Senate
File
313
-
Introduced
SENATE
FILE
313
BY
DAWSON
A
BILL
FOR
An
Act
relating
to
evidence
of
title
by
state
banks
for
certain
1
loans.
2
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
3
TLSB
2099XS
(4)
88
gh/rn
S.F.
313
Section
1.
Section
524.905,
subsection
1,
Code
2019,
is
1
amended
to
read
as
follows:
2
1.
Rules
for
loans.
A
state
bank
may
make
permanent
loans,
3
construction
loans,
or
combined
construction
and
permanent
4
loans,
secured
by
liens
on
real
property,
as
authorized
by
5
rules
adopted
by
the
superintendent
under
chapter
17A
.
6
a.
The
rules
shall
include
provisions
as
necessary
to
ensure
7
the
safety
and
soundness
of
these
loans,
and
to
ensure
full
and
8
fair
disclosure
to
borrowers
of
the
effects
of
provisions
in
9
agreements
for
these
loans,
including
provisions
permitting
10
change
or
adjustment
of
any
terms
of
a
loan,
provisions
11
permitting,
requiring,
or
prohibiting
repayment
of
a
loan
on
12
a
basis
other
than
of
equal
periodic
installments
of
interest
13
plus
principal
over
a
fixed
term,
provisions
imposing
penalties
14
for
the
borrower’s
noncompliance
with
requirements
of
a
loan
15
agreement,
or
provisions
allowing
or
requiring
a
borrower
to
16
choose
from
alternative
courses
of
action
at
any
time
during
17
the
effectiveness
of
a
loan
agreement.
18
b.
The
rules
shall
provide
that
state
banks,
when
loaning
19
for
the
purposes
of
acquisition
or
refinance
of
acquisition
20
when
a
new
mortgage,
deed
of
trust,
or
other
similar
instrument
21
is
filed,
may
evidence
title
with
any
of
the
following:
22
(1)
A
written
legal
opinion
prepared
by
an
attorney
admitted
23
to
practice
law
in
the
state
where
the
real
property
is
24
located.
25
(2)
A
title
guaranty
certificate
issued
by
the
title
26
guaranty
division
of
the
Iowa
finance
authority.
27
(3)
A
commercial
title
insurance
policy
describing
any
28
liens
and
insuring
title
to
the
real
property
and
the
validity
29
and
enforceability
of
the
mortgage,
deed
of
trust,
or
other
30
similar
instrument
as
a
lien
on
the
real
property.
31
EXPLANATION
32
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
33
the
explanation’s
substance
by
the
members
of
the
general
assembly.
34
This
bill
provides
that
the
Iowa
superintendent
of
banking
35
-1-
LSB
2099XS
(4)
88
gh/rn
1/
2
S.F.
313
shall
adopt
rules
allowing
state
banks,
when
loaning
for
1
the
purposes
of
acquisition
or
refinance
of
acquisition
2
when
a
new
mortgage,
deed,
or
other
similar
instrument
is
3
filed,
to
evidence
title
with
a
written
legal
opinion
from
4
an
attorney
admitted
to
practice
law
in
the
state
where
the
5
property
is
located,
a
title
guaranty
certificate
issued
by
6
the
title
guaranty
division
of
the
Iowa
finance
authority,
7
or
a
commercial
title
insurance
policy
insuring
title
to
the
8
property
and
the
validity
of
the
new
instrument
as
a
lien
on
9
the
property.
10
-2-
LSB
2099XS
(4)
88
gh/rn
2/
2