Text: H01335                            Text: H01337
Text: H01300 - H01399                   Text: H Index
Bills and Amendments: General Index     Bill History: General Index



House Amendment 1336

Amendment Text

PAG LIN
  1  1    Amend House File 681 as follows:
  1  2    #1.  Page 1, by inserting before line 1 the
  1  3 following:
  1  4    "Sec.    .  Section 12C.1, subsection 2, paragraphs
  1  5 c and f, Code 2001, are amended to read as follows:
  1  6    c.  "Bank" means a corporation engaged in the
  1  7 business of banking authorized by law to receive
  1  8 deposits and whose deposits are insured by the bank
  1  9 insurance fund of the federal deposit insurance
  1 10 corporation and includes any office of a bank.  "Bank"
  1 11 also means a savings and loan or savings association.
  1 12    f.  "Financial institution" means a bank, savings
  1 13 and loan, or a credit union."
  1 14    #2.  Page 1, by inserting after line 11 the
  1 15 following:
  1 16    "Sec.    .  Section 12C.1, subsection 3, paragraph
  1 17 a, Code 2001, is amended to read as follows:
  1 18    a.  If a depository is a savings and loan or a
  1 19 credit union, then public deposits in the savings and
  1 20 loan or credit union shall be secured pursuant to
  1 21 sections 12C.16 through 12C.19 and sections 12C.23 and
  1 22 12C.24."
  1 23    #3.  Page 1, by inserting after line 25 the
  1 24 following:
  1 25    "Sec. ___.  Section 12C.6A, subsection 5,
  1 26 paragraphs a, b, c, and d, Code 2001, are amended to
  1 27 read as follows:
  1 28    a.  A person who believes a bank or savings and
  1 29 loan has failed to meet its community reinvestment
  1 30 responsibility may file a complaint with the committee
  1 31 detailing the basis for that belief.
  1 32    b.  If any committee member, in the member's
  1 33 discretion, finds that the complaint has merit, the
  1 34 member may order the bank or savings and loan alleged
  1 35 to have failed to meet its community reinvestment
  1 36 responsibility to attend and participate in a meeting
  1 37 with the complainant.  The committee member may
  1 38 specify who, at minimum, shall represent the bank
  1 39 financial institution at the meeting.  At the meeting,
  1 40 or at any other time, the bank financial institution
  1 41 may, but is not required to, enter into an agreement
  1 42 with a complainant to correct alleged failings.
  1 43    c.  A majority of the committee may order a bank or
  1 44 savings and loan against which a complaint has been
  1 45 filed pursuant to this subsection, to disclose such
  1 46 additional information relating to community
  1 47 reinvestment as required by the order of the majority
  1 48 of the committee.
  1 49    d.  This subsection does not preempt any other
  1 50 remedies available under statutory or common law
  2  1 available to the committee, the superintendent of
  2  2 banking, or aggrieved persons to cure violations of
  2  3 this section, or chapter 524, chapter 534, or rules
  2  4 adopted pursuant to this section, or chapter 524, or
  2  5 chapter 534.  The committee may conduct a public
  2  6 hearing as provided in subsection 4 based upon the
  2  7 same complaint.  An order finding merit in a complaint
  2  8 and ordering a meeting is not an election of remedies.
  2  9    Sec.    .  Section 12C.15, Code 2001, is amended to
  2 10 read as follows:
  2 11    12C.15  RESTRICTION ON REQUIRING COLLATERAL.
  2 12    A local government shall not require a pledge of
  2 13 collateral for that portion of the local government's
  2 14 deposits in a savings and loan or credit union that is
  2 15 covered by insurance of a federal agency or
  2 16 instrumentality.
  2 17    Sec.    .  Section 12C.16, subsection 1, unnumbered
  2 18 paragraph 1, Code 2001, is amended to read as follows:
  2 19    Before a deposit of public funds is made by a
  2 20 public officer with a savings and loan or credit union
  2 21 in excess of the amount federally insured, the public
  2 22 officer shall obtain security for the deposit by one
  2 23 or more of the following:
  2 24    Sec.    .  Section 12C.16, subsection 1, paragraphs
  2 25 a and b, Code 2001, are amended to read as follows:
  2 26    a.  The savings and loan or credit union may give
  2 27 to the public officer a corporate surety bond of a
  2 28 surety corporation approved by the treasury department
  2 29 of the United States and authorized to do business in
  2 30 this state, which bond shall be in an amount equal to
  2 31 the public funds on deposit at any time.  The bond
  2 32 shall be conditioned that the deposit shall be paid
  2 33 promptly on the order of the public officer making the
  2 34 deposit and shall be approved by the officer making
  2 35 the deposit.
  2 36    b.  The savings and loan or credit union may
  2 37 deposit, maintain, pledge and assign for the benefit
  2 38 of the public officer in the manner provided in this
  2 39 chapter, securities approved by the public officer,
  2 40 the market value of which is not less than one hundred
  2 41 ten percent of the total deposits of public funds
  2 42 placed by that public officer in the savings and loan
  2 43 or credit union.  The securities shall consist of any
  2 44 of the following:
  2 45    Sec.    .  Section 12C.16, subsection 2, Code 2001,
  2 46 is amended to read as follows:
  2 47    2.  If public funds are secured by both the assets
  2 48 of a savings and loan or credit union and a bond of a
  2 49 surety company, the assets and bond shall be held as
  2 50 security for a rateable proportion of the deposit on
  3  1 the basis of the market value of the assets and of the
  3  2 total amount of the surety bonds.
  3  3    Sec.    .  Section 12C.17, subsection 1, unnumbered
  3  4 paragraph 1, Code 2001, is amended to read as follows:
  3  5    A savings and loan or credit union which that
  3  6 receives public funds shall pledge securities owned by
  3  7 it as required by this chapter in one of the following
  3  8 methods:
  3  9    Sec.    .  Section 12C.17, subsections 3 and 4,
  3 10 Code 2001, are amended to read as follows:
  3 11    3.  All deposits of securities, other than deposits
  3 12 of securities with the appropriate public officer,
  3 13 shall have a joint custody receipt taken for the
  3 14 securities with one copy delivered to the public
  3 15 officer and one copy delivered to the savings and loan
  3 16 or credit union.  A savings and loan or credit union
  3 17 pledging securities with a public officer may cause
  3 18 the securities to be examined in the officer's office
  3 19 to show the securities are placed with the officer as
  3 20 collateral security and are not transferable except
  3 21 upon the conditions provided in this chapter.
  3 22    4.  Upon written request from the appropriate
  3 23 public officer but not less than monthly, the federal
  3 24 home loan bank of Des Moines, Iowa, or the U.S.
  3 25 central credit union, shall report a description, the
  3 26 par value and the market value of any pledged
  3 27 collateral by a savings and loan or credit union.
  3 28    Sec.    .  Section 12C.18, Code 2001, is amended to
  3 29 read as follows:
  3 30    12C.18  CONDITION OF SECURITY.
  3 31    The condition of the surety bond or the deposit of
  3 32 securities, instruments, or a joint custody receipt,
  3 33 must be that the savings and loan or credit union will
  3 34 promptly pay to the parties entitled public funds,
  3 35 including any interest on the funds, in its custody
  3 36 upon lawful demand and, when required by law, pay the
  3 37 funds to the public officer who made the deposit."
  3 38    #4.  Page 1, line 26, by striking the words and
  3 39 figures "subsection 1, Code 2001, is" and inserting
  3 40 the following:  "subsections 1, 3, and 4, Code 2001,
  3 41 are".
  3 42    #5.  Page 1, line 30, by inserting after the words
  3 43 "pledged by a" the following:  "savings and loan or".
  3 44    #6.  Page 2, by inserting after line 1 the
  3 45 following:
  3 46    "3.  In the event of substitution, addition, or
  3 47 exchange of securities, the holder or custodian of the
  3 48 securities shall, on the same day, forward by regular
  3 49 mail to the public officer and the savings and loan or
  3 50 credit union, a receipt specifically describing and
  4  1 identifying both the substituted or additional
  4  2 securities.
  4  3    4.  The public officer which deposits public funds
  4  4 with a savings and loan or credit union shall require,
  4  5 if the market value of the securities deposited with
  4  6 or for the benefit of the officer falls below one
  4  7 hundred ten percent of the deposit liability to the
  4  8 public officer, the deposit of additional security to
  4  9 bring the total market value of the security to one
  4 10 hundred ten percent of the amount of public funds held
  4 11 by the savings and loan or credit union."
  4 12    #7.  Page 5, by inserting after line 33 the
  4 13 following:
  4 14    "Sec.    .  Section 12C.23, Code 2001, is amended
  4 15 to read as follows:
  4 16    12C.23  PAYMENT OF LOSSES IN A SAVINGS AND LOAN OR
  4 17 CREDIT UNION.
  4 18    1.  The pledging of securities by a savings and
  4 19 loan or credit union pursuant to this chapter
  4 20 constitutes consent by the savings and loan or credit
  4 21 union to the disposition of the securities in
  4 22 accordance with this section.
  4 23    The acceptance of public funds by a savings and
  4 24 loan or credit union pursuant to this chapter
  4 25 constitutes consent by the savings and loan or credit
  4 26 union to assessments by the treasurer of state in
  4 27 accordance with this chapter.
  4 28    2.  The savings and loan or credit union and the
  4 29 security given for the public funds in its hands are
  4 30 liable for payment if the savings and loan or credit
  4 31 union fails to pay a check, draft, or warrant drawn by
  4 32 the public officer or to account for a check, draft,
  4 33 warrant, order, or certificates of deposit, or any
  4 34 public funds entrusted to it if, in failing to pay,
  4 35 the savings and loan or credit union acts contrary to
  4 36 the terms of an agreement between the savings and loan
  4 37 or credit union and the public body treasurer.  The
  4 38 savings and loan or credit union and the security
  4 39 given for the public funds in its hands are also
  4 40 liable for payment if the savings and loan or credit
  4 41 union fails to pay an assessment by the treasurer of
  4 42 state when the assessment is due.
  4 43    3.  If a savings and loan or credit union is closed
  4 44 by its primary regulatory officials, the public body
  4 45 with deposits in the savings and loan or credit union
  4 46 may sell the collateral to pay for any loss of
  4 47 principal and accrued interest.
  4 48    a.  In cooperation with the responsible regulatory
  4 49 officials for the savings and loan or credit union,
  4 50 the public body shall validate the amount of public
  5  1 funds on deposit at the defaulting savings and loan or
  5  2 credit union and the amount of deposit insurance
  5  3 applicable to the deposits.
  5  4    b.  The loss to public depositors shall be
  5  5 satisfied, first through any applicable deposit
  5  6 insurance and then through the sale of securities
  5  7 pledged by the defaulting savings and loan or credit
  5  8 union, and then the assets of the defaulting savings
  5  9 and loan or credit union.  The priority of claims are
  5 10 those established pursuant to section 533.22,
  5 11 subsection 1, paragraph "b", or section 534.517.  To
  5 12 the extent permitted by federal law, in the
  5 13 distribution of an insolvent federally chartered
  5 14 credit union's or savings and loan's assets, the order
  5 15 of payment of liabilities if its assets are
  5 16 insufficient to pay in full all its liabilities for
  5 17 which claims are made shall be in the same order as
  5 18 for the equivalent type of state chartered savings and
  5 19 loan or credit union as provided in section 533.22,
  5 20 subsection 1, paragraph "b", or section 534.517.
  5 21    c.  The claim of a public depositor for purposes of
  5 22 this section shall be the amount of the depositor's
  5 23 deposits plus interest to the date the funds are
  5 24 distributed to the public depositor at the rate the
  5 25 savings and loan or credit union agreed to pay on the
  5 26 funds reduced by the portion of the funds which that
  5 27 is insured by federal deposit insurance.
  5 28    d.  If the loss to public funds is not covered by
  5 29 insurance and the proceeds of the failed savings and
  5 30 loan's or credit union's assets which that are
  5 31 liquidated within thirty days of the closing of the
  5 32 credit union and pledged collateral, the treasurer
  5 33 shall provide coverage of the remaining loss from the
  5 34 state sinking fund for public deposits in credit
  5 35 unions or the state sinking fund for public deposits
  5 36 in savings and loans, according to the following:
  5 37    (1)  If the loss was incurred in a credit union,
  5 38 then any further payments to cover the loss shall come
  5 39 from the state sinking fund for public deposits in
  5 40 credit unions.  If the funds are inadequate to cover
  5 41 the entire loss, then the treasurer shall make an
  5 42 assessment against other credit unions who that hold
  5 43 public funds.  The assessment shall be determined by
  5 44 multiplying the total amount of the remaining loss to
  5 45 public depositors by a percentage that represents the
  5 46 average of public funds deposits held by all credit
  5 47 unions during the preceding twelve-month period ending
  5 48 on the last day of the month immediately preceding the
  5 49 month the credit union was closed.  Each credit union
  5 50 shall pay its assessment to the treasurer within three
  6  1 business days after it receives notice of assessment.
  6  2 If a credit union fails to pay its assessment when
  6  3 due, the treasurer of state shall initiate a lawsuit
  6  4 to collect the assessment.  If a credit union is found
  6  5 to have failed to pay the assessment as required by
  6  6 this paragraph, the court shall order it to pay the
  6  7 assessment, court costs, reasonable attorney's
  6  8 attorney fees based upon the amount of time the
  6  9 attorney general's office spent preparing and bringing
  6 10 the action, and reasonable expenses incurred by the
  6 11 treasurer of state's office.  Idle balances in the
  6 12 fund are to be invested by the treasurer with earnings
  6 13 credited to the fund.  Fees paid by credit unions for
  6 14 administration of this chapter will be credited to the
  6 15 fund and the treasurer may deduct actual costs of
  6 16 administration from the fund.
  6 17    (2)  If the loss was incurred in a savings and loan
  6 18 or a savings bank, then any further payment to cover
  6 19 the loss shall come from the state sinking fund for
  6 20 public deposits in savings and loans.  If the funds
  6 21 are inadequate to cover the entire loss, then the
  6 22 treasurer shall make an assessment against other
  6 23 savings and loans that hold public funds.  The
  6 24 assessment shall be determined by multiplying the
  6 25 total amount of the remaining loss to public
  6 26 depositors by a percentage that represents the average
  6 27 of public funds deposits held by all savings and loans
  6 28 during the preceding twelve-month period ending on the
  6 29 last day of the month immediately preceding the month
  6 30 the savings and loan was closed.  Each savings and
  6 31 loan shall pay its assessment to the treasurer within
  6 32 three business days after it receives notice of
  6 33 assessment.  If a savings and loan fails to pay its
  6 34 assessment when due, the treasurer of state shall
  6 35 initiate a lawsuit to collect the assessment.  If a
  6 36 savings and loan is found to have failed to pay the
  6 37 assessment as required by this paragraph, the court
  6 38 shall order it to pay the assessment, court costs,
  6 39 reasonable attorney fees based upon the amount of time
  6 40 the attorney general's office spent preparing and
  6 41 bringing the action, and reasonable expenses incurred
  6 42 by the treasurer of state's office.  Idle balances in
  6 43 the fund are to be invested by the treasurer with
  6 44 earnings credited to the fund.  Fees paid by savings
  6 45 and loans for administration of this chapter will be
  6 46 credited to the fund and the treasurer may deduct
  6 47 actual costs of administration from the fund.
  6 48    e.  Any amount realized from the sale of collateral
  6 49 pursuant to paragraph "d", in excess of the amount of
  6 50 a savings and loan's or credit union's assessment,
  7  1 shall continue to be held by the treasurer, in the
  7  2 same interest bearing investments available for public
  7  3 funds, as collateral, until that savings and loan or
  7  4 credit union provides substitute collateral or is
  7  5 otherwise entitled to its release."
  7  6    #8.  Page 9, by inserting after line 26 the
  7  7 following:
  7  8    "Sec. ___.  Section 12C.25, Code 2001, is amended
  7  9 by adding the following new subsection:
  7 10    NEW SUBSECTION.  3.  A state sinking fund for
  7 11 public deposits in savings and loans."
  7 12    #9.  By renumbering, redesignating, and correcting
  7 13 internal references as necessary.  
  7 14 
  7 15 
  7 16                               
  7 17 HANSEN of Pottawattamie
  7 18 
  7 19 
  7 20                               
  7 21 JOHNSON of Osceola
  7 22 HF 681.301 79
  7 23 jj/cf
     

Text: H01335                            Text: H01337
Text: H01300 - H01399                   Text: H Index
Bills and Amendments: General Index     Bill History: General Index

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