Senate Study Bill 3037 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