Text: HF02032 Text: HF02034 Text: HF02000 - HF02099 Text: HF Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 Section 1. Section 321G.29, Code 2001, is amended by 1 2 adding the following new subsection: 1 3 NEW SUBSECTION. 10. If the county recorder is not 1 4 satisfied as to the ownership of the snowmobile or all-terrain 1 5 vehicle or that there are no undisclosed security interests in 1 6 the snowmobile or all-terrain vehicle, the county recorder may 1 7 issue a certificate of title for the snowmobile or all-terrain 1 8 vehicle, but, as a condition of such issuance, may require the 1 9 applicant to file with the department a bond in the form 1 10 prescribed by the department and executed by the applicant, 1 11 and also executed by a person authorized to conduct a surety 1 12 business in this state. The form and amount of the bond shall 1 13 be established by rule of the department. The bond shall be 1 14 conditioned to indemnify any prior owner and secured party and 1 15 any subsequent purchaser of the snowmobile or all-terrain 1 16 vehicle or person acquiring any security interest in the 1 17 snowmobile or all-terrain vehicle, and their respective 1 18 successors in interest, against any expense, loss, or damage, 1 19 including reasonable attorney fees, by reason of the issuance 1 20 of the certificate of title of the snowmobile or all-terrain 1 21 vehicle or on account of any defect in or undisclosed security 1 22 interest upon the right, title, and interest of the applicant 1 23 in and to the snowmobile or all-terrain vehicle. Any such 1 24 interested person has a right of action to recover on the bond 1 25 for any breach of its conditions, but the aggregate liability 1 26 of the surety to all persons shall not exceed the amount of 1 27 the bond. The bond shall be returned at the end of three 1 28 years or prior thereto if the snowmobile or all-terrain 1 29 vehicle is no longer registered in this state and the 1 30 certificate of title is surrendered to the department, unless 1 31 the department has been notified of the pendency of an action 1 32 to recover on the bond. 1 33 Sec. 2. Section 462A.5, subsection 1, unnumbered paragraph 1 34 2, Code Supplement 2001, amended to read as follows: 1 35 The owner of the vessel shall file an application for 2 1 registration with the appropriate county recorder on forms 2 2 provided by the commission. The application shall be 2 3 completed and signed by the owner of the vessel and shall be 2 4 accompanied by the appropriate fee, and the writing fee 2 5 specified in section 462A.53. Upon applying for registration, 2 6 the owner shall display a bill of sale, receipt, or other 2 7 satisfactory proof of ownership as provided by the rules of 2 8 the commission to the county recorder. If the county recorder 2 9 is not satisfied as to the ownership of the vessel or that 2 10 there are no undisclosed security interests in the vessel, the 2 11 county recorder may register the vessel but shall, as a 2 12 condition of issuing a registration certificate, require the 2 13 applicant to follow the procedure provided in section 462A.5A. 2 14 Upon receipt of the application in approved form accompanied 2 15 by the required fees, the county recorder shall enter it upon 2 16 the records of the recorder's office and shall issue to the 2 17 applicant a pocket-size registration certificate. The 2 18 certificate shall be executed in triplicate, one copy to be 2 19 delivered to the owner, one copy to the commission, and one 2 20 copy to be retained on file by the county recorder. The 2 21 registration certificate shall bear the number awarded to the 2 22 vessel, the passenger capacity of the vessel, and the name and 2 23 address of the owner. In the use of all vessels except 2 24 nonpowered sailboats, nonpowered canoes, and commercial 2 25 vessels, the registration certificate shall be carried either 2 26 in the vessel or on the person of the operator of the vessel 2 27 when in use. In the use of nonpowered sailboats, nonpowered 2 28 canoes, or commercial vessels, the registration certificate 2 29 may be kept on shore in accordance with rules adopted by the 2 30 commission. The operator shall exhibit the certificate to a 2 31 peace officer upon request or, when involved in a collision or 2 32 accident of any nature with another vessel or other personal 2 33 property, to the owner or operator of the other vessel or 2 34 personal property. 2 35 Sec. 3. NEW SECTION. 462A.5A FILING BOND AS ASSURANCE OF 3 1 OWNERSHIP. 3 2 An applicant for registration of a vessel for which the 3 3 county recorder is not satisfied as to the ownership of the 3 4 vessel as provided in section 462A.5, subsection 1, shall file 3 5 with the department a bond in the form prescribed by the 3 6 department and executed by the applicant, and also executed by 3 7 a person authorized to conduct a surety business in this 3 8 state. The form and amount of the bond shall be established 3 9 by rule of the department. The bond shall be conditioned to 3 10 indemnify any prior owner and secured party and any subsequent 3 11 purchaser of the vessel or person acquiring any security 3 12 interest in the vessel, and their respective successors in 3 13 interest, against any expense, loss, or damage, including 3 14 reasonable attorney fees, by reason of the issuance of the 3 15 registration certificate of the vessel or on account of any 3 16 defect in or undisclosed security interest upon the right, 3 17 title, and interest of the applicant in and to the vessel. 3 18 Any such interested person has a right of action to recover on 3 19 the bond for any breach of its conditions, but the aggregate 3 20 liability of the surety to all persons shall not exceed the 3 21 amount of the bond. The bond shall be returned at the end of 3 22 three years or prior thereto if the vessel is no longer 3 23 registered in this state and the registration certificate is 3 24 surrendered to the department, unless the department has been 3 25 notified of the pendency of an action to recover on the bond. 3 26 EXPLANATION 3 27 This bill adapts a method established for issuing 3 28 certificates of title for motor vehicles for which the issuing 3 29 authority is not satisfied as to the ownership of the vehicle 3 30 or that there are no undisclosed security interests in it to 3 31 issuance of certificates of title for snowmobiles and all- 3 32 terrain vehicles, and to issuance of registration for 3 33 watercraft, with similarly questioned ownership. The bill 3 34 provides that the county recorder may issue a certificate of 3 35 title for such a snowmobile or all-terrain vehicle, or 4 1 registration certificate for such a watercraft, if the 4 2 applicant files a bond with the department of natural 4 3 resources. 4 4 The bill provides that the bond shall be executed by a 4 5 person authorized to conduct a surety business and shall be in 4 6 an amount determined by the department by rule. The bond 4 7 shall protect prior owners, secured parties, and subsequent 4 8 owners of the snowmobile, all-terrain vehicle, or watercraft. 4 9 The bond is to be returned at the end of three years, or 4 10 before if the snowmobile, all-terrain vehicle, or watercraft 4 11 is no longer registered in this state and the certificate of 4 12 title or registration certificate is surrendered to the 4 13 department, unless the department has been notified of the 4 14 pendency of an action to recover on the bond. 4 15 LSB 5203HH 79 4 16 nh/sh/8
Text: HF02032 Text: HF02034 Text: HF02000 - HF02099 Text: HF Index Bills and Amendments: General Index Bill History: General Index
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