Text: SSB01123 Text: SSB01125 Text: SSB01100 - SSB01199 Text: SSB Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 Section 1. Section 12C.1, subsection 2, paragraph c, Code 1 2 1999, is amended to read as follows: 1 3 c. "Bank" means a corporation engaged in the business of 1 4 banking authorized by law to receive deposits and whose 1 5 deposits are insured by the bank insurance fund of the federal 1 6 deposit insurance corporation and includes any office of a 1 7 bank. "Bank" also means a savings and loan. 1 8 Sec. 2. Section 12C.1, subsection 2, paragraph f, Code 1 9 1999, is amended to read as follows: 1 10 f. "Financial institution" means a bank, savings and loan,1 11 or a credit union. 1 12 Sec. 3. Section 12C.1, subsection 3, paragraph a, Code 1 13 1999, is amended to read as follows: 1 14 a. If a depository isa savings and loan ora credit 1 15 union, then public deposits in thesavings and loan orcredit 1 16 union shall be secured pursuant to sections 12C.16 through 1 17 12C.19 and sections 12C.23 and 12C.24. 1 18 Sec. 4. Section 12C.6A, subsection 5, paragraphs a, b, and 1 19 c, Code 1999, are amended to read as follows: 1 20 a. A person who believes a bank, savings and loan1 21association, or savings bankhas failed to meet its community 1 22 reinvestment responsibility may file a complaint with the 1 23 committee detailing the basis for that belief. 1 24 b. If any committee member, in the member's discretion, 1 25 finds that the complaint has merit, the member may order the 1 26 bank, savings and loan association, or savings bankalleged to 1 27 have failed to meet its community reinvestment responsibility 1 28 to attend and participate in a meeting with the complainant. 1 29 The committee member may specify who, at minimum, shall 1 30 represent the financial institution at the meeting. At the 1 31 meeting, or at any other time, thefinancial institutionbank 1 32 may, but is not required to, enter into an agreement with a 1 33 complainant to correct alleged failings. 1 34 c. A majority of the committee may order a bank, savings1 35and loan association, or savings bank,against which a 2 1 complaint has been filed pursuant to this subsection, to 2 2 disclose such additional information relating to community 2 3 reinvestment as required by the order of the majority of the 2 4 committee. 2 5 Sec. 5. Section 12C.15, Code 1999, is amended to read as 2 6 follows: 2 7 12C.15 RESTRICTION ON REQUIRING COLLATERAL. 2 8 A local government shall not require a pledge of collateral 2 9 for that portion of the local government's deposits in a 2 10savings and loan orcredit union that is covered by insurance 2 11 of a federal agency or instrumentality. 2 12 Sec. 6. Section 12C.16, Code 1999, is amended to read as 2 13 follows: 2 14 12C.16 SECURITY FOR DEPOSIT OF PUBLIC FUNDS. 2 15 1. Before a deposit of public funds is made by a public 2 16 officer with asavings and loan orcredit union in excess of 2 17 the amount federally insured, the public officer shall obtain 2 18 security for the deposit by one or more of the following: 2 19 a. Thesavings and loan orcredit union may give to the 2 20 public officer a corporate surety bond of a surety corporation 2 21 approved by the treasury department of the United States and 2 22 authorized to do business in this state, which bond shall be 2 23 in an amount equal to the public funds on deposit at any time. 2 24 The bond shall be conditioned that the deposit shall be paid 2 25 promptly on the order of the public officer making the deposit 2 26 and shall be approved by the officer making the deposit. 2 27 b. Thesavings and loan orcredit union may deposit, 2 28 maintain, pledge and assign for the benefit of the public 2 29 officer in the manner provided in this chapter, securities 2 30 approved by the public officer, the market value of which is 2 31 not less than one hundred ten percent of the total deposits of 2 32 public funds placed by that public officer in thesavings and2 33loan orcredit union. The securities shall consist of any of 2 34 the following: 2 35 (1) Direct obligations of, or obligations that are insured 3 1 or fully guaranteed as to principal and interest by, the 3 2 United States of America or an agency or instrumentality of 3 3 the United States of America. 3 4 (2) Public bonds or obligations of this state or a 3 5 political subdivision of this state. 3 6 (3) Public bonds or obligations of another state or a 3 7 political subdivision of another state whose bonds are rated 3 8 within the two highest classifications of prime as established 3 9 by at least one of the standard rating services approved by 3 10 the superintendent of banking pursuant to chapter 17A. 3 11 (4) To the extent of the guarantee, loans, obligations, or 3 12 nontransferable letters of credit upon which the payment of 3 13 principal and interest is fully secured or guaranteed by the 3 14 United States of America or an agency or instrumentality of 3 15 the United States of America or the U.S. central credit union, 3 16 and the rating of the U.S. central credit union remains within 3 17 the two highest classifications of prime established by at 3 18 least one of the standard rating services approved by the 3 19 superintendent of banking by rule pursuant to chapter 17A. 3 20 The treasurer of state shall adopt rules pursuant to chapter 3 21 17A to implement this section. 3 22 (5) First lien mortgages which are valued according to 3 23 practices acceptable to the treasurer of state. 3 24 (6) Investments in an open-end management investment 3 25 company registered with the federal securities and exchange 3 26 commission under the federal Investment Company Act of 1940, 3 27 15 U.S.C. } 80(a), which is operated in accordance with 17 3 28 C.F.R. } 270.2a-7. 3 29 Direct obligations of, or obligations that are insured or 3 30 fully guaranteed as to principal and interest by, the United 3 31 States of America, which may be used to secure the deposit of 3 32 public funds under subparagraph (1), include investments in an 3 33 investment company or investment trust registered under the 3 34 federal Investment Company Act of 1940, 15 U.S.C. } 80a, the 3 35 portfolio of which is limited to the United States government 4 1 obligations described in subparagraph (1) and to repurchase 4 2 agreements fully collateralized by the United States 4 3 government obligations described in subparagraph (1), if the 4 4 investment company or investment trust takes delivery of the 4 5 collateral either directly or through an authorized custodian. 4 6 2. If public funds are secured by both the assets of a 4 7savings and loan orcredit union and a bond of a surety 4 8 company, the assets and bond shall be held as security for a 4 9 rateable proportion of the deposit on the basis of the market 4 10 value of the assets and of the total amount of the surety 4 11 bonds. 4 12 Sec. 7. Section 12C.17, Code 1999, is amended to read as 4 13 follows: 4 14 12C.17 DEPOSIT OF SECURITIES. 4 15 1. Asavings and loan orcredit union which receives 4 16 public funds shall pledge securities owned by it as required 4 17 by this chapter in one of the following methods: 4 18 a. The securities shall be deposited with the county, 4 19 city, or other public officers at the option of the officers. 4 20 b. The securities shall be deposited pursuant to a 4 21 bailment agreement with a financial institution having 4 22 facilities for the safekeeping of securities and doing 4 23 business in the state. A financial institution which receives 4 24 securities for safekeeping is liable to the public officer to 4 25 whom the securities are pledged for any loss suffered by the 4 26 public officer if the financial institution relinquishes 4 27 custody of the securities contrary to the provisions of this 4 28 chapter or the instrument governing the pledge of the 4 29 securities. 4 30 c. The securities shall be deposited with the federal 4 31 reserve bank of Chicago, Illinois, the federal home loan bank 4 32 of Des Moines, Iowa, or the U.S. central credit union 4 33 pursuant to a bailment agreement or a pledge custody 4 34 agreement. 4 35 d. The securities may be deposited by any combination of 5 1 methods specified in paragraphs "a", "b", and "c". 5 2 2. A deposit of securities shall not be made in a facility 5 3 owned or controlled directly or indirectly by the financial 5 4 institution which deposits the securities. 5 5 3. All deposits of securities, other than deposits of 5 6 securities with the appropriate public officer, shall have a 5 7 joint custody receipt taken for the securities with one copy 5 8 delivered to the public officer and one copy delivered to the 5 9savings and loan orcredit union. Asavings and loan or5 10 credit union pledging securities with a public officer may 5 11 cause the securities to be examined in the officer's office to 5 12 show the securities are placed with the officer as collateral 5 13 security and are not transferable except upon the conditions 5 14 provided in this chapter. 5 15 4. Upon written request from the appropriate public 5 16 officer but not less than quarterly, asavings and loan or5 17 credit union shall report the par value and the market value 5 18 of any pledged collateral and the total deposits of public 5 19 funds of that officer in thesavings and loan orcredit union. 5 20 Sec. 8. Section 12C.18, Code 1999, is amended to read as 5 21 follows: 5 22 12C.18 CONDITION OF SECURITY. 5 23 The condition of the surety bond or the deposit of 5 24 securities, instruments, or a joint custody receipt, must be 5 25 that thesavings and loan orcredit union will promptly pay to 5 26 the parties entitled public funds, including any interest on 5 27 the funds, in its custody upon lawful demand and, when 5 28 required by law, pay the funds to the public officer who made 5 29 the deposit. 5 30 Sec. 9. Section 12C.19, subsections 3 and 4, Code 1999, 5 31 are amended to read as follows: 5 32 3. In the event of substitution or exchange of securities, 5 33 the holder or custodian of the securities shall, on the same 5 34 day, forward by certified mail, return receipt requested, to 5 35 the public officer and thesavings and loan orcredit union, a 6 1 receipt specifically describing and identifying both the 6 2 substituted securities and those released and returned to the 6 3savings and loan orcredit union. 6 4 4. The public officer which deposits public funds with a 6 5savings and loan orcredit union shall require, if the market 6 6 value of the securities deposited with or for the benefit of 6 7 the officer falls below one hundred ten percent of the deposit 6 8 liability to the public officer, the deposit of additional 6 9 security to bring the total market value of the security to 6 10 one hundred ten percent of the amount of public funds held by 6 11 thesavings and loan orcredit union. 6 12 Sec. 10. Section 12C.23, subsection 3, paragraph d, 6 13 subparagraph (3), Code 1999, is amended by striking the 6 14 subparagraph. 6 15 Sec. 11. Section 12C.25, subsection 3, Code 1999, is 6 16 amended by striking the subsection. 6 17 Sec. 12. TRANSITION PROVISION. All funds in the state 6 18 sinking fund for public deposits in savings and loan 6 19 associations and savings banks on the effective date of this 6 20 Act shall be transferred to the state sinking fund for public 6 21 deposits in banks, and the state sinking fund for public 6 22 deposits in savings and loan associations and savings banks 6 23 shall be closed. 6 24 EXPLANATION 6 25 This bill amends Code chapter 12C relating to the deposit 6 26 of public funds and the conditions which must be met by a 6 27 financial institution to be eligible to receive such deposits. 6 28 The bill provides that a savings and loan association, a 6 29 savings bank, or any branch of a savings and loan association 6 30 or savings bank, be subject to substantially the same 6 31 requirements as a bank. 6 32 LSB 2158SC 78 6 33 mj/sc/14
Text: SSB01123 Text: SSB01125 Text: SSB01100 - SSB01199 Text: SSB Index Bills and Amendments: General Index Bill History: General Index
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