§ 26-1-9.1-604 — Procedure if security agreement covers real property or fixtures

Indiana § 26-1-9.1-604

• Jurisdiction: Indiana
• Title 26: COMMERCIAL LAW
• Art. 1: UNIFORM COMMERCIAL CODE
• Ch. 9.1: Secured Transactions

Text

(a) If a security agreement covers both
personal and real property, a secured party may proceed:
(1) under IC 26-1-9.1-601 through IC 26-1-9.1-628 as to the
personal property without prejudicing any rights with respect to
the real property; or
(2) as to both the personal property and the real property in
accordance with the rights with respect to the real property, in
which case the other provisions of IC 26-1-9.1-601 through IC 26-1-9.1-628 do not apply.
(b) Subject to subsection (c), if a security agreement covers goods
that are or become fixtures, a secured party may proceed:
(1) under IC 26-1-9.1-601 through IC 26-1-9.1-628; or
(2) in accordance with the rights with respect to real property, in
which case the other provisions of IC 26-1-9.1-601 through IC 26-1-9.1-628 do not apply.
(c) Subject to the other provisions of IC 26-1-9.1-601 through IC 26-1-9.1-628, if a secured party holding a security interest in fixtures
has priority over all owners and encumbrancers of the real property, the
secured party, after default, may remove the collateral from the real
property.
(d) A secured party that removes collateral shall promptly reimburse
any encumbrancer or owner of the real property, other than the debtor,
for the cost of repair of any physical injury caused by the removal. The
secured party need not reimburse the encumbrancer or owner for any
diminution in value of the real property caused by the absence of the
goods removed or by any necessity of replacing them. A person entitled
to reimbursement may refuse permission to remove until the secured
party gives adequate assurance for the performance of the obligation to
reimburse.

Legislative History

As added by P.L.57-2000, SEC.45.