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 that 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 is
to 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.
(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 If this consent is withdrawn, a new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 that 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. A new suspension, as provided in subrule 640.5(1), is required
when the department receives notice of a default in the payments. The default
suspension is to continue until the judgment is satisfied or a new 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 is to 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 through
321A.29 and
321A.31.
Notes
Iowa Admin.
Code r. 761-640.5
Amended by
IAB
December 4, 2019/Volume XLII, Number 12, effective
1/8/2020
Amended by
IAB
May 3, 2023/Volume XLV, Number 22, effective
6/7/2023
Adopted by
IAB
February 19, 2025/Volume XLVII, Number 17, effective
3/26/2025
