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 21orparticipating abstractor, or closer: 1 22 a. Theft of settlement funds. 1 23 b. Failure by the participating attorney,orparticipating 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,orparticipating 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