Text: SSB3035            Text: SSB3037


Senate Study Bill 3036

SENATE/HOUSE FILE BY (PROPOSED IOWA FINANCE AUTHORITY BILL) Passed Senate, Date Passed House, Date Vote: Ayes Nays Vote: Ayes Nays Approved A BILL FOR 1 An Act relating to coverage of closing protection letters in real 2 estate transactions and providing an effective date. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 5295XD 82 5 md/rj/8 PAG LIN 1 1 Section 1. Section 16.93, subsection 1, Code 2007, is 1 2 amended to read as follows: 1 3 1. The authority through the title guaranty division may 1 4 issue a closing protection letter to a person to whom a 1 5 proposed title guaranty is to be issued, upon the request of 1 6 the person, if the division issues a commitment for title 1 7 guaranty or title guaranty certificate. The closing 1 8 protection letter shall conform to the terms of coverage and 1 9 form of the instrument as approved by the division board and 1 10 may indemnify a person to whom a proposed title guaranty is to 1 11 be issued against loss of settlement funds due to only the 1 12 following acts of the division's named participating attorney, 1 13 or participating abstractor, or closer: 1 14 a. Theft of settlement funds. 1 15 b. Failure by the participating attorney, or participating 1 16 abstractor, or closer to comply with written closing 1 17 instructions of the person to whom a proposed title guaranty 1 18 is to be issued relating to title certificate coverage when 1 19 agreed to by the participating attorney, or participating 1 20 abstractor, or closer. 1 21 Sec. 2. EFFECTIVE DATE. This Act, being deemed of 1 22 immediate importance, takes effect upon enactment. 1 23 EXPLANATION 1 24 Under the title guaranty program, the Iowa finance 1 25 authority through the title guaranty division may issue a 1 26 closing protection letter that conforms to the terms of 1 27 coverage and form of the instrument and may indemnify a person 1 28 to whom a proposed title guaranty is to be issued. A closing 1 29 protection letter protects against loss of settlement funds 1 30 due to the acts of the division's named participating attorney 1 31 or participating abstractor. This bill adds "closer" to the 1 32 list of participants whose acts may be covered by a closing 1 33 protection letter in real estate transactions. 1 34 The bill takes effect upon enactment. 1 35 LSB 5295XD 82 2 1 md/rj/8
Text: SSB3035            Text: SSB3037