Senate File 2093 - Introduced SENATE FILE 2093 BY COMMITTEE ON COMMERCE (SUCCESSOR TO SSB 3094) A BILL FOR An Act modifying provisions applicable to the recording of 1 a mortgage or deed of trust executed by a transmitting 2 utility. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 5497SV (2) 85 rn/sc

S.F. 2093 Section 1. Section 554B.3, Code 2014, is amended to read as 1 follows: 2 554B.3 Recording mortgage or deed of trust upon real estate. 3 Any mortgage or deed of trust upon real estate executed 4 by a transmitting utility may provide that property of 5 the transmitting utility, whether owned at the time of the 6 execution of the instrument or subsequently acquired, shall 7 secure the obligations covered by the instrument. Recording 8 the instrument in the office of the recorder of each county 9 in which such any portion of the property , or any part 10 thereof, described in the instrument is situated shall give 11 constructive notice to all persons of the lien of the mortgage 12 or deed of trust from the time of recording or, in the case 13 of subsequently acquired real estate, from the time of 14 acquisition. 15 Sec. 2. NEW SECTION . 554B.4 Recording memorandum of 16 mortgage or deed of trust. 17 If a mortgage or deed of trust upon real estate is executed 18 by a transmitting utility and the real estate described in the 19 instrument is situated in more than one county, the recording 20 requirement of section 554B.3 establishing constructive notice 21 is satisfied by either of the following: 22 1. Recording the mortgage or deed of trust in each county in 23 which any portion of the property is situated. 24 2. Recording the mortgage or deed of trust in at least one 25 county in which a portion of the real estate is situated, and 26 by recording in every other county in which a portion of the 27 real estate is situated a memorandum of the mortgage or deed of 28 trust containing, at a minimum, the following: 29 a. The names and addresses of the mortgagor and mortgagee. 30 b. A legal description of all real property and interests 31 therein subject to the mortgage or deed of trust. 32 c. The date of maturity of the indebtedness secured by the 33 mortgage or deed of trust and whether the instrument secures 34 future advances. 35 -1- LSB 5497SV (2) 85 rn/sc 1/ 3

S.F. 2093 d. A statement as to whether or not the mortgage or deed 1 of trust applies to subsequently acquired property of the 2 transmitting utility. 3 e. The county recorder’s office where the mortgage or 4 deed of trust is recorded, the recording date, and document 5 identification number. 6 f. Such other information as deemed appropriate by the 7 transmitting utility. 8 EXPLANATION 9 The inclusion of this explanation does not constitute agreement with 10 the explanation’s substance by the members of the general assembly. 11 This bill modifies the manner in which constructive notice 12 of a mortgage or deed of trust executed by a transmitting 13 utility is given. 14 Currently, Code section 554B.3 specifies that a mortgage or 15 deed of trust in connection to real estate which is executed 16 by a transmitting utility shall be recorded in the office of 17 the recorder of each county in which any property securing 18 the obligations covered by the instrument and described in 19 the instrument is situated, in order to give constructive 20 notice of the lien of the mortgage or deed of trust. The bill 21 establishes an alternative manner in which constructive notice 22 may be given in such situations. The bill provides that the 23 constructive notice may also be satisfied by recording the 24 mortgage or deed of trust in at least one county in which a 25 portion of the real estate is situated, and by recording in 26 every other county in which a portion of the real estate is 27 situated a memorandum of the mortgage or deed of trust. The 28 bill specifies that the memorandum is required to contain, 29 at a minimum, the names and addresses of the mortgagor and 30 mortgagee; a legal description of all real property and 31 interests therein subject to the mortgage or deed of trust; the 32 date of maturity of the indebtedness secured by the mortgage 33 or deed of trust and whether the instrument secures future 34 advances; a statement as to whether or not the mortgage or 35 -2- LSB 5497SV (2) 85 rn/sc 2/ 3

S.F. 2093 deed of trust applies to subsequently acquired property of the 1 transmitting utility; the county recorder’s office where the 2 mortgage or deed of trust is recorded, the recording date, and 3 the document identification number; and such other information 4 as deemed appropriate by the transmitting utility. 5 -3- LSB 5497SV (2) 85 rn/sc 3/ 3