Iowa Admin. Code r. 761-400.12 - Bond required before title issued
(1)
Procedures. An applicant for a certificate of title who cannot
provide the supporting documents required in rule 761-400.4 (321) is required to
comply with the procedure under Iowa Code section 321.24(11), in addition to
this rule.
a. The applicant shall submit a
bond application and supporting material to the motor vehicle division on a
form prescribed by the department.
b. The department will search the
department's vehicle title and registration system to determine if there is an
owner of record or security interest for the vehicle and if the vehicle has
been reported stolen or embezzled.
(1) If an
owner of record is found, the department will mail a release letter by
first-class mail to the owner of record at the owner's last-known address
notifying the owner of the right to claim ownership of the vehicle or to waive
all rights or claims.
(2) If the
owner of record makes a claim, the motor vehicle division will review the
claim.
(3) If the department
receives no response from the owner of record within ten days after the date of
mailing, the owner of record waives all rights or claims; or if the letter is
returned as undeliverable, the department will continue processing the bond
application.
(4) If one or more
security interests are found and can be identified, the department will send a
certified letter and application for cancellation of security interest to a
lienholder at the last-known address of that lienholder. If a lienholder
releases the lien, the department will continue to process the application. If
a lienholder responds with a request to claim the vehicle, the department will
review the claim. If the certified letter is returned as undeliverable, the
department will continue to process the application.
(5) If one or more security interests is
found but a lienholder cannot be identified because the record is held by
another jurisdiction, the department will return the application to the
applicant and inform the applicant which jurisdiction holds the record(s) to
the vehicle.
c. If the
department determines that there is sufficient evidence to indicate that the
applicant is the rightful owner, and that there is no known unsatisfied
security interest, the department is authorized to determine the current value
of the vehicle and notify the applicant to deposit cash or file a surety bond
with the department in an amount equal to one and one-half times the current
value of the vehicle.
d. A motor
vehicle investigator of the department may verify information in the
application, examine the vehicle, and authorize the county treasurer to issue a
title for and register the vehicle. An investigator may require the applicant
to drive the vehicle to and from the examination location upon completing Form
420054, Affidavit to Operate a Vehicle for Inspection. Should the vehicle not
meet the equipment requirements of Iowa Code chapter 321, the investigator may
authorize the county treasurer to issue a title and registration but instruct
the county treasurer to immediately suspend the registration until such time as
the vehicle meets these equipment requirements. If applicable, the investigator
will also affix an assigned vehicle identification number to the
vehicle.
(2)
Denial. If the department determines that the applicant has
not complied with this rule, that there is sufficient evidence to indicate that
the applicant may not be the rightful owner, or that there is an unsatisfied
security interest, then the department will not authorize issuance of a
certificate of title or registration receipt and will notify the applicant in
writing of the reason(s).
(3)
Junked vehicle. A certificate of title will not be reinstated
for a vehicle that has been issued a junking certificate unless the junking
certificate was issued in error, as explained in rule 761-400.23 (321), or the
vehicle qualifies as an antique vehicle under Iowa Code section 321.115(1).
This rule is intended to implement Iowa Code sections 321.24 and 321.52.
Notes
State regulations are updated quarterly; we currently have two versions available. Below is a comparison between our most recent version and the prior quarterly release. More comparison features will be added as we have more versions to compare.
(1) When a certificate of title is lost, destroyed or altered, the owner or lienholder shall apply for a replacement certificate of title . If a security interest noted on the certificate of title was released by the secured party on a separate form, but the secured party has not delivered the original certificate of title to the appropriate party, the owner may apply for a replacement certificate of title as provided in Iowa Code section 321.42.
(2) Application for a replacement certificate of title shall be made on a form prescribed by the department. All owners of the vehicle as listed on the certificate of title shall sign the application form. If an owner is deceased, the signatures and documents specified in subrules 400.14(4) and 400.14(5) shall be required in lieu of the deceased owner's signature . A person entitled to vehicle ownership under the laws of descent and distribution shall sign the required forms and shall insert the words "heir at law" following the signature .
This rule is intended to implement Iowa Code section 321.42.