(a) This section applies to a provider of labor, materials, or equipment under a contract for the improvement of real estate that conditions the right of the provider to receive payment on the obligor's receipt of payment from a third person with whom the provider does not have a contractual relationship.(b) This section does not apply to a construction contract for the construction, alteration, or repair of the following:(1) A Class 2 structure (as defined in IC 22-12-1-5).(2) An improvement on the same real estate auxiliary to a Class 2 structure (as defined in IC 22-12-1-5).(3) Property that is:(A) owned, operated, managed, or controlled by a:(i) public utility (as defined in IC 8-1-2-1);(ii) municipally owned utility (as defined in IC 8-1-2-1);(iii) joint agency (as defined in IC 8-1-2.2-2);(iv) rural electric membership corporation formed under IC 8-1-13-4;(v) rural communications cooperative corporation formed under IC 8-1-17; or(vi) not-for-profit utility (as defined in IC 8-1-2-125);regulated under IC 8; and(B) intended to be used and useful for the production, transmission, delivery, or furnishing of heat, light, water, telecommunications services, or power to in IC 8-1-2-125);regulated under IC 8; and(B) intended to be used and useful for the production, transmission, delivery, or furnishing of heat, light, water, telecommunications services, or power to the public.(c) An obligor's receipt of payment from a third person may not:(1) be a condition precedent to;(2) limit; or(3) be a defense to;the provider's right to record or foreclose a lien against the real estate that was improved by the provider's labor, material, or equipment.[Pre-2002 Recodification Citation: 32-8-3-18.]As added by P.L.2-2002, SEC.13. Amended by P.L.101-2002, SEC.8; P.L.81-2020, SEC.21.
Indiana Legal Code