Bill Text: IA SF2325 | 2017-2018 | 87th General Assembly | Enrolled

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Bill Title: A bill for an act relating to the notation of discharges of motor vehicle security interests. (Formerly SF 157.) Effective 7-1-18.

Spectrum: Committee Bill

Status: (Passed) 2018-03-28 - Signed by Governor. S.J. 812. [SF2325 Detail]

Download: Iowa-2017-SF2325-Enrolled.html

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Senate File 2325 - Enrolled




                              SENATE FILE       
                              BY  COMMITTEE ON
                                  TRANSPORTATION

                              (SUCCESSOR TO SF 157)
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                                   A BILL FOR
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                                       Senate File 2325

                             AN ACT
 RELATING TO THE NOTATION OF DISCHARGES OF MOTOR VEHICLE
    SECURITY INTERESTS.

 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
    Section 1.  Section 321.50, subsection 5, paragraph a, Code
 2018, is amended to read as follows:
    a.  When a security interest is discharged, the holder shall
 note a cancellation of the security interest on the face of the
 certificate of title over the holder's signature and or may
 note the cancellation of the security interest on a separate,
 notarized release form or letter. The holder shall deliver the
 certificate of title and the form or letter, if applicable, to
 the county treasurer where the title was issued. In the case
 of a security interest that has been delivered by electronic
 means, the holder shall notify the department or the county
 treasurer, in a manner prescribed by the department, of the
 release of the security interest. The county treasurer shall
 immediately note the cancellation of the security interest on
 the face of the certificate of title, if applicable, and in
 the county records system. The county treasurer shall on the
 same day deliver the certificate of title, if applicable, and
 the separate, notarized release form or letter, if applicable,
  to the then first secured party or, if there is no such
 person, to the person as directed by the owner, in writing,
 on a form prescribed by the department or, if there is no
 person designated, then to the owner. The cancellation of
 the security interest shall be noted on the certificate of
 title by the county treasurer without charge. The holder of a
 security interest discharged by payment who fails to release
 the security interest within fifteen days after being requested
 in writing to do so shall forfeit to the person making the
 payment the sum of twenty=five dollars.


                                                                                            CHARLES SCHNEIDE


                                                                                            LINDA UPMEYER


                                                                                            W. CHARLES SMITH


                                                                                            KIM REYNOLDS

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