Bill Text: IA HF2328 | 2013-2014 | 85th General Assembly | Introduced
Bill Title: A bill for an act relating to matters under the purview of the credit union division of the department of commerce, and including effective date provisions. (Formerly HSB 569)
Spectrum: Committee Bill
Status: (Introduced - Dead) 2014-03-04 - Withdrawn. H.J. 403. [HF2328 Detail]
Download: Iowa-2013-HF2328-Introduced.html
House
File
2328
-
Introduced
HOUSE
FILE
2328
BY
COMMITTEE
ON
COMMERCE
(SUCCESSOR
TO
HSB
569)
A
BILL
FOR
An
Act
relating
to
matters
under
the
purview
of
the
credit
1
union
division
of
the
department
of
commerce,
and
including
2
effective
date
provisions.
3
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
4
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Section
1.
NEW
SECTION
.
533.209A
Prohibited
relationships.
1
A
director
shall
not
be
related
by
consanguinity
or
affinity
2
within
the
third
degree
to
any
person
employed
by
a
state
3
credit
union
in
a
senior
management
position.
For
purposes
4
of
this
section,
“senior
management
position”
includes
a
state
5
credit
union’s
chief
executive
officer,
president,
or
manager;
6
assistant
chief
executive
officer,
assistant
president,
vice
7
president,
or
assistant
manager;
or
chief
financial
officer
or
8
treasurer.
9
Sec.
2.
Section
533.301,
subsection
1,
paragraph
c,
Code
10
2014,
is
amended
to
read
as
follows:
11
c.
Other
state
credit
unions.
12
Sec.
3.
Section
533.301,
subsection
5,
paragraph
i,
Code
13
2014,
is
amended
to
read
as
follows:
14
i.
Corporate
bonds
as
defined
by
and
subject
to
terms
15
and
conditions
imposed
by
the
superintendent,
provided
that
16
the
superintendent
shall
not
approve
investment
in
corporate
17
bonds
unless
the
bonds
are
rated
in
the
two
highest
grades
18
of
corporate
bonds
by
a
nationally
accepted
rating
agency
19
investment
grade
.
For
purposes
of
this
paragraph,
“investment
20
grade”
means
the
issuer
of
a
security
has
an
adequate
capacity
21
to
meet
the
financial
commitments
under
the
security
for
the
22
projected
life
of
the
asset
or
exposure,
even
under
adverse
23
economic
conditions.
An
issuer
has
adequate
capacity
to
24
meet
the
financial
commitments
of
a
security
if
the
risk
of
25
default
by
the
obligor
is
low
and
the
full
and
timely
repayment
26
of
principal
and
interest
on
the
security
is
expected.
A
27
state
credit
union
may
consider
any
or
all
of
the
following
28
nonexhaustive
or
nonmutually
exclusive
factors,
to
the
extent
29
appropriate,
with
respect
to
the
credit
risk
of
a
security:
30
(1)
Credit
spreads.
31
(2)
Securities-related
research.
32
(3)
Internal
or
external
credit
risk
assessments.
33
(4)
Default
statistics.
34
(5)
Inclusion
on
an
index.
35
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(6)
Priorities
and
enhancements.
1
(7)
Price,
yield,
or
volume.
2
(8)
Asset
class-specific
factors.
3
Sec.
4.
Section
533.301,
subsection
28,
Code
2014,
is
4
amended
to
read
as
follows:
5
28.
Sell,
to
persons
in
the
field
of
membership,
negotiable
6
checks,
including
traveler’s
checks;
money
orders;
and
other
7
similar
money
transfer
instruments
including
international
8
and
domestic
electronic
fund
transfers
and
remittance
checks
9
transfers
.
10
Sec.
5.
NEW
SECTION
.
533.405A
Involuntary
dissolution.
11
1.
If
the
superintendent
has
taken
over
management
of
the
12
property
and
business
of
a
state
credit
union
pursuant
to
13
section
533.502,
and
determined
that
the
state
credit
union
14
cannot
be
reorganized
or
merged
with
another
credit
union,
the
15
superintendent
may
move
for
the
involuntary
dissolution
of
the
16
state
credit
union
and
shall
apply
to
the
district
court
for
17
appointment
as
receiver
with
the
authority
to
dissolve
the
18
state
credit
union.
19
2.
If
a
state
credit
union
is
in
the
process
of
a
20
voluntary
dissolution,
and
pursuant
to
section
533.405,
21
the
superintendent
finds
that
the
state
credit
union
is
not
22
making
reasonable
progress
toward
terminating
its
affairs,
the
23
superintendent
may
move
for
the
involuntary
dissolution
of
the
24
state
credit
union
and
shall
apply
to
the
district
court
for
25
appointment
as
receiver
with
the
authority
to
dissolve
the
26
state
credit
union.
27
3.
The
provisions
of
section
533.503
shall
apply
when
the
28
superintendent
is
acting
as
receiver,
and
as
receiver
the
29
superintendent
shall
distribute
the
assets
pursuant
to
the
30
provisions
of
section
533.404.
31
Sec.
6.
Section
533.503,
Code
2014,
is
amended
by
adding
the
32
following
new
subsections:
33
NEW
SUBSECTION
.
2A.
The
superintendent
as
receiver
may
sue
34
and
defend
in
the
superintendent’s
name
with
respect
to
the
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2328
affairs
of
a
state
credit
union.
1
NEW
SUBSECTION
.
5.
The
superintendent
as
receiver
shall
2
hold
all
records
of
the
receivership
for
a
period
of
two
years
3
after
the
court
decree
dissolving
the
state
credit
union
4
and
discharging
the
receiver,
and
at
the
termination
of
the
5
two-year
period,
the
records
may
then
be
destroyed.
6
Sec.
7.
EFFECTIVE
UPON
ENACTMENT.
The
following
provision
7
or
provisions
of
this
Act,
being
deemed
of
immediate
8
importance,
take
effect
upon
enactment:
9
1.
The
section
of
this
Act
amending
section
533.301,
10
subsection
1,
paragraph
“c”.
11
2.
The
section
of
this
Act
amending
section
533.301,
12
subsection
5,
paragraph
“i”.
13
EXPLANATION
14
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
15
the
explanation’s
substance
by
the
members
of
the
general
assembly.
16
This
bill
relates
to
matters
under
the
purview
of
the
credit
17
union
division
of
the
department
of
commerce.
18
The
bill
provides
that
a
director
shall
not
be
related
19
by
consanguinity
or
affinity
within
the
third
degree
to
any
20
person
employed
by
a
state
credit
union
in
a
senior
management
21
position.
The
bill
defines
“senior
management
position”
to
22
include
a
credit
union’s
chief
executive
officer,
president,
23
or
manager;
assistant
chief
executive
officer,
assistant
24
president,
vice
president,
or
assistant
manager;
or
chief
25
financial
officer
or
treasurer.
26
The
bill
provides
that
a
state
credit
union
shall
be
27
authorized
to
receive
payments
for
ownership
shares,
for
other
28
shares,
or
as
deposits,
from
other
credit
unions.
Currently,
29
this
authorization
applies
strictly
to
other
state
credit
30
unions.
31
The
bill
modifies
provisions
relating
to
investments
by
a
32
state
credit
union
in
corporate
bonds
to
delete
a
requirement
33
that
the
bonds
are
rated
in
the
two
highest
grades
of
corporate
34
bonds
by
a
nationally
accepted
rating
agency
and
substituting
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the
requirement
that
the
bonds
be
considered
investment
grade.
1
The
bill
defines
“investment
grade”
to
mean
the
issuer
of
2
a
security
has
an
adequate
capacity
to
meet
the
financial
3
commitments
under
the
security
for
the
projected
life
of
the
4
asset
or
exposure,
even
under
adverse
economic
conditions.
The
5
bill
provides
that
an
issuer
has
adequate
capacity
to
meet
the
6
financial
commitments
of
a
security
if
the
risk
of
default
7
by
the
obligor
is
low
and
the
full
and
timely
repayment
of
8
principal
and
interest
on
the
security
is
expected.
The
bill
9
specifies
a
list
of
nonexhaustive
or
nonmutually
exclusive
10
factors
which
a
credit
union
may
consider,
to
the
extent
11
appropriate,
with
respect
to
the
credit
risk
of
a
security.
12
The
bill
changes
a
reference
to
“remittance
checks”
to
13
“remittance
transfers”
regarding
the
ability
of
a
state
credit
14
union
to
sell,
to
persons
in
the
field
of
membership,
specified
15
checks,
money
orders,
and
other
similar
money
transfer
16
instruments.
17
Additionally,
the
bill
establishes
new
involuntary
18
dissolution
provisions
relating
to
state
credit
unions.
The
19
bill
provides
that
if
the
superintendent
has
taken
over
20
management
of
the
property
and
business
of
a
state
credit
21
union
and
determined
that
the
state
credit
union
cannot
22
be
reorganized
or
merged
with
another
credit
union,
the
23
superintendent
may
move
for
the
involuntary
dissolution
of
the
24
state
credit
union
and
shall
apply
to
the
district
court
for
25
appointment
as
receiver
with
the
authority
to
dissolve
the
26
state
credit
union.
Further,
the
bill
provides
that
if
a
state
27
credit
union
is
in
the
process
of
a
voluntary
dissolution,
and
28
the
superintendent
of
credit
unions
finds
that
the
state
credit
29
union
is
not
making
reasonable
progress
toward
terminating
30
its
affairs,
the
superintendent
may
move
for
the
involuntary
31
dissolution
of
the
state
credit
union
and
shall
apply
to
the
32
district
court
for
appointment
as
receiver
with
the
authority
33
to
dissolve
the
state
credit
union.
34
The
bill
adds
two
new
provisions
applicable
to
the
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superintendent
acting
as
receiver.
The
bill
provides
that
1
the
superintendent
as
receiver
may
sue
and
defend
in
the
2
superintendent’s
name
with
respect
to
the
affairs
of
a
state
3
credit
union,
and
shall
hold
all
records
of
the
receivership
4
for
a
period
of
two
years
after
the
court
decree
dissolving
the
5
state
credit
union
and
discharging
the
receiver,
which,
at
the
6
termination
of
the
two-year
period,
may
be
destroyed.
7
The
bill
provides
that
the
provisions
relating
to
8
authorization
to
receive
specified
payments
from
other
credit
9
unions,
and
relating
to
the
requirement
that
investments
be
10
made
in
corporate
bonds
which
are
considered
“investment
11
grade”,
take
effect
upon
enactment.
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