Bill Text: IA SF502 | 2017-2018 | 87th General Assembly | Enrolled
Bill Title: A bill for an act relating to banks, credit unions, and certain consumer credit transactions. (Formerly SSB 1118 and SF 418.) Effective 7-1-17.
Sponsorship: Committee Bill
Status: (Passed) 2017-05-11 - Signed by Governor. S.J. 1137. [SF502 Detail]
Download: Iowa-2017-SF502-Enrolled.html
Senate File 502 - Enrolled
SENATE FILE
BY COMMITTEE ON WAYS AND
MEANS
(SUCCESSOR TO SF 418)
(SUCCESSOR TO SSB
1118)
\5
A BILL FOR
\1
Senate File 502
AN ACT
RELATING TO BANKS, CREDIT UNIONS, AND CERTAIN CONSUMER
CREDIT TRANSACTIONS.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
Section 1. Section 524.213, Code 2017, is amended to read
as follows:
524.213 Duties and powers of superintendent.
The superintendent shall have general control, supervision
and regulation of all state banks and shall be charged with
the administration, interpretation, and execution of the laws,
rules, and regulations of this state and any other state or
federal law or regulation relating to banks and banking and
with such other duties and responsibilities as are imposed
upon the superintendent by the laws of this state. The
superintendent shall have power to adopt and promulgate such
rules and regulations as necessary to carry out and enforce,
properly and effectively, the provisions of this chapter and
chapter 12C applicable to banks.
Sec. 2. Section 524.612, subsections 1, 2, and 5, Code 2017,
are amended by striking the subsections.
Sec. 3. Section 524.612, subsection 3, Code 2017, is amended
to read as follows:
3. A director shall not receive terms or be paid a rate
of interest on deposits, by a state bank of which the person
is a director, which are more favorable than that provided to
any other customer under similar circumstances. Any waiver of
ordinary or customary charges related to deposit accounts shall
not violate this subsection.
Sec. 4. Section 524.613, subsection 2, Code 2017, is amended
by striking the subsection.
Sec. 5. Section 524.706, subsection 1, Code 2017, is amended
by striking the subsection.
Sec. 6. Section 524.706, subsection 2, Code 2017, is amended
to read as follows:
2. Section 524.612, subsection 2, applies to executive
officers, and section 524.612, subsections 3 and 4, apply to
all officers and employees.
Sec. 7. Section 524.710, subsection 2, Code 2017, is amended
by striking the subsection.
Sec. 8. Section 524.1601, subsection 1, paragraph b, Code
2017, is amended to read as follows:
b. The amount by which the director's, or executive
officer's, or employee's deposit account in the state bank
or bank holding company is overdrawn, upon conviction of a
in violation of section 524.613, subsection 2, or of section
524.710, subsection 2 12 C.F.R. {215.4(e).
Sec. 9. Section 524.1601, subsection 2, Code 2017, is
amended to read as follows:
2. A director or officer who willfully makes or receives a
loan in violation of section 524.612, subsection 1, or section
524.706, subsection 1 12 C.F.R. {215.4 or 215.5, shall be
guilty of a serious misdemeanor and shall be subject to an
additional fine equal to that amount of the loan in excess
of the limitation imposed by such subsections regulations,
and shall be forever disqualified from acting as a director
or officer of any state bank or bank holding company. For
the purpose of this subsection, amounts which are treated as
obligations of an officer or director pursuant to section
524.612, subsection 5, shall be considered in determining
whether the loan or extension of credit is in violation of
section 524.612, subsection 1, and section 524.706, subsection
1.
Sec. 10. Section 524.1806, Code 2017, is amended to read as
follows:
524.1806 Banks owned or controlled ==== officers and directors.
An individual who is a director or an officer of a bank
holding company, as specified by section 524.1801, is deemed
to be a director or an officer, or both, as the case may be, of
each bank so owned or controlled by that bank holding company,
for the purposes of sections 524.612, 524.613 and 524.706, and
for the purposes of 12 C.F.R. pt. 215.
Sec. 11. Section 533.205, subsection 7, Code 2017, is
amended to read as follows:
7. A state credit union shall not may pay an overdraft of a
director, officer, or employee of the state credit union on an
account at the state credit union, unless subject to the rules
of the superintendent, when the payment of funds is made in
accordance with either any of the following:
a. A written, preauthorized, interest=bearing extension of
credit plan that specifies a method of repayment.
b. A written, preauthorized transfer of collected funds
from another account of the account holder at the state credit
union.
c. The overdraft is paid pursuant to an overdraft protection
plan or courtesy pay program.
Sec. 12. Section 537.2301, Code 2017, is amended by adding
the following new subsection:
NEW SUBSECTION. 2A. A supervised loan made by a person in
violation of subsection 2 shall be void and the consumer is
not obligated to pay either the amount financed or the finance
charge. If the consumer has paid any part of the amount
financed or the finance charge, the consumer has a right to
recover the payment from the person in violation of subsection
2 or from an assignee of that person's rights who undertakes
direct collection of payments or enforcement of rights arising
from the debt. With respect to violations arising from
loans made pursuant to open=end credit, no action pursuant
to this subsection may be brought more than two years after
the violation occurred. With respect to violations arising
from other loans, no action pursuant to this subsection may
be brought more than one year after the due date of the last
scheduled payment of the agreement pursuant to which the charge
was paid.
Sec. 13. Section 537.2501, subsection 1, paragraph f,
subparagraph (1), Code 2017, is amended to read as follows:
(1) With respect to open=end credit pursuant to a credit
card issued by the creditor which entitles the cardholder
to purchase or lease goods or services from at least one
hundred persons not related to the card issuer, the parties
may contract for an over=limit charge up to fifteen dollars in
accordance with 12 C.F.R. {1026.52(b) if the balance of the
account exceeds the credit limit established pursuant to the
agreement. The over=limit charge under this paragraph shall
not be assessed again in a subsequent billing cycle unless in a
subsequent billing cycle the account balance has been reduced
below the credit limit.
Sec. 14. Section 537.2501, subsection 1, paragraph g, Code
2017, is amended to read as follows:
g. A surcharge of not more than five percent of the amount
of the face value of the payment instrument or twenty dollars,
whichever is greater, for each dishonored payment instrument
provided that the fee is clearly and conspicuously disclosed
in the cardholder agreement. However, the amount of the
surcharge shall not exceed twenty dollars unless the check,
draft, or order was presented twice or the maker does not have
an account with the drawee. If the check, draft, or order was
presented twice or the maker does not have an account with the
drawee, the amount of the surcharge shall not exceed fifty
dollars as provided for in section 554.3512 for a dishonored
check, draft, or order that was accepted as payment for a
consumer credit transaction payment. The surcharge shall not
be assessed against the maker if the reason for the dishonor of
the instrument is that the maker has stopped payment pursuant
to section 554.4403.
Sec. 15. Section 537.2501, subsection 1, Code 2017, is
amended by adding the following new paragraph:
NEW PARAGRAPH. k. Credit reporting charges.
Sec. 16. Section 537.2502, subsection 1, paragraph a,
subparagraph (1), Code 2017, is amended to read as follows:
(1) Five percent of the unpaid amount of the installment, or
a maximum of twenty thirty dollars.
Sec. 17. Section 537.2502, subsection 1, paragraph b, Code
2017, is amended to read as follows:
b. For an interest=bearing transaction, an amount not
exceeding five percent of the unpaid amount of the installment,
or a maximum of fifteen thirty dollars.
Sec. 18. Section 537.2502, subsection 4, Code 2017, is
amended to read as follows:
4. With respect to open=end credit, the parties may contract
for a delinquency charge on any payment not paid in full when
due, as originally scheduled or as deferred, in an amount up to
fifteen thirty dollars.
Sec. 19. Section 537.2510, Code 2017, is amended by adding
the following new subsection:
NEW SUBSECTION. 8. This section does not apply to a
financial institution as defined in section 537.1301.
Sec. 20. Section 537.5201, subsection 3, Code 2017, is
amended to read as follows:
3. If a creditor has contracted for or received a charge
in excess of that allowed by this chapter, or if a consumer
is entitled to a refund and a person liable to the consumer
refuses to make a refund within a reasonable time after demand,
the consumer may recover from the creditor or the person
liable, in an action other than a class action, the excess
charge or refund and a penalty in an amount determined by the
court not less than one two hundred dollars or more than one
two thousand dollars. With respect to excess charges arising
from sales or loans made pursuant to open=end credit, no action
pursuant to this subsection may be brought more than two years
after the time the excess charge was made. With respect to
excess charges arising from other consumer credit transactions
no action pursuant to this subsection may be brought more than
one year after the due date of the last scheduled payment of
the agreement pursuant to which the charge was made. For
purposes of this subsection, a reasonable time is presumed to
be thirty days.
Sec. 21. Section 537.5203, subsection 1, paragraph a, Code
2017, is amended to read as follows:
a. Twice the amount of the finance charge in connection with
the transaction, but the liability pursuant to this paragraph
shall be not less than one two hundred dollars or more than one
two thousand dollars.
Sec. 22. Section 537.6113, subsection 2, Code 2017, is
amended to read as follows:
2. The administrator may bring a civil action against a
person to recover a civil penalty of no more than five ten
thousand dollars for repeatedly and intentionally violating
this chapter. No civil penalty pursuant to this subsection
may be imposed for violations of this chapter occurring more
than two years before the action is brought or for making
unconscionable agreements or engaging in a course of fraudulent
or unconscionable conduct.
Sec. 23. Section 537.6203, subsections 1 and 4, Code 2017,
are amended to read as follows:
1. A person required to file notification shall pay to the
administrator an annual fee of ten fifty dollars. The fee
shall be paid with the filing of the first notification and on
or before January 31 of each succeeding year.
4. In addition to the penalties provided by section
537.6113, subsection 3, the administrator may collect a charge,
established by rule, not exceeding twenty=five seventy=five
dollars from each person required to pay fees under this
section who fails to pay the fees in full within thirty days
after they are due.
JACK WHITVER
LINDA UPMEYER
W. CHARLES SMITH
TERRY E. BRANSTA
-1-
