A $307,193 property tax refund received by owners of industrial property in Marion County was wrongly awarded to borrowers who had defaulted on a mortgage on the property, the Indiana Court of Appeals ruled Wednesday.
The appeals panel reversed a Marion Superior Court’s final judgment regarding tax refunds to borrowers Holt Road LLC, Res Holt Road LLC, MSP Holt Road LLC, K3D Holt Road LLC and Roll & Hold Warehousing & Distribution Corp.
Lender 2513-2515 South Hold Road Holdings LLC was owed principal, interest and fees of more than $5.7 million after defendants stopped making mortgage payments in April 2013. During the foreclosure proceedings, the lender became aware of the property tax refunds that were issued after a successful property tax appeal.
Judge Elaine Brown wrote for the appellate panel that the refund meets the definition of funds within the security interest provided by a section of the contract.
“(W)e reverse the trial court’s judgment awarding receipt of the Tax Refunds to Borrowers and remand with instructions to enter judgment awarding receipt of the Tax Refunds to Lender,” Brown wrote in 2513-2515 South Holt Road Holdings, LLC v. Holt Road, LLC, Res Holt Road, LLC, MSP Holt Road, LLC, K3D Holt Road, LLC, and Roll & Hold Warehousing & Distribution Corp., 49A02-1407-MF-525.