Text: HSB00512 Text: HSB00514 Text: HSB00500 - HSB00599 Text: HSB Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 Section 1. Section 321.1, subsection 24B, paragraph c, 1 2 Code Supplement 1999, is amended to read as follows: 1 3 c. A validcertificate of deposit of money or security1 4 statement issued by the treasurer of state pursuant to section 1 5 321A.25 attesting to the filing of a certificate of deposit 1 6 with the treasurer of state. 1 7 Sec. 2. Section 321A.18, Code 1999, is amended to read as 1 8 follows: 1 9 321A.18 ALTERNATE METHODS OF GIVING PROOF. 1 10 Proof of financial responsibility when required under this 1 11 chapter may be given by filing any of the following: 1 12 1. A certificate of insurance as provided in section 1 13 321A.19 or section 321A.20; or. 1 14 2. A bond as provided in section 321A.24; or. 1 15 3. Acertificate of deposit of money or securities1 16 statement issued by the treasurer of state attesting to the 1 17 filing of a certificate of deposit with the treasurer of state 1 18 as provided in section 321A.25. 1 19 Sec. 3. Section 321A.25, Code 1999, is amended to read as 1 20 follows: 1 21 321A.25MONEY OR SECURITIESCERTIFICATE OF DEPOSIT AS 1 22 PROOF. 1 23 1. Proof of financial responsibility may be evidenced by 1 24 thecertificatestatement of the treasurer of state that the 1 25 person named in thecertificatestatement hasdepositedfiled 1 26 with the treasurer of state fifty-five thousand dollars in 1 27cash, or securities which may legally be purchased by a state1 28bank or trust funds of a market value of fifty-five thousand1 29dollarsthe form of an endorsed certificate of deposit made 1 30 payable jointly to the person and the treasurer of state. The 1 31 certificate of deposit shall be obtained from an Iowa 1 32 financial institution in the amount of fifty-five thousand 1 33 dollars plus any early withdrawal penalty fee. The treasurer 1 34 of state shall promptly notify the director of transportation 1 35 of the name and address of the person to whom thecertificate2 1 statement has been issued. Upon receipt of the notification, 2 2 the director of transportation shall issue to the person a 2 3 security insurance card for each motor vehicle registered in 2 4 this state by the person. The security insurance card shall 2 5 state the name and address of the person and the registration 2 6 number of the motor vehicle for which the card is issued. The 2 7 treasurer of state shall not accept a certificate of deposit 2 8 and issue acertificatestatement for it and the department 2 9 shall not accept thecertificatestatement unless accompanied 2 10 by evidence that there are no unsatisfied judgments of any 2 11 character against thedepositorperson in the county where the 2 12depositorperson resides. 2 13 2. Such certificate of deposit shall be held by thestate2 14 treasurer of state to satisfy, in accordance withthe2 15provisions ofthis chapter, any execution on a judgment issued 2 16 againstsuchthe personmakingfiling the certificate of 2 17 deposit, for damages, including damages for care and loss of 2 18 services, because of bodily injury to or death of any person, 2 19 or for damages because of injury to or destruction of 2 20 property, including the loss of usethereofof property, 2 21 resulting from the ownership, maintenance, use, or operation 2 22 of a motor vehicle aftersuchthe certificate of deposit was 2 23madefiled.Money or securitiesA certificate of deposit so 2 24depositedfiled shall not be subject to attachment or 2 25 execution unlesssuchthe attachment or executionshall arise2 26 arises out of a suit for damages asaforesaidpreviously 2 27 provided in this subsection. 2 28 Sec. 4. Section 321A.27, Code 1999, is amended to read as 2 29 follows: 2 30 321A.27 SUBSTITUTION OF PROOF. 2 31 The department shall consent to the cancellation ofanya 2 32 bond or certificate of insurance or the department shall 2 33 direct and thestatetreasurer of state shall returnany money2 34or securitiesa certificate of deposit to the person entitled 2 35theretoto the certificate of deposit upon the substitution 3 1 and acceptance of other adequate proof of financial 3 2 responsibility pursuant to this chapter. 3 3 Sec. 5. Section 321A.29, Code 1999, is amended to read as 3 4 follows: 3 5 321A.29 DURATION OF PROOF WHEN PROOF MAY BE CANCELED OR 3 6 RETURNED. 3 7 1. The department shall upon request consent to the 3 8 immediate cancellation ofanya bond or certificate of 3 9 insurance, or the department shall direct and thestate3 10 treasurer of state shall return to the person entitled thereto 3 11any money or securities depositeda certificate of deposit 3 12 filed pursuant to this chapter as proof of financial 3 13 responsibility, or the department shall waive the requirement 3 14 of filing proof, in any of the following events: 3 15 a. At any time after two years from the date such proof 3 16 was required when, during the two-year period preceding the 3 17 request, the department has not received record of a 3 18 conviction or a forfeiture of bail which would require or 3 19 permit the suspension or revocation of the license, 3 20 registration, or nonresident's operating privilege of the 3 21 person by or for whom such proof was furnished; or. 3 22 b. In the event of the death of the person on whose behalf 3 23 such proof was filed or the permanent incapacity of such 3 24 person to operate a motor vehicle; or. 3 25 c. In the event the person who has given proof surrenders 3 26 the person's license and registration to the department;. 3 27 2.Provided, however, that theThe department shall not 3 28 consent to the cancellation ofanya bond or the return ofany3 29money or securitiesa certificate of deposit in the eventany3 30 an action for damages upon a liability covered by such proof 3 31 is then pending oranya judgment upon any such liability is 3 32thenunsatisfied, or in the event the person who has filed 3 33 such bond ordepositedsuchmoney or securitiescertificate of 3 34 deposit has within one year immediately preceding such request 3 35 been involved as an operator or owner in any motor vehicle 4 1 accident resulting in injury or damage to the person or 4 2 property of others. An affidavit of the applicant as to the 4 3 nonexistence of such facts, or that the applicant has been 4 4 released from all of the applicant's liability, or has been 4 5 finally adjudicated not to be liable, for such injury or 4 6 damage, shall be sufficient evidence thereof in the absence of 4 7 evidence to the contrary in the records of the department. 4 8 3.Whenever any personIf a person whose proof has been 4 9 canceled or returned underparagraph "c" of subsection 1 of4 10this sectionsubsection 1, paragraph "c", applies for a 4 11 license or registration within a period of two years from the 4 12 date proof was originally required,anysuch application shall 4 13 be refused unless the applicantshall re-establish such4 14 reestablishes proof for the remainder of the two-year period. 4 15 Sec. 6. EFFECTIVE DATE. This Act, being deemed of 4 16 immediate importance, takes effect upon enactment. 4 17 EXPLANATION 4 18 This bill amends Code section 321A.25 to provide that a 4 19 person may prove motor vehicle financial responsibility by 4 20 filing an endorsed certificate of deposit with the treasurer 4 21 of state. The certificate of deposit shall be made payable 4 22 jointly to the person and the treasurer of state and shall be 4 23 obtained from an Iowa financial institution in the amount of 4 24 $55,000 plus any early withdrawal penalty fee. Currently, 4 25 Code section 321A.25 provides that a person may prove motor 4 26 vehicle financial responsibility by depositing with the 4 27 treasurer of state $55,000 in cash, or securities which may 4 28 legally be purchased by a state bank or trust funds of a 4 29 market value of $55,000. 4 30 The bill also makes corresponding language changes in Code 4 31 sections 321.1, 321A.18, 321A.27, and 321A.29, and provides 4 32 that the bill takes effect upon enactment. 4 33 LSB 5264DP 78 4 34 nh/as/5
Text: HSB00512 Text: HSB00514 Text: HSB00500 - HSB00599 Text: HSB Index Bills and Amendments: General Index Bill History: General Index
© 2000 Cornell College and League of Women Voters of Iowa
Comments about this site or page?
webmaster@legis.iowa.gov.
Please remember that the person listed above does not vote on bills. Direct all comments concerning legislation to State Legislators.
Last update: Thu Jan 13 03:35:30 CST 2000
URL: /DOCS/GA/78GA/Legislation/HSB/00500/HSB00513/000112.html
jhf