H.F. 630 Section 1. Section 524.213, Code 2017, is amended to read 1 as follows: 2 524.213 Duties and powers of superintendent. 3 The superintendent shall have general control, supervision 4 and regulation of all state banks and shall be charged with 5 the administration, interpretation, and execution of the laws, 6 rules, and regulations of this state and any other state or 7 federal law or regulation relating to banks and banking and 8 with such other duties and responsibilities as are imposed 9 upon the superintendent by the laws of this state. The 10 superintendent shall have power to adopt and promulgate such 11 rules and regulations as necessary to carry out and enforce, 12 properly and effectively, the provisions of this chapter and 13 chapter 12C applicable to banks. 14 Sec. 2. Section 524.612, subsections 1, 2, and 5, Code 2017, 15 are amended by striking the subsections. 16 Sec. 3. Section 524.612, subsection 3, Code 2017, is amended 17 to read as follows: 18 3. A director shall not receive terms or be paid a rate 19 of interest on deposits, by a state bank of which the person 20 is a director, which are more favorable than that provided to 21 any other customer under similar circumstances. Any waiver of 22 ordinary or customary charges related to deposit accounts shall 23 not violate this subsection. 24 Sec. 4. Section 524.613, subsection 2, Code 2017, is amended 25 by striking the subsection. 26 Sec. 5. Section 524.706, subsection 1, Code 2017, is amended 27 by striking the subsection. 28 Sec. 6. Section 524.706, subsection 2, Code 2017, is amended 29 to read as follows: 30 2. Section 524.612 , subsection 2, applies to executive 31 officers , and section 524.612, subsections 3 and 4 , apply to 32 all officers and employees . 33 Sec. 7. Section 524.710, subsection 2, Code 2017, is amended 34 by striking the subsection. 35 -1- LSB 2322HZ (4) 87 gh/rn 1/ 9

H.F. 630 Sec. 8. Section 524.1601, subsection 1, paragraph b, Code 1 2017, is amended to read as follows: 2 b. The amount by which the director’s , or executive 3 officer’s , or employee’s deposit account in the state bank 4 or bank holding company is overdrawn, upon conviction of a 5 in violation of section 524.613, subsection 2, or of section 6 524.710, subsection 2 12 C.F.R. §215.4(e) . 7 Sec. 9. Section 524.1601, subsection 2, Code 2017, is 8 amended to read as follows: 9 2. A director or officer who willfully makes or receives a 10 loan in violation of section 524.612, subsection 1, or section 11 524.706, subsection 1 12 C.F.R. §215.4 or 215.5 , shall be 12 guilty of a serious misdemeanor and shall be subject to an 13 additional fine equal to that amount of the loan in excess 14 of the limitation imposed by such subsections regulations , 15 and shall be forever disqualified from acting as a director 16 or officer of any state bank or bank holding company. For 17 the purpose of this subsection , amounts which are treated as 18 obligations of an officer or director pursuant to section 19 524.612, subsection 5, shall be considered in determining 20 whether the loan or extension of credit is in violation of 21 section 524.612, subsection 1, and section 524.706, subsection 22 1 . 23 Sec. 10. Section 524.1806, Code 2017, is amended to read as 24 follows: 25 524.1806 Banks owned or controlled —— officers and directors. 26 An individual who is a director or an officer of a bank 27 holding company, as specified by section 524.1801 , is deemed 28 to be a director or an officer, or both, as the case may be, of 29 each bank so owned or controlled by that bank holding company, 30 for the purposes of sections 524.612 , 524.613 and 524.706 , and 31 for the purposes of 12 C.F.R. pt. 215 . 32 Sec. 11. Section 533.205, subsection 7, Code 2017, is 33 amended to read as follows: 34 7. A state credit union shall not may pay an overdraft of a 35 -2- LSB 2322HZ (4) 87 gh/rn 2/ 9

H.F. 630 director, officer, or employee of the state credit union on an 1 account at the state credit union, unless subject to the rules 2 of the superintendent, when the payment of funds is made in 3 accordance with either any of the following: 4 a. A written, preauthorized, interest-bearing extension of 5 credit plan that specifies a method of repayment. 6 b. A written, preauthorized transfer of collected funds 7 from another account of the account holder at the state credit 8 union. 9 c. The overdraft is paid pursuant to an overdraft protection 10 plan or courtesy pay program. 11 Sec. 12. Section 537.2301, Code 2017, is amended by adding 12 the following new subsection: 13 NEW SUBSECTION . 2A. A supervised loan made by a person in 14 violation of subsection 2 shall be void and the consumer is 15 not obligated to pay either the amount financed or the finance 16 charge. If the consumer has paid any part of the amount 17 financed or the finance charge, the consumer has a right to 18 recover the payment from the person in violation of subsection 19 2 or from an assignee of that person’s rights who undertakes 20 direct collection of payments or enforcement of rights arising 21 from the debt. With respect to violations arising from 22 loans made pursuant to open-end credit, no action pursuant 23 to this subsection may be brought more than two years after 24 the violation occurred. With respect to violations arising 25 from other loans, no action pursuant to this subsection may 26 be brought more than one year after the due date of the last 27 scheduled payment of the agreement pursuant to which the charge 28 was paid. 29 Sec. 13. Section 537.2501, subsection 1, paragraph f, 30 subparagraph (1), Code 2017, is amended to read as follows: 31 (1) With respect to open-end credit pursuant to a credit 32 card issued by the creditor which entitles the cardholder 33 to purchase or lease goods or services from at least one 34 hundred persons not related to the card issuer, the parties 35 -3- LSB 2322HZ (4) 87 gh/rn 3/ 9

H.F. 630 may contract for an over-limit charge up to fifteen dollars in 1 accordance with 12 C.F.R. §1026.52(b) if the balance of the 2 account exceeds the credit limit established pursuant to the 3 agreement. The over-limit charge under this paragraph shall 4 not be assessed again in a subsequent billing cycle unless in a 5 subsequent billing cycle the account balance has been reduced 6 below the credit limit. 7 Sec. 14. Section 537.2501, subsection 1, paragraph g, Code 8 2017, is amended to read as follows: 9 g. A surcharge of not more than five percent of the amount 10 of the face value of the payment instrument or twenty dollars, 11 whichever is greater, for each dishonored payment instrument 12 provided that the fee is clearly and conspicuously disclosed 13 in the cardholder agreement. However, the amount of the 14 surcharge shall not exceed twenty dollars unless the check, 15 draft, or order was presented twice or the maker does not have 16 an account with the drawee. If the check, draft, or order was 17 presented twice or the maker does not have an account with the 18 drawee, the amount of the surcharge shall not exceed fifty 19 dollars as provided for in section 554.3512 for a dishonored 20 check, draft, or order that was accepted as payment for a 21 consumer credit transaction payment . The surcharge shall not 22 be assessed against the maker if the reason for the dishonor of 23 the instrument is that the maker has stopped payment pursuant 24 to section 554.4403 . 25 Sec. 15. Section 537.2501, subsection 1, Code 2017, is 26 amended by adding the following new paragraph: 27 NEW PARAGRAPH . k. Credit reporting charges. 28 Sec. 16. Section 537.2502, subsection 1, paragraph a, 29 subparagraph (1), Code 2017, is amended to read as follows: 30 (1) Five percent of the unpaid amount of the installment, or 31 a maximum of twenty thirty dollars. 32 Sec. 17. Section 537.2502, subsection 1, paragraph b, Code 33 2017, is amended to read as follows: 34 b. For an interest-bearing transaction, an amount not 35 -4- LSB 2322HZ (4) 87 gh/rn 4/ 9

H.F. 630 exceeding five percent of the unpaid amount of the installment, 1 or a maximum of fifteen thirty dollars. 2 Sec. 18. Section 537.2502, subsection 4, Code 2017, is 3 amended to read as follows: 4 4. With respect to open-end credit, the parties may contract 5 for a delinquency charge on any payment not paid in full when 6 due, as originally scheduled or as deferred, in an amount up to 7 fifteen thirty dollars. 8 Sec. 19. Section 537.2510, Code 2017, is amended by adding 9 the following new subsection: 10 NEW SUBSECTION . 8. This section does not apply to a 11 financial institution as defined in section 537.1301. 12 Sec. 20. Section 537.5201, subsection 3, Code 2017, is 13 amended to read as follows: 14 3. If a creditor has contracted for or received a charge 15 in excess of that allowed by this chapter , or if a consumer 16 is entitled to a refund and a person liable to the consumer 17 refuses to make a refund within a reasonable time after demand, 18 the consumer may recover from the creditor or the person 19 liable, in an action other than a class action, the excess 20 charge or refund and a penalty in an amount determined by the 21 court not less than one two hundred dollars or more than one 22 two thousand dollars. With respect to excess charges arising 23 from sales or loans made pursuant to open-end credit, no action 24 pursuant to this subsection may be brought more than two years 25 after the time the excess charge was made. With respect to 26 excess charges arising from other consumer credit transactions 27 no action pursuant to this subsection may be brought more than 28 one year after the due date of the last scheduled payment of 29 the agreement pursuant to which the charge was made. For 30 purposes of this subsection , a reasonable time is presumed to 31 be thirty days. 32 Sec. 21. Section 537.5203, subsection 1, paragraph a, Code 33 2017, is amended to read as follows: 34 a. Twice the amount of the finance charge in connection with 35 -5- LSB 2322HZ (4) 87 gh/rn 5/ 9

H.F. 630 the transaction, but the liability pursuant to this paragraph 1 shall be not less than one two hundred dollars or more than one 2 two thousand dollars. 3 Sec. 22. Section 537.6113, subsection 2, Code 2017, is 4 amended to read as follows: 5 2. The administrator may bring a civil action against a 6 person to recover a civil penalty of no more than five ten 7 thousand dollars for repeatedly and intentionally violating 8 this chapter . No civil penalty pursuant to this subsection 9 may be imposed for violations of this chapter occurring more 10 than two years before the action is brought or for making 11 unconscionable agreements or engaging in a course of fraudulent 12 or unconscionable conduct. 13 Sec. 23. Section 537.6203, subsections 1 and 4, Code 2017, 14 are amended to read as follows: 15 1. A person required to file notification shall pay to the 16 administrator an annual fee of ten fifty dollars. The fee 17 shall be paid with the filing of the first notification and on 18 or before January 31 of each succeeding year. 19 4. In addition to the penalties provided by section 20 537.6113, subsection 3 , the administrator may collect a charge, 21 established by rule, not exceeding twenty-five seventy-five 22 dollars from each person required to pay fees under this 23 section who fails to pay the fees in full within thirty days 24 after they are due. 25 EXPLANATION 26 The inclusion of this explanation does not constitute agreement with 27 the explanation’s substance by the members of the general assembly. 28 This bill relates to banks, credit unions, and certain 29 consumer credit transactions. 30 The bill modifies several provisions relating to state 31 banks in Code chapter 524. The bill specifies that the 32 superintendent of banking is charged with the administration, 33 interpretation, and execution of the laws, rules, and 34 regulations of any state or federal law or regulation relating 35 -6- LSB 2322HZ (4) 87 gh/rn 6/ 9

H.F. 630 to banking. The bill eliminates various provisions applicable 1 to the directors and officers of state banks, including 2 limitations on the receipt of loans and extensions of credit 3 by such persons. However, the bill adds several references to 4 federal law regulating loans to directors and officers in Code 5 chapter 524. 6 Current Code section 533.205(7) provides that a state credit 7 union shall not pay an overdraft of a director, officer, or 8 employee, unless the payment is made in accordance with an 9 extension of credit plan or transfer of funds from another 10 account at the state credit union. The bill modifies this 11 Code section by providing that a state credit union may pay 12 an overdraft of a director, officer, or employee, subject to 13 the rules of the superintendent, when the payment is made in 14 accordance with an extension of credit plan, transfer of funds 15 from another account at the state credit union, or pursuant to 16 an overdraft protection plan or courtesy pay program. 17 Current Code section 537.2301 authorizes certain persons to 18 make supervised loans. The bill provides that a supervised 19 loan made by a person in violation of Code section 537.2301(2) 20 is void and the consumer is not obligated to pay the amount 21 financed or the finance charge. A consumer who has already 22 paid any part of such amount or charge may recover the payment. 23 With respect to violations arising from loans made pursuant 24 to open-end credit, no action may be brought pursuant to the 25 bill more than two years after the violation occurred. With 26 respect to violations arising from other loans, no action may 27 be brought pursuant to the bill more than one year after the 28 due date of the last scheduled payment of the agreement for 29 which the charge was paid. 30 Current Code section 537.2501 sets forth the charges that 31 a creditor may receive in addition to a finance charge. The 32 bill modifies the over-limit charge the parties to an open-end 33 credit pursuant to a credit card transaction may contract for 34 from up to $15 to a charge in accordance with federal law. The 35 -7- LSB 2322HZ (4) 87 gh/rn 7/ 9

H.F. 630 bill modifies the surcharge in Code section 537.2501(1)(g) to 1 authorize a surcharge for a dishonored check, draft, or order 2 not to exceed $30 as provided for in Code section 554.3512. 3 The bill also provides that a creditor may receive credit 4 reporting charges. 5 Current Code section 537.2502 allows the parties in certain 6 consumer credit transactions to contract for delinquency 7 charges. For a precomputed consumer credit transaction, the 8 maximum delinquency charge is increased from the greater of 5 9 percent of the unpaid installment or $20, to the greater of 10 5 percent of the unpaid installment or $30, or the deferral 11 charge amount. For an interest-bearing consumer credit 12 transaction, the maximum delinquency charge is increased from 5 13 percent of the unpaid installment or $15, to 5 percent of the 14 unpaid installment or $30. For an open-credit arrangement, the 15 maximum delinquency charge is increased from $15 to $30. 16 Current Code section 537.2510 requires creditors to rebate 17 certain amounts to consumers upon the prepayment of precomputed 18 consumer credit transactions. The bill provides that Code 19 section 537.2510 does not apply to financial institutions as 20 defined in Code section 537.1301. This would include banks, 21 savings and loan associations, or state banks incorporated 22 under state or federal law, and credit unions organized under 23 state or federal law. 24 Current Code section 537.5201 sets forth the remedies 25 available to consumers for violations of Code chapter 537. The 26 bill increases the penalty a creditor must pay for contracting 27 for or receiving a charge in excess of that allowed by Code 28 chapter 537 from not less than $100 or more than $1,000, to not 29 less than $200 or more than $2,000. 30 Current Code section 537.5203 sets forth the civil liability 31 of a creditor who fails to disclose information to a person 32 entitled to the information under Code chapter 537. The bill 33 increases the amount a creditor is liable to such person from 34 not less than $100 or more than $1,000 to not less than $200 or 35 -8- LSB 2322HZ (4) 87 gh/rn 8/ 9

H.F. 630 more than $2,000. 1 Current Code section 537.6113 allows the attorney general to 2 bring civil actions to recover moneys under Code chapter 537. 3 The bill increases the civil penalty the attorney general may 4 recover from a person for repeated and intentional violations 5 of Code chapter 537 from no more than $5,000 to no more than 6 $10,000. 7 Current Code section 537.6203 sets forth various fees and 8 charges for persons required to file notification pursuant to 9 Code chapter 537. The bill increases the annual fee for a 10 person required to file notification from $10 to $50. The bill 11 also increases the late charge for failure to pay a fee within 12 30 days that it is due from no more than $25 per person to no 13 more than $75 per person. 14 -9- LSB 2322HZ (4) 87 gh/rn 9/ 9