§ 1-1-16-11 — Investigation and enforcement; receivership; liability; effect of divestiture

(a) The attorney general may investigate the
purchase, lease, or acquisition of real property upon receipt of a
complaint alleging a violation of section 10 of this chapter.
(b) The attorney general shall enforce a violation of section 10 of
this chapter by commencing a receivership proceeding under IC 32-30-5-1 and selling the property through the receivership. The
following apply to a receivership proceeding under this section:
(1) Proceeds of the sale shall be disbursed to lienholders, in their
order of priority, except for liens which under the terms of the
sale are to remain on the property.
(2) At the receivership sale, lienholders shall be able to have a
credit bid.
(3) No proceeds shall be distributed from the receivership sale to
the prohibited person. Any excess proceeds are forfeited and shall
be transferred to the state general fund by the receiver.
(4) Upon commencement of an action under this section, the
attorney general shall promptly file a notice of lis pendens with
the clerk of court. Upon the entry order for the sale of the property
under this section, the attorney general shall promptly record a
copy of the order in the office of the recorder of the county where
the property is located.
(c) The responsibility for determining whether an individual or other
entity is subject to section 10 of this chapter rests solely with the
prohibited person and the attorney general and no other individual or
entity. An individual or other entity who is not a prohibited person shall
bear no civil or criminal liability for failing to determine or make
inquiry of whether an individual or other entity is a prohibited person.
(d) Divestiture of a prohibited person's title under this section shall
not be a basis to void, invalidate, or otherwise extinguish any bona fide
mortgage, lien, or other interest granted by, through, or under the
prohibited person.

Legislative History

As added by P.L.118-2023, SEC.3.