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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