SSB 3094 (LSB 5497SC (2) 85)

SENATE FILE _____

BY  (PROPOSED COMMITTEE ON COMMERCE BILL BY CHAIRPERSON McCOY)

A BILL FOR

An Act modifying provisions applicable to the recording of a mortgage or deed of trust executed by a transmitting utility.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 554B.3, Code 2014, is amended to read as follows:
   554B.3  Recording mortgage or deed of trust upon real estate.

   Any mortgage or deed of trust upon real estate executed by a transmitting utility may provide that property of the transmitting utility, whether owned at the time of the execution of the instrument or subsequently acquired, shall secure the obligations covered by the instrument. Recording Filing the instrument in the office of the recorder of each county in which secretary of state, describing therein the location of such property, or any part thereof, described in the instrument is situated shall give constructive notice to all persons of the lien of the mortgage or deed of trust from the time of recording filing or, in the case of subsequently acquired real estate, from the time of acquisition.
EXPLANATION
The inclusion of this explanation does not constitute agreement with

the explanation’s substance by the members of the general assembly.
   This bill modifies the manner in which constructive notice of a mortgage or deed of trust executed by a transmitting utility is given.
   Currently, Code section 554B.3 specifies that a mortgage or deed of trust in connection to real estate which is executed by a transmitting utility shall be recorded in the office of the recorder of each county in which any property securing the obligations covered by the instrument and described in the instrument is situated. The bill alters this provision to state that the mortgage or deed of trust shall be filed in the office of the secretary of state, rather than in each county in which property described in the instrument is situated.