| Perfection
|| Possession and Sale || New Title
and Plates || Other Issues
|| Kelley Blue Book | |
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| LAWDOG™ Iowa Repossession |
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| Transfer of Vehicle Requires
Title No person may acquire any right, title, claim or interest in or to
any vehicle subject to registration except by virtue of a certificate of title or
manufacturer's or importer's certificate issued or assigned to the person for such
vehicle, except in case of perfection of a lien or security interest by notation on the
certificate of title as provided in section 321.50, or perfection of a security interest
in new or used vehicles held as inventory for sale as provided in Uniform Commercial Code,
chapter 554, Article 9, or other limited situations. See section 321.45 |
| Owner Must Endorse and Supply
Information Upon transfer of registered vehicle, owner must, with limited
exceptions, endorse an assignment and warranty of title upon the certificate for such
vehicle with a statement of all liens and encumbrances thereon, and the owner must deliver
the certificate of title to the purchaser or transferee at the time of delivering the
vehicle. Seller must advise transferee of name of county of last registration and
expiration date. See Section 321.45 |
| Perfection of Lien on Motor
Vehicle A security interest in a vehicle subject to registration or a
mobile home, with limited exceptions like vehicles held by a dealer as inventory for sale,
is perfected by delivery to the county treasurer of county where certificate of title was
or 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 a certificate of title
from another jurisdiction which shows the security interest, and a fee of five dollars for
each security interest shown. If owner or secured party has certificate of title, it must
also be delivered at this time in order to perfect the security interest. If a vehicle is
subject to a security interest when brought into Iowa, the validity of the security
interest and the date of perfection is determined by section 554.9103. See section 321.50 |
| Notation of Security Interest
on Title and Records When the application and required fee are received,
the county treasurer notifies holder of certificate of title to deliver to treasurer,
within five days from receipt of notice, the certificate of title to permit notation of
the security interest. If the holder of the certificate of title shall fail to deliver it
within the said five days, the holder shall be liable to anyone harmed by the holder's
failure. Upon receipt of required documents and fees, the county treasurer notes such
security interest, and the date, on the certificate over the signature of such officer or
deputy and seal of office. The county treasurer also must note such security interest and
date in the county records system. The county treasurer then mails the certificate of
title to first secured party as shown. See section 321.50 |
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| Right of Consumer To Cure
Default The obligation of a consumer in a consumer credit transaction is
enforceable by a creditor only after compliance with section 537.5110,
which states that a creditor who holds a good faith belief that consumer is in
default may give the consumer written notice of the alleged default, and, if the consumer
has a right to cure the default, must give to consumer the notice of right to cure
provided in section 537.5111 before commencing any legal action on an obligation of
consumer and before repossessing collateral. |
| Right To Cure Unless Certain
Prior Occurences Within Year A consumer has a right to cure the default
unless the creditor has given consumer a proper notice of right to cure with respect to a
prior default which occurred within three hundred sixty-five days of the present default,
or the consumer has voluntarily surrendered possession of goods that are collateral and
the creditor has accepted them in full satisfaction of any debt owing on the transaction
in default. If consumer has a right to cure a default, the creditor may not accelerate the
maturity of unpaid balance of obligation, demand or take possession of collateral,
otherwise than by accepting a voluntary surrender, or otherwise attempt to enforce
obligation until twenty days after a proper notice of right to cure is given. See section 554.9506 of
the Code of Iowa, from the Iowa General Assembly. |
| Actions Limited During Twenty
Day Period Until expiration of minimum applicable period after notice,
consumer may cure default by tendering either amount of all unpaid installments due at
time of tender, without acceleration, plus unpaid delinquency or deferral charges, or
amount stated in notice of right to cure, whichever is less, or by tendering performance
necessary to cure default other than nonpayment, described in notice. The curing of
default restores to consumer rights under agreement as though no default had occurred,
except that action may later be treated as prior event. Special rules apply with respect
to an insurance premium loan. |
| Possession After Default
Unless agreed otherwise, secured party has, on default, the right to take possession of
collateral. In the retaking of possession, secured party may proceed without judicial
process only if this can be done without breach of the peace. Otherwise, a judicial action
may proceed. If the security agreement provides so, secured party may require debtor to
assemble collateral and make available at a place designated by secured party which is
reasonably convenient to both parties. See section 554.9503 of
the Code of Iowa, from the Iowa General Assembly. |
| Right of Debtor to Redeem
Collateral At any time before secured party has disposed of collateral or
entered into contract for disposition under UCC section 554.9504 or before obligation has
been discharged under section 554.9505, debtor or other secured party may, unless
otherwise agreed in writing after default, redeem collateral by tendering
fulfillment of all obligations secured by the collateral, and expenses reasonably incurred
by secured party in retaking, holding and preparing collateral for disposition, arranging
for sale, and to extent provided in agreement and not prohibited by law, reasonable
attorneys' fees and legal expenses of secured party. See section 554.9506 of
the Code of Iowa, from the Iowa General Assembly. |
| Compulsory Disposition When
Substantial Consumer Payments Where debtor has paid sixty
percent of cash price in case of a purchase money security interest in consumer goods or
sixty percent of loan in case of other security in consumer goods, and has not signed
after default a statement renouncing or modifying rights, secured party who has taken
possession must dispose of it by a sale under section 554.9504. Secured party may be
subject to damage claims if not sold within ninety days after possession. See section 554.9505 of
the Code of Iowa, from the Iowa General Assembly. |
| Retention and Satisfaction
In case not subject to 60% consumer rule, secured party in possession may, after default,
propose to retain the collateral in satisfaction of the obligation. Written notice of such
proposal must be sent to debtor if debtor has not signed after default a statement
renouncing or modifying rights to notice and to object to retention of the collateral in
full satisfaction of obligation. In some cases notice may be required to holders of junior
liens. If secured party receives objection in writing from a person entitled to notice
within twenty-one days after notice sent, secured party must sell collateral under
section 554.9504. In the absence of such written objection, secured party may retain
collateral in satisfaction of the obligation. Retention of the collateral discharges the
security interest of the secured party and discharges any subordinate liens. See section 554.9505 of
the Code of Iowa, from the Iowa General Assembly. |
| Sale of Collateral After
Default A secured party after default may sell, lease or otherwise dispose
of any or all of the collateral in its then condition or following any commercially
reasonable preparation or processing. Any sale of goods is subject to UCC Article 2 on
Sales. The proceeds of disposition must be applied in order following to reasonable
expenses of retaking, holding, preparing for sale or lease, selling, leasing and the like
and, only to extent provided for in agreement and not prohibited by law, reasonable
attorneys' fees and legal expenses incurred by secured party. See section 554.9504 of
the Code of Iowa, from the Iowa General Assembly. Subordinate Claims Proceeds next would apply to
satisfaction of debt secured by security interest under which sale is made. Remaining
proceeds would next be applied to satisfaction of indebtedness secured by any subordinate
security interest or lien in the collateral if written notification of demand therefor is
received before distribution of the proceeds is completed. If requested by secured party,
the holder of a subordinate security interest or lien must seasonably furnish reasonable
proof of interest, and unless holder does so, secured party may not need to comply with
demand. See section 554.9504 of
the Code of Iowa, from the Iowa General Assembly.
Accounting and Deficiency If the security
interest secures debt, secured party must account to debtor for any surplus, and, unless
otherwise agreed, the debtor is liable for any deficiency. See section 554.9504 of
the Code of Iowa, from the Iowa General Assembly. |
| Public or Private Sale in
Commercially Reasonable Manner Following Notice, Deficiency Disposition
may be by public or private sale, and may be as a unit or in parcels and at any time and
place and on any terms but every aspect of the disposition including the method, manner,
time, place and terms must be commercially reasonable. Unless collateral is perishable,
reasonable notice of time and place of any public sale or reasonable notice of
time after which any private sale is to be made must be sent by secured party
to debtor, if debtor has not signed after default a statement renouncing or
modifying right to notification of sale. If the security interest secures debt, secured
party must account to debtor for any surplus, and, unless otherwise agreed, the debtor is
liable for any deficiency. See section 554.9504 of
the Code of Iowa, from the Iowa General Assembly. Subordinate Lien Notice Notice must also be sent
to any other secured party from whom the secured party has received (before sending notice
to debtor or before renunciation) written notice of a claim of interest in the collateral.
Sale generally transfers to a purchaser acting in good faith, for value, all rights of
debtor, discharges security interest under which sold and subordinate liens. See section 554.9504 of
the Code of Iowa, from the Iowa General Assembly. |
| Restrictions on Deficiency
Under Section 537.5103 which covers certain consumer credit sales of goods or services and
consumer loans, consumer is not liable for a deficiency unless the creditor has disposed
of repossessed or surrendered goods in good faith and in a commercially reasonable manner.
The seller's duty to dispose of the collateral is governed by the UCC provisions on
disposition of collateral in sections 554.9501 to
554.9507. |
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| Transfers by Operation of Law
If ownership of a vehicle is transferred by operation of law upon inheritance, abandoned
vehicle sale, or repossession is had upon default in performance of the terms of a
security agreement, the county treasurer in the transferee's county of residence, upon
surrender of prior certificate of title, or when that is not possible, upon presentation
of satisfactory proof to the county treasurer of ownership and right of possession, and
upon payment of a fee of ten dollars and an application for registration and certificate
of title, may issue registration card certificate of title to vehicle. See section 321.47 of the
Code of Iowa, from the Iowa General Assembly. |
| Evidence About Liens
If, from the records in the office of the county treasurer, there appear to be any liens
on the vehicle, the certificate of title shall contain a statement of the liens unless the
application is accompanied by proper evidence of their satisfaction or extinction.
Evidence of extinction may consist of, but is not limited to, an affidavit of applicant
stating that a security interest was foreclosed as provided in chapter 554, article 9,
part 5. See section 321.47 of the
Code of Iowa, from the Iowa General Assembly. |
| Plates Do Not remain With
Vehicle Whenever ownership of a vehicle is transferred under the
provisions of this section the registration plates shall be removed and forwarded to the
county treasurer of the county where the vehicle is registered or to the department if the
vehicle is owned by a nonresident. Upon transfer the vehicle shall not be operated upon
the highways of this state until the person entitled to possession of the vehicle applies
for and obtains registration for the vehicle. See section 321.47 of the
Code of Iowa, from the Iowa General Assembly. |
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