Bill Text: IA HF2232 | 2017-2018 | 87th General Assembly | Enrolled
Bill Title: A bill for an act relating to mortgage releases. (Formerly HSB 504.) Effective 7-1-18.
Spectrum: Committee Bill
Status: (Passed) 2018-03-28 - Signed by Governor. H.J. 700. [HF2232 Detail]
Download: Iowa-2017-HF2232-Enrolled.html
House File 2232 - Enrolled
HOUSE FILE
BY COMMITTEE ON JUDICIARY
(SUCCESSOR TO HSB 504)
(COMPANION TO SF 2138
BY COMMITTEE ON
JUDICIARY)
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A BILL FOR
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House File 2232
AN ACT
RELATING TO MORTGAGE RELEASES.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
Section 1. Section 535B.11, subsection 5, Code 2018, is
amended by striking the subsection.
Sec. 2. Section 655.1, Code 2018, is amended to read as
follows:
655.1 Written instrument acknowledging satisfaction.
When the amount due on a mortgage is paid off, the mortgagee,
the mortgagee's personal representative or assignee, or those
legally acting for the mortgagee, and in case of payment
of a school fund mortgage the county auditor, must within
thirty days of payment in full, shall acknowledge satisfaction
thereof by execution of an instrument of satisfaction which
is in writing, referring refers to the mortgage, and is duly
acknowledged and recorded. Notwithstanding the foregoing,
if the mortgage secures a revolving line of credit, future
advances, or other future obligations, the mortgagee is not
required to file a satisfaction upon payment in full unless
the mortgagor makes a written request to the mortgagee that
the mortgage be released and, if such written request is made,
the mortgagee shall file the release within thirty days after
payment in full or such written request is made whichever
occurs later.
Sec. 3. Section 655.3, Code 2018, is amended to read as
follows:
655.3 Penalty for failure to discharge.
If a mortgagee, or a mortgagee's personal representative
or assignee, upon full performance of the conditions of the
mortgage, fails to discharge such mortgage within thirty days
after a request for discharge as set forth in section 655.1,
the mortgagee is liable to the mortgagor and the mortgagor's
heirs or assigns, for all actual damages caused by such
failure and a penalty of five hundred dollars, including plus
reasonable attorney fees. A claim for such damages may be
asserted in an action for discharge of the mortgage. If the
defendant is not a resident of this state, such action may
be maintained upon the expiration of thirty days after the
conditions of the mortgage have been performed, without such
previous request or tender.
Sec. 4. Section 655.5, Code 2018, is amended to read as
follows:
655.5 Instrument of satisfaction.
When the judgment is paid in full, the mortgagee shall file
with the clerk a satisfaction of judgment which shall release
the mortgage underlying the action. A mortgagee who fails to
file a satisfaction within thirty days of receiving a written
request shall be subject to reasonable damages and a penalty of
one five hundred dollars plus reasonable attorney fees incurred
by the aggrieved party, to be recovered in an action for the
satisfaction by the party aggrieved.
Sec. 5. NEW SECTION. 655.6 Limitation of liability.
A mortgagee is not liable under section 655.3 if all of the
following apply:
1. The mortgagee established reasonable procedures to
achieve compliance with its obligations under 655.3.
2. The mortgagee complied with that procedure in good faith.
3. The mortgagee was unable to comply with its obligations
because of circumstances beyond its control.
LINDA UPMEYER
CHARLES SCHNEIDE
CARMINE BOAL
KIM REYNOLDS
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