Bill Text: IA SF157 | 2017-2018 | 87th General Assembly | Introduced

---

Bill Title: A bill for an act relating to the notation of discharges of motor vehicle security interests. (See SF 2325.)

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2018-02-14 - Subcommittee recommends passage. [SF157 Detail]

Download: Iowa-2017-SF157-Introduced.html

---

Senate File 157 - Introduced




                                 SENATE FILE       
                                 BY  GARRETT

                                      A BILL FOR

  1 An Act relating to the notation of discharges of motor vehicle
  2    security interests.
  3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
    TLSB 1984XS (2) 87
    ns/nh

PAG LIN



  1  1    Section 1.  Section 321.50, subsection 5, paragraph a, Code
  1  2 2017, is amended to read as follows:
  1  3    a.  When a security interest is discharged, the holder shall
  1  4 note a cancellation of the security interest on the face of the
  1  5 certificate of title over the holder's signature and or may
  1  6 note the cancellation of the security interest on a separate,
  1  7 notarized release form or letter. The holder shall deliver the
  1  8 certificate of title and the form or letter, if applicable, to
  1  9 the county treasurer where the title was issued. In the case
  1 10 of a security interest that has been delivered by electronic
  1 11 means, the holder shall notify the department or the county
  1 12 treasurer, in a manner prescribed by the department, of the
  1 13 release of the security interest. The county treasurer shall
  1 14 immediately note the cancellation of the security interest on
  1 15 the face of the certificate of title, if applicable, and in
  1 16 the county records system. The county treasurer shall on the
  1 17 same day deliver the certificate of title, if applicable, and
  1 18 the separate, notarized release form or letter, if applicable,
  1 19  to the then first secured party or, if there is no such
  1 20 person, to the person as directed by the owner, in writing,
  1 21 on a form prescribed by the department or, if there is no
  1 22 person designated, then to the owner. The cancellation of
  1 23 the security interest shall be noted on the certificate of
  1 24 title by the county treasurer without charge. The holder of a
  1 25 security interest discharged by payment who fails to release
  1 26 the security interest within fifteen days after being requested
  1 27 in writing to do so shall forfeit to the person making the
  1 28 payment the sum of twenty=five dollars.
  1 29                           EXPLANATION
  1 30 The inclusion of this explanation does not constitute agreement with
  1 31 the explanation's substance by the members of the general assembly.
  1 32    Current law provides that when a security interest on a motor
  1 33 vehicle is discharged, other than a security interest that has
  1 34 been delivered by electronic means, the holder is required to
  1 35 note the cancellation of the security interest on the face of
  2  1 the vehicle's certificate of title over the holder's signature
  2  2 and deliver the certificate of title to the county treasurer
  2  3 where the title was issued.
  2  4    This bill permits the holder of the security interest to
  2  5 instead note the cancellation of the security interest on a
  2  6 separate, notarized release form or letter and deliver the form
  2  7 or letter along with the certificate of title to the county
  2  8 treasurer where the title was issued. The county treasurer
  2  9 must then deliver the certificate of title and the form or
  2 10 letter to the first secured party, the owner, or the owner's
  2 11 designee, as applicable.
       LSB 1984XS (2) 87
       ns/nh