Disclaimer: This article is for informational purposes only and does not constitute legal advice. Consult a licensed attorney for advice on your specific situation.
Detailed Answer
When an administrator needs to confirm that a vehicle loan is fully paid under Iowa law, follow these steps:
- Obtain a Written Payoff Statement. Contact the lender and request a payoff statement. This document details the exact amount needed to satisfy the loan as of a specified date. It provides proof of the balance due and any accrued interest or fees.
- Make the Payoff Payment. Pay the loan in the manner specified by the payoff statement (e.g., cashier’s check, wire transfer). Keep records of the payment, including bank statements or receipts.
- Request a Lien Release Certificate. Under Iowa Code § 321.50, the lienholder must, within 30 days after full payment, deliver to the owner a certificate of release of security interest or file a release with the Iowa Department of Transportation (DOT). You can review the statute at https://www.legis.iowa.gov/docs/code/321.50.pdf.
- Verify with the Iowa DOT. Once the lien release is obtained, confirm that the lien has been removed from the vehicle’s title. You can request a certified copy of the title or search the lien status online via the Iowa DOT’s Title and Registration Services: https://iowadot.gov/mvd/titles.
- Check UCC Filings. If the lender filed a UCC-1 financing statement, search the Iowa Secretary of State’s UCC database to ensure the financing statement has been terminated. Visit the UCC search portal: https://sos.iowa.gov/ucc/.
- Retain Documentation. Keep all payoff statements, lien releases, confirmation letters, and title copies in the estate or organizational records. This documentation is your proof that the obligation was fully satisfied.
Helpful Hints
- Always request the payoff statement in writing and specify the cutoff date.
- Use traceable payment methods (e.g., certified check) to avoid disputes.
- Follow up in writing if the lender delays issuing the lien release.
- Check the title status approximately two weeks after payment to allow processing time.
- Consult the Iowa DOT or a title service provider if you encounter delays or errors in lien removal.