Text: HF00442                           Text: HF00444
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House File 443

Partial Bill History

Bill Text

PAG LIN
  1  1 
  1  2                                        HOUSE FILE 443
  1  3 
  1  4                             AN ACT
  1  5 RELATING TO PERMISSIBLE FEES AND CHARGES WHICH MAY BE
  1  6    ASSESSED AND COLLECTED WITH RESPECT TO CERTAIN CONSUMER
  1  7    CREDIT TRANSACTIONS.
  1  8 
  1  9 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
  1 10 
  1 11    Section 1.  Section 535.10, subsection 3, Code 1999, is
  1 12 amended to read as follows:
  1 13    3.  a.  A lender may collect in connection with
  1 14 establishing or renewing a home equity line of credit the
  1 15 costs listed in section 535.8, subsection 2, paragraph "b",
  1 16 charges for insurance as described in section 537.2501,
  1 17 subsection 2, and a loan processing fee as agreed between the
  1 18 borrower and the lender, and annually may collect an account
  1 19 maintenance fee of not more than fifteen dollars.  Fees
  1 20 collected under this subsection shall be disregarded for
  1 21 purposes of determining the maximum charge permitted by
  1 22 subsection 4.
  1 23    b.  The parties to a home equity line of credit which is
  1 24 not a consumer credit transaction, as defined in section
  1 25 537.1301, may contract for a delinquency charge under terms no
  1 26 more favorable than those permitted for open-end credit under
  1 27 section 537.2502.
  1 28    Sec. 2.  NEW SECTION.  535.14  PROMPT PAYMENT ON LOANS
  1 29 SECURED BY RESIDENTIAL REAL PROPERTY.
  1 30    A lender is subject to the requirements set forth in
  1 31 section 537.3206, regarding the prompt crediting of payments,
  1 32 with respect to a loan secured by a lien or security interest
  1 33 on owner-occupied residential real property.  For purposes of
  1 34 this section, "residential real property" means residential
  1 35 real property as defined in section 535B.1.
  2  1    Sec. 3.  Section 537.2502, subsections 1, 2, and 3, Code
  2  2 1999, are amended to read as follows:
  2  3    1.  With respect to a precomputed consumer credit
  2  4 transaction not pursuant to an open-end credit arrangement and
  2  5 other than a consumer lease or consumer rental purchase
  2  6 agreement, the parties may contract for a delinquency charge
  2  7 on any installment not paid in full within ten days after its
  2  8 due date, as originally scheduled or as deferred, in an amount
  2  9 not exceeding the greater of either of the following as
  2 10 follows:
  2 11    a.  For a precomputed transaction, an amount not exceeding
  2 12 the greater of either of the following:
  2 13    a. (1)  Five percent of the unpaid amount of the
  2 14 installment, or a maximum of twenty dollars.
  2 15    b. (2)  The deferral charge that would be permitted to
  2 16 defer the unpaid amount of the installment for the period that
  2 17 it is delinquent.
  2 18    b.  For an interest-bearing transaction, an amount not
  2 19 exceeding five percent of the unpaid amount of the
  2 20 installment, or a maximum of fifteen dollars.
  2 21    2.  A delinquency charge under subsection 1, paragraph "a",
  2 22 may be collected only once on an installment however long it
  2 23 remains in default.  No delinquency charge may be collected
  2 24 with respect to a deferred installment unless the installment
  2 25 is not paid in full within ten days after its deferred due
  2 26 date.  A delinquency charge may be collected at the time it
  2 27 accrues or at any time afterward.
  2 28    3.  No A delinquency charge may shall not be collected
  2 29 under subsection 1, paragraph "a", on an installment which is
  2 30 paid in full within ten days after its scheduled or deferred
  2 31 installment due date even though an earlier maturing
  2 32 installment or a delinquency or deferral charge on an earlier
  2 33 installment may not have been paid in full.  For purposes of
  2 34 this subsection payments are applied first to current
  2 35 installments and then to delinquent installments.
  3  1    Sec. 4.  Section 537.3206, Code 1999, is amended by adding
  3  2 the following new subsection:
  3  3    NEW SUBSECTION.  4.  a.  A creditor shall credit a payment
  3  4 to the consumer's account as of the date of receipt, except
  3  5 when a delay in crediting does not result in a finance or
  3  6 other charge, including a late charge, or except as provided
  3  7 in paragraph "b".  For purposes of this subsection, a delay in
  3  8 posting does not violate this subsection so long as the
  3  9 payment is credited as of the date of receipt.
  3 10    b.  If a creditor specifies requirements for the consumer
  3 11 to follow in making payments on the contract, payment coupon
  3 12 book, payment coupon or statement, or periodic statement, but
  3 13 accepts a payment that does not conform to the requirements,
  3 14 the creditor shall credit the payment within two days of
  3 15 receipt of such payment.
  3 16    c.  If a creditor fails to credit a payment as required by
  3 17 this subsection in time to avoid the imposition of a finance
  3 18 or other charge, including a delinquency charge, the creditor
  3 19 shall adjust the consumer's account so that the charges
  3 20 imposed are credited to the consumer's account during the next
  3 21 payment period.  
  3 22 
  3 23 
  3 24                                                             
  3 25                               RON J. CORBETT
  3 26                               Speaker of the House
  3 27 
  3 28 
  3 29                                                             
  3 30                               MARY E. KRAMER
  3 31                               President of the Senate
  3 32 
  3 33    I hereby certify that this bill originated in the House and
  3 34 is known as House File 443, Seventy-eighth General Assembly.
  3 35 
  4  1 
  4  2                                                             
  4  3                               ELIZABETH ISAACSON
  4  4                               Chief Clerk of the House
  4  5 Approved                , 1999
  4  6 
  4  7 
  4  8                               
  4  9 THOMAS J. VILSACK
  4 10 Governor
     

Text: HF00442                           Text: HF00444
Text: HF00400 - HF00499                 Text: HF Index
Bills and Amendments: General Index     Bill History: General Index

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