Text: S03221 Text: S03223 Text: S03200 - S03299 Text: S Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 Amend Senate File 425 as follows: 1 2 #1. Page 1, by inserting before line 1 the 1 3 following: 1 4 "Section 1. Section 16.1, subsection 39, Code 1 5 2001, is amended to read as follows: 1 6 39. "Title guaranty policy" means a guaranty 1 7 policy against loss or damage caused by defective 1 8 title to real property. 1 9 Sec. . Section 16.2, subsection 1, unnumbered 1 10 paragraph 2, Code 2001, is amended to read as follows: 1 11 A title guaranty division is created within the 1 12 authority. The powers of the division relating to the 1 13 issuance of titleguarantiesguaranty policies are 1 14 vested in and shall be exercised by a division board 1 15 of five members appointed by the governor subject to 1 16 confirmation by the senate. The membership of the 1 17 board shall include an attorney, an abstractor, a real 1 18 estate broker, a representative of a mortgage-lender, 1 19 and a representative of the housing development 1 20 industry. The executive director of the authority 1 21 shall appoint an attorney as director of the title 1 22 guaranty division who shall serve as an ex officio 1 23 member of the board. The appointment of and 1 24 compensation for the division director are exempt from 1 25 the merit system provisions of chapter 19A. 1 26 Sec. . Section 16.3, subsection 15, Code 2001, 1 27 is amended to read as follows: 1 28 15. The abstract-attorney's title opinion system 1 29 promotes land title stability for determining the 1 30 marketability of land titles and is a public purpose. 1 31 A public purpose will be served by providing, as an 1 32 adjunct to the abstract-attorney's title opinion 1 33 system, a low cost mechanism to provide for additional 1 34 guaranties of real property titles in Iowa. The title 1 35guarantiesguaranty policies will facilitate mortgage 1 36 lenders' participation in the secondary market and add 1 37 to the integrity of the land-title transfer system in 1 38 the state. 1 39 Sec. . Section 16.5, subsection 15, Code 2001, 1 40 is amended as follows: 1 41 15. Through the title guaranty division, make and 1 42 issue titleguarantiesguaranty policies on Iowa real 1 43 property in a form acceptable to the secondary market, 1 44 to fix and collect the charges for theguaranties1 45 guaranty policies and to procure reinsurance against 1 46 any loss in connection with theguarantiesguaranty 1 47 policies." 1 48 #2. Page 1, line 1, by inserting after the word 1 49 "subsections" the following: "1, 2, 3,". 1 50 #3. Page 1, by inserting after line 2 the 2 1 following: 2 2 "1. The authority through the title guaranty 2 3 division shall initiate and operate a program in which 2 4 the division shall offerguarantiestitle guaranty 2 5 policies of real property titles in this state. The 2 6 terms,and conditionsand formof the title guaranty 2 7contractpolicy shall be forms approved by the 2 8 division board. The division, as it may determine, 2 9 may use the policy, endorsement, and other forms 2 10 adopted for the title insurance industry by the 2 11 American land title association and may obtain ratings 2 12 of the division similar to ratings given to title 2 13 insurance companies. The division shall fix a charge 2 14 for the guaranty in an amount sufficient to permit the 2 15 program to operate on a self-sustaining basis, 2 16 including payment of administrative costs and the 2 17 maintenance of an adequate reserve against claims 2 18 under the title guaranty program. A title guaranty 2 19 policy fund is created in the office of the treasurer 2 20 of state. Funds collected under this program shall be 2 21 placed in the title guaranty policy fund and are 2 22 available to pay all claims, necessary reserves, and 2 23 all administrative costs of the title guaranty 2 24 program. Moneys in the fund shall not revert to the 2 25 general fund and interest on the moneys in the fund 2 26 shall be transferred to the department of economic 2 27 development for deposit in the local housing 2 28 assistance program fund established in section 15.354 2 29 and shall not accrue to the general fund. If the 2 30 authority board in consultation with the division 2 31 board determines that there are surplus funds in the 2 32 title guaranty policy fund after providing for 2 33 adequate reserves and operating expenses of the 2 34 division, the surplus funds shall be transferred to 2 35 the housing program fund created pursuant to section 2 36 16.40. 2 37 2. A title guaranty policy, closing protection 2 38 letter, or gap coverage issued under this program is 2 39 an obligation of the division only and claims are 2 40 payable solely and only out of the moneys, assets, and 2 41 revenues of the title guaranty policy fund and are not 2 42 an indebtedness or liability of the state. The state 2 43 is not liable on any title guaranty policy, closing 2 44 protection letter, or gap coverage. 2 45 3. With the approval of the authority board the 2 46 division and its board shall consult with the 2 47 insurance division of the department of commerce in 2 48 developing a title guarantycontractpolicy acceptable 2 49 to the secondary market and developing any other 2 50 feature of the program with which the insurance 3 1 division may have special expertise. The insurance 3 2 division shall establish the amount for a loss reserve 3 3 fund. Except as provided in this subsection, the 3 4 title guaranty program is not subject to the 3 5 jurisdiction of or regulation by the insurance 3 6 division or the commissioner of insurance." 3 7 #4. Page 1, line 9, by inserting after the word 3 8 "authority." the following: "A participating attorney 3 9 shall be licensed to practice in this state." 3 10 #5. Page 2, line 2, by striking the word 3 11 "guaranties" and inserting the following: "guaranties3 12 guaranty policies". 3 13 #6. Page 2, by striking lines 9 and 10 and 3 14 inserting the following: "rules issued by the 3 15 authority." 3 16 #7. Page 2, line 11, by inserting after the word 3 17 "guaranty" the following: "policy". 3 18 #8. Page 2, by striking lines 20 through 23 and 3 19 inserting the following: "board. If an owner is 3 20 refinancing a loan secured by a mortgage, the division 3 21 may establish standards for title searches and 3 22 underwriting procedures and requirements for the 3 23 issuance of a title guaranty policy if a title 3 24 guaranty policy was previously issued on the property 3 25 for the same owner within a period of five years." 3 26 #9. Page 2, line 25, by striking the word "shall" 3 27 and inserting the following: "shallmay". 3 28 #10. Page 2, line 26, by striking the word 3 29 "certificate" and inserting the following: 3 30 "certificatepolicy". 3 31 #11. Page 3, by inserting after line 11 the 3 32 following: 3 33 "Sec. ___. Section 16.93, subsections 1, 2, and 3, 3 34 Code 2001, are amended to read as follows: 3 35 1. The authority through the title guaranty 3 36 division may issue a closing protection letter to a 3 37 person to whom a proposed title guaranty policy is to 3 38 be issued, upon the request of the person, if the 3 39 division issues a commitment for a title guarantyor3 40title guaranty certificatepolicy. The closing 3 41 protection letter shall conform to the terms of 3 42 coverage and form of the instrument as approved by the 3 43 division board and may indemnify a person to whom a 3 44 proposed title guaranty policy is to be issued against 3 45 loss of settlement funds due to only the following 3 46 acts of the division's named participating attorney or 3 47 participating abstractor: 3 48 a. Theft of settlement funds. 3 49 b. Failure by the participating attorney or 3 50 participating abstractor to comply with written 4 1 closing instructions of the person to whom a proposed 4 2 title guaranty policy is to be issued relating to 4 3 title certificate coverage when agreed to by the 4 4 participating attorney or participating abstractor. 4 5 2. A closing protection letter shall only be 4 6 issued to a person to whom a proposed title guaranty 4 7 policy is to be issued for real property transactions 4 8 in which the division has committed to issue an owner 4 9 or lender certificate and for which the division 4 10 receives a premium and other payments or fees for a 4 11 title guarantycertificatepolicy or other coverage. 4 12 3. The division board shall establish the amount 4 13 of coverage to be provided and may distinguish between 4 14 classes of property including, but not limited to, 4 15 residential, agricultural, or commercial, provided 4 16 that the total amount of coverage provided by the 4 17 closing protection letter shall not exceed the amount 4 18 of the commitment or title guaranty policy to be 4 19 issued. Liability under the closing protection letter 4 20 shall be coextensive with liability under the 4 21 certificate to be issued in connection with a 4 22 transaction such that payments under the terms of the 4 23 closing protection letter shall reduce by the same 4 24 amount the liability under the title guaranty 4 25certificatepolicy and payment under the title 4 26 guarantycertificatepolicy shall reduce the liability 4 27 under the terms of the closing protection letter. 4 28 Sec. ___. Section 535.8, subsection 2, paragraph 4 29 b, subparagraph (10), Code 2001, is amended to read as 4 30 follows: 4 31 (10) The cost of a title guaranty policy issued by 4 32 the Iowa finance authority pursuant to chapter 16." 4 33 #12. By renumbering as necessary. 4 34 4 35 4 36 4 37 JOHN W. JENSEN 4 38 SF 425.301 79 4 39 tm/cf
Text: S03221 Text: S03223 Text: S03200 - S03299 Text: S Index Bills and Amendments: General Index Bill History: General Index
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