House Study Bill 547 



                                       SENATE/HOUSE FILE       
                                       BY  (PROPOSED IOWA FINANCE
                                            AUTHORITY BILL)


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

                                      A BILL FOR

  1 An Act relating to the recording of a certificate of release by
  2    the Iowa finance authority.
  3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
  4 TLSB 5293XD 82
  5 md/rj/8

PAG LIN



  1  1    Section 1.  Section 16.92, subsection 5, paragraph c, Code
  1  2 Supplement 2007, is amended to read as follows:
  1  3    c.  In addition to any other remedy provided by law, if the
  1  4 division through an act of negligence wrongfully or
  1  5 erroneously records a certificate of release under this
  1  6 section, the division is liable to the mortgagee and mortgage
  1  7 servicer for actual damages sustained due to the recording of
  1  8 the certificate of release.
  1  9                           EXPLANATION
  1 10    Current Code section 16.92, subsection 5, paragraph "c",
  1 11 provides that the Iowa finance authority title guaranty
  1 12 division is liable to a mortgagee and mortgage servicer for
  1 13 actual damages sustained if a certificate of release is
  1 14 wrongfully or erroneously recorded.  This bill modifies the
  1 15 standard for imposing liability on the title guaranty
  1 16 division.  Liability will be imposed under the bill if the
  1 17 division through an act of negligence wrongfully or
  1 18 erroneously records a certificate of release.
  1 19 LSB 5293XD 82
  1 20 md/rj/8