Text: HSB00633 Text: HSB00635 Text: HSB00600 - HSB00699 Text: HSB Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 Section 1. Section 12C.6A, subsections 2 and 3, Code 1995, 1 2 are amended to read as follows: 1 3 2. In addition to establishing a minimum interest rate for 1 4 public funds pursuant to section 12C.6, the committee composed 1 5 of the superintendent of banking, the auditor of state or a 1 6 designee, and the treasurer of state shall develop a list of 1 7 financial institutions eligible to accept state public funds. 1 8 The committee shall require that a financial institution 1 9 seeking to qualify for the list shall annually provide the 1 10 committee a written statement that the financial institution 1 11 has a commitment to community reinvestment consistent with the 1 12 safe and sound operation of a financial institution. The 1 13 committee shall accept a letter, certifiedcopy of the annual1 14community reinvestment report filed by the financial1 15institution pursuant toby an officer of the financial 1 16 institution, stating the financial institution's most recent 1 17 rating under the federal Community Reinvestment Act, 12 U.S.C. 1 18 } 2901 et seq., in satisfaction of the written statement 1 19 requirement under this subsection. To qualify for the list a 1 20 financial institution must demonstrate a continuing commitment 1 21 to meet the credit needs of the local community in which it is 1 22 chartered. 1 23 3.The committee shall develop procedures to ensure that1 24the financial institution's statement is available and1 25accessible for examination by citizens.The committee may 1 26 require a financial institution to provide public notice 1 27 inviting the public to submit comments to the financial 1 28 institution regarding its community lending activities. Each 1 29 financial institution shall maintain a file open to public 1 30 inspection which containsthe five most recent annual1 31community reinvestment disclosure statements,public comments 1 32 received on its community investment activities, and the 1 33 financial institution's response to those comments. The 1 34 committee shall adopt procedures for both of the following: 1 35 a. To receive information relating to a financial 2 1 institution's commitment to community reinvestment. 2 2 b. To receive challenges from any person to a financial 2 3 institution's continued eligibility to receive state public 2 4 funds. 2 5 Sec. 2. Section 12C.6A, subsection 4, paragraphs d and g, 2 6 Code 1995, are amended to read as follows: 2 7 d. Practices intended to discourage application fortypes2 8of credit set forth in the Community Reinvestment Act2 9statementhome mortgages, small business loans, small farm 2 10 loans, community development loans, and, if consumer lending 2 11 constitutes a substantial majority of a financial 2 12 institution's business, consumer loans. 2 13 g. Participation in local community and rural development 2 14 and redevelopment projects, and in state and federal business 2 15 and economic development programs.The committee may specify2 16by rule which programs must be included in the annual2 17statement.2 18 EXPLANATION 2 19 This bill amends chapter 12C, which relates to the deposit 2 20 of public funds, by striking references to the annual 2 21 community reinvestment report filed pursuant to federal law, 2 22 as that statement is no longer required. In lieu of that 2 23 statement, the committee which develops the list of financial 2 24 institutions eligible to accept state public funds is to 2 25 accept a letter, certified by an officer of the financial 2 26 institution, stating the financial institution's most recent 2 27 rating under the federal Community Reinvestment Act. Language 2 28 relating to the availability of the financial institution's 2 29 annual community reinvestment disclosure statement to the 2 30 public is also stricken. 2 31 Under section 12C.6A, the committee receives challenges to 2 32 a financial institution's continued eligibility to receive 2 33 state public funds. Two of the factors considered by the 2 34 committee are amended by the bill. First, the committee is to 2 35 look at practices of the financial institution intended to 3 1 discourage application for home mortgages, small business 3 2 loans, small farm loans, community development loans, and, if 3 3 consumer lending is a substantial majority of the financial 3 4 institution's business, consumer loans. Currently, the 3 5 committee is to look at practices intended to discourage 3 6 application for types of credit set forth in the Community 3 7 Reinvestment Act statement, which will no longer be required. 3 8 Language is also stricken which grants the committee the 3 9 authority to specify which state and federal business and 3 10 economic development programs participated in by the financial 3 11 institution are to be included in an annual statement. 3 12 LSB 4088HC 76 3 13 mj/jj/8
Text: HSB00633 Text: HSB00635 Text: HSB00600 - HSB00699 Text: HSB Index Bills and Amendments: General Index Bill History: General Index
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