House File 2141 - Introduced HOUSE FILE 2141 BY PETTENGILL A BILL FOR An Act requiring state credit unions to make available loans 1 subject to a gradually reduced rate of interest under 2 specified circumstances. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 5529YH (3) 83 rn/sc

H.F. 2141 Section 1. Section 533.316, Code 2009, is amended by adding 1 the following new subsection: 2 NEW SUBSECTION . 2A. A state credit union which charges 3 a rate of interest on a consumer loan, as defined in section 4 537.1301, subsection 15, that is calculated at different 5 interest rates depending on a member’s credit history or credit 6 rating shall make available to members paying proportionately 7 higher interest rates based on their credit history or credit 8 rating the option of reducing the rate of interest applicable 9 to the loan at designated intervals and in specified amounts if 10 all scheduled payments are being made when due under the terms 11 of the loan. 12 EXPLANATION 13 This bill provides that if a state credit union charges 14 an interest rate on consumer loans which varies depending on 15 a credit union member’s credit history or credit rating, the 16 state credit union shall make available to members paying 17 proportionately higher interest rates based on that history or 18 rating the option of reducing the interest rate at designated 19 intervals and in specified amounts if the member is making 20 all scheduled payments when due. The bill references the 21 definition of “consumer loan” contained in Code section 22 537.1301, subsection 15, which refers to a debt incurred 23 primarily for a personal, family, or household purpose where 24 the amount financed does not exceed $25,000. 25 -1- LSB 5529YH (3) 83 rn/sc 1/ 1