House
File
2232
-
Enrolled
House
File
2232
AN
ACT
RELATING
TO
MORTGAGE
RELEASES.
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
Section
1.
Section
535B.11,
subsection
5,
Code
2018,
is
amended
by
striking
the
subsection.
Sec.
2.
Section
655.1,
Code
2018,
is
amended
to
read
as
follows:
655.1
Written
instrument
acknowledging
satisfaction.
When
the
amount
due
on
a
mortgage
is
paid
off,
the
mortgagee,
the
mortgagee’s
personal
representative
or
assignee,
or
those
legally
acting
for
the
mortgagee,
and
in
case
of
payment
of
a
school
fund
mortgage
the
county
auditor,
must
within
thirty
days
of
payment
in
full,
shall
acknowledge
satisfaction
thereof
by
execution
of
an
instrument
of
satisfaction
which
is
in
writing,
referring
refers
to
the
mortgage,
and
is
duly
acknowledged
and
recorded.
Notwithstanding
the
foregoing,
if
the
mortgage
secures
a
revolving
line
of
credit,
future
advances,
or
other
future
obligations,
the
mortgagee
is
not
required
to
file
a
satisfaction
upon
payment
in
full
unless
House
File
2232,
p.
2
the
mortgagor
makes
a
written
request
to
the
mortgagee
that
the
mortgage
be
released
and,
if
such
written
request
is
made,
the
mortgagee
shall
file
the
release
within
thirty
days
after
payment
in
full
or
such
written
request
is
made
whichever
occurs
later.
Sec.
3.
Section
655.3,
Code
2018,
is
amended
to
read
as
follows:
655.3
Penalty
for
failure
to
discharge.
If
a
mortgagee,
or
a
mortgagee’s
personal
representative
or
assignee,
upon
full
performance
of
the
conditions
of
the
mortgage,
fails
to
discharge
such
mortgage
within
thirty
days
after
a
request
for
discharge
as
set
forth
in
section
655.1
,
the
mortgagee
is
liable
to
the
mortgagor
and
the
mortgagor’s
heirs
or
assigns,
for
all
actual
damages
caused
by
such
failure
and
a
penalty
of
five
hundred
dollars
,
including
plus
reasonable
attorney
fees.
A
claim
for
such
damages
may
be
asserted
in
an
action
for
discharge
of
the
mortgage.
If
the
defendant
is
not
a
resident
of
this
state,
such
action
may
be
maintained
upon
the
expiration
of
thirty
days
after
the
conditions
of
the
mortgage
have
been
performed,
without
such
previous
request
or
tender.
Sec.
4.
Section
655.5,
Code
2018,
is
amended
to
read
as
follows:
655.5
Instrument
of
satisfaction.
When
the
judgment
is
paid
in
full,
the
mortgagee
shall
file
with
the
clerk
a
satisfaction
of
judgment
which
shall
release
the
mortgage
underlying
the
action.
A
mortgagee
who
fails
to
file
a
satisfaction
within
thirty
days
of
receiving
a
written
request
shall
be
subject
to
reasonable
damages
and
a
penalty
of
one
five
hundred
dollars
plus
reasonable
attorney
fees
incurred
by
the
aggrieved
party,
to
be
recovered
in
an
action
for
the
satisfaction
by
the
party
aggrieved.
Sec.
5.
NEW
SECTION
.
655.6
Limitation
of
liability.
A
mortgagee
is
not
liable
under
section
655.3
if
all
of
the
following
apply:
1.
The
mortgagee
established
reasonable
procedures
to
achieve
compliance
with
its
obligations
under
655.3.
2.
The
mortgagee
complied
with
that
procedure
in
good
faith.
House
File
2232,
p.
3
3.
The
mortgagee
was
unable
to
comply
with
its
obligations
because
of
circumstances
beyond
its
control.
______________________________
LINDA
UPMEYER
Speaker
of
the
House
______________________________
CHARLES
SCHNEIDER
President
of
the
Senate
I
hereby
certify
that
this
bill
originated
in
the
House
and
is
known
as
House
File
2232,
Eighty-seventh
General
Assembly.
______________________________
CARMINE
BOAL
Chief
Clerk
of
the
House
Approved
_______________,
2018
______________________________
KIM
REYNOLDS
Governor