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House File 2033

Partial Bill History

Bill Text

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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