to the registration, payment, or exchange, but a purchaser for value and without notice of adverse claims to whom transfer is registered warrants only that the person has no knowledge of any unauthorized signature in a necessary endorsement.

(g) If a person acts as agent of another in delivering a certificated security to a purchaser, the identity of the principal was known to the person to whom the certificate was delivered, and the certificate delivered by the agent was received by the agent from the principal or received by the agent from another person at the direction of the principal, the person delivering the security certificate warrants only that the delivering person has authority to act for the principal and does not know of any adverse claim to the certificated security.

(h) A secured party who redelivers a security certificate received, or after payment and on order of the debtor delivers the security certificate to another person, makes only the warranties of an agent under subsection (g).

(i) Except as otherwise provided in subsection (g), a broker acting for a customer makes to the issuer and a purchaser the warranties provided in subsections (a) through (f). A broker that delivers a security certificate to its customer, or causes its customer to be registered as the owner of an uncertificated security, makes to the customer the warranties provided in subsection (a) or (b), and has the rights and privileges of a purchaser under this section. The warranties of and in favor of the broker acting as an agent are in addition to applicable warranties given by and in favor of the customer.

As added by P.L.247-1995, SEC.10.
Ind. Code § 26-1-2-103 — Indiana Code / Title 26 / Article 1 / Chapter 2 / Section 26-1-2-103
Definitions and index of definitions
Status: in_force

Sec. 103. (1) In IC 26-1-2, unless the context otherwise requires:

(a) "Buyer" means a person who buys or contracts to buy goods.

(b) "Good faith" in the case of a merchant means honesty in fact and observance of reasonable commercial standards of fair dealing in the trade.

(c) "Receipt" of goods means taking physical possession of them.

(d) "Seller" means a person who sells or contracts to sell goods.

(2) Other definitions applying to IC 26-1-2, or to specified parts thereof, and the sections in which they appear are:

"Acceptance". IC 26-1-2-606.

"Banker's credit". IC 26-1-2-325.

"Between merchants". IC 26-1-2-104.

"Cancellation". IC 26-1-2-106(4).

"Commercial unit". IC 26-1-2-105.

"Confirmed credit". IC 26-1-2-325.

"Conforming to contract". IC 26-1-2-106.

"Contract for sale". IC 26-1-2-106.

"Cover". IC 26-1-2-712.

"Entrusting". IC 26-1-2-403.

"Financing agency". IC 26-1-2-104.

"Future goods". IC 26-1-2-105.

"Goods". IC 26-1-2-105.

"Identification". IC 26-1-2-501.

"Instalment contract". IC 26-1-2-612.

"Letter of credit". IC 26-1-2-325.

"Lot". IC 26-1-2-105.

"Merchant". IC 26-1-2-104.

"Overseas". IC 26-1-2-323.

"Person in the position of seller". IC 26-1-2-707.

"Present sale". IC 26-1-2-106.

"Sale". IC 26-1-2-106.

"Sale on approval". IC 26-1-2-326.

"Sale or return". IC 26-1-2-326.

"Termination". IC 26-1-2-106.

(3) "Control" as provided in IC 26-1-7-106 and the following definitions apply to IC 26-1-2:

"Check". IC 26-1-3.1-104.

"Consignee". IC 26-1-7-102.

"Consignor". IC 26-1-7-102.

"Consumer goods". IC 26-1-9.1-102.

"Dishonor". IC 26-1-3.1-502.

"Draft". IC 26-1-3.1-104.

(4) In addition, IC 26-1-1 contains general definitions and principles of construction and interpretation applicable throughout IC 26-1-2.

Formerly: Acts 1963, c.317, s.2-103. As amended by P.L.152-1986, SEC.121; P.L.222-1993, SEC.3; P.L.57-2000, SEC.15; P.L.143-2007, SEC.7.
Ind. Code § 26-2-7-1 — Indiana Code / Title 26 / Article 2 / Chapter 7 / Section 26-2-7-1
Check
Status: in_force

Sec. 1. As used in this chapter, "check" includes a draft.

As added by P.L.42-1993, SEC.18.
Ind. Code § 26-1-2-203 — Indiana Code / Title 26 / Article 1 / Chapter 2 / Section 26-1-2-203
Seals inoperative
Status: in_force

Sec. 203. The affixing of a seal to a record evidencing a contract for sale or an offer to buy or sell goods does not constitute the record. A sealed instrument and the law with respect to sealed instruments does not apply to such a contract or offer.

Formerly: Acts 1963, c.317, s.2-203. As amended by P.L.199-2023, SEC.7; P.L.9-2024, SEC.476.
Ind. Code § 26-3-8-2 — Indiana Code / Title 26 / Article 3 / Chapter 8 / Section 26-3-8-2
"Emergency"
Status: in_force

Sec. 2. As used in this chapter, "emergency" means any sudden, unexpected occurrence or circumstance at or near a self-service storage facility that requires immediate action to avoid injury to persons or property at or near the self-service storage facility.

As added by P.L.265-1987, SEC.1.
Ind. Code § 26-3-2-7 — Indiana Code / Title 26 / Article 3 / Chapter 2 / Section 26-3-2-7
Short title
Status: in_force

Sec. 7. This chapter may be cited as the Uniform Warehouse Receipts Act.

Formerly: Acts 1921, c.100, s.61. As amended by P.L.152-1986, SEC.306.
Ind. Code § 26-1-7-603 — Indiana Code / Title 26 / Article 1 / Chapter 7 / Section 26-1-7-603
Conflicting claims; interpleader
Status: in_force

Sec. 603. If more than one (1) person claims title to or possession of the goods, the bailee is excused from delivery until the bailee has a reasonable time to ascertain the validity of the adverse claims or to commence an action for interpleader. The bailee may assert an interpleader either in defending an action for nondelivery of the goods or by original action, whichever is appropriate.

Formerly: Acts 1963, c.317, s.7-603. As amended by P.L.143-2007, SEC.63.
Ind. Code § 26-1-2-102 — Indiana Code / Title 26 / Article 1 / Chapter 2 / Section 26-1-2-102
Scope; transactions in goods; hybrid transactions; transactions creating security interest excluded; statutes regulating sales to certain buyers not impaired or repealed
Status: repealed

Sec. 102. (1) Unless the context otherwise requires, and except as provided in subsection (3), this chapter applies to transactions in goods and, in the case of a hybrid transaction, this chapter applies to the extent provided in subsection (2).

(2) In a hybrid transaction, the following apply:

(a) If the sale of goods aspects do not predominate, only the provisions of this chapter which relate primarily to the sales of goods aspects of the transaction apply, and the provisions that relate to the transaction as a whole do not apply.

(b) If the sale of goods aspects predominate, this chapter applies to the transaction but does not preclude the application in appropriate circumstances of other law to aspects of the transaction that do not relate to the sale of goods.

(3) This chapter does not:

(a) apply to a transaction that, even though in the form of an unconditional contract to sell or present sale, operates to create a security interest; or

(b) impair or repeal a statute regulating sales to consumers, farmers, or other specified classes of buyers.

Formerly: Acts 1963, c.317, s.2-102. As amended by P.L.152-1986, SEC.120; P.L.2-1991, SEC.86; P.L.199-2023, SEC.3.
Ind. Code § 26-1-2.1-304 — Indiana Code / Title 26 / Article 1 / Chapter 2.1 / Section 26-1-2.1-304
Subsequent lease of goods by lessor
Status: reserved

Sec. 304. (1) Subject to IC 26-1-2.1-303, a subsequent lessee from a lessor of goods under an existing lease contract obtains, to the extent of the leasehold interest transferred, the leasehold interest in the goods that the lessor had or had power to transfer, and except as provided in subsection (2) and IC 26-1-2.1-527(4), takes subject to the existing lease contract. A lessor with voidable title has power to transfer a good leasehold interest to a good faith subsequent lessee for value, but only to the extent set forth in the preceding sentence. If goods have been delivered under a transaction of purchase, the lessor has that power even though:

(a) the lessor's transferor was deceived as to the identity of the lessor;

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

(c) it was agreed that the transaction was to be a "cash sale"; or

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

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

(3) A subsequent lessee from the lessor 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 § 26-1-2-515 — Indiana Code / Title 26 / Article 1 / Chapter 2 / Section 26-1-2-515
Preserving evidence of goods in dispute
Status: in_force

Sec. 515. In furtherance of the adjustment of any claim or dispute

(a) either party on reasonable notification to the other and for the purpose of ascertaining the facts and preserving evidence has the right to inspect, test and sample the goods including such of them as may be in the possession or control of the other; and

(b) the parties may agree to a third party inspection or survey to determine the conformity or condition of the goods and may agree that the findings shall be binding upon them in any subsequent litigation or adjustment.

Formerly: Acts 1963, c.317, s.2-515.
Ind. Code § 26-1-7-601 — Indiana Code / Title 26 / Article 1 / Chapter 7 / Section 26-1-7-601
Lost and missing documents
Status: in_force

Sec. 601. (a) If a document of title is lost, stolen, or destroyed, a court may order delivery of the goods or issuance of a substitute document and the bailee may without liability to any person comply with the order. If the document was negotiable, a court may not order delivery of the goods or issuance of a substitute document without the claimant's posting security unless it finds that any person that may suffer loss as a result of nonsurrender of possession or control of the document is adequately protected against the loss. If the document was nonnegotiable, the court may require security. The court may also order payment of the bailee's reasonable costs and attorney's fees in an action under this subsection.

(b) A bailee that, without a court order, delivers goods to a person claiming under a missing negotiable document of title is liable to any person injured thereby. If the delivery is not in good faith, the bailee is liable for conversion. Delivery in good faith is not conversion if the claimant posts security with the bailee in an amount at least double the value of the goods at the time of posting to indemnify any person injured by the delivery that files a notice of claim within one (1) year after the delivery.

Formerly: Acts 1963, c.317, s.7-601. As amended by P.L.143-2007, SEC.61.
Ind. Code § 26-3-8-14 — Indiana Code / Title 26 / Article 3 / Chapter 8 / Section 26-3-8-14
Sale of personal property; advertisement; notice of other disposition
Status: in_force

Sec. 14. (a) After the expiration of the time stated in the owner's notice under section 12(c)(2) of this chapter, if the personal property has not been otherwise disposed of in a manner described in section 12(c)(7)(A)(ii) or 12(c)(7)(B) of this chapter, an owner enforcing the owner's lien shall prepare for a sale of the personal property under this section.

(b) Except as otherwise permitted under subsection (c), the owner shall cause an advertisement of sale to be published one (1) time before the date of the sale in a newspaper of general circulation in the county in which the self-service storage facility is located. The advertisement must include:

(1) a statement that the personal property stored in the renter's rented space will be sold to satisfy the owner's lien;

(2) the address of the self-service storage facility, the number or other designation (if any) of the space where the personal property is located, and the name of the renter;

(3) the manner of the sale; and

(4) the time and place of the sale, as applicable.

(c) As an alternative to the publication described in subsection (b), the owner may advertise the sale in any other commercially reasonable manner that is likely to attract at least three (3) independent bidders to the sale. An advertisement by an alternative method permitted under this section must include the information required under subsection (b)(1) through (b)(4).

(d) The sale must be held at least ten (10) days after:

(1) the publication under subsection (b); or

(2) the first publication, transmission, or communication of an advertisement under subsection (c);

as applicable. If, after the publication, transmission, or other communication of notice under this section, the sale of the personal property is not consummated, the owner shall notify the renter in writing at the renter's last known address of the other disposition the owner intends for the property.

As added by P.L.265-1987, SEC.1. Amended by P.L.144-2014, SEC.6.
Ind. Code § 26-4-6-5 — Indiana Code / Title 26 / Article 4 / Chapter 6 / Section 26-4-6-5
Repealed
Status: repealed

As added by P.L.250-1995, SEC.1. Repealed by P.L.75-2010, SEC.35.
Ind. Code § 26-1-9.1-302 — Indiana Code / Title 26 / Article 1 / Chapter 9.1 / Section 26-1-9.1-302
Law governing perfection and priority of agricultural liens
Status: in_force

Sec. 302. While farm products are located in a jurisdiction, the local law of that jurisdiction governs perfection, the effect of perfection or nonperfection, and the priority of an agricultural lien on the farm products.

As added by P.L.57-2000, SEC.45.
Ind. Code § 26-1-3.1-604 — Indiana Code / Title 26 / Article 1 / Chapter 3.1 / Section 26-1-3.1-604
Discharge by cancellation or renunciation
Status: in_force

Sec. 604. (a) A person entitled to enforce an instrument, with or without consideration, may discharge the obligation of a party to pay the instrument:

(1) by an intentional voluntary act, such as surrender of the instrument to the party, destruction, mutilation, or cancellation of the instrument, cancellation or striking out of the party's signature, or the addition of words to the instrument indicating discharge; or

(2) by agreeing not to sue or otherwise renouncing rights against the party by a signed record.

The obligation of a party to pay a check is not discharged solely by destruction of the check in connection with a process in which information is extracted from the check and an image of the check is made and, subsequently, the information and image are transmitted for payment.

(b) Cancellation or striking out of an endorsement under subsection (a) does not affect the status and rights of a party derived from the endorsement.

As added by P.L.222-1993, SEC.5. Amended by P.L.135-2009, SEC.13; P.L.199-2023, SEC.21.
Ind. Code § 26-1-12.5-302 — Indiana Code / Title 26 / Article 1 / Chapter 12.5 / Section 26-1-12.5-302
Security interest enforceable and perfected on June 30, 2023; conditions and time frame for continued enforceability and perfection after June 30, 2023
Status: in_force

Sec. 302. (a) A security interest that is enforceable and perfected on June 30, 2023, is a perfected security interest under the act if, on July 1, 2023, the requirements for enforceability and perfection under the act are satisfied without further action.

(b) If a security interest is enforceable and effective on June 30, 2023, but the requirements for enforceability and perfection under the act are not satisfied on July 1, 2023, the security interest:

(1) is a perfected security interest until the earlier of:

(A) the time perfection would have ceased under IC 26-1 as in effect on June 30, 2023; or

(B) the adjustment date;

(2) remains enforceable on or after the time specified in subdivision (1) only if the security interest satisfies the requirements for enforceability under IC 26-1-9.1-203, as amended by the act, before the adjustment date; and

(3) remains perfected on or after the time specified in subdivision (1) only if the requirements for perfection under the act are satisfied before the time specified in subdivision (1).

As added by P.L.199-2023, SEC.91.
Ind. Code § 26-4-4-2 — Indiana Code / Title 26 / Article 4 / Chapter 4 / Section 26-4-4-2
Fund administration expenses
Status: in_force

Sec. 2. (a) The administrative expense account is created within the fund.

(b) The expenses of administering the fund and paying administrative expenses must be paid from money in the administrative expense account.

(c) The board may transfer annually not more than three hundred fifty thousand dollars ($350,000) from the fund to the administrative expense account.

(d) Administrative expenses under this section may include:

(1) processing refunds;

(2) enforcement of the fund;

(3) record keeping in relation to the fund;

(4) the ordinary management and investment fees connected with the operation of the fund;

(5) a study of fund solvency, practices, and procedures;

(6) a performance review of the agency's auditing practices and procedures;

(7) professional development and training programs for agency staff that are closely relevant to the auditing, licensing, and other regulatory functions of the agency;

(8) technology software updates and technology support services that are closely relevant to the auditing, licensing, and other regulatory functions of the agency;

(9) professional training for board members on the board members' duties and responsibilities;

(10) the use of supplemental consulting services;

(11) hiring a manager or a management firm;

(12) hiring legal counsel or seeking legal consultation; and

(13) paying legal fees and legal expenses in an action brought against, or by, the corporation or board and that have been approved by the board.

(e) The agency may not use money in the administrative expense account for expenses other than the expenses described in subsection (d).

As added by P.L.250-1995, SEC.1. Amended by P.L.5-2009, SEC.2; P.L.60-2015, SEC.15; P.L.145-2017, SEC.16; P.L.208-2021, SEC.15; P.L.114-2025, SEC.65.
Ind. Code § 26-1-9.1-102.5 — Indiana Code / Title 26 / Article 1 / Chapter 9.1 / Section 26-1-9.1-102.5
"Take free"; "takes free"; "takes the money free"; "takes the funds free"
Status: reserved

Sec. 102.5. As used in this chapter, "take free", "takes free", "takes the money free", and "takes the funds free", when used in conjunction with a security interest in collateral which is transferred, means that following the transfer the collateral is no longer encumbered by the security interest and the security interest is terminated with respect to the transferred collateral.

As added by P.L.192-2003, SEC.1.
Ind. Code § 26-1-4.1-108 — Indiana Code / Title 26 / Article 1 / Chapter 4.1 / Section 26-1-4.1-108
Exclusion of consumer transactions governed by federal law
Status: in_force

Sec. 108. (a) Except as provided by subsection (b), IC 26-1-4.1 does not apply to a funds transfer any part of which is governed by the Electronic Fund Transfer Act of 1978 (Title XX, Public Law 95-630, 92 Stat. 3728, 15 U.S.C. 1693 et seq. As amended from time to time.

(b) IC 26-1-4.1 applies to a funds transfer that is a remittance transfer as defined in the Electronic Fund Transfer Act (15 U.S.C. 1693o-1) as amended from time to time, unless the remittance transfer is an electronic fund transfer as defined in the Electronic Fund Transfer Act (15 U.S.C. 1693a) as amended from time to time.

(c) In a funds transfer to which IC 26-1-4.1 applies, in the event of an inconsistency between an applicable provision of IC 26-1-4.1 and an applicable provision of the Electronic Fund Transfer Act, the provision of the Electronic Fund Transfer Act governs to the extent of the inconsistency.

As added by P.L.189-1991, SEC.4. Amended by P.L.39-2013, SEC.1.
Ind. Code § 26-1-9.1-701 — Indiana Code / Title 26 / Article 1 / Chapter 9.1 / Section 26-1-9.1-701
Effective date
Status: in_force

Sec. 701. IC 26-1-9.1 takes effect on July 1, 2001.

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

Formerly: Acts 1963, c.317, s.1-105. As amended by P.L.93-1985, SEC.2; P.L.189-1991, SEC.1; P.L.247-1995, SEC.1; P.L.183-1996, SEC.1; P.L.144-1997, SEC.2; P.L.57-2000, SEC.11. Repealed by P.L.143-2007, SEC.78.
Ind. Code § 26-1-8.1-111 — Indiana Code / Title 26 / Article 1 / Chapter 8.1 / Section 26-1-8.1-111
Applicability of rules adopted by clearing corporations
Status: in_force

Sec. 111. A rule adopted by a clearing corporation governing rights and obligations among the clearing corporation and its participants in the clearing corporation is effective even if the rule conflicts with IC 26-1-8.1 and affects another party who does not consent to the rule.

As added by P.L.247-1995, SEC.10.
Ind. Code § 26-1-3.1-503 — Indiana Code / Title 26 / Article 1 / Chapter 3.1 / Section 26-1-3.1-503
Notice of dishonor
Status: in_force

Sec. 503. (a) The obligation of an endorser stated in IC 26-1-3.1-415(a) and the obligation of a drawer stated in IC 26-1-3.1-414(d) may not be enforced unless:

(1) the endorser or drawer is given notice of dishonor of the instrument complying with this section; or

(2) notice of dishonor is excused under IC 26-1-3.1-504(b).

(b) Notice of dishonor may be given by any person; may be given by any commercially reasonable means, including an oral, written, or electronic communication; and is sufficient if it reasonably identifies the instrument and indicates that the instrument has been dishonored or has not been paid or accepted. Return of an instrument given to a bank for collection is sufficient notice of dishonor.

(c) Subject to IC 26-1-3.1-504(c), with respect to an instrument taken for collection by a collecting bank, notice of dishonor must be given:

(1) by the bank before midnight of the next banking day following the banking day on which the bank receives notice of dishonor of the instrument; or

(2) by any other person within thirty (30) days following the day on which the person receives notice of dishonor.

With respect to any other instrument, notice of dishonor must be given within thirty (30) days following the day on which dishonor occurs.

As added by P.L.222-1993, SEC.5.
Ind. Code § 26-2-7-2 — Indiana Code / Title 26 / Article 2 / Chapter 7 / Section 26-2-7-2
Financial institution
Status: in_force

Sec. 2. (a) As used in this chapter, "financial institution" refers to a financial institution (as defined in IC 28-1-1-3).

(b) The term does not include a person licensed under IC 37-2 or IC 37-3.

As added by P.L.42-1993, SEC.18. Amended by P.L.10-2006, SEC.24 and P.L.57-2006, SEC.24; P.L.213-2007, SEC.33; P.L.217-2007, SEC.31; P.L.115-2026, SEC.49.
Ind. Code § 26-1-9.1-306.2 — Indiana Code / Title 26 / Article 1 / Chapter 9.1 / Section 26-1-9.1-306.2
Law governing perfection, effect of perfection or nonperfection, and priority of security interests in controllable electronic records, controllable accounts, and controllable payment intangibles
Status: in_force

Sec. 306.2. (a) Except as provided in subsection (b), the local law of the controllable electronic record's jurisdiction under IC 26-1-12-107(c) and IC 26-1-12-107(d) governs perfection, the effect of perfection or nonperfection, and the priority of a security interest in a controllable electronic record and a security interest in a controllable account or controllable payment intangible evidenced by the controllable electronic record.

(b) The local law of the jurisdiction in which the debtor is located governs:

(1) perfection of a security interest in a controllable account, controllable electronic record, or controllable payment intangible by filing; and

(2) automatic perfection of a security interest in a controllable payment intangible created by a sale of the controllable payment intangible.

As added by P.L.199-2023, SEC.55.
Ind. Code § 26-3-7-21 — Indiana Code / Title 26 / Article 3 / Chapter 7 / Section 26-3-7-21
Uniform Warehouse Receipts Act; application to transactions
Status: in_force

Sec. 21. Except as provided by this chapter, and regardless of whether the grain was received for storage, shipping, or handling, IC 26-3-2 applies to all transactions involving or incidental to the issuance, negotiation, transfer, sale, endorsement, or other dealings with receipts, to transactions involving delivery or other disposition of grain, and to the rights, duties, liabilities, and privileges of licensees or others dealing with licensees.

Formerly: Acts 1973, P.L.268, SEC.1. As amended by Acts 1982, P.L.155, SEC.14; P.L.125-1997, SEC.43.
Ind. Code § 26-1-4.1-401 — Indiana Code / Title 26 / Article 1 / Chapter 4.1 / Section 26-1-4.1-401
"Payment date"
Status: in_force

Sec. 401. "Payment date" of a payment order means the day on which the amount of the order is payable to the beneficiary by the beneficiary's bank. The payment date may be determined by instruction of the sender but cannot be earlier than the day the order is received by the beneficiary's bank and, unless otherwise determined, is the day the order is received by the beneficiary's bank.

As added by P.L.189-1991, SEC.4.
Ind. Code § 26-1-4-211 — Indiana Code / Title 26 / Article 1 / Chapter 4 / Section 26-1-4-211
When bank gives value for purposes of holder in due course
Status: in_force

Sec. 211. For purposes of determining its status as a holder in due course, a bank has given value to the extent it has a security interest in an item, if the bank otherwise complies with the requirements of IC 26-1-3.1-302 on what constitutes a holder in due course.

Formerly: Acts 1963, c.317, s.4-211. As amended by P.L.222-1993, SEC.27.
Ind. Code § 26-1-2-714 — Indiana Code / Title 26 / Article 1 / Chapter 2 / Section 26-1-2-714
Buyer's damages for breach in regard to accepted goods
Status: in_force

Sec. 714. (1) Where the buyer has accepted goods and given notification (IC 26-1-2-607(3)), he may recover as damages for any nonconformity of tender the loss resulting in the ordinary course of events from the seller's breach as determined in any manner which is reasonable.

(2) The measure of damages for breach of warranty is the difference at the time and place of acceptance between the value of the goods accepted and the value they would have had if they had been as warranted, unless special circumstances show proximate damages of a different amount.

(3) In a proper case any incidental and consequential damages under IC 26-1-2-715 may also be recovered.

Formerly: Acts 1963, c.317, s.2-714. As amended by P.L.152-1986, SEC.172.
Ind. Code § 26-1-12.5-101 — Indiana Code / Title 26 / Article 1 / Chapter 12.5 / Section 26-1-12.5-101
Citation of statute
Status: in_force

Sec. 101. This chapter may be cited as Transitional Provisions for Uniform Commercial Code Amendments (2022).

As added by P.L.199-2023, SEC.91.
Ind. Code § 26-1-7-201 — Indiana Code / Title 26 / Article 1 / Chapter 7 / Section 26-1-7-201
Who may issue a warehouse receipt; storage under government bond
Status: in_force

Sec. 201. (a) A warehouse receipt may be issued by any warehouse.

(b) If goods, including distilled spirits and agricultural commodities, are stored under a statute requiring a bond against withdrawal or a license for the issuance of receipts in the nature of warehouse receipts, a receipt issued for the goods is considered to be a warehouse receipt even if issued by a person that is the owner of the goods and is not a warehouse.

Formerly: Acts 1963, c.317, s.7-201. As amended by P.L.143-2007, SEC.30.
Ind. Code § 26-1-9.1-201 — Indiana Code / Title 26 / Article 1 / Chapter 9.1 / Section 26-1-9.1-201
General effectiveness of security agreement
Status: in_force

Sec. 201. (a) Except as otherwise provided in IC 26-1, a security agreement is effective according to its terms between the parties, against purchasers of the collateral, and against creditors.

(b) A transaction subject to this article is subject to any applicable rule of law that establishes a different rule for consumers.

(c) In case of conflict between IC 26-1-9.1 and a rule of law, statute, or regulation described in subsection (b), the rule of law, statute, or regulation controls. Failure to comply with a statute or regulation described in subsection (b) has only the effect the statute or regulation specifies.

(d) IC 26-1-9.1 does not:

(1) validate any rate, charge, agreement, or practice that violates a rule of law, statute, or regulation described in subsection (b); or

(2) extend the application of the rule of law, statute, or regulation to a transaction not otherwise subject to it.

As added by P.L.57-2000, SEC.45.
Ind. Code § 26-1-3.1-411 — Indiana Code / Title 26 / Article 1 / Chapter 3.1 / Section 26-1-3.1-411
Refusal to pay cashier's checks, teller's checks, and certified checks
Status: in_force

Sec. 411. (a) In this section, "obligated bank" means the acceptor of a certified check or the issuer of a cashier's check or teller's check bought from the issuer.

(b) If the obligated bank wrongfully:

(1) refuses to pay a cashier's check or certified check;

(2) stops payment of a teller's check; or

(3) refuses to pay a dishonored teller's check;

the person asserting the right to enforce the check is entitled to compensation for expenses and loss of interest resulting from the nonpayment and may recover consequential damages if the obligated bank refuses to pay after receiving notice of particular circumstances giving rise to the damages.

(c) Expenses or consequential damages under subsection (b) are not recoverable if the refusal of the obligated bank to pay occurs because:

(1) the bank suspends payments;

(2) the obligated bank asserts a claim or defense of the bank that it has reasonable grounds to believe is available against the person entitled to enforce the instrument;

(3) the obligated bank has a reasonable doubt whether the person demanding payment is the person entitled to enforce the instrument; or

(4) payment is prohibited by law.

As added by P.L.222-1993, SEC.5.
Ind. Code § 26-1-12-106 — Indiana Code / Title 26 / Article 1 / Chapter 12 / Section 26-1-12-106
Controllable accounts and controllable payment intangibles; notification of transfer; discharge of account debtor's obligation; proof of transfer; waiver of account debtor's rights ineffective; applicability of laws governing consumer transactions
Status: in_force

Sec. 106. (a) An account debtor on a controllable account or a controllable payment intangible may discharge its obligation by paying:

(1) the person having control of the controllable electronic record that evidences the controllable account or the controllable payment intangible; or

(2) except as provided in subsection (b), a person that formerly had control of the controllable electronic record.

(b) Subject to subsection (d), the account debtor may not discharge its obligation by paying a person that formerly had control of the controllable electronic record if the account debtor receives a notification that:

(1) is signed by a person that formerly had control or by the person to which control was transferred;

(2) reasonably identifies the controllable account or controllable payment intangible;

(3) notifies the account debtor that control of the controllable electronic record that evidences the controllable account or controllable payment intangible was transferred;

(4) identifies the transferee, in any reasonable way, including by name, identifying number, cryptographic key, office, or account number; and

(5) provides a commercially reasonable method by which the account debtor is to pay the transferee.

(c) After receipt of a notification that complies with subsection (b), the account debtor may discharge its obligation by paying in accordance with the notification and may not discharge the obligation by paying a person that formerly had control.

(d) Subject to subsection (h), notification is ineffective under subsection (b):

(1) unless, before the notification is sent, the account debtor and the person that, at that time, had control of the controllable electronic record that evidences the controllable account or the controllable payment intangible agree in a signed record to a commercially reasonable method by which a person may furnish reasonable proof that control has been transferred;

(2) to the extent an agreement between the account debtor and seller of a payment intangible limits the account debtor's duty to pay a person other than the seller and the limitation is effective under law other than this chapter; or

(3) at the option of the account debtor, if the notification notifies the account debtor to:

(A) divide a payment;

(B) make less than the full amount of an installment or other periodic payment; or

(C) pay any part of a payment by more than one (1) method or to more than one (1) person.

(e) Subject to subsection (h), if requested by the account debtor, the person giving notification under subsection (b) seasonably shall furnish reasonable proof, using the method in the agreement described in subsection (d)(1), that control of the controllable electronic record has been transferred. Unless the person complies with the request, the account debtor may discharge its obligation by paying a person that formerly had control, even if the account debtor has received a notification under subsection (b).

(f) A person furnishes reasonable proof under subsection (e) that control has been transferred if the person demonstrates, using the method in the agreement described in subsection (d)(1), that the transferee has the power to:

(1) avail itself of substantially all the benefit from the controllable electronic record;

(2) prevent others from availing themselves of substantially all the benefit from the controllable electronic record; and

(3) transfer the powers specified in subdivisions (1) and (2) to another person.

(g) Subject to subsection (h), an account debtor may not waive or vary its rights under subsections (d)(1) and (e) or its option under subsection (d)(3).

(h) This section is subject to law other than this chapter that establishes a different rule for an account debtor who is an individual and who incurred the obligation primarily for personal, family, or household purposes.

As added by P.L.199-2023, SEC.90.
Ind. Code § 26-1-7-304 — Indiana Code / Title 26 / Article 1 / Chapter 7 / Section 26-1-7-304
Bills of lading in a set
Status: in_force

Sec. 304. (a) Except as customary in international transportation, a tangible bill of lading may not be issued in a set of parts. The issuer is liable for damages caused by violation of this subsection.

(b) If a tangible bill of lading is lawfully issued in a set of parts, each of which contains an identification code and is expressed to be valid only if the goods have not been delivered against any other part, the whole of the parts constitutes one (1) bill.

(c) If a tangible negotiable bill of lading is lawfully issued in a set of parts and different parts are negotiated to different persons, the title of the holder to which the first due negotiation is made prevails as to both the document of title and the goods even if any later holder may have received the goods from the carrier in good faith and discharged the carrier's obligation by surrendering its part.

(d) A person that negotiates or transfers a single part of a tangible bill of lading issued in a set is liable to holders of that part as if it were the whole set.

(e) The bailee shall deliver in accordance with sections 401 through 404 of this chapter against the first presented part of a tangible bill of lading lawfully issued in a set. Delivery in this manner discharges the bailee's obligation on the whole bill.

Formerly: Acts 1963, c.317, s.7-304. As amended by P.L.152-1986, SEC.252; P.L.143-2007, SEC.43.
Ind. Code § 26-1-4.1-507 — Indiana Code / Title 26 / Article 1 / Chapter 4.1 / Section 26-1-4.1-507
Choice of law
Status: in_force

Sec. 507. (a) The following rules apply unless the affected parties otherwise agree or subsection (c) applies:

(1) The rights and obligations between the sender of a payment order and the receiving bank are governed by the law of the jurisdiction in which the receiving bank is located.

(2) The rights and obligations between the beneficiary's bank and the beneficiary are governed by the law of the jurisdiction in which the beneficiary's bank is located.

(3) The issue of when payment is made pursuant to a funds transfer by the originator to the beneficiary is governed by the law of the jurisdiction in which the beneficiary's bank is located.

(b) If the parties described in each paragraph of subsection (a) have made an agreement selecting the law of a particular jurisdiction to govern rights and obligations between each other, the law of that jurisdiction governs those rights and obligations, whether or not the payment order or the funds transfer bears a reasonable relation to that jurisdiction.

(c) A funds-transfer system rule may select the law of a particular jurisdiction to govern (i) rights and obligations between participating banks with respect to payment orders transmitted or processed through the system, or (ii) the rights and obligations of some or all parties to a funds transfer any part of which is carried out by means of the system. A choice of law made pursuant to clause (i) is binding on participating banks. A choice of law made pursuant to clause (ii) is binding on the originator, other sender, or a receiving bank having notice that the funds-transfer system might be used in the funds transfer and of the choice of law by the system when the originator, other sender, or receiving bank issued or accepted a payment order. The beneficiary of a funds transfer is bound by the choice of law if, when the funds transfer is initiated, the beneficiary has notice that the funds-transfer system might be used in the funds transfer and of the choice of law by the system. The law of a jurisdiction selected pursuant to this subsection may govern, whether or not that law bears a reasonable relation to the matter in issue.

(d) In the event of inconsistency between an agreement under subsection (b) and a choice-of-law rule under subsection (c), the agreement under subsection (b) prevails.

(e) If a funds transfer is made by use of more than one funds-transfer system and there is inconsistency between choice-of-law rules of the systems, the matter in issue is governed by the law of the selected jurisdiction that has the most significant relationship to the matter in issue.

As added by P.L.189-1991, SEC.4.
Ind. Code § 26-4-1-6 — Indiana Code / Title 26 / Article 4 / Chapter 1 / Section 26-4-1-6
"Cooperative agreement"
Status: in_force

Sec. 6. "Cooperative agreement" means an agreement made by the board as may be reasonable and proper to carry out the provisions of this article.

As added by P.L.250-1995, SEC.1.
Ind. Code § 26-1-4.1-105 — Indiana Code / Title 26 / Article 1 / Chapter 4.1 / Section 26-1-4.1-105
Other definitions
Status: in_force

Sec. 105. (a) In IC 26-1-4.1:

(1) "Authorized account" means a deposit account of a customer in a bank designated by the customer as a source of payment of payment orders issued by the customer to the bank. If a customer does not so designate an account, any account of the customer is an authorized account if payment of a payment order from that account is not inconsistent with a restriction on the use of that account.

(2) "Bank" means a person engaged in the business of banking and includes a savings bank, savings association, credit union, and trust company. A branch or separate office of a bank is a separate bank for purposes of IC 26-1-4.1.

(3) "Customer" means a person, including a bank, having an account with a bank or from whom a bank has agreed to receive payment orders.

(4) "Funds-transfer business day" of a receiving bank means the part of a day during which the receiving bank is open for the receipt, processing, and transmittal of payment orders and cancellations and amendments of payment orders.

(5) "Funds-transfer system" means a wire transfer network, automated clearing house, or other communication system of a clearing house or other association of banks through which a payment order by a bank may be transmitted to the bank to which the order is addressed.

(6) "Good faith" means honesty in fact and the observance of reasonable commercial standards of fair dealing.

(7) "Prove" with respect to a fact means to meet the burden of establishing the fact (IC 26-1-1-201(8)).

(b) Other definitions applying to IC 26-1-4.1 and the sections in which they appear are:

"Acceptance". IC 26-1-4.1-209.

"Beneficiary". IC 26-1-4.1-103.

"Beneficiary's bank". IC 26-1-4.1-103.

"Executed". IC 26-1-4.1-301.

"Execution date". IC 26-1-4.1-301.

"Funds transfer". IC 26-1-4.1-104.

"Funds-transfer system rule". IC 26-1-4.1-501.

"Intermediary bank". IC 26-1-4.1-104.

"Originator". IC 26-1-4.1-104.

"Originator's bank". IC 26-1-4.1-104.

"Payment by beneficiary's bank to beneficiary". IC 26-1-4.1-405.

"Payment by originator to beneficiary". IC 26-1-4.1-406.

"Payment by sender to receiving bank". IC 26-1-4.1-403.

"Payment date". IC 26-1-4.1-401.

"Payment order". IC 26-1-4.1-103.

"Receiving bank". IC 26-1-4.1-103.

"Security procedure". IC 26-1-4.1-201.

"Sender". IC 26-1-4.1-103.

(c) The following definitions in IC 26-1-4 apply to this IC 26-1-4.1:

"Clearing house". IC 26-1-4-104.

"Item". IC 26-1-4-104.

"Suspends payments". IC 26-1-4-104.

(d) In addition IC 26-1-1 contains general definitions and principles of construction and interpretation applicable throughout IC 26-1-4.1.

As added by P.L.189-1991, SEC.4. Amended by P.L.79-1998, SEC.29.
Ind. Code § 26-1-7-203 — Indiana Code / Title 26 / Article 1 / Chapter 7 / Section 26-1-7-203
Liability for nonreceipt or misdescription
Status: in_force

Sec. 203. A party to or purchaser for value in good faith of a document of title, other than a bill of lading, that relies upon the description of the goods in the document may recover from the issuer damages caused by the nonreceipt or misdescription of the goods, except to the extent that:

(1) the document conspicuously indicates that the issuer does not know whether all or any part of the goods in fact were received or conform to the description, such as a case in which the description is in terms of marks or labels or kind, quantity, or condition, or the receipt or description is qualified by "contents, condition, and quality unknown", "said to contain", or words of similar import, if the indication is true; or

(2) the party or purchaser otherwise has notice of the nonreceipt or misdescription.

Formerly: Acts 1963, c.317, s.7-203. As amended by P.L.143-2007, SEC.32.
Ind. Code § 26-2-8-106 — Indiana Code / Title 26 / Article 2 / Chapter 8 / Section 26-2-8-106
Legal recognition of electronic records, electronic signatures, and electronic contracts
Status: in_force

Sec. 106. (a) A record or signature may not be denied legal effect or enforceability solely because it is in electronic form.

(b) A contract may not be denied legal effect or enforceability solely because an electronic record or electronic signature was used in its formation.

(c) If a law requires a record to be in writing, or provides consequences if it is not, an electronic record satisfies the law.

(d) If a law requires a signature, or provides consequences in the absence of a signature, the law is satisfied with respect to an electronic record if the electronic record includes an electronic signature.

As added by P.L.62-2000, SEC.1. Amended by P.L.110-2008, SEC.12.
Ind. Code § 26-3-8-11 — Indiana Code / Title 26 / Article 3 / Chapter 8 / Section 26-3-8-11
Lien of owner of facility upon personal property; priority; attachment; required statement in rental agreement
Status: in_force

Sec. 11. (a) The owner of a self-service storage facility has a lien upon all personal property present in the self-service storage facility for:

(1) rent, labor, or other charges that accrue in connection with the personal property under the rental agreement, including any:

(A) late fee imposed under section 11.5(a) of this chapter; and

(B) rent collection costs or expenses described in section 11.5(b)(1) of this chapter;

(2) expenses necessary for the preservation of the personal property; and

(3) expenses reasonably incurred in the sale or other disposition of the personal property under this chapter, including any lien enforcement costs or expenses described in section 11.5(b)(2) of this chapter.

(b) The lien described in subsection (a) is superior to any other lien or security interest, except for:

(1) a lien or security interest perfected before any sale or other disposition of the personal property; and

(2) any tax lien, as provided by law.

(c) The lien described in subsection (a) attaches on the date on which personal property is placed in a rented space. Every rental agreement must contain a statement in bold type notifying the renter of the existence of the lien and of the method by which the owner may enforce the lien under this chapter.

As added by P.L.265-1987, SEC.1. Amended by P.L.36-2018, SEC.1.
Ind. Code § 26-1-9.1-203 — Indiana Code / Title 26 / Article 1 / Chapter 9.1 / Section 26-1-9.1-203
Attachment and enforceability of security interest; requirements; rights to proceeds; security interest in right to payment or performance
Status: in_force

Sec. 203. (a) A security interest attaches to collateral when it becomes enforceable against the debtor with respect to the collateral, unless an agreement expressly postpones the time of attachment.

(b) Except as otherwise provided in subsections (c) through (i), a security interest is enforceable against the debtor and third parties with respect to the collateral only if:

(1) value has been given;

(2) the debtor has rights in the collateral or the power to transfer rights in the collateral to a secured party; and

(3) one (1) of the following conditions is met:

(A) The debtor has signed a security agreement that provides a description of the collateral and, if the security interest covers timber to be cut, a description of the land concerned.

(B) The collateral is not a certificated security and is in the possession of the secured party under IC 26-1-9.1-313 pursuant to the debtor's security agreement.

(C) The collateral is a certificated security in registered form and the security certificate has been delivered to the secured party under IC 26-1-8.1-301 pursuant to the debtor's security agreement.

(D) The collateral is controllable accounts, controllable electronic records, controllable payment intangibles, deposit accounts, electronic documents, investment property, or letter-of-credit rights, and the secured party has control under IC 26-1-7-106, IC 26-1-9.1-104, IC 26-1-9.1-106, IC 26-1-9.1-107, or IC 26-1-9.1-107.1 pursuant to the debtor's security agreement.

(E) The collateral is chattel paper and the secured party has possession and control under IC 26-1-9.1-314.1 pursuant to the debtor's security agreement.

(c) Subsection (b) is subject to IC 26-1-4-210 on the security interest of a collecting bank, IC 26-1-5.1-118 on the security interest of a letter-of-credit issuer or nominated person, IC 26-1-9.1-110 on a security interest arising under IC 26-1-2 or IC 26-1-2.1, and IC 26-1-9.1-206 on security interests in investment property.

(d) A person becomes bound as debtor by a security agreement entered into by another person if, by operation of law other than IC 26-1-9.1 or by contract:

(1) the security agreement becomes effective to create a security interest in the person's property; or

(2) the person becomes generally obligated for the obligations of the other person, including the obligation secured under the security agreement, and acquires or succeeds to all or substantially all of the assets of the other person.

(e) If a new debtor becomes bound as debtor by a security agreement entered into by another person:

(1) the agreement satisfies subsection (b)(3) with respect to existing or after-acquired property of the new debtor to the extent the property is described in the agreement; and

(2) another agreement is not necessary to make a security interest in the property enforceable.

(f) The attachment of a security interest in collateral gives the secured party the rights to proceeds provided by IC 26-1-9.1-315 and is also attachment of a security interest in a supporting obligation for the collateral.

(g) The attachment of a security interest in a right to payment or performance secured by a security interest or other lien on personal or real property is also attachment of a security interest in the security interest, mortgage, or other lien.

(h) The attachment of a security interest in a securities account is also attachment of a security interest in the security entitlements carried in the securities account.

(i) The attachment of a security interest in a commodity account is also attachment of a security interest in the commodity contracts carried in the commodity account.

As added by P.L.57-2000, SEC.45. Amended by P.L.143-2007, SEC.66; P.L.199-2023, SEC.45.
Ind. Code § 26-1-2-305 — Indiana Code / Title 26 / Article 1 / Chapter 2 / Section 26-1-2-305
Open price term
Status: in_force

Sec. 305. (1) The parties if they so intend can conclude a contract for sale even though the price is not settled. In such a case the price is a reasonable price at the time for delivery if

(a) nothing is said as to price; or

(b) the price is left to be agreed by the parties and they fail to agree; or

(c) the price is to be fixed in terms of some agreed market or other standard as set or recorded by a third person or agency and it is not so set or recorded.

(2) A price to be fixed by the seller or by the buyer means a price for him to fix in good faith.

(3) When a price left to be fixed otherwise than by agreement of the parties fails to be fixed through fault of one (1) party the other may at his option treat the contract as canceled or himself fix a reasonable price.

(4) Where, however, the parties intend not to be bound unless the price be fixed or agreed and it is not fixed or agreed there is no contract. In such a case the buyer must return any goods already received or if unable so to do must pay their reasonable value at the time of delivery and the seller must return any portion of the price paid on account.

Formerly: Acts 1963, c.317, s.2-305.
Ind. Code § 26-2-2-1 — Indiana Code / Title 26 / Article 2 / Chapter 2 / Section 26-2-2-1
Mortgagee's power of sale proscribed; judicial sale
Status: in_force

Sec. 1. No mortgage of household goods which may be executed after March 8, 1897, shall authorize the mortgagee to sell such mortgaged property, and any provision in any such mortgage giving the mortgagee the power of sale shall be void. But every sale of household goods to satisfy a mortgage thereon shall be under a judicial proceeding, in which such mortgage shall be foreclosed in the circuit or superior court.

Formerly: Acts 1897, c.176, s.1. As amended by P.L.152-1986, SEC.301.
Ind. Code § 26-1-9.1-317 — Indiana Code / Title 26 / Article 1 / Chapter 9.1 / Section 26-1-9.1-317
Interests that take priority over or take free of unperfected security interest or agricultural lien
Status: in_force

Sec. 317. (a) A security interest or agricultural lien is subordinate to the rights of:

(1) a person entitled to priority under IC 26-1-9.1-322; and

(2) except as provided in subsection (e), a person that becomes a lien creditor before the earlier of the time:

(A) the security interest or agricultural lien is perfected; or

(B) one (1) of the conditions specified in IC 26-1-9.1-203(b)(3) is met;

and a financing statement covering the collateral is filed.

(b) Except as otherwise provided in subsection (e), a buyer, other than a secured party, of goods, instruments, tangible documents, or a certificated security takes free of a security interest or agricultural lien if the buyer gives value and receives delivery of the collateral without knowledge of the security interest or agricultural lien and before it is perfected.

(c) Except as otherwise provided in subsection (e), a lessee of goods takes free of a security interest or agricultural lien if the lessee gives value and receives delivery of the collateral without knowledge of the security interest or agricultural lien and before it is perfected.

(d) Subject to subsections (f) through (i), a licensee of a general intangible or a buyer, other than a secured party, of collateral other than goods, instruments, tangible documents, or a certificated security takes free of a security interest if the licensee or buyer gives value without knowledge of the security interest and before it is perfected.

(e) Except as otherwise provided in IC 26-1-9.1-320 and IC 26-1-9.1-321, if a person files a financing statement with respect to a purchase-money security interest before or within twenty (20) days after the debtor receives delivery of the collateral, the security interest takes priority over the rights of a buyer, lessee, or lien creditor that arise between the time the security interest attaches and the time of filing.

(f) A buyer, other than a secured party, of chattel paper takes free of a security interest if, without knowledge of the security interest and before it is perfected, the buyer gives value and:

(1) receives delivery of each authoritative tangible copy of the record evidencing the chattel paper; and

(2) if each authoritative electronic copy of the record evidencing the chattel paper can be subjected to control under section 105 of this chapter, obtains control of each authoritative electronic copy.

(g) A buyer of an electronic document takes free of a security interest if, without knowledge of the security interest and before it is perfected, the buyer gives value and, if each authoritative electronic copy of the document can be subjected to control under IC 26-1-7-106, obtains control of each authoritative electronic copy.

(h) A buyer of a controllable electronic record takes free of a security interest if, without knowledge of the security interest and before it is perfected, the buyer gives value and obtains control of the controllable electronic record.

(i) A buyer, other than a secured party, of a controllable account or a controllable payment intangible takes free of a security interest if, without knowledge of the security interest and before it is perfected, the buyer gives value and obtains control of the controllable account or controllable payment intangible.

As added by P.L.57-2000, SEC.45. Amended by P.L.165-2001, SEC.6; P.L.143-2007, SEC.74; P.L.54-2011, SEC.8; P.L.199-2023, SEC.62.
Ind. Code § 26-3-7-4.4 — Indiana Code / Title 26 / Article 3 / Chapter 7 / Section 26-3-7-4.4
Licensure
Status: in_force

Sec. 4.4. (a) The agency shall issue the following types of licenses:

(1) A grain bank license may be issued to a person that:

(A) stores only grain bank grain;

(B) has a storage capacity of not more than fifty thousand (50,000) bushels of grain; and

(C) purchases less than fifty thousand (50,000) bushels of grain per year.

(2) A warehouse license may be issued to a person that:

(A) stores grain for hire; and

(B) purchases less than fifty thousand (50,000) bushels of grain per year.

(3) A grain buyer license may be issued to a person that:

(A) purchases annually at least fifty thousand (50,000) bushels of grain that are not for the sole purpose of feeding the person's own livestock or poultry;

(B) chooses to obtain a grain buyer's license; or

(C) offers deferred pricing, delayed payments, or contracts linked to the commodity futures or commodity options market in connection with grain purchases.

(4) A buyer-warehouse license may be issued to a person that operates both as a warehouse and as a grain buyer.

(b) An applicant shall file with the director a separate application for each license or amendment of a license at the times, on the forms, and containing the information that the director prescribes.

(c) An initial application for a license must be accompanied by a license fee as follows:

(1) For a grain bank or for a warehouse or buyer-warehouse with a storage capacity of less than two hundred fifty thousand (250,000) bushels, one thousand dollars ($1,000) for the first facility and two hundred fifty dollars ($250) for each additional facility.

(2) For a warehouse or a buyer-warehouse with a storage capacity of at least two hundred fifty thousand (250,000) bushels but less than one million (1,000,000) bushels, one thousand five hundred dollars ($1,500) for the first facility and two hundred fifty dollars ($250) for each additional facility.

(3) For a warehouse or a buyer-warehouse with a storage capacity of at least one million (1,000,000) bushels but less than ten million (10,000,000) bushels, two thousand dollars ($2,000) for the first facility and two hundred fifty dollars ($250) for each additional facility.

(4) For a warehouse or buyer-warehouse with a storage capacity greater than ten million (10,000,000) bushels, two thousand five hundred dollars ($2,500) for the first facility and two hundred fifty dollars ($250) for each additional facility.

(5) For a grain buyer, including a grain buyer that is also licensed as a warehouse under the warehouse act, one thousand five hundred dollars ($1,500) for the first facility and two hundred fifty dollars ($250) for each additional facility.

The director may prorate the initial application fee for a license that is issued at least thirty (30) days after the anniversary date of the licensee's business.

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

(e) A licensee or an applicant for an initial license must have a minimum current asset to current liability ratio of one to one (1:1) or better.

(f) An applicant for an initial license shall submit with the person's application a review level financial statement or better financial statement that reflects the applicant's financial situation on a date not more than fifteen (15) months before the date on which the application is submitted. A financial statement submitted under this section must:

(1) be prepared by an independent accountant certified under IC 25-2.1;

(2) comply with generally accepted United States accounting principles; and

(3) contain:

(A) an income statement;

(B) a balance sheet;

(C) a statement of cash flow;

(D) a statement of retained earnings;

(E) an aged accounts receivable listing detailing accounts that are ninety (90) days due, one hundred twenty (120) days due, and more than one hundred twenty (120) days due;

(F) a copy of the daily position record for the end of the licensee's fiscal year;

(G) the preparer's notes; and

(H) other information the agency may require.

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

(h) An application for a license implies a consent to be inspected.

(i) Fees collected under this section shall be deposited in the grain buyers and warehouse licensing agency license fee fund established by section 6.3 of this chapter.

As added by P.L.114-2025, SEC.8.
Ind. Code § 26-1-2.1-213 — Indiana Code / Title 26 / Article 1 / Chapter 2.1 / Section 26-1-2.1-213
Implied warranty of fitness for particular purpose
Status: in_force

Sec. 213. Except in a finance lease, if the lessor at the time the lease contract is made has reason to know of any particular purpose for which the goods are required and that the lessee is relying on the lessor's skill or judgment to select or furnish suitable goods, there is in the lease contract an implied warranty that the goods will be fit for that purpose.

As added by P.L.189-1991, SEC.3.
Ind. Code § 26-1-7-210 — Indiana Code / Title 26 / Article 1 / Chapter 7 / Section 26-1-7-210
Enforcement of warehouse's lien
Status: in_force

Sec. 210. (a) Except as otherwise provided in subsection (b), a warehouse's lien may be enforced by public or private sale of the goods, in bulk or in packages, at any time or place and on any terms that are commercially reasonable, after notifying all persons known to claim an interest in the goods. The notification must include a statement of the amount due, the nature of the proposed sale, and the time and place of any public sale. The fact that a better price could have been obtained by a sale at a different time or in a method different from that selected by the warehouse is not of itself sufficient to establish that the sale was not made in a commercially reasonable manner. The warehouse sells in a commercially reasonable manner if the warehouse sells the goods in the usual manner in any recognized market therefor, sells at the price current in that market at the time of the warehouse's sale, or otherwise sells in conformity with commercially reasonable practices among dealers in the type of goods sold. A sale of more goods than apparently necessary to be offered to ensure satisfaction of the obligation is not commercially reasonable except in cases covered by the preceding sentence.

(b) A warehouse may enforce its lien on goods other than goods stored by a merchant in the course of its business if the following requirements are satisfied:

(1) All persons known to claim an interest in the goods must be notified.

(2) The notification must include an itemized statement of the claim, a description of the goods subject to the lien, a demand for payment within a specified time not less than ten (10) days after receipt of the notification, and a conspicuous statement that unless the claim is paid within that time the goods will be advertised for sale and sold by auction at a specified time and place.

(3) The sale must conform to the terms of the notification.

(4) The sale must be held at the nearest suitable place to where the goods are held or stored.

(5) After the expiration of the time given in the notification, an advertisement of the sale must be published once a week for two (2) weeks consecutively in a newspaper of general circulation where the sale is to be held. The advertisement must include a description of the goods, the name of the person on whose account the goods are being held, and the time and place of the sale. The sale must take place at least fifteen (15) days after the first publication. If there is no newspaper of general circulation where the sale is to be held, the advertisement must be posted at least ten (10) days before the sale in not fewer than six (6) conspicuous places in the neighborhood of the proposed sale.

(c) Before any sale pursuant to this section, any person claiming a right in the goods may pay the amount necessary to satisfy the lien and the reasonable expenses incurred in complying with this section. In that event, the goods may not be sold but must be retained by the warehouse subject to the terms of the receipt and this chapter.

(d) A warehouse may buy at any public sale held pursuant to this section.

(e) A purchaser in good faith of goods sold to enforce a warehouse's lien takes the goods free of any rights of persons against which the lien was valid, despite the warehouse's noncompliance with this section.

(f) A warehouse may satisfy its lien from the proceeds of any sale pursuant to this section but shall hold the balance, if any, for delivery on demand to any person to which the warehouse would have been bound to deliver the goods.

(g) The rights provided by this section are in addition to all other rights allowed by law to a creditor against a debtor.

(h) If a lien is on goods stored by a merchant in the course of its business, the lien may be enforced in accordance with subsection (a) or (b).

(i) A warehouse is liable for damages caused by failure to comply with the requirements for sale under this section and, in case of willful violation, is liable for conversion.

Formerly: Acts 1963, c.317, s.7-210. As amended by P.L.152-1986, SEC.251; P.L.143-2007, SEC.39.
Ind. Code § 26-1-5.1-110 — Indiana Code / Title 26 / Article 1 / Chapter 5.1 / Section 26-1-5.1-110
Warranties on transfer and presentment
Status: in_force

Sec. 110. (a) If its presentation is honored, the beneficiary warrants:

(1) to the issuer, any other person to whom presentation is made, and the applicant that there is no fraud or forgery of the kind described in IC 26-1-5.1-109(a); and

(2) to the applicant that the drawing does not violate any agreement between the applicant and beneficiary or any other agreement intended by them to be augmented by the letter of credit.

(b) The warranties in subsection (a) are in addition to warranties arising under IC 26-1-3.1, IC 26-1-4, IC 26-1-7, and IC 26-1-8.1 because of the presentation or transfer of documents covered by any of those articles.

As added by P.L.183-1996, SEC.4.
Ind. Code § 26-3-7-7 — Indiana Code / Title 26 / Article 3 / Chapter 7 / Section 26-3-7-7
Applicant qualifications
Status: in_force

Sec. 7. (a) An applicant for a license under this chapter must show that the applicant:

(1) has the qualifications and background essential for the conduct of the business to be licensed;

(2) has not been found guilty of a crime involving illegal activities that involve money, assets, or financial tools for personal gain; and

(3) does not employ an officer, director, partner, or manager that has been found guilty of a crime involving illegal activities that involve money, assets, or financial tools for personal gain.

(b) The agency may deny a license to an applicant that has been involved in improper business practices.

Formerly: Acts 1973, P.L.268, SEC.1; Acts 1974, P.L.120, SEC.5. As amended by Acts 1979, P.L.249, SEC.4; Acts 1982, P.L.155, SEC.7; P.L.17-1985, SEC.21; P.L.191-1991, SEC.5; P.L.249-1995, SEC.2; P.L.125-1997, SEC.25; P.L.114-2025, SEC.15.
Ind. Code § 26-1-2-502 — Indiana Code / Title 26 / Article 1 / Chapter 2 / Section 26-1-2-502
Buyer's right to goods on seller's repudiation, failure to deliver, or insolvency
Status: in_force

Sec. 502. (1) Subject to subsections (2) and (3) and even though the goods have not been shipped, a buyer who has paid a part or all of the price of goods in which he has a special property under the provisions of IC 26-1-2-501 may on making and keeping good a tender of any unpaid portion of their price recover them from the seller if:

(a) in the case of goods bought for personal, family, or household purposes, the seller repudiates or fails to deliver as required by the contract; or

(b) in other cases, the seller becomes insolvent within ten (10) days after receipt of the first installment on their price.

(2) The buyer's right to recover the goods under subsection (1)(a) vests upon acquisition of a special property, even if the seller had not then repudiated or failed to deliver.

(3) If the identification creating his special property has been made by the buyer, he acquires the right to recover the goods only if they conform to the contract for sale.

Formerly: Acts 1963, c.317, s.2-502. As amended by P.L.152-1986, SEC.144; P.L.57-2000, SEC.21.
Ind. Code § 26-1-4.1-503 — Indiana Code / Title 26 / Article 1 / Chapter 4.1 / Section 26-1-4.1-503
Injunction or restraining order with respect to funds transfer
Status: in_force

Sec. 503. For proper cause and in compliance with applicable law, a court may restrain (i) a person from issuing a payment order to initiate a funds transfer, (ii) an originator's bank from executing the payment order of the originator, or (iii) the beneficiary's bank from releasing funds to the beneficiary or the beneficiary from withdrawing the funds. A court may not otherwise restrain a person from issuing a payment order, paying or receiving payment of a payment order, or otherwise acting with respect to a funds transfer.

As added by P.L.189-1991, SEC.4.
Ind. Code § 26-1-2.1-103 — Indiana Code / Title 26 / Article 1 / Chapter 2.1 / Section 26-1-2.1-103
Definitions and index of definitions
Status: in_force

Sec. 103. (1) Unless the context otherwise requires, in IC 26-1-2.1:

(a) "Buyer in ordinary course of business" means a person who in good faith and without knowledge that the sale to the person is in violation of the ownership rights or security interest or leasehold interest of a third party in the goods, buys in ordinary course from a person in the business of selling goods of that kind but does not include a pawnbroker. "Buying" may be for cash or by exchange of other property or on secured or unsecured credit and includes acquiring goods or documents of title under a pre-existing contract for sale but does not include a transfer in bulk or as security for or in total or partial satisfaction of a money debt.

(b) "Cancellation" occurs when either party puts an end to the lease contract for default by the other party.

(c) "Commercial unit" means such a unit of goods as by commercial usage is a single whole for purposes of lease and division of which materially impairs its character or value on the market or in use. A commercial unit may be a single article, as a machine, or a set of articles, as a suite of furniture or a line of machinery, or a quantity, as a gross or carload, or any other unit treated in use or in the relevant market as a single whole.

(d) "Conforming" goods or performance under a lease contract means goods or performance that are in accordance with the obligations under the lease contract.

(e) "Consumer lease" means a lease that a lessor regularly engaged in the business of leasing or selling makes to a lessee who is an individual and who takes under the lease primarily for a personal, family, or household purpose if the total payments to be made under the lease contract, excluding payments for options to renew or buy, do not exceed twenty-five thousand dollars ($25,000).

(f) "Fault" means wrongful act, omission, breach, or default.

(g) "Finance lease" means a lease with respect to which:

(i) the lessor does not select, manufacture, or supply the goods;

(ii) the lessor acquires the goods or the right to possession and use of the goods in connection with the lease; and

(iii) one (1) of the following occurs:

(A) the lessee receives a copy of the contract by which the lessor acquired the goods or the right to possession and use of the goods before signing the lease contract;

(B) the lessee's approval of the contract by which the lessor acquired the goods or the right to possession and use of the goods is a condition to effectiveness of the lease contract;

(C) the lessee, before signing the lease contract, receives an accurate and complete statement designating the promises and warranties, and any disclaimers of warranties, limitations, or modifications of remedies, or liquidated damages, including those of a third party, such as the manufacturer of the goods, provided to the lessor by the person supplying the goods in connection with or as part of the contract by which the lessor acquired the goods or the right to possession and use of the goods; or

(D) if the lease is not a consumer lease, the lessor, before the lessee signs the lease contract, informs the lessee in writing: (a) of the identity of the person supplying the goods to the lessor, unless the lessee has selected that person and directed the lessor to acquire the goods or the right to possession and use of the goods from that person; (b) that the lessee is entitled under IC 26-1-2.1 to the promises and warranties, including those of any third party, provided to the lessor by the person supplying the goods in connection with or as part of the contract by which the lessor acquired the goods or the right to possession and use of the goods; and (c) that the lessee may communicate with the person supplying the goods to the lessor and receive an accurate and complete statement of those promises and warranties, including any disclaimers and limitations of them or of remedies.

(h) The following terms have the following meanings:

(i) "Goods" means all things that are movable at the time of identification to the lease contract, or are fixtures (IC 26-1-2.1-309), but the term does not include money, documents, instruments, accounts, chattel paper, general intangibles, or minerals or the like, including oil and gas, before extraction. The term also includes the unborn young of animals.

(ii) "Hybrid lease" means a single transaction involving a lease of goods and either the provision of services, a sale of other goods, or a sale, lease, or license of property other than goods.

(i) "Installment lease contract" means a lease contract that authorizes or requires the delivery of goods in separate lots to be separately accepted, even though the lease contract contains a clause "each delivery is a separate lease" or its equivalent.

(j) "Lease" means a transfer of the right to possession and use of goods for a term in return for consideration, but a sale, including a sale on approval or a sale or return, or retention or creation of a security interest is not a lease. Unless the context clearly indicates otherwise, the term includes a sublease.

(k) "Lease agreement" means the bargain, with respect to the lease, of the lessor and the lessee in fact as found in their language or by implication from other circumstances including course of dealing or usage of trade or course of performance as provided in IC 26-1-2.1. Unless the context clearly indicates otherwise, the term includes a sublease agreement.

(l) "Lease contract" means the total legal obligation that results from the lease agreement as affected by IC 26-1-2.1 and any other applicable rules of law. Unless the context clearly indicates otherwise, the term includes a sublease contract.

(m) "Leasehold interest" means the interest of the lessor or the lessee under a lease contract.

(n) "Lessee" means a person who acquires the right to possession and use of goods under a lease. Unless the context clearly indicates otherwise, the term includes a sublessee.

(o) "Lessee in ordinary course of business" means a person who in good faith and without knowledge that the lease to the person is in violation of the ownership rights or security interest or leasehold interest of a third party in the goods leases in ordinary course from a person in the business of selling or leasing goods of that kind but does not include a pawnbroker. "Leasing" may be for cash or by exchange of other property or on secured or unsecured credit and includes acquiring goods or documents of title under a pre-existing lease contract but does not include a transfer in bulk or as security for or in total or partial satisfaction of a money debt.

(p) "Lessor" means a person who transfers the right to possession and use of goods under a lease. Unless the context clearly indicates otherwise, the term includes a sublessor.

(q) "Lessor's residual interest" means the lessor's interest in the goods after expiration, termination, or cancellation of the lease contract.

(r) "Lien" means a charge against or interest in goods to secure payment of a debt or performance of an obligation, but the term does not include a security interest.

(s) "Lot" means a parcel or a single article that is the subject matter of a separate lease or delivery, whether or not it is sufficient to perform the lease contract.

(t) "Merchant lessee" means a lessee that is a merchant with respect to goods of the kind subject to the lease.

(u) "Present value" means the amount as of a date certain of one (1) or more sums payable in the future, discounted to the date certain. The discount is determined by the interest rate specified by the parties if the rate was not manifestly unreasonable at the time the transaction was entered into; otherwise, the discount is determined by a commercially reasonable rate that takes into account the facts and circumstances of each case at the time the transaction was entered into.

(v) "Purchase" includes taking by sale, lease, mortgage, security interest, pledge, gift, or any other voluntary transaction creating an interest in goods.

(w) "Sublease" means a lease of goods the right to possession and use of which was acquired by the lessor as a lessee under an existing lease.

(x) "Supplier" means a person from whom a lessor buys or leases goods to be leased under a finance lease.

(y) "Supply contract" means a contract under which a lessor buys or leases goods to be leased.

(z) "Termination" occurs when either party pursuant to a power created by agreement or law puts an end to the lease contract otherwise than for default.

(2) Other definitions applying to IC 26-1-2.1 and the sections in which they appear are:

"Accessions". IC 26-1-2.1-310(1).

"Construction mortgage". IC 26-1-2.1-309(1)(d).

"Encumbrance". IC 26-1-2.1-309(1)(e).

"Fixtures". IC 26-1-2.1-309(1)(a).

"Fixture filing". IC 26-1-2.1-309(1)(b).

"Purchase money lease". IC 26-1-2.1-309(1)(c).

(3) The following definitions in other chapters apply to IC 26-1-2.1:

"Account". IC 26-1-9.1-102(a)(2).

"Between merchants". IC 26-1-2-104(3).

"Buyer". IC 26-1-2-103(1)(a).

"Chattel paper". IC 26-1-9.1-102(a)(11).

"Consumer goods". IC 26-1-9.1-102(a)(23).

"Document". IC 26-1-9.1-102(a)(30).

"Entrusting". IC 26-1-2-403(3).

"General intangibles". IC 26-1-9.1-102(a)(42).

"Good faith". IC 26-1-2-103(1)(b).

"Instrument". IC 26-1-9.1-102(a)(47).

"Merchant". IC 26-1-2-104(1).

"Mortgage". IC 26-1-9.1-102(a)(55).

"Pursuant to commitment". IC 26-1-9.1-102(a)(69).

"Receipt". IC 26-1-2-103(1)(c).

"Sale". IC 26-1-2-106(1).

"Sale on approval". IC 26-1-2-326.

"Sale or return". IC 26-1-2-326.

"Seller". IC 26-1-2-103(1)(d).

(4) In addition, IC 26-1-1 contains general definitions and principles of construction and interpretation applicable throughout IC 26-1-2.1.

As added by P.L.189-1991, SEC.3. Amended by P.L.57-2000, SEC.23; P.L.143-2007, SEC.19; P.L.32-2021, SEC.72; P.L.199-2023, SEC.11.