Text: SSB01135 Text: SSB01137 Text: SSB01100 - SSB01199 Text: SSB Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 Section 1. NEW SECTION. 527A.1 LIMITATION OF LIABILITY 1 2 OF FINANCIAL INSTITUTIONS YEAR 2000. 1 3 1. LEGISLATIVE INTENT. The general assembly finds that 1 4 the ability of financial institutions to continue operations 1 5 through the transition from the year 1999 to the year 2000 and 1 6 subsequent years is essential to the economy of this state and 1 7 the nation. Financial institutions are subject to both state 1 8 and federal laws and regulations and are regulated by both 1 9 state and federal regulatory agencies. The general assembly 1 10 also finds that despite compliance with regulatory guidelines 1 11 and regulations, certain events may occur during the 1 12 transition from the year 1999 to the year 2000 and subsequent 1 13 years that may affect operations of financial institutions. 1 14 It is the intent of the general assembly to limit the 1 15 liability of financial institutions that may result from year 1 16 2000 problems in order to ensure that financial institutions 1 17 continue to operate during and after the transition from the 1 18 year 1999 to the year 2000. 1 19 2. DEFINITIONS. As used in this chapter, unless the 1 20 context otherwise requires: 1 21 a. "Actual damages" means actual monetary losses 1 22 proximately caused by a year 2000 problem. 1 23 b. "Financial institution" means a bank incorporated under 1 24 the provisions of any state or federal law, a savings and loan 1 25 association or savings bank incorporated under the provisions 1 26 of any state or federal law, a credit union organized under 1 27 the provisions of any state or federal law, a corporation 1 28 licensed as an industrial loan company under chapter 536A, and 1 29 any affiliate of a bank, savings and loan association, savings 1 30 bank, credit union, or industrial loan company. 1 31 c. "Information technology" means technology involved in 1 32 computer equipment and software, electrical equipment and 1 33 software, telecommunications equipment and software, and other 1 34 equipment, software, and systems involved in the processing of 1 35 data and information. 2 1 d. "Year 2000 problem" means an event, circumstance, 2 2 disruption, or other problem which prevents information 2 3 technology from accurately processing, calculating, comparing, 2 4 or sequencing date or time data or information related to 2 5 either of the following: 2 6 (1) From, into, or between the twentieth and twenty-first 2 7 centuries, or from, into, or between the years 1999 and 2000. 2 8 (2) Leap year calculations. 2 9 "Year 2000 problem" also includes an inability of a 2 10 financial institution to perform its intended or requested 2 11 functions because of a problem that is the result of a year 2 12 2000 problem encountered by a third party including, but not 2 13 limited to, the failure of a governmental entity to provide 2 14 data or information, transportation delays, energy failure, or 2 15 communications failure. 2 16 3. TIME FOR COMMENCING ACTION. An action in connection 2 17 with a year 2000 problem shall not be filed against a 2 18 financial institution after June 30, 2001. An action not 2 19 timely filed is forever barred. 2 20 4. PRIVITY OF CONTRACT. A financial institution is not 2 21 liable to persons not in privity of contract with such 2 22 financial institution for damages resulting from a year 2000 2 23 problem. 2 24 5. LIABILITY FOR ACTUAL DAMAGES. A financial institution 2 25 shall only be held liable, if at all, for actual damages 2 26 incurred by reason of a year 2000 problem. A financial 2 27 institution shall not be held liable for projected losses of 2 28 future income or earnings, loss of future business or 2 29 employment opportunities, punitive damages, exemplary damages, 2 30 consequential damages, extraordinary damages, noneconomic 2 31 damages, or any other relief in excess of actual damages 2 32 incurred by reason of a year 2000 problem. 2 33 6. AFFIRMATIVE DEFENSE. It is an affirmative defense of a 2 34 financial institution to any claim, action, or proceeding 2 35 alleging liability arising by reason of a year 2000 problem, 3 1 that the financial institution has substantially complied with 3 2 year 2000 regulations, requirements, and guidelines as set 3 3 forth by such financial institution's primary federal 3 4 regulator. 3 5 EXPLANATION 3 6 This bill limits the liability of financial institutions 3 7 for a claim based upon a year 2000 problem. The bill states 3 8 that it is the intent of the general assembly to limit the 3 9 liability of financial institutions that may result from year 3 10 2000 problems in order to ensure that financial institutions 3 11 continue to operate during and after the transition from the 3 12 year 1999 to the year 2000. 3 13 The bill defines "year 2000 problem" as an event, 3 14 circumstance, disruption, or other problem which prevents 3 15 information technology from accurately processing, 3 16 calculating, comparing, or sequencing date or time data or 3 17 information from, into, or between the twentieth and twenty- 3 18 first centuries, or from, into, or between the years 1999 and 3 19 2000; or with respect to leap year calculations. The bill 3 20 also provides that a year 2000 problem includes an inability 3 21 of a financial institution to perform its intended or 3 22 requested functions because of a problem that is the result of 3 23 a year 2000 problem encountered by a third party including, 3 24 but not limited to, the failure of a governmental entity to 3 25 provide data or information, transportation delays, energy 3 26 failure, or communications failure. 3 27 The bill provides that an action in connection with a year 3 28 2000 problem shall not be filed against a financial 3 29 institution after June 30, 2001, and that an action not timely 3 30 filed is forever barred. 3 31 The bill provides that a financial institution is not 3 32 liable to persons not in privity of contract with such 3 33 financial institution for damages resulting from a year 2000 3 34 problem. 3 35 The bill limits the liability of a financial institution, 4 1 if there is any liability at all, to actual damages incurred 4 2 by reason of a year 2000 problem. 4 3 The bill also establishes that it is an affirmative defense 4 4 of a financial institution to any claim, action, or proceeding 4 5 alleging liability arising by reason of a year 2000 problem 4 6 that the financial institution has substantially complied with 4 7 year 2000 regulations, requirements, and guidelines as set 4 8 forth by such financial institution's primary federal 4 9 regulator. 4 10 LSB 2220SC 78 4 11 mj/jw/5
Text: SSB01135 Text: SSB01137 Text: SSB01100 - SSB01199 Text: SSB Index Bills and Amendments: General Index Bill History: General Index
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