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Senate File 157 - IntroducedA Bill ForAn Act 1relating to the notation of discharges of motor vehicle
2security interests.
3BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. Section 321.50, subsection 5, paragraph a, Code
22017, is amended to read as follows:
3a. When a security interest is discharged, the holder shall
4note a cancellation of the security interest on the face of the
5certificate of title over the holder’s signature and or may
6note the cancellation of the security interest on a separate,
7notarized release form or letter. The holder shall deliver the
8certificate of title and the form or letter, if applicable, to
9the county treasurer where the title was issued. In the case
10of a security interest that has been delivered by electronic
11means, the holder shall notify the department or the county
12treasurer, in a manner prescribed by the department, of the
13release of the security interest. The county treasurer shall
14immediately note the cancellation of the security interest on
15the face of the certificate of title, if applicable, and in
16the county records system. The county treasurer shall on the
17same day deliver the certificate of title, if applicable, and
18the separate, notarized release form or letter, if applicable,
19 to the then first secured party or, if there is no such
20person, to the person as directed by the owner, in writing,
21on a form prescribed by the department or, if there is no
22person designated, then to the owner. The cancellation of
23the security interest shall be noted on the certificate of
24title by the county treasurer without charge. The holder of a
25security interest discharged by payment who fails to release
26the security interest within fifteen days after being requested
27in writing to do so shall forfeit to the person making the
28payment the sum of twenty-five dollars.
29EXPLANATION
30The inclusion of this explanation does not constitute agreement with
31the explanation’s substance by the members of the general assembly.
32Current law provides that when a security interest on a motor
33vehicle is discharged, other than a security interest that has
34been delivered by electronic means, the holder is required to
35note the cancellation of the security interest on the face of
-1-1the vehicle’s certificate of title over the holder’s signature
2and deliver the certificate of title to the county treasurer
3where the title was issued.
4This bill permits the holder of the security interest to
5instead note the cancellation of the security interest on a
6separate, notarized release form or letter and deliver the form
7or letter along with the certificate of title to the county
8treasurer where the title was issued. The county treasurer
9must then deliver the certificate of title and the form or
10letter to the first secured party, the owner, or the owner’s
11designee, as applicable.
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2security interests.
3BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. Section 321.50, subsection 5, paragraph a, Code
22017, is amended to read as follows:
3a. When a security interest is discharged, the holder shall
4note a cancellation of the security interest on the face of the
5certificate of title over the holder’s signature and or may
6note the cancellation of the security interest on a separate,
7notarized release form or letter. The holder shall deliver the
8certificate of title and the form or letter, if applicable, to
9the county treasurer where the title was issued. In the case
10of a security interest that has been delivered by electronic
11means, the holder shall notify the department or the county
12treasurer, in a manner prescribed by the department, of the
13release of the security interest. The county treasurer shall
14immediately note the cancellation of the security interest on
15the face of the certificate of title, if applicable, and in
16the county records system. The county treasurer shall on the
17same day deliver the certificate of title, if applicable, and
18the separate, notarized release form or letter, if applicable,
19 to the then first secured party or, if there is no such
20person, to the person as directed by the owner, in writing,
21on a form prescribed by the department or, if there is no
22person designated, then to the owner. The cancellation of
23the security interest shall be noted on the certificate of
24title by the county treasurer without charge. The holder of a
25security interest discharged by payment who fails to release
26the security interest within fifteen days after being requested
27in writing to do so shall forfeit to the person making the
28payment the sum of twenty-five dollars.
29EXPLANATION
30The inclusion of this explanation does not constitute agreement with
31the explanation’s substance by the members of the general assembly.
32Current law provides that when a security interest on a motor
33vehicle is discharged, other than a security interest that has
34been delivered by electronic means, the holder is required to
35note the cancellation of the security interest on the face of
-1-1the vehicle’s certificate of title over the holder’s signature
2and deliver the certificate of title to the county treasurer
3where the title was issued.
4This bill permits the holder of the security interest to
5instead note the cancellation of the security interest on a
6separate, notarized release form or letter and deliver the form
7or letter along with the certificate of title to the county
8treasurer where the title was issued. The county treasurer
9must then deliver the certificate of title and the form or
10letter to the first secured party, the owner, or the owner’s
11designee, as applicable.
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