Senate File 2117 - Enrolled

PAG LIN



  1  1                                             SENATE FILE 2117
  1  2
  1  3                             AN ACT
  1  4 RELATING TO COVERAGE OF CLOSING PROTECTION LETTERS IN REAL
  1  5    ESTATE TRANSACTIONS AND PROVIDING AN EFFECTIVE DATE.
  1  6
  1  7 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
  1  8
  1  9    Section 1.  Section 16.93, subsection 1, Code 2007, is
  1 10 amended to read as follows:
  1 11    1.  The authority through the title guaranty division may
  1 12 issue a closing protection letter to a person to whom a
  1 13 proposed title guaranty is to be issued, upon the request of
  1 14 the person, if the division issues a commitment for title
  1 15 guaranty or title guaranty certificate.  The closing
  1 16 protection letter shall conform to the terms of coverage and
  1 17 form of the instrument as approved by the division board and
  1 18 may indemnify a person to whom a proposed title guaranty is to
  1 19 be issued against loss of settlement funds due to only the
  1 20 following acts of the division's named participating attorney,
  1 21 or participating abstractor, or closer:
  1 22    a.  Theft of settlement funds.
  1 23    b.  Failure by the participating attorney, or participating
  1 24 abstractor, or closer to comply with written closing
  1 25 instructions of the person to whom a proposed title guaranty
  1 26 is to be issued relating to title certificate coverage when
  1 27 agreed to by the participating attorney, or participating
  1 28 abstractor, or closer.
  1 29    Sec. 2.  EFFECTIVE DATE.  This Act, being deemed of
  1 30 immediate importance, takes effect upon enactment.
  1 31
  1 32
  1 33                                                             
  1 34                               JOHN P. KIBBIE
  1 35                               President of the Senate
  2  1
  2  2
  2  3                                                             
  2  4                               PATRICK J. MURPHY
  2  5                               Speaker of the House
  2  6
  2  7    I hereby certify that this bill originated in the Senate and
  2  8 is known as Senate File 2117, Eighty=second General Assembly.
  2  9
  2 10
  2 11                                                             
  2 12                               MICHAEL E. MARSHALL
  2 13                               Secretary of the Senate
  2 14 Approved                , 2008
  2 15
  2 16
  2 17                                
  2 18 CHESTER J. CULVER
  2 19 Governor