Text: SSB01197 Text: SSB01199 Text: SSB01100 - SSB01199 Text: SSB Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 Section 1. Section 16.91, subsections 4, 5, 6, and 7, Code 1 2 2001, are amended to read as follows: 1 3 4. Attorneys, abstractors, lenders, closing and escrow 1 4 companies, and mortgage brokers may participate in the title 1 5 guaranty program. Each participating attorney and abstractor 1 6 may be required to pay an annual participation fee to be 1 7 eligible to participate in the title guaranty program. The 1 8 fee, if any, shall be set by the division, subject to the 1 9 approval of the authority. 1 10 5. The participation of abstractors and attorneys shall be 1 11 in accordance with rules established by the division and 1 12 adopted by the authority pursuant to chapter 17A. Each 1 13participantparticipating attorney and abstractor shall at all 1 14 times maintain liability and other indemnity coverage in 1 15 amounts approved by the division. Upon payment of a claim by 1 16 the division, the division shall be subrogated to the rights 1 17 of the claimant against all persons relating to the claim. 1 18 Additionally, each participating abstractor is required to 1 19 own or lease, and maintain and use in the preparation of 1 20 abstracts, an up-to-date abstract title plant including tract 1 21 indices for real estate for each county in which abstracts are 1 22 prepared for real property titles guaranteed by the division. 1 23 The tract indices shall contain a reference to all instruments 1 24 affecting the real estate which are recorded in the office of 1 25 the county recorder, and shall commence not less than forty 1 26 years prior to the date the abstractor commences participation 1 27 in the title guaranty program. However, a participating 1 28 attorney providing abstract services continuously from 1 29 November 12, 1986, to the date of application, either 1 30 personally or through persons under the attorney's supervision 1 31 and control is exempt from the requirements of this paragraph. 1 32 The division may waive the requirements of this subsection 1 33 pursuant to an application of an attorney or abstractor which 1 34 shows that the requirements impose a hardship to the attorney 1 35 or abstractor and that the waiver clearly is in the public 2 1 interest or is absolutely necessary to ensure availability of 2 2 title guaranties throughout the state. 2 3 The division may also waive the requirements of this 2 4 subsection pursuant to an application of a participating 2 5 attorney who is not a participating attorney providing 2 6 abstract services continuously from November 12, 1986, if the 2 7 participating attorney is found to be competent to conduct 2 8 title searches and prepare abstracts of title pursuant to 2 9 rules issued by the authority. Waivers granted pursuant to 2 10 this paragraph shall be for a specific county or counties. 2 11 6. Prior to the issuance of a title guaranty, the division 2 12 shall require evidence that an abstract of title to the 2 13 property in question has been brought up-to-date and certified 2 14 by a participating abstractor in a form approved by division 2 15 rules and a title opinion issued by a participating attorney 2 16 in the form approved in the rules stating the attorney's 2 17 opinion as to the title. The division shall require evidence 2 18 of the abstract being brought up-to-date and the abstractor 2 19 shall retain evidence of the abstract as determined by the 2 20 board. The division may establish standards for title 2 21 searches and underwriting procedures and requirements for the 2 22 issuance of a title guaranty in which a title guaranty has 2 23 previously been issued on the property in question. 2 24 7.The attorney rendering a title opinionParticipating 2 25 attorneys and participating abstractors shall be authorized to 2 26 issue a title guaranty certificate subject to the rules of the 2 27 authority. 2 28 Sec. 2. Section 16.92, subsection 1, Code 2001, is amended 2 29 by adding the following new paragraphs after paragraph e: 2 30 NEW PARAGRAPH. ee. "Participating abstractor" means an 2 31 abstractor participating in the title guaranty program 2 32 pursuant to section 16.91. 2 33 NEW PARAGRAPH. ef. "Participating closing and escrow 2 34 company" means a closing and escrow company participating in 2 35 the title guaranty program pursuant to section 16.91. 3 1 NEW PARAGRAPH. eg. "Participating mortgage broker" means 3 2 a mortgage broker participating in the title guaranty program 3 3 pursuant to section 16.91. 3 4 Sec. 3. Section 16.92, subsection 1, paragraph g, Code 3 5 2001, is amended to read as follows: 3 6 g. "Real estate lender or closer" means a person licensed 3 7 to regularly lend moneys to be secured by a mortgage on real 3 8 property in this state, a licensed real estate broker,ora 3 9 licensed attorney, a participating abstractor, a participating 3 10 closing and escrow company, or a participating mortgage 3 11 broker. 3 12 EXPLANATION 3 13 This bill amends provisions of the title guaranty program 3 14 of the title guaranty division of the Iowa finance authority 3 15 relating to standards of and participation in the program. 3 16 The bill provides that attorneys, abstractors, lenders, 3 17 closing and escrow companies, and mortgage brokers may 3 18 participate in the title guaranty program. Currently, only 3 19 attorneys and abstractors can participate in the program. The 3 20 bill provides that each participating attorney and abstractor 3 21 is required to maintain liability and other indemnity 3 22 coverage. 3 23 The bill provides that the title guaranty division, upon 3 24 application by a participating attorney who is not a 3 25 participating attorney providing abstract services 3 26 continuously from November 12, 1986, may waive requirements 3 27 relating to maintaining liability and other indemnity coverage 3 28 and up-to-date abstract plant if the attorney is found to be 3 29 competent to conduct title searches and prepare abstracts of 3 30 title. 3 31 The bill provides that the title guaranty division may 3 32 establish standards for title searches and underwriting 3 33 procedures and requirements for the issuance of a title 3 34 guaranty in which a title guaranty has previously been issued 3 35 on the property in question. 4 1 The bill provides that both participating attorneys and 4 2 abstractors shall be authorized to issue a title guaranty 4 3 certificate. 4 4 The bill adds definitions of "participating abstractor", 4 5 "participating closing and escrow company", and "participating 4 6 mortgage broker" to Code section 16.92 relating to mortgage 4 7 release certificates. The bill provides that participating 4 8 abstractors, participating closing and escrow companies, and 4 9 participating mortgage brokers are included under the 4 10 definition of "real estate lender or closer". 4 11 LSB 1240DP 79 4 12 tm/pj/5
Text: SSB01197 Text: SSB01199 Text: SSB01100 - SSB01199 Text: SSB Index Bills and Amendments: General Index Bill History: General Index
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