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PAG LIN 1 1 Section 1. Section 12C.6, unnumbered paragraph 1, Code 1 2 1995, is amended to read as follows: 1 3 Public deposits shall be deposited with reasonable 1 4 promptness in a depository legally designated as depository 1 5 for the funds. A committee composed of the superintendent of 1 6 banking, the superintendent of credit unions, the auditor of 1 7 state or a designee, and the treasurer of state shall meet on 1 8 or about the first of each month or at other times as the 1 9 committee may prescribe and by majority action shall establish 1 10 a minimum rate to be earned on state funds placed in time 1 11 deposits. State funds invested in depository time 1 12 certificates of deposit shall draw interest at not less than 1 13 the rate established, effective on the date of investment. An 1 14 interest rate established by the committee under this section 1 15 shall be in effect commencing on the eighth calendar day 1 16 following the day the rate is established and until a 1 17 different rate is established and takes effect. The committee 1 18 shall give advisory notice of an interest rate established 1 19 under this section. This notice may be given by publication 1 20 in one or more newspapers, by publication in the Iowa 1 21 administrative bulletin, by ordinary mail to persons directly 1 22 affected, by any other method determined by the committee, or 1 23 by a combination of these. In all cases, the notice shall be 1 24 published in the Iowa administrative bulletin. The notice 1 25 shall contain the following words: 1 26 Sec. 2. Section 12C.6A, subsections 2 and 3, Code 1995, 1 27 are amended to read as follows: 1 28 2. In addition to establishing a minimum interest rate for 1 29 public funds pursuant to section 12C.6, the committee composed 1 30 of the superintendent of banking, the superintendent of credit 1 31 unions, the auditor of state or a designee, and the treasurer 1 32 of state shall develop a list of financial institutions 1 33 eligible to accept state public funds. The committee shall 1 34 require that a financial institution seeking to qualify for 1 35 the list shall annually provide the committee a written 2 1 statement that the financial institution has a commitment to 2 2 community reinvestment consistent with the safe and sound 2 3 operation of a financial institution. The committee shall2 4accept a certified copy of the annual community reinvestment2 5report filed by the financial institution, unless the 2 6 financial institution has received a rating of satisfactory or 2 7 higher pursuant to the federal Community Reinvestment Act, 12 2 8 U.S.C. } 2901 et seq.,in satisfaction of the written2 9statement requirement under this subsectionand such rating is 2 10 certified to the committee by the superintendent of banking. 2 11 To qualify for the list a financial institution must 2 12 demonstrate a continuing commitment to meet the credit needs 2 13 of the local community in which it is chartered. 2 14 3.The committee shall develop procedures to ensure that2 15the financial institution's statement is available and2 16accessible for examination by citizens.The committee may 2 17 require a financial institution to provide public notice 2 18 inviting the public to submit comments to the financial 2 19 institution regarding its community lending activities. Each 2 20 financial institution shall maintain a file open to public 2 21 inspection which containsthe five most recent annual2 22community reinvestment disclosure statements,public comments 2 23 received on its community investment activities, and the 2 24 financial institution's response to those comments. The 2 25 committee shall adopt procedures for both of the following: 2 26 a. To receive information relating to a financial 2 27 institution's commitment to community reinvestment. 2 28 b. To receive challenges from any person to a financial 2 29 institution's continued eligibility to receive state public 2 30 funds. 2 31 Sec. 3. Section 12C.6A, subsection 4, paragraphs d and g, 2 32 Code 1995, are amended to read as follows: 2 33 d. Practices intended to discourage application fortypes2 34of credit set forth in the Community Reinvestment Act2 35statementhome mortgages, small business loans, small farm 3 1 loans, community development loans, and, if consumer lending 3 2 constitutes a substantial majority of a financial 3 3 institution's business, consumer loans. 3 4 g. Participation in local community and rural development 3 5 and redevelopment projects, and in state and federal business 3 6 and economic development programs.The committee may specify3 7by rule which programs must be included in the annual3 8statement.3 9 EXPLANATION 3 10 This bill amends chapter 12C, which relates to the deposit 3 11 of public funds, by striking references to the annual 3 12 community reinvestment report filed pursuant to federal law, 3 13 as that statement is no longer required. A financial 3 14 institution seeking to qualify for the deposit of state public 3 15 funds is to provide a written statement to the committee which 3 16 develops the list of eligible institutions indicating that the 3 17 financial institution has a commitment to community 3 18 reinvestment consistent with the safe and sound operation of a 3 19 financial institution unless the financial institution has 3 20 received a rating of satisfactory or higher pursuant to the 3 21 federal Community Reinvestment Act. The rating is to be 3 22 certified to the committee by the superintendent of banking. 3 23 Currently, all financial institutions must provide the 3 24 statement in order to qualify for the deposit of state public 3 25 funds. Language relating to the availability of the financial 3 26 institution's annual community reinvestment disclosure 3 27 statement to the public is also stricken. 3 28 Under section 12C.6A, the committee receives challenges to 3 29 a financial institution's continued eligibility to receive 3 30 state public funds. Two of the factors considered by the 3 31 committee are amended by the bill. First, the committee is to 3 32 look at practices of the financial institution intended to 3 33 discourage application for home mortgages, small business 3 34 loans, small farm loans, community development loans, and, if 3 35 consumer lending is a substantial majority of the financial 4 1 institution's business, consumer loans. Currently, the 4 2 committee is to look at practices intended to discourage 4 3 application for types of credit set forth in the Community 4 4 Reinvestment Act statement, which will no longer be required. 4 5 Language is also stricken which grants the committee the 4 6 authority to specify which state and federal business and 4 7 economic development programs participated in by the financial 4 8 institution are to be included in an annual statement. 4 9 The bill also amends section 12C.6 by adding the 4 10 superintendent of credit unions to the committee which 4 11 develops the list of financial institutions eligible to accept 4 12 state public funds deposits of public funds and which also 4 13 establishes a minimum rate to be earned on such deposits. 4 14 LSB 4088SV 76 4 15 mj/jj/8
Text: SF02407 Text: SF02409 Text: SF02400 - SF02499 Text: SF Index Bills and Amendments: General Index Bill History: General Index
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