If a person’s license and registration or nonresident’s operating privilege has been suspended as provided in section 321A.5, that license and registration or privilege shall remain suspended and shall not be renewed and a new license or registration shall not be issued to that person until one of the following has occurred:

1. 1. The person deposits, or there is deposited on the person’s behalf, the security required under section 321A.5.
2. 2. Twelve months have elapsed after such accident and the department has not been notified by any party to the action or an attorney for any party that an action for damages arising out of such accident has been instituted within one year from the date of the accident.

3. 3. Evidence satisfactory to the department has been filed with the department of a release from liability, or a final adjudication of nonliability, or a warrant for confession of judgment, or a duly acknowledged written agreement, in accordance with section 321A.6, subsection 4. If, however, there is any default in the payment of any installment under any confession of judgment, then, upon notice of such default, the department shall immediately suspend the license and registration or nonresident’s operating privilege of such person defaulting which shall not be restored unless and until the entire amount provided for in said confession of judgment has been paid. In addition, if there is any default in the payment of any installment under any duly acknowledged written agreement, then, upon notice of such default, the department shall immediately suspend the license and registration or nonresident’s operating privilege of that person defaulting and the license and registration or nonresident’s operating privilege shall not be restored unless and until one of the following occurs:

   1. a. Such person deposits and thereafter maintains security as required under section 321A.5 in such amount as the department may then determine.
   2. b. Twelve months have elapsed after such security was required and the department has not been notified by any party to the action or an attorney for any party that an action upon such an agreement has been instituted in a court in this state within one year after such security was required.

[C50, 54, 58, 62, 66, 71, 73, 75, 77, 79, 81, §321A.7] 92 Acts, ch 1175, §43; 2009 Acts, ch 133, §124

Referred to in §321A.2, 321A.8, 321A.9, 321A.10, 321A.11