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Senate File 527 - IntroducedA Bill ForAn Act 1relating to evidence of title by state banks and credit
2unions for certain loans.
3BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. Section 524.905, Code 2019, is amended by adding
2the following new subsection:
3 NEW SUBSECTION. 5. Evidence of title. State banks,
4when loaning for the purposes of acquisition or refinance
5of acquisition when a new mortgage, deed of trust, or other
6similar instrument is filed, may evidence title with any of the
7following:
8a. A written legal opinion prepared by an attorney admitted
9to practice law in the state where the real property is
10located.
11b. A title guaranty certificate issued by the title guaranty
12division of the Iowa finance authority.
13c. A commercial title insurance policy describing any liens
14and insuring title to the real property and the validity and
15enforceability of the mortgage, deed of trust, or other similar
16instrument as a lien on the real property.
17 Sec. 2. Section 533.315, Code 2019, is amended by adding the
18following new subsection:
19 NEW SUBSECTION. 12. Evidence of title. State credit
20unions, when loaning for the purposes of acquisition or
21refinance of acquisition when a new mortgage, deed of trust, or
22other similar instrument is filed, may evidence title with any
23of the following:
24a. A written legal opinion prepared by an attorney admitted
25to practice law in the state where the real property is
26located.
27b. A title guaranty certificate issued by the title guaranty
28division of the Iowa finance authority.
29c. A commercial title insurance policy describing any liens
30and insuring title to the real property and the validity and
31enforceability of the mortgage, deed of trust, or other similar
32instrument as a lien on the real property.
33EXPLANATION
34The inclusion of this explanation does not constitute agreement with
35the explanation’s substance by the members of the general assembly.
-1- 1This bill provides that state banks and state credit unions,
2when loaning for the purposes of acquisition or refinance
3of acquisition when a new mortgage, deed, or other similar
4instrument is filed, may evidence title with a written legal
5opinion from an attorney admitted to practice law in the state
6where the property is located, a title guaranty certificate
7issued by the title guaranty division of the Iowa finance
8authority, or a commercial title insurance policy insuring
9title to the property and the validity of the new instrument as
10a lien on the property.
-2-gh/rn
2unions for certain loans.
3BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. Section 524.905, Code 2019, is amended by adding
2the following new subsection:
3 NEW SUBSECTION. 5. Evidence of title. State banks,
4when loaning for the purposes of acquisition or refinance
5of acquisition when a new mortgage, deed of trust, or other
6similar instrument is filed, may evidence title with any of the
7following:
8a. A written legal opinion prepared by an attorney admitted
9to practice law in the state where the real property is
10located.
11b. A title guaranty certificate issued by the title guaranty
12division of the Iowa finance authority.
13c. A commercial title insurance policy describing any liens
14and insuring title to the real property and the validity and
15enforceability of the mortgage, deed of trust, or other similar
16instrument as a lien on the real property.
17 Sec. 2. Section 533.315, Code 2019, is amended by adding the
18following new subsection:
19 NEW SUBSECTION. 12. Evidence of title. State credit
20unions, when loaning for the purposes of acquisition or
21refinance of acquisition when a new mortgage, deed of trust, or
22other similar instrument is filed, may evidence title with any
23of the following:
24a. A written legal opinion prepared by an attorney admitted
25to practice law in the state where the real property is
26located.
27b. A title guaranty certificate issued by the title guaranty
28division of the Iowa finance authority.
29c. A commercial title insurance policy describing any liens
30and insuring title to the real property and the validity and
31enforceability of the mortgage, deed of trust, or other similar
32instrument as a lien on the real property.
33EXPLANATION
34The inclusion of this explanation does not constitute agreement with
35the explanation’s substance by the members of the general assembly.
-1- 1This bill provides that state banks and state credit unions,
2when loaning for the purposes of acquisition or refinance
3of acquisition when a new mortgage, deed, or other similar
4instrument is filed, may evidence title with a written legal
5opinion from an attorney admitted to practice law in the state
6where the property is located, a title guaranty certificate
7issued by the title guaranty division of the Iowa finance
8authority, or a commercial title insurance policy insuring
9title to the property and the validity of the new instrument as
10a lien on the property.
-2-gh/rn