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