Bill Text: IA SSB3109 | 2013-2014 | 85th General Assembly | Introduced
Bill Title: A study bill for an act relating to matters under the purview of the credit union division of the department of commerce.
Spectrum: Unknown
Status: (N/A - Dead) 2014-01-27 - In Commerce [SSB3109 Detail]
Download: Iowa-2013-SSB3109-Introduced.html
Senate
Study
Bill
3109
-
Introduced
SENATE/HOUSE
FILE
_____
BY
(PROPOSED
DEPARTMENT
OF
COMMERCE/CREDIT
UNION
DIVISION
BILL)
A
BILL
FOR
An
Act
relating
to
matters
under
the
purview
of
the
credit
1
union
division
of
the
department
of
commerce.
2
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
3
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_____
H.F.
_____
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
5,
paragraph
i,
Code
10
2014,
is
amended
to
read
as
follows:
11
i.
Corporate
bonds
as
defined
by
and
subject
to
terms
12
and
conditions
imposed
by
the
superintendent,
provided
that
13
the
superintendent
shall
not
approve
investment
in
corporate
14
bonds
unless
the
bonds
are
rated
in
the
two
highest
grades
15
of
corporate
bonds
by
a
nationally
accepted
rating
agency
16
investment
grade
.
For
purposes
of
this
paragraph,
“investment
17
grade”
means
the
issuer
of
a
security
has
an
adequate
capacity
18
to
meet
the
financial
commitments
under
the
security
for
the
19
projected
life
of
the
asset
or
exposure,
even
under
adverse
20
economic
conditions.
An
issuer
has
adequate
capacity
to
21
meet
the
financial
commitments
of
a
security
if
the
risk
of
22
default
by
the
obligor
is
low
and
the
full
and
timely
repayment
23
of
principal
and
interest
on
the
security
is
expected.
A
24
state
credit
union
may
consider
any
or
all
of
the
following
25
nonexhaustive
or
nonmutually
exclusive
factors,
to
the
extent
26
appropriate,
with
respect
to
the
credit
risk
of
a
security:
27
(1)
Credit
spreads.
28
(2)
Securities-related
research.
29
(3)
Internal
or
external
credit
risk
assessments.
30
(4)
Default
statistics.
31
(5)
Inclusion
on
an
index.
32
(6)
Priorities
and
enhancements.
33
(7)
Price,
yield,
or
volume.
34
(8)
Asset
class-specific
factors.
35
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Sec.
3.
Section
533.301,
subsection
28,
Code
2014,
is
1
amended
to
read
as
follows:
2
28.
Sell,
to
persons
in
the
field
of
membership,
negotiable
3
checks,
including
traveler’s
checks;
money
orders;
and
other
4
similar
money
transfer
instruments
including
international
5
and
domestic
electronic
fund
transfers
and
remittance
checks
6
transfers
.
7
Sec.
4.
NEW
SECTION
.
533.405A
Involuntary
dissolution.
8
1.
If
the
superintendent
has
taken
over
management
of
the
9
property
and
business
of
a
state
credit
union
pursuant
to
10
section
533.502,
and
determined
that
the
state
credit
union
11
cannot
be
reorganized
or
merged
with
another
credit
union,
the
12
superintendent
may
move
for
the
involuntary
dissolution
of
the
13
state
credit
union
and
shall
apply
to
the
district
court
for
14
appointment
as
receiver
with
the
authority
to
dissolve
the
15
state
credit
union.
16
2.
If
a
state
credit
union
is
in
the
process
of
a
17
voluntary
dissolution,
and
pursuant
to
section
533.405,
18
the
superintendent
finds
that
the
state
credit
union
is
not
19
making
reasonable
progress
toward
terminating
its
affairs,
the
20
superintendent
may
move
for
the
involuntary
dissolution
of
the
21
state
credit
union
and
shall
apply
to
the
district
court
for
22
appointment
as
receiver
with
the
authority
to
dissolve
the
23
state
credit
union.
24
3.
The
provisions
of
section
533.503
shall
apply
when
the
25
superintendent
is
acting
as
receiver,
and
as
receiver
the
26
superintendent
shall
distribute
the
assets
pursuant
to
the
27
provisions
of
section
533.404.
28
Sec.
5.
Section
533.503,
Code
2014,
is
amended
by
adding
the
29
following
new
subsections:
30
NEW
SUBSECTION
.
2A.
The
superintendent
as
receiver
may
sue
31
and
defend
in
the
superintendent’s
name
with
respect
to
the
32
affairs
of
a
state
credit
union.
33
NEW
SUBSECTION
.
5.
The
superintendent
as
receiver
shall
34
hold
all
records
of
the
receivership
for
a
period
of
two
years
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S.F.
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H.F.
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after
the
court
decree
dissolving
the
state
credit
union
1
and
discharging
the
receiver,
and
at
the
termination
of
the
2
two-year
period,
the
records
may
then
be
destroyed.
3
EXPLANATION
4
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
5
the
explanation’s
substance
by
the
members
of
the
general
assembly.
6
This
bill
relates
to
matters
under
the
purview
of
the
credit
7
union
division
of
the
department
of
commerce.
8
The
bill
provides
that
a
director
shall
not
be
related
9
by
consanguinity
or
affinity
within
the
third
degree
to
any
10
person
employed
by
a
state
credit
union
in
a
senior
management
11
position.
The
bill
defines
“senior
management
position”
to
12
include
a
credit
union’s
chief
executive
officer,
president,
13
or
manager;
assistant
chief
executive
officer,
assistant
14
president,
vice
president,
or
assistant
manager;
or
chief
15
financial
officer
or
treasurer.
16
The
bill
modifies
provisions
relating
to
investments
by
a
17
state
credit
union
in
corporate
bonds
to
delete
a
requirement
18
that
the
bonds
are
rated
in
the
two
highest
grades
of
corporate
19
bonds
by
a
nationally
accepted
rating
agency
and
substituting
20
the
requirement
that
the
bonds
be
considered
investment
grade.
21
The
bill
defines
“investment
grade”
to
mean
the
issuer
of
22
a
security
has
an
adequate
capacity
to
meet
the
financial
23
commitments
under
the
security
for
the
projected
life
of
the
24
asset
or
exposure,
even
under
adverse
economic
conditions.
The
25
bill
provides
that
an
issuer
has
adequate
capacity
to
meet
the
26
financial
commitments
of
a
security
if
the
risk
of
default
27
by
the
obligor
is
low
and
the
full
and
timely
repayment
of
28
principal
and
interest
on
the
security
is
expected.
The
bill
29
specifies
a
list
of
nonexhaustive
or
nonmutually
exclusive
30
factors
which
a
credit
union
may
consider,
to
the
extent
31
appropriate,
with
respect
to
the
credit
risk
of
a
security.
32
The
bill
changes
a
reference
to
“remittance
checks”
to
33
“remittance
transfers”
regarding
the
ability
of
a
state
credit
34
union
to
sell,
to
persons
in
the
field
of
membership,
specified
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S.F.
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H.F.
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checks,
money
orders,
and
other
similar
money
transfer
1
instruments.
2
Additionally,
the
bill
establishes
new
involuntary
3
dissolution
provisions
relating
to
state
credit
unions.
The
4
bill
provides
that
if
the
superintendent
has
taken
over
5
management
of
the
property
and
business
of
a
state
credit
6
union
and
determined
that
the
state
credit
union
cannot
7
be
reorganized
or
merged
with
another
credit
union,
the
8
superintendent
may
move
for
the
involuntary
dissolution
of
the
9
state
credit
union
and
shall
apply
to
the
district
court
for
10
appointment
as
receiver
with
the
authority
to
dissolve
the
11
state
credit
union.
Further,
the
bill
provides
that
if
a
state
12
credit
union
is
in
the
process
of
a
voluntary
dissolution,
and
13
the
superintendent
of
credit
unions
finds
that
the
state
credit
14
union
is
not
making
reasonable
progress
toward
terminating
15
its
affairs,
the
superintendent
may
move
for
the
involuntary
16
dissolution
of
the
state
credit
union
and
shall
apply
to
the
17
district
court
for
appointment
as
receiver
with
the
authority
18
to
dissolve
the
state
credit
union.
19
The
bill
adds
two
new
provisions
applicable
to
the
20
superintendent
acting
as
receiver.
The
bill
provides
that
21
the
superintendent
as
receiver
may
sue
and
defend
in
the
22
superintendent’s
name
with
respect
to
the
affairs
of
a
state
23
credit
union,
and
shall
hold
all
records
of
the
receivership
24
for
a
period
of
two
years
after
the
court
decree
dissolving
the
25
state
credit
union
and
discharging
the
receiver,
which,
at
the
26
termination
of
the
two-year
period,
may
be
destroyed.
27
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