House
Study
Bill
56
-
Introduced
HOUSE
FILE
_____
BY
(PROPOSED
COMMITTEE
ON
LOCAL
GOVERNMENT
BILL
BY
CHAIRPERSON
HIGHFILL)
A
BILL
FOR
An
Act
relating
to
the
discharge
of
motor
vehicle
security
1
interests.
2
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
3
TLSB
1984YC
(1)
87
ns/nh
H.F.
_____
Section
1.
Section
321.50,
subsection
5,
paragraph
a,
Code
1
2017,
is
amended
to
read
as
follows:
2
a.
When
a
security
interest
is
discharged,
the
holder
shall
3
note
a
cancellation
of
the
security
interest
on
the
face
of
4
the
certificate
of
title
over
the
holder’s
signature
and
may
5
note
the
cancellation
of
the
security
interest
on
a
separate,
6
notarized
release
form
or
letter.
The
holder
shall
deliver
the
7
certificate
of
title
and
the
form
or
letter,
if
applicable,
to
8
the
county
treasurer
where
the
title
was
issued.
In
the
case
9
of
a
security
interest
that
has
been
delivered
by
electronic
10
means,
the
holder
shall
notify
the
department
or
the
county
11
treasurer,
in
a
manner
prescribed
by
the
department,
of
the
12
release
of
the
security
interest.
The
county
treasurer
shall
13
immediately
note
the
cancellation
of
the
security
interest
on
14
the
face
of
the
certificate
of
title,
if
applicable,
and
in
15
the
county
records
system.
The
county
treasurer
shall
on
the
16
same
day
deliver
the
certificate
of
title,
if
applicable,
and
17
the
separate,
notarized
release
form
or
letter,
if
applicable,
18
to
the
then
first
secured
party
or,
if
there
is
no
such
19
person,
to
the
person
as
directed
by
the
owner,
in
writing,
20
on
a
form
prescribed
by
the
department
or,
if
there
is
no
21
person
designated,
then
to
the
owner.
The
cancellation
of
22
the
security
interest
shall
be
noted
on
the
certificate
of
23
title
by
the
county
treasurer
without
charge.
The
holder
of
a
24
security
interest
discharged
by
payment
who
fails
to
release
25
the
security
interest
within
fifteen
days
after
being
requested
26
in
writing
to
do
so
shall
forfeit
to
the
person
making
the
27
payment
the
sum
of
twenty-five
dollars.
28
EXPLANATION
29
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
30
the
explanation’s
substance
by
the
members
of
the
general
assembly.
31
Current
law
provides
that
when
a
security
interest
on
a
motor
32
vehicle,
other
than
a
security
interest
that
has
been
delivered
33
by
electronic
means,
is
discharged,
the
holder
is
required
to
34
note
the
cancellation
of
the
security
interest
on
the
face
of
35
-1-
LSB
1984YC
(1)
87
ns/nh
1/
2
H.F.
_____
the
vehicle’s
certificate
of
title
over
the
holder’s
signature
1
and
deliver
the
certificate
of
title
to
the
county
treasurer
2
where
the
title
was
issued.
3
This
bill
permits
the
holder
of
the
security
interest
to
also
4
note
the
cancellation
of
the
security
interest
on
a
separate,
5
notarized
release
form
or
letter
and
deliver
the
form
or
letter
6
along
with
the
certificate
of
title
to
the
county
treasurer
7
where
the
title
was
issued.
The
county
treasurer
must
then
8
deliver
the
certificate
of
title
and
the
form
or
letter
to
the
9
first
secured
party,
the
owner,
or
the
owner’s
designee,
as
10
applicable.
11
-2-
LSB
1984YC
(1)
87
ns/nh
2/
2