Text: SSB00051 Text: SSB00053 Text: SSB00000 - SSB00099 Text: SSB Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 Section 1. Section 537.2501, subsection 1, Code 1997, is 1 2 amended by adding the following new paragraph h and 1 3 relettering the existing paragraph h as paragraph i: 1 4 NEW PARAGRAPH. h. Annual account maintenance fees not to 1 5 exceed fifteen dollars, payable in advance, charged by a 1 6 credit union organized under chapter 533 or federal law, a 1 7 savings and loan association incorporated under chapter 534 or 1 8 federal law, a state bank incorporated under chapter 524 or a 1 9 national bank chartered pursuant to 12 U.S.C. } 21 et seq. for 1 10 the privilege of maintaining a demand deposit account with a 1 11 line of credit or home equity line of credit, as defined in 1 12 section 535.10, that may be accessed by the account holder. 1 13 The fees provided for in this paragraph shall not be 1 14 contracted for or collected on any account established to 1 15 provide the account holder with open-end credit pursuant to a 1 16 credit card where the card issuer receives an annual fee 1 17 pursuant to paragraph "d", or any account established to 1 18 provide the account holder with a home equity line of credit 1 19 where the lender receives an annual account maintenance fee on 1 20 such account pursuant to section 535.10, subsection 3. If a 1 21 financial institution charges an account maintenance fee 1 22 pursuant to this paragraph for the privilege of maintaining a 1 23 demand deposit account with a line of credit or a home equity 1 24 line of credit that may be accessed by an account holder, then 1 25 such accounts shall be made available to all customers of the 1 26 financial institution maintaining a demand deposit account 1 27 with the financial institution who qualify for extensions of 1 28 credit under the same standards and policies of the financial 1 29 institution with respect to the line of credit or home equity 1 30 line of credit as applied to that account holder. 1 31 Sec. 2. Section 537.2501, subsection 1, Code 1997, is 1 32 amended by adding the following new paragraph: 1 33 NEW PARAGRAPH. j. With respect to a consumer loan, a 1 34 commitment fee, closing fee, processing fee, or documentation 1 35 fee not exceeding fifteen dollars, agreed to in writing by the 2 1 creditor and the consumer. However, these charges do not 2 2 apply to open-end credit obtained pursuant to a credit card 2 3 which entitles the cardholder to purchase or lease goods or 2 4 services from at least one hundred persons not related to the 2 5 card issuer. 2 6 EXPLANATION 2 7 This bill amends Code section 537.2501 which relates to 2 8 additional charges which a creditor may contract for and 2 9 receive on certain consumer credit transactions. 2 10 The bill provides that account maintenance fees not to 2 11 exceed $15 and charged on accounts at financial institutions 2 12 for "line of credit" or "overdraft loan" checking accounts are 2 13 additional charges permitted in consumer credit transactions. 2 14 The bill also provides that the fee provided for in this 2 15 section cannot be collected on an open-end credit account 2 16 pursuant to a credit card where the card issuer receives an 2 17 annual fee pursuant to Code section 537.2501, subsection 1, 2 18 paragraph "d", or a home equity line of credit where the 2 19 lender receives an annual account maintenance fee pursuant to 2 20 Code section 535.10. 2 21 The bill permits a creditor in a consumer loan transaction 2 22 to contract for and receive a commitment fee, closing fee, 2 23 processing fee, or documentation fee. The fee cannot exceed 2 24 $15, must be agreed to in writing, and does not apply to open- 2 25 end credit obtained pursuant to a credit card which entitles 2 26 the cardholder to purchase or lease goods or services from at 2 27 least 100 persons not related to the card issuer. 2 28 LSB 1824SC 77 2 29 mj/jw/5
Text: SSB00051 Text: SSB00053 Text: SSB00000 - SSB00099 Text: SSB Index Bills and Amendments: General Index Bill History: General Index
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