2009 Iowa Code
Title 8 - Transportation
Subtitle 2 - Vehicles
CHAPTER 321 - MOTOR VEHICLES AND LAW OF THE ROAD
321.50 - SECURITY INTEREST PROVISIONS.

        321.50  SECURITY INTEREST PROVISIONS.
         1.  A security interest in a vehicle subject to registration under
      the laws of this state or a mobile home or manufactured home, except
      trailers whose empty weight is two thousand pounds or less, and
      except new or used vehicles held by a dealer or manufacturer as
      inventory for sale, is perfected by the delivery to the county
      treasurer of the county where the certificate of title was issued or,
      in the case of a new certificate, to the county treasurer where the
      certificate will be issued, of an application for certificate of
      title which lists the security interest, or an application for
      notation of security interest signed by the owner or by one owner of
      a vehicle owned jointly by more than one person, or signed through
      electronic means as determined by the department, or a certificate of
      title from another jurisdiction which shows the security interest,
      and payment of a fee of ten dollars for each security interest shown.
      The department shall require the federal employer identification
      number of a secured party who is a firm, association, or corporation
      or, if a natural person, the social security number.  Upon delivery
      of the application and payment of the fee, the county treasurer shall
      note the date of delivery on the application.  If the delivery is by
      electronic means and the time is electronically recorded on the
      application along with the date, the time shall be included with the
      date on all subsequent documents and records where the date of
      perfection is required under this chapter.  The date of delivery
      shall be the date of perfection of the security interest in the
      vehicle, regardless of the date the security interest is noted on the
      certificate of title.  Up to three security interests may be
      perfected against a vehicle and shown on an Iowa certificate of
      title.  If the owner or secured party is in possession of the
      certificate of title, it must also be delivered at this time.  If a
      vehicle is subject to a security interest when brought into this
      state, the validity of the security interest and the date of
      perfection is determined by section 554.9303.  Delivery as provided
      in this subsection constitutes perfection of a security interest on a
      certificate of title for purposes of this chapter and chapter 554.
         2.  Upon receipt of the application and the required fee, if the
      certificate of title was not delivered to the county treasurer along
      with the application, the county treasurer shall notify the holder of
      the certificate of title to deliver to the county treasurer, within
      five days from the receipt of notice, the certificate of title to
      permit notation of the security interest.  If the holder of the
      certificate of title fails to deliver it within five days, the holder
      shall be liable to anyone harmed by the holder's failure.
         3.  Upon receipt of the application, the certificate of title, if
      any, and the required fee, the county treasurer shall note the
      security interest and the date of perfection of the security interest
      on the certificate of title.  The county treasurer shall also note
      the security interest and the date of perfection of the security
      interest in the county records system.  Upon receipt of a certificate
      of title issued by a foreign jurisdiction, on which a security
      interest has been noted, the county treasurer shall note the security
      interest and the date the security interest was noted on the foreign
      certificate of title, if available, or if not, the date of issuance
      of the foreign certificate of title, on the face of the new
      certificate of title.  The county treasurer shall also note the
      security interest and the date that was noted on the certificate of
      title in the county records system.  The county treasurer shall then
      deliver the certificate of title to the first secured party as shown
      thereon.
         4.  Notwithstanding any provision of this section to the contrary,
      if a security interest has been delivered by electronic means, the
      county treasurer or department shall not print a certificate of title
      until all security interests have been released, but shall provide
      the first security interest holder with an electronic record of the
      certificate of title.  When a vehicle is subject to an electronic
      lien, the certificate of title for the vehicle shall be considered to
      be physically held by the lienholder for purposes of compliance with
      odometer disclosure requirements under section 321.71.
         5. a.  When a security interest is discharged, the holder
      shall note a cancellation of the security interest on the face of the
      certificate of title over the holder's signature and deliver the
      certificate of title to the county treasurer where the title was
      issued.  In the case of a security interest that has been delivered
      by electronic means, the holder shall notify the department or the
      county treasurer, in a manner prescribed by the department, of the
      release of the security interest.  The county treasurer shall
      immediately note the cancellation of the security interest on the
      face of the certificate of title, if applicable, and in the county
      records system.  The county treasurer shall on the same day deliver
      the certificate of title, if applicable, to the then first secured
      party or, if there is no such person, to the person as directed by
      the owner, in writing, on a form prescribed by the department or, if
      there is no person designated, then to the owner.  The cancellation
      of the security interest shall be noted on the certificate of title
      by the county treasurer without charge.  The holder of a security
      interest discharged by payment who fails to release the security
      interest within fifteen days after being requested in writing to do
      so shall forfeit to the person making the payment the sum of
      twenty-five dollars.
         b.  If a lien has been released by the lienholder but has not
      been sent to the county of record for clearance of the lien, any
      county may note the release on the face of the title and shall notify
      the county of record that the lien has been released as of the
      specified date and make entry upon the computer system.  Notification
      to the county of record shall be made by an automated statewide
      system or by sending a photocopy of the released title to the county
      of record.
         c.  When a security interest is discharged, the lienholder
      shall note the cancellation of the security interest on the face of
      the title and, if applicable, may note the cancellation of the
      security interest on a form prescribed by the department and deliver
      a copy of the form in lieu of the title to the department or to the
      treasurer of the county in which the title was issued.  The form may
      be delivered by electronic means.  The department or county treasurer
      shall note the release of the security interest upon the statewide
      computer system and the county's records.  A copy of the form, if
      used, shall be attached to the title by the lienholder, if the title
      is held by the lienholder, and shall be evidence of the release of
      the security interest.  If the title is held by the lienholder, the
      lienholder shall deliver the title to the first lienholder, or if
      there is no such person, to the person as designated by the owner, or
      if there is no such person designated, to the owner.  If a
      certificate of title has not been issued, upon release of a security
      interest, the lienholder shall notify the department or the county
      treasurer, in a manner prescribed by the department, of the release
      of the security interest.
         6.  The uniform commercial code, chapter 554, article 9, shall
      apply to all transactions intended to create a security interest in
      vehicles except as provided in this chapter.
         7.  Upon request of any person, the county treasurer shall certify
      whether there are, on the date and hour stated therein, any security
      interests or liens against a vehicle and the name and address of each
      secured party.  The uniform fee for a certification shall be two
      dollars if the request for the certification is on a form conforming
      to standards prescribed by the secretary of state; otherwise, three
      dollars.  Upon request and payment of the appropriate fee, the county
      treasurer shall furnish a certified copy of any security interests
      for a uniform fee of one dollar per page.  

         Section History: Early Form

         [C24, 27, 31, 35, § 4967; C39, § 5002.06; C46, 50, 54, 58, 62,
      66, 71, 73, 75, 77, 79, 81, § 321.50] 

         Section History: Recent Form

         83 Acts, ch 5, § 3, 5; 84 Acts, ch 1305, § 55; 89 Acts, ch 260, §
      3; 92 Acts, ch 1175, § 30; 97 Acts, ch 108, §6; 99 Acts, ch 13, § 9;
      99 Acts, ch 188, §10; 2000 Acts, ch 1016, §7, 44, 47; 2000 Acts, ch
      1149, §166, 187; 2001 Acts, ch 153, §17; 2003 Acts, ch 8, §13; 2003
      Acts, ch 145, §286; 2004 Acts, ch 1013, §15--17, 35; 2004 Acts, ch
      1092, §3
         Referred to in § 321.24, 321.42, 321.45, 321.48, 321.131, 331.557
         Surcharge imposed; § 321.52A