Text: H01335 Text: H01337 Text: H01300 - H01399 Text: H Index Bills and Amendments: General Index Bill History: General Index
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 11also 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 thebank1 39 financial institution at the meeting. At the meeting, 1 40 or at any other time, thebankfinancial 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,orchapter 524, chapter 534, or rules 2 4 adopted pursuant to this section,orchapter 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 unionwhichthat 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 fundswhichthat 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 assetswhichthat 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 unionswhothat 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, reasonableattorney's6 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
© 2001 Cornell College and League of Women Voters of Iowa
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