S.F. _____ H.F. _____ DIVISION I 1 TITLE GUARANTY 2 Section 1. Section 16.1, subsection 1, paragraph af, 3 subparagraph (7), Code 2014, is amended to read as follows: 4 (7) The Iowa title guaranty program. 5 Sec. 2. Section 16.2A, subsection 1, Code 2014, is amended 6 to read as follows: 7 1. A title guaranty division is created within the 8 authority. The division may also be referred to as Iowa title 9 guaranty. The powers of the division relating to the issuance 10 of title guaranties are vested in and shall be exercised by 11 a division board of five members appointed by the governor 12 subject to confirmation by the senate. The membership of 13 the board shall include an attorney, an abstractor, a real 14 estate broker, a representative of a mortgage lender, and 15 a representative of the housing development industry. The 16 executive director of the authority shall appoint an attorney 17 as director of the title guaranty division, who shall serve 18 as an ex officio member of the board. The appointment of and 19 compensation for the division director are exempt from the 20 merit system provisions of chapter 8A, subchapter IV . 21 Sec. 3. Section 16.91, subsections 1, 3, and 4, Code 2014, 22 are amended to read as follows: 23 1. The authority through the title guaranty division shall 24 initiate and operate a program in which the division shall 25 offer guaranties of real property titles in this state. The 26 terms, conditions , and form of the guaranty contract shall be 27 forms approved by the division board. The division shall fix 28 a charge for the guaranty in an amount sufficient to permit 29 the program to operate on a self-sustaining basis, including 30 payment of administrative costs and the maintenance of an 31 adequate reserve against claims under the Iowa title guaranty 32 program. A title guaranty fund is created in the office of 33 the treasurer of state. Funds collected under this program 34 shall be placed in the title guaranty fund and are available 35 -1- LSB 5186XD (5) 85 ec/nh 1/ 4

S.F. _____ H.F. _____ to pay all claims, necessary reserves and all administrative 1 costs of the Iowa title guaranty program. Moneys in the fund 2 shall not revert to the general fund and interest on the 3 moneys in the fund shall be deposited in the housing trust 4 fund established in section 16.181 and shall not accrue to the 5 general fund. If the authority board in consultation with the 6 division board determines that there are surplus funds in the 7 title guaranty fund after providing for adequate reserves and 8 operating expenses of the division, the surplus funds shall be 9 transferred to the housing assistance fund created pursuant to 10 section 16.40 . 11 3. With the approval of the authority board the division 12 and its board shall consult with the insurance division of 13 the department of commerce in developing a guaranty contract 14 acceptable to the secondary market and developing any other 15 feature of the program with which the insurance division may 16 have special expertise. The insurance division shall establish 17 the amount for a loss reserve fund. Except as provided in this 18 subsection , the Iowa title guaranty program is not subject to 19 the jurisdiction of or regulation by the insurance division or 20 the commissioner of insurance. 21 4. Each participating attorney and abstractor may be 22 required to pay an annual participation fee to be eligible to 23 participate in the Iowa title guaranty program. The fee, if 24 any, shall be set by the division, subject to the approval of 25 the authority. 26 Sec. 4. Section 16.91, subsection 5, paragraph a, 27 subparagraph (2), Code 2014, is amended to read as follows: 28 (2) Additionally, each participating abstractor is required 29 to own or lease, and maintain and use in the preparation of 30 abstracts, an up-to-date abstract title plant including tract 31 indices for real estate for each county in which abstracts are 32 prepared for real property titles guaranteed by the division. 33 The tract indices shall contain a reference to all instruments 34 affecting the real estate which are recorded in the office of 35 -2- LSB 5186XD (5) 85 ec/nh 2/ 4

S.F. _____ H.F. _____ the county recorder, and shall commence not less than forty 1 years prior to the date the abstractor commences participation 2 in the Iowa title guaranty program. However, a participating 3 attorney providing abstract services continuously from November 4 12, 1986, to the date of application, either personally or 5 through persons under the attorney’s supervision and control is 6 exempt from the requirements of this subparagraph. 7 Sec. 5. Section 16.91, subsection 8, Code 2014, is amended 8 to read as follows: 9 8. The authority shall adopt rules pursuant to chapter 17A 10 that are necessary for the implementation of the Iowa title 11 guaranty program as established by the division and that have 12 been approved by the authority. 13 Sec. 6. Section 16.92, subsection 1, paragraph i, Code 2014, 14 is amended to read as follows: 15 i. “Participating abstractor” means an abstractor 16 participating in the Iowa title guaranty program. 17 Sec. 7. Section 447.13, subsection 1, Code 2014, is amended 18 to read as follows: 19 1. The cost of serving the notice, including the cost of 20 sending certified mail notices, and the cost of publication 21 under section 447.10 , if publication is required, shall be 22 added to the amount necessary to redeem. The cost of a record 23 search shall also be added to the amount necessary to redeem. 24 However, if the certificate holder is other than a county, the 25 search must be performed by an abstractor who is an active 26 participant in the Iowa title guaranty program under section 27 16.91 or by an attorney licensed to practice law in the state 28 of Iowa, and the amount of the cost of the record search that 29 may be added to the amount necessary to redeem shall not exceed 30 three hundred dollars. 31 DIVISION II 32 PRIVATE ACTIVITY BOND ALLOCATIONS 33 Sec. 8. Section 7C.4A, subsection 7, paragraph a, Code 2014, 34 is amended to read as follows: 35 -3- LSB 5186XD (5) 85 ec/nh 3/ 4

S.F. _____ H.F. _____ a. The amount of the state ceiling which is not otherwise 1 allocated under subsections 1 through 5 , and after June 30, 2 the amount of the state ceiling reserved under subsection 6 3 and not allocated, shall be allocated to all bonds requiring 4 an allocation under section 146 of the Internal Revenue Code 5 without priority for any type of bond over another, except 6 as otherwise provided in sections 7C.5 and 7C.11 . A single 7 project allocated a portion of the state ceiling pursuant to 8 this subsection shall not receive an allocation in excess of 9 ten million dollars in any calendar year. 10 EXPLANATION 11 The inclusion of this explanation does not constitute agreement with 12 the explanation’s substance by the members of the general assembly. 13 This bill concerns the Iowa finance authority. 14 Division I renames the title guaranty program as the Iowa 15 title guaranty program. The bill also allows the title 16 guaranty division to be referred to as Iowa title guaranty. 17 Division II concerns bond activity and the Iowa finance 18 authority. Code section 7C.4A(7), concerning the allocation of 19 the state ceiling on bonds which is not otherwise allocated, is 20 amended to eliminate the $10 million yearly cap on the amount 21 any single project may receive from the unused allocation of 22 the state ceiling on bonds. 23 -4- LSB 5186XD (5) 85 ec/nh 4/ 4