Iowa Administrative Code › Agency 761 - Transportation Department › Vehicles › Chapter 400 - Vehicle Registration and Certificate of Title › Rule 761-400.13 - Bond Required Before Title Issued

Current through Register Vol. 47, No. 3, July 24, 2024
An applicant for a certificate of title who cannot provide
				  the supporting documents required in rule
				  761-400.4 (321) shall be
				  required to file a bond as a condition to obtaining a title and registration
				  plates.
(1)
Procedures.
This subrule describes the procedures to be
				followed to obtain a "bonded" certificate of title. The procedures described
				are in addition to the regular procedures for titling and registering a
				vehicle.
a. The applicant shall submit a bond
				application to the motor vehicle division on a form prescribed by the
				department. The application shall be accompanied by evidence of ownership of
				the vehicle.
b. The department
				shall search the state files 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 shall mail a release letter by first-class mail to the
				owner of record at the owner's last-known address. The release letter shall
				notify 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, a motor vehicle investigator shall 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 shall continue processing the bond
				application.
(4) If one or more
				security interests are found and can be identified, the department shall send a
				certified letter and application for cancellation of security interest to a
				lienholder to the last-known address of that lienholder. If a lienholder
				releases the lien, the department shall 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 shall 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 shall 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 the applicant has complied with this rule, that
				there is sufficient evidence to indicate that the applicant is the rightful
				owner, and that there isno known unsatisfied security interest, the department
				shall 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. After the cash deposit or surety bond has
				been deposited, a motor vehicle investigator of the department may examine the
				vehicle to verify the information submitted on the application is correct. The
				owner of the vehicle may drive or tow the vehicle to and from the examination
				location after completing an affidavit to drive on a form provided by the
				department. The form shall state that the vehicle is reasonably safe for
				operation, and the form must be signed by the owner. After verifying the
				information, the investigator shall authorize the county treasurer to issue a
				title for and register the vehicle. Should the vehicle not meet the equipment
				requirements of Iowa Code chapter 321, the investigator shall 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
				shall also affix an assigned vehicle identification number to the
				vehicle.
e. The applicant shall
				then make application for a certificate of title and registration.