Text: H08127 Text: H08129 Text: H08100 - H08199 Text: H Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 Amend House File 681, as amended, passed, and 1 2 reprinted by the House, as follows: 1 3 #1. Page 1, by inserting before line 1 the 1 4 following: 1 5 "Section 1. Section 12C.1, subsection 2, paragraph 1 6 c, Code Supplement 2001, is amended to read as 1 7 follows: 1 8 c. "Bank" means a corporation engaged in the 1 9 business of banking authorized by law to receive 1 10 deposits and whose deposits are insured by the bank 1 11 insurance fund or the savings association insurance 1 12 fund of the federal deposit insurance corporation and 1 13 includes any office of a bank. "Bank" also means a 1 14 savings and loan or savings association." 1 15 #2. Page 1, line 1, by inserting after the word 1 16 "Code" the following: "Supplement". 1 17 #3. Page 1, by inserting after line 20 the 1 18 following: 1 19 "Sec. . Section 12C.6A, subsection 2, Code 1 20 2001, is amended to read as follows: 1 21 2. In addition to establishing a minimum interest 1 22 rate for public funds pursuant to section 12C.6, the 1 23 committee composed of the superintendent of banking, 1 24 the superintendent of credit unions, the auditor of 1 25 state or a designee, and the treasurer of state shall 1 26 develop a list of financial institutions eligible to 1 27 accept state public funds. The committee shall 1 28 require that a financial institution seeking to 1 29 qualify for the list shall annually provide the 1 30 committee a written statement that the financial 1 31 institution has complied with the requirements of this 1 32 chapter and has a commitment to community reinvestment 1 33 consistent with the safe and sound operation of a 1 34 financial institution, unless the financial 1 35 institution has received a rating of satisfactory or 1 36 higher pursuant to the federal Community Reinvestment 1 37 Act, 12 U.S.C. } 2901 et seq., and such rating is 1 38 certified to the committee by the superintendent of 1 39 banking. To qualify for the list a financial 1 40 institution must demonstrate a continuing commitment 1 41 to meet the credit needs of the local community in 1 42 which it is chartered." 1 43 #4. Page 2, by striking lines 2 through 18 and 1 44 inserting the following: 1 45 "Sec. . NEW SECTION. 12C.20 PUBLIC FUND 1 46 REPORTS. 1 47 1. On or before the tenth day of February, May, 1 48 August, and November of each year, each savings and 1 49 loan and each out-of-state bank that has one or more 1 50 branches in the state shall calculate and certify to 2 1 the superintendent of banking in the form prescribed 2 2 by the superintendent the amount of public funds on 2 3 deposit at the savings and loan and at each such 2 4 branch of the out-of-state bank as of the end of the 2 5 previous calendar quarter. 2 6 2. A bank shall, upon request of the 2 7 superintendent, certify to the superintendent the 2 8 amount of public funds on deposit at the bank and at 2 9 each branch of an out-of-state bank on any day 2 10 specified by the superintendent in such request. 2 11 3. The superintendent may at any time make such 2 12 investigation as the superintendent deems necessary 2 13 and appropriate to verify the information provided to 2 14 the superintendent pursuant to subsections 1 and 2. 2 15 4. On or before the twentieth day of February, 2 16 May, August, and November of each year, the 2 17 superintendent shall notify the treasurer of state of 2 18 the amount of collateral required to be pledged as of 2 19 the end of the previous calendar quarter based upon 2 20 the certification provided to the superintendent under 2 21 subsection 1 or 2 and a review by the superintendent 2 22 of the quarterly call report filed by each bank that 2 23 is not a savings and loan or an out-of-state bank." 2 24 #5. Page 2, line 21, by striking the words 2 25 "financial institution that is a". 2 26 #6. Page 2, lines 23 and 24, by striking the words 2 27 "before the first day of each calendar quarter". 2 28 #7. Page 2, line 27, by striking the words "same 2 29 depository or holding company" and inserting the 2 30 following: "bank pledging the collateral or any 2 31 affiliate of the bank as defined in section 524.1101". 2 32 #8. Page 3, line 7, by inserting after the word 2 33 "bank" the following: "by paying an assessment to the 2 34 treasurer of state". 2 35 #9. Page 3, by striking lines 9 through 13 and 2 36 inserting the following: 2 37 "c. In the event an assessment is paid by a bank 2 38 to the treasurer of state pursuant to section 12C.23A, 2 39 or in the event that collateral pledged by the bank is 2 40 liquidated pursuant to section 12C.23A, subsection 3, 2 41 paragraph "e", and the proceeds are used to pay the 2 42 assessment, the bank is subrogated to the claim of a 2 43 public funds depositor to the extent the claim is paid 2 44 from funds paid by the bank or proceeds of collateral 2 45 pledged by the bank are used to pay the assessment." 2 46 #10. Page 3, line 14, by inserting after the word 2 47 "agent" the following: "of the bank". 2 48 #11. By striking page 3, line 19, through page 5, 2 49 line 33, and inserting the following: 2 50 "2. The amount of the collateral required to be 3 1 pledged by a bank shall at all times equal or exceed 3 2 the total of the amount by which the public funds 3 3 deposits in the bank exceeds the total capital of the 3 4 bank. For purposes of this chapter, unless the 3 5 context otherwise requires, "total capital of the 3 6 bank" means its tier one capital plus both of the 3 7 following components of tier two capital: 3 8 a. Qualifying subordinated debt and redeemable 3 9 preferred stock. 3 10 b. Cumulative perpetual preferred stock. 3 11 3. The amount of collateral pledged by an out-of- 3 12 state bank that operates a branch in Iowa shall be 3 13 calculated in accordance with the following formula: 3 14 a. Total deposits of the bank. 3 15 b. Total deposits in Iowa branches of the bank. 3 16 c. The total of paragraph "b" divided by the total 3 17 of paragraph "a", in order to establish the deposits 3 18 of Iowa branches as a percentage of total deposits. 3 19 d. Total capital of the bank as defined in 3 20 subsection 2. 3 21 e. The total of paragraph "d" multiplied by the 3 22 total of paragraph "c", in order to establish Iowa 3 23 branch capital. 3 24 f. Total public funds deposits in the bank. 3 25 g. The excess of the total of paragraph "f" over 3 26 the total of paragraph "e", if any. 3 27 4. The value of the collateral shall be its market 3 28 value. 3 29 5. The treasurer of state shall adopt rules 3 30 pursuant to chapter 17A to administer this section, 3 31 including rules to do the following: 3 32 a. Designate not less than four financial 3 33 institutions that may be custodians of collateral 3 34 pledged under this chapter and establish regulations 3 35 for qualification and compliance by the custodians and 3 36 remedies and sanctions for noncompliance by the 3 37 custodians. 3 38 b. Establish requirements for reporting to the 3 39 treasurer of state by a financial institution of the 3 40 amount and value of collateral held by the financial 3 41 institution as custodian of collateral for the 3 42 uninsured public funds on deposit in a bank. 3 43 c. Establish procedures for the valuation of 3 44 collateral that does not have a readily ascertainable 3 45 market value. 3 46 d. Establish procedures for substituting different 3 47 collateral for collateral pledged under this section. 3 48 e. Establish procedures to determine the amount of 3 49 the uninsured public funds of each bank or branch of 3 50 an out-of-state bank as of the date of closing of a 4 1 closed bank and the amount of the assessment to be 4 2 made upon each bank. 4 3 f. Establish additional procedures necessary to 4 4 administer this chapter and other rules as may be 4 5 necessary to accomplish the purposes of this chapter. 4 6 g. Provide forms and procedures for compliance 4 7 with this chapter, including electronic compliance. 4 8 h. Establish amounts and procedures for payment of 4 9 fees to cover the costs of administration of this 4 10 chapter. 4 11 6. The collateral used to secure public deposits 4 12 shall be in one or more of the following forms 4 13 acceptable to the treasurer of state: 4 14 a. Investment securities and shares in which a 4 15 bank is permitted to invest under section 524.901, 4 16 subsections 1, 2, and 3. 4 17 b. Investment securities, as defined in section 4 18 524.901, subsection 1, paragraph "a", representing 4 19 general obligations of a state or a political 4 20 subdivision of a state that is geographically 4 21 contiguous with the state, provided that such 4 22 investment securities are rated within the four 4 23 highest grades according to a reputable rating service 4 24 or represent unrated issues of equivalent value. 4 25 c. Investment securities, as defined in section 4 26 524.901, subsection 1, paragraph "a", representing 4 27 general obligations of a state or a political 4 28 subdivision of a state that is not contiguous with the 4 29 state, provided that such investment securities are 4 30 rated within the two highest grades according to a 4 31 reputable rating service. 4 32 d. Nontransferable letters of credit upon which 4 33 the payment of principal and interest is fully secured 4 34 or guaranteed by the United States of America or an 4 35 agency or instrumentality, including government- 4 36 sponsored enterprises of the United States of America. 4 37 e. Private insurance policies or bonds written by 4 38 companies approved by the superintendent. 4 39 7. A bank may borrow collateral to be pledged 4 40 under subsection 2 if the collateral is free of any 4 41 liens, security interests, claims, or encumbrances." 4 42 #12. Page 6, lines 2 and 3, by striking the words 4 43 "and the pledging of securities". 4 44 #13. By inserting after page 6, line 4, the 4 45 following: 4 46 " . Agreement by the bank to pledge collateral 4 47 as required by section 12C.22." 4 48 #14. Page 6, line 5, by striking the word 4 49 "securities" and inserting the following: "the 4 50 collateral". 5 1 #15. Page 6, line 14, by striking the word 5 2 "certificates" and inserting the following: 5 3 "certificatescertificate". 5 4 #16. Page 6, line 19, by inserting after the word 5 5 "state" the following: "under subsection 3". 5 6 #17. Page 6, lines 21 and 22, by striking the 5 7 words "regulatory officials" and inserting the 5 8 following: "regulatory officialsstate or federal 5 9 regulator". 5 10 #18. Page 6, line 32, by striking the word "the" 5 11 and inserting the following: "a". 5 12 #19. Page 6, line 33, by striking the word 5 13 "depositors" and inserting the following: "depositors5 14 depositor". 5 15 #20. Page 7, by striking lines 31 through 34, and 5 16 inserting the following: "total of uninsured public 5 17 funds deposits held by all banks and all branches of 5 18 out-of-state banks, based upon the average of the 5 19 uninsured public funds of the assessed bank or branch 5 20 of an out-of-state bank as of the end of the four 5 21 calendar quarters prior to the date of closing of the 5 22 closed bank and the average of the uninsured public 5 23 funds in all banks and branches of out-of-state banks 5 24 as of the end of the four calendar quarters prior to 5 25 the date of closing of the closed bank, excluding the 5 26 amount of uninsured public funds held by the closed 5 27 bank at the end of the four calendar quarters held by 5 28 the closed bank. Each bank". 5 29 #21. Page 8, line 12, by striking the words "that 5 30 amount" and inserting the following: "the amount". 5 31 #22. Page 8, by inserting after line 14 the 5 32 following: 5 33 "f. If the treasurer of state liquidates 5 34 collateral pledged by a bank, the bank shall within 5 35 three business days following receipt of notice from 5 36 the treasurer of state deposit additional collateral 5 37 to provide the collateral required under section 5 38 12C.22." 5 39 #23. Page 8, line 15, by striking the letter "f." 5 40 and inserting the following: "g." 5 41 #24. Page 8, by striking lines 20 and 21 and 5 42 inserting the following: "failure to pay the 5 43 assessment. If the bank that has failed to pay the 5 44 assessment is a nationally chartered financial 5 45 institution, the superintendent shall immediately 5 46 notify the bank's primary federal regulator. If the 5 47 assessment is not paid within thirty days after the 5 48 bank received the notice of assessment, the treasurer 5 49 of state shall initiate a lawsuit to collect the 5 50 amount of the assessment. If a bank is found to". 6 1 #25. By striking page 8, line 33, through page 9, 6 2 line 7, and inserting the following: 6 3 "e.h. Following collection of the assessments, 6 4 thestatetreasurer of state shall distribute funds to 6 5 the public depositors of thefailedclosed bank 6 6 according to their validated claims unless a public 6 7 depositor requests in writing that the claims of other 6 8 public depositors be paid prior to payment to the 6 9 public depositor making the request.If the assets6 10available are less than the total deposits, the6 11treasurer shall prorate the claims. A public6 12depositorBy receiving payment under this section, a 6 13 public depositor shallassignbe deemed to have 6 14 assigned to the treasurer of state anyinterestclaim 6 15 the public depositor may have against the closed bank 6 16 by reason of the deposit of its public funds and all 6 17 rights the public depositor may have in funds that 6 18 subsequently become available to depositors of the 6 19defaultingclosed bank." 6 20 #26. Page 9, by striking lines 12 through 26, and 6 21 inserting the following: "chapter in a financial 6 22 institution that is eligible to accept public funds 6 23 deposits at the time a deposit of public funds is 6 24 made, a public body depositing public fundsor its6 25agents, employees, officers, and board members are, 6 26 and any person that is an agent, employee, officer, or 6 27 board member of the public funds depositor, is exempt 6 28 from liability for any loss resulting from the loss of 6 29a depositorypublic funds in the absence of 6 30 negligence, malfeasance, misfeasance, or nonfeasance 6 31 on the part of theofficialpublic body or such 6 32 person.If the treasurer of state sells a6 33depository's collateral securities, the depository6 34shall deposit additional collateral to meet required6 35collateral levels.6 36In making an assessment against depositories6 37holding public funds as a result of a failure, the6 38treasurer of state is exempt from any liability for6 39loss, damage or expense to a depository which has6 40accepted public funds." 6 41 #27. Page 9, by adding after line 35 the 6 42 following: 6 43 "Sec. . Section 12C.26, Code 2001, is amended 6 44 by striking the section and inserting in lieu thereof 6 45 the following: 6 46 12C.26 REFUND FROM SINKING FUNDS. 6 47 1. If at the end of any calendar year the amount 6 48 in the sinking fund exceeds three million one hundred 6 49 thousand dollars, then to the extent the amount in the 6 50 sinking fund exceeds three million dollars, the 7 1 treasurer shall, on or before January 31 of the 7 2 following year, refund to each bank that paid an 7 3 assessment after the year 1999 to the sinking fund 7 4 resulting from the closing of a bank, its pro rata 7 5 share of the unreimbursed portion of the total 7 6 assessment paid by all banks. If assessments remain 7 7 unreimbursed by reason of the closing of more than one 7 8 bank, the reimbursements shall be made to the banks 7 9 that paid assessments by reason of the bank which 7 10 closed first until those banks are reimbursed in full, 7 11 and then to the banks that paid assessments by reason 7 12 of the bank which closed next. Such a refund shall 7 13 not be made to a bank if the refund would exceed the 7 14 amount of previous assessments paid by the bank. 7 15 2. Upon recovery of a loss of public funds due to 7 16 a closed credit union, the treasurer of state may 7 17 refund all or a portion of the recovered amount to the 7 18 credit unions that paid an assessment under this 7 19 chapter as a result of the closing of that credit 7 20 union." 7 21 #28. Page 10, by striking lines 29 through 32 and 7 22 inserting the following: "adopt and promulgate such 7 23 rules and regulations asin the superintendent's7 24opinion will benecessary toproperly and effectively7 25 carry out and enforce, properly and effectively, the 7 26 provisions of this chapter and chapter 12C applicable 7 27 to banks." 7 28 #29. Page 11, line 34, by inserting after the word 7 29 "may" the following: "recommend to the committee 7 30 established under section 12C.6 that the bank be 7 31 removed from the list of financial institutions 7 32 eligible to accept public funds under section 12C.6A 7 33 and may". 7 34 #30. Page 11, line 35, by inserting after the 7 35 words "quarter and" the following: "up to". 7 36 #31. Page 12, by striking lines 1 through 6, and 7 37 inserting the following: "the bank do any one or more 7 38 of the following: 7 39 a. Not accept public funds deposits. 7 40 b. Return to the depositors some or all uninsured 7 41 public funds held in demand deposits and, when deposit 7 42 instruments or agreements mature, return to the 7 43 depositors some or all deposits representing proceeds 7 44 of such instruments or agreements. 7 45 c. Pledge collateral to the treasurer of state 7 46 having a value at all times up to one hundred ten 7 47 percent of the public funds held by the bank. 7 48 d. Comply with such other requirements as the 7 49 superintendent may impose." 7 50 #32. By striking page 12, line 18, through page 8 1 13, line 10. 8 2 #33. Page 13, line 12, by striking the figure 8 3 "2001" and inserting the following: "2002". 8 4 #34. Page 13, lines 14 and 15, by striking the 8 5 word and figures "February 10, 2002" and inserting the 8 6 following: "January 31, 2003". 8 7 #35. Page 13, line 18, by striking the word and 8 8 figures "June 20, 2002" and inserting the following: 8 9 "April 30, 2003". 8 10 #36. Page 13, line 21, by striking the figure 8 11 "2002" and inserting the following: "2003". 8 12 #37. By renumbering, relettering, and 8 13 redesignating as necessary. 8 14 HF 681S 8 15 jj/cc/26
Text: H08127 Text: H08129 Text: H08100 - H08199 Text: H Index Bills and Amendments: General Index Bill History: General Index
© 2002 Cornell College and League of Women Voters of Iowa
Comments about this site or page?
webmaster@legis.iowa.gov.
Please remember that the person listed above does not vote on bills. Direct all comments concerning legislation to State Legislators.
Last update: Fri Mar 1 03:35:52 CST 2002
URL: /DOCS/GA/79GA/Legislation/H/08100/H08128/020228.html
jhf