House File 582 - Introduced HOUSE FILE BY CHAMBERS Passed House, Date Passed Senate, Date Vote: Ayes Nays Vote: Ayes Nays Approved A BILL FOR 1 An Act relating to the procedure for releasing a security 2 interest in a snowmobile, an all=terrain vehicle, or a vessel. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 2446YH 82 5 dea/je/5 PAG LIN 1 1 Section 1. Section 321G.32, subsection 3, Code 2007, is 1 2 amended by striking the subsection and inserting in lieu 1 3 thereof the following: 1 4 3. When a security interest is discharged, the secured 1 5 party shall note the cancellation of the security interest on 1 6 the face of the certificate of title and send the title by 1 7 first class mail to the office of the county recorder where 1 8 the title was issued, or the secured party shall send a 1 9 notarized letter by first class mail to the county recorder 1 10 where the title was issued notifying the county recorder of 1 11 the cancellation of the security interest. The county 1 12 recorder shall note the release of the security interest in 1 13 the county records as evidence of the release of the security 1 14 interest. 1 15 Sec. 2. Section 321I.34, subsection 3, Code 2007, is 1 16 amended by striking the subsection and inserting in lieu 1 17 thereof the following: 1 18 3. When a security interest is discharged, the secured 1 19 party shall note the cancellation of the security interest on 1 20 the face of the certificate of title and send the title by 1 21 first class mail to the office of the county recorder where 1 22 the title was issued, or the secured party shall send a 1 23 notarized letter by first class mail to the county recorder 1 24 where the title was issued notifying the county recorder of 1 25 the cancellation of the security interest. The county 1 26 recorder shall note the release of the security interest in 1 27 the county records as evidence of the release of the security 1 28 interest. 1 29 Sec. 3. Section 462A.84, subsection 3, Code 2007, is 1 30 amended by striking the subsection and inserting in lieu 1 31 thereof the following: 1 32 3. When a security interest is discharged, the secured 1 33 party shall note the cancellation of the security interest on 1 34 the face of the certificate of title and send the title by 1 35 first class mail to the office of the county recorder where 2 1 the title was issued, or the secured party shall send a 2 2 notarized letter by first class mail to the county recorder 2 3 where the title was issued notifying the county recorder of 2 4 the cancellation of the security interest. The county 2 5 recorder shall note the release of the security interest in 2 6 the county records as evidence of the release of the security 2 7 interest. 2 8 EXPLANATION 2 9 This bill provides a new mechanism for processing the 2 10 cancellation of a security interest in a snowmobile, 2 11 all=terrain vehicle, or watercraft. Currently, the secured 2 12 party is required to present the certificate of title to the 2 13 county recorder upon filing a release statement, and a new or 2 14 endorsed certificate is issued to the owner. Under the bill, 2 15 the secured party shall note the cancellation of the security 2 16 interest on the title and mail it to the county recorder, who 2 17 shall note the release in the county records and attach the 2 18 letter of cancellation to the certificate of title as evidence 2 19 of the release of the security interest. As an alternative, 2 20 the secured party may notify the county recorder of the 2 21 cancellation of the security interest by sending a notarized 2 22 letter to the county recorder. 2 23 LSB 2446YH 82 2 24 dea:nh/je/5