Senate File 81

                                       SENATE FILE       
                                       BY  LUNDBY


    Passed Senate, Date               Passed House,  Date             
    Vote:  Ayes        Nays           Vote:  Ayes        Nays         
                 Approved                            

                                      A BILL FOR

  1 An Act prohibiting registration of a motor vehicle pending
  2    delivery of the certificate of title for notation of a
  3    security interest.
  4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
  5 TLSB 2025XS 80
  6 dea/pj/5

PAG LIN

  1  1    Section 1.  Section 321.30, Code 2003, is amended by adding
  1  2 the following new subsection:
  1  3    NEW SUBSECTION.  15.  The department or the county
  1  4 treasurer shall refuse registration of a vehicle if the holder
  1  5 of the certificate of title for the vehicle has failed to
  1  6 deliver the certificate of title to the county treasurer for
  1  7 notation of a security interest as required under section
  1  8 321.50, subsection 2.  Upon delivery of the certificate of
  1  9 title and notation of the security interest, the registration
  1 10 shall be issued as otherwise provided in this chapter.
  1 11                           EXPLANATION
  1 12    This bill prevents the state department of transportation
  1 13 or a county treasurer from registering a motor vehicle if the
  1 14 holder of the certificate of title has failed to deliver the
  1 15 certificate of title to the county treasurer for notation of a
  1 16 security interest.
  1 17    Under Code section 321.50, when the county treasurer
  1 18 receives an application for a security interest in a vehicle,
  1 19 the certificate of title is to be delivered to the treasurer
  1 20 at the same time.  Otherwise, the treasurer notifies the
  1 21 holder of the certificate of title to deliver the certificate
  1 22 of title to the county treasurer within five days to permit
  1 23 notation of the security interest.
  1 24    The bill also provides that once the certificate of title
  1 25 has been delivered to the county treasurer and the security
  1 26 interest has been noted, the vehicle is eligible for
  1 27 registration.
  1 28 LSB 2025XS 80
  1 29 dea/pj/5
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