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

Indiana Statutes

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

Indiana·Art. 15 SAVINGS ASSOCIATIONS·Ch. 11 Alternative Mortgage Loans of Savings Associations

(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

Free access — add to your briefcase to read the full text and ask questions with AI

(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.

Indiana § 28-15-11-18 (Inapplicability of Indiana laws; interest added to principal; lien provided by mortgage) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.