§ 462A.5A — Filing bond as assurance of ownership

Iowa § 462A.5A

• Jurisdiction: Iowa
• Title XI: NATURAL RESOURCES
• Ch. 462A: WATER NAVIGATION REGULATIONS

Text

An applicant for registration of a vessel for which the county recorder is not satisfied as
to the ownership of the vessel as provided in section 462A.5, subsection 1, shall file with the
department a bond in the form prescribed by the department and executed by the applicant,
and also executed by a person authorized to conduct a surety business in this state. The form
and amount of the bond shall be established by rule of the department. The bond shall be
conditioned to indemnify any prior owner and secured party and any subsequent purchaser
of the vessel or person acquiring any security interest in the vessel, and their respective
successors in interest, against any expense, loss, or damage, including reasonable attorney
fees, by reason of the issuance of the registration certificate of the vessel or on account of any
defect in or undisclosed security interest upon the right, title, and interest of the applicant in
and to the vessel. Any such interested person has a right of action to recover on the bond
for any breach of its conditions, but the aggregate liability of the surety to all persons shall
not exceed the amount of the bond. The bond shall be returned at the end of three years or
prior thereto if the vessel is no longer registered in this state and the registration certificate
is surrendered to the department, unless the department has been notified of the pendency
of an action to recover on the bond.

Legislative History

[C39, §1703.16, 1703.22; C46, 50, 54, 58, §106.16, 106.22; C62, 66, 71, 73, 75, 77, 79, 81, §106.6]