Bulletin: IN2023004

Dear Associates:

The newly enacted Threats to Critical Infrastructure Act at Indiana Code § 1-1-15-0.1 (“Act”) prohibits a “prohibited person,” from acquiring an interest in land located in the state of Indiana that is directly adjacent to a military base or military installation. A prohibited person is generally defined under the Act as an individual who is a citizen of China, Iran, North Korea, Russia, or a country otherwise designated as a threat by the Governor of Indiana as well as business entities owned by or controlled by persons from the aforementioned countries as well as their governments. The Act provides for divesture of title to real property acquired on or after July 1, 2023, by a prohibited person on and adjacent to a military base or military installation via forfeiture and receivership proceedings that may be initiated by the Indiana Attorney General, upon receipt of a complaint. The Act further seeks to prohibit contracts between a business entity, state agency or political subdivision and a prohibited person if the prohibited person would be able to directly or remotely access or control critical infrastructure or the cybersecurity system of critical infrastructure. The term “critical infrastructure” includes military bases and military installations as well.

Since the Act did not include a list of the military installations and military bases and the definition of critical infrastructure is broad, agents may find it difficult to determine whether the statute applies to a particular parcel of real property. You should assume that the property involved in your transaction is subject to the restrictions of the statute unless you are able to determine the property is not directly adjacent to a military installation or military base or does not include or provide access to critical infrastructure. As this law is based upon the State’s exercise of its governmental police powers it would be excluded from coverage pursuant to Exclusion 1 of the policies, among other Exclusions. Since the impact and scope of the law is not entirely clear it is important a buyer is aware of this law and that the title policy is not providing coverage over any violation or failure to comply with this law, you should require the execution of the attached Affidavit by the buyer/lessee to be insured. Stewart Title offices and agents are not authorized to insure a transaction that is known to violate the Act.

If you have any questions relating to this or other bulletins, please contact a Stewart Title Guaranty Company underwriter.

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