SSB 3004 (LSB 5275XC (6) 88)

SENATE FILE _____ 

BY  (PROPOSED COMMITTEE ON COMMERCE BILL BY CHAIRPERSON DAWSON)

A BILL FOR

An Act relating to filing requirements applicable to extensions of real estate conveyances or transactions under specified circumstances.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 614.21, subsection 2, Code 2020, is amended to read as follows:
   2.  The date of maturity, when different than as appears by the record of the instrument, and the date of maturity of any extension of the instrument or of said indebtedness or part thereof, may be shown at any time prior to the expiration of the periods of limitation specified in subsection 1 by the holder of the debt or the owner or assignee of the instrument by filing an extension agreement, duly acknowledged as the original instrument was required to be acknowledged, in the office of the recorder where the instrument is recorded an extension agreement or other documentation evidencing a modification of the maturity date, an extension of the instrument, or an extension of said indebtedness.  By authorizing or becoming bound under an existing mortgage, a mortgagor authorizes the filing by a mortgagee under this subsection.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   Current law provides that when the date of maturity of a real estate mortgage, bond for deed, or contract for the sale or conveyance of real estate is different from the date of maturity shown on the record of the instrument itself, and so long as the limitations period contained in Code section 614.21 has yet to expire, the owner or assignee of the instrument may show a modification of the maturity date, an extension of the maturity date, or an extension of any associated indebtedness by filing a duly acknowledged extension agreement in the office of the recorder where the instrument was recorded. 
   This bill removes the requirement that an extension agreement be duly acknowledged as the original instrument was required to be acknowledged when a filing of the agreement in the county recorder’s office takes place. Instead, the bill provides that the filing of an extension agreement or other documentation evidencing a modification of the maturity date, extension of the instrument, or extension of indebtedness by the holder of the debt or owner or assignee of the instrument is sufficient. 
   In addition, the bill provides that a mortgagor, by authorizing a mortgage or becoming bound under an existing mortgage, authorizes the mortgagee to make the filings specified in the bill.