Iowa Code § 655.3

Penalty for failure to discharge
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If a mortgagee, or a mortgagee’s personal representative or assignee, upon full performance of the conditions of the mortgage, fails to discharge such mortgage as set forth in section 655.1, the mortgagee isliable to the mortgagor and the mortgagor’s heirs or assigns, for allactual damages caused by such failure and a penalty of five hundred dollars, plus reasonable attorney fees. A claim for such damages may be asserted in an action for discharge of the mortgage.

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