Iowa Administrative Code › Agency 761 - Transportation Department › Driver Licenses › Chapter 640 - Financial Responsibility › Rule 761-640.5 - Judgments

Current through Register Vol. 47, No. 3, July 24, 2024
A suspension of license and registrations is required under
				  Iowa Code section 321A.13 when the department
				  receives from the clerk of court a certification of judgment which has remained
				  unsatisfied for at least 60 days pursuant to Iowa Code section
				  321A.12. Form 431126,
				  "Certification of Judgment," may be used by the clerk of court to report a
				  certified judgment to the department.
(1)
Suspension.
The
				suspension becomes effective on the date the suspension notice is served
				pursuant to rule 761-615.37 (321). The notice
				shall inform the person that the privilege to operate and register motor
				vehicles in Iowa is suspended until the judgment is satisfied and proof of
				financial responsibility is shown. The duration of the suspension is provided
				in Iowa Code section 321A.14. When the suspension
				ends, the department shall issue to the person a notice terminating the
				suspension.
(2)
Suspension-exceptions.
A person who qualifies for an exception
				under Iowa Code section
				321A.13,
				321A.14 or
				321A.16 must submit proof to the
				department at the address in subrule 640.1(3) that the person qualifies for the
				applicable exception in one of the following ways:
a.
Creditor's consent.
To
				qualify for this exception, the judgment debtor must obtain written consent
				from the judgment creditor for issuance of the debtor's license and
				registrations while paying the judgment. If this consent is withdrawn, a new
				suspension is required in accordance with subrule 640.5(1).
b.
Satisfaction of judgment.
To qualify for this exception, the judgment debtor must submit a certificate of
				satisfaction or receipt for payment of the judgment from the clerk of
				court.
c.
Bankruptcy.
To qualify for this exception, the judgment debtor
				must submit a copy of the decree for bankruptcy which includes the judgment
				debt.
d.
Court order for
				installment payments.
To qualify for this exception, the judgment
				debtor must submit a court order authorizing payment of the judgment in
				installments. Anew suspension, as provided in subrule 640.5(1), is required
				when the department receives notice of a default in the payments. The default
				suspension shall continue until the judgment is satisfied or anew court order
				authorizing payment of the judgment in installations is received.
e.
Insurance coverage
				exception.
To qualify for this exception, the judgment debtor who held
				effective liability insurance coverage at the time of the accident from which
				the judgment was rendered shall submit a copy of the insurance policy and a
				letter from the insurance carrier confirming that the insurance carrier was
				authorized to issue liability insurance, that the insurance carrier did provide
				coverage for the debtor in amounts required by the financial responsibility
				law, and the reason why the insurance carrier has not paid such judgment.
This rule is intended to implement Iowa Code sections
				  321A.12 to
				  321A.29 and
				  321A.31.