§ 28-15-11-18 — Inapplicability of Indiana laws; interest added to principal; lien provided by mortgage

Indiana § 28-15-11-18

• Jurisdiction: Indiana
• Art. 15: SAVINGS ASSOCIATIONS
• Ch. 11: Alternative Mortgage Loans of Savings Associations

Text

(a) Subsections (b) and (c) apply to
alternative mortgage loans and to similar loans authorized under
federal law or regulations for a federal savings association.
(b) Any Indiana laws prohibiting:
(1) the compounding of interest;
(2) capitalizing interest because contracted loan repayments
create negative amortization; or
(3) paying interest on interest;
do not apply. For purposes of the application of IC 24-4.5-3 to a loan
described in subsection (a), "principal" (as defined in IC 24-4.5-3-107(3)) includes interest unpaid and added to principal
because the contracted repayments under the loan do not cover the
entire interest due at any time.
(c) The lien of the loan provided by the mortgage and the loan
documents:
(1) includes all advances or additions to principal of either
principal or interest that are made in accordance with the terms of
the loan documents; and
(2) is superior to any lien on the property created after the date the
mortgage securing the loan is recorded, other than taxes and
special property or taxing district assessments.

Legislative History

As added by P.L.193-1997, SEC.2. Amended by P.L.27-2012, SEC.116.