Senate Study Bill 1206 



                                       SENATE FILE       
                                       BY  (PROPOSED COMMITTEE ON
                                            JUDICIARY BILL BY
                                            CHAIRPERSON KREIMAN)


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

                                      A BILL FOR

  1 An Act relating to an action for satisfaction of a mortgage.
  2 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
  3 TLSB 2153XC 82
  4 av/je/5

PAG LIN



  1  1    Section 1.  Section 655.5, Code 2007, is amended to read as
  1  2 follows:
  1  3    655.5  INSTRUMENT OF SATISFACTION.
  1  4    When the judgment is paid in full, the mortgagee shall file
  1  5 with the clerk a satisfaction of judgment which shall release
  1  6 the mortgage underlying the action.  A mortgagee who fails to
  1  7 file a satisfaction within thirty days of receiving a written
  1  8 request shall be subject to reasonable damages and a penalty
  1  9 of one hundred dollars plus reasonable attorney fees incurred
  1 10 by the aggrieved party, to be recovered in an action for the
  1 11 satisfaction or acknowledged by the party aggrieved.
  1 12                           EXPLANATION
  1 13    This bill specifies that if a mortgagee fails to file a
  1 14 satisfaction of judgment releasing the mortgage underlying an
  1 15 action for discharge of the mortgage, the aggrieved party is
  1 16 entitled to recover damages, a penalty, and attorney fees in
  1 17 an action for satisfaction of the mortgage.
  1 18 LSB 2153XC 82
  1 19 av:nh/je/5