1. Proof of financial responsibility may be evidenced by the bond of a surety company duly authorized to transact business within this state, or a bond with at least two individual sureties each owning real estate within this state, and together having equities equal in value to at least twice the amount of the bond, which real estate shall be scheduled in the bond approved by a judge or clerk of a court of record, which said bond shall be conditioned for payment of the amounts specified in section 321A.1, subsection 10. Such bond shall be filed with the department and shall not be cancelable except after ten days' written notice to the department. Such bond shall constitute a lien in favor of the state upon the real estate so scheduled of any surety, which lien shall exist in favor of any holder of a final judgment against the person who has filed such bond, for damages, including damages for care and loss of services, because of bodily injury to or death of any person, or for damage because of injury to or destruction of property, including the loss of use thereof, resulting from the ownership, maintenance, use, or operation of a motor vehicle after such bond was filed, upon the filing of notice to that effect by the department in the office of the proper clerk of court of the county where such real estate shall be located. Any individual surety so scheduling real estate security shall furnish satisfactory evidence of title thereto and the nature and extent of all encumbrances thereon and the value of the surety's interest therein, in such manner as the judge or clerk of the court of record approving the bond may require. The notice filed by the department shall, in addition to any other matters deemed by the department to be pertinent, contain a legal description of the real estate so scheduled, the name of the holder of the record title, the amount for which it stands as security, and the name of the person in whose behalf proof is so being made. Upon the filing of such notice the clerk of the court of such county shall retain the same as part of the records of such court and enter upon the encumbrance book the date and hour of filing, the name of the surety, the name of the record titleholder, the description of the real estate, and the further notation that a lien is charged on such real estate pursuant to the notice filed hereunder. From and after the entry of the foregoing upon the encumbrance book all persons whomsoever shall be charged with notice thereof.
2. If such a judgment, rendered against the principal on such bond shall not be satisfied within sixty days after it has become final, the judgment creditor may, for the judgment creditor's own use and benefit and at the judgment creditor's sole expense, bring an action or actions in the name of the state against the company or persons executing such bond, including an action or proceeding to foreclose any lien that may exist upon the real estate of a person who has executed such bond. An action to foreclose any lien upon real estate scheduled by any surety under the provisions of this chapter shall be by equitable proceeding in the same manner as is provided for the foreclosure of real estate mortgages.
[C50, 54, 58, 62, 66, 71, 73, 75, 77, 79, 81, § 321A.24]
92 Acts, ch 1175, § 43
Referred to in § 321A.13, 321A.18, 602.8102(54)
Iowa General Assembly
Search: Iowa Code 1995
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