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 signatureandor 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