Text: HF00680 Text: HF00682 Text: HF00600 - HF00699 Text: HF Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 HOUSE FILE 681 1 2 1 3 AN ACT 1 4 REQUIRING THE PLEDGING OF COLLATERAL IN RELATION TO THE 1 5 DEPOSIT OF UNINSURED PUBLIC FUNDS, MAKING RELATED CHANGES, 1 6 MAKING PENALTIES APPLICABLE, AND PROVIDING FOR APPLICABILITY. 1 7 1 8 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 1 9 1 10 Section 1. Section 12C.1, subsection 2, paragraph c, Code 1 11 Supplement 2001, is amended to read as follows: 1 12 c. "Bank" means a corporation engaged in the business of 1 13 banking authorized by law to receive deposits and whose 1 14 deposits are insured by the bank insurance fund or the savings 1 15 association insurance fund of the federal deposit insurance 1 16 corporation and includes any office of a bank. "Bank" also 1 17 means a savings and loan or savings association. 1 18 Sec. 2. Section 12C.1, subsection 2, Code Supplement 2001, 1 19 is amended by adding the following new paragraphs: 1 20 NEW PARAGRAPH. g. "Public officer" means the person 1 21 authorized by and acting for a public body to deposit public 1 22 funds of the public body. 1 23 NEW PARAGRAPH. h. "Uninsured public funds" means any 1 24 amount of public funds of a public funds depositor on deposit 1 25 in an account at a financial institution that exceeds the 1 26 amount of public funds in that account that are insured by the 1 27 federal deposit insurance corporation or the national credit 1 28 union administration. 1 29 Sec. 3. Section 12C.2, Code 2001, is amended to read as 1 30 follows: 1 31 12C.2 APPROVAL – REQUIREMENTS. 1 32 The approval of a financial institution as a depository of 1 33 public funds for a public body shall be by written resolution 1 34 or orderwhichthat shall be entered of record in the minutes 1 35 of the approving board, andwhichthat shall distinctly name 2 1 each depository approved, and specify the maximum amountwhich2 2 that may be kept on deposit in each depository. 2 3 Sec. 4. Section 12C.6A, subsection 2, Code 2001, is 2 4 amended to read as follows: 2 5 2. In addition to establishing a minimum interest rate for 2 6 public funds pursuant to section 12C.6, the committee composed 2 7 of the superintendent of banking, the superintendent of credit 2 8 unions, the auditor of state or a designee, and the treasurer 2 9 of state shall develop a list of financial institutions 2 10 eligible to accept state public funds. The committee shall 2 11 require that a financial institution seeking to qualify for 2 12 the list shall annually provide the committee a written 2 13 statement that the financial institution has complied with the 2 14 requirements of this chapter and has a commitment to community 2 15 reinvestment consistent with the safe and sound operation of a 2 16 financial institution, unless the financial institution has 2 17 received a rating of satisfactory or higher pursuant to the 2 18 federal Community Reinvestment Act, 12 U.S.C. } 2901 et seq., 2 19 and such rating is certified to the committee by the 2 20 superintendent of banking. To qualify for the list a 2 21 financial institution must demonstrate a continuing commitment 2 22 to meet the credit needs of the local community in which it is 2 23 chartered. 2 24 Sec. 5. Section 12C.6A, subsection 3, paragraph b, Code 2 25 2001, is amended to read as follows: 2 26 b. To receive challenges from any person to a financial 2 27 institution's continued eligibility to receivestatepublic 2 28 funds. 2 29 Sec. 6. Section 12C.19, subsection 1, Code 2001, is 2 30 amended to read as follows: 2 31 1. Securities pledged pursuant to this chapter may be 2 32 withdrawn on application of the pledging depository 2 33 institution, and as to securities pledged by a credit union, 2 34 upon approval of the public officer to whom the securities are 2 35 pledged, if the deposit of securities is no longer necessary 3 1 to comply with this chapter, or is required for collection by 3 2 virtue of its maturity or for exchange. The depository 3 3 institution shall replace securities so withdrawn for 3 4 collection or exchange. 3 5 Sec. 7. NEW SECTION. 12C.20 PUBLIC FUND REPORTS. 3 6 1. On or before the tenth day of February, May, August, 3 7 and November of each year, each savings and loan and each out- 3 8 of-state bank that has one or more branches in the state shall 3 9 calculate and certify to the superintendent of banking in the 3 10 form prescribed by the superintendent the amount of public 3 11 funds on deposit at the savings and loan and at each such 3 12 branch of the out-of-state bank as of the end of the previous 3 13 calendar quarter. 3 14 2. A bank shall, upon request of the superintendent, 3 15 certify to the superintendent the amount of public funds on 3 16 deposit at the bank and at each branch of an out-of-state bank 3 17 on any day specified by the superintendent in such request. 3 18 3. The superintendent may at any time make such 3 19 investigation as the superintendent deems necessary and 3 20 appropriate to verify the information provided to the 3 21 superintendent pursuant to subsections 1 and 2. 3 22 4. On or before the twentieth day of February, May, 3 23 August, and November of each year, the superintendent shall 3 24 notify the treasurer of state of the amount of collateral 3 25 required to be pledged as of the end of the previous calendar 3 26 quarter based upon the certification provided to the 3 27 superintendent under subsection 1 or 2 and a review by the 3 28 superintendent of the quarterly call report filed by each bank 3 29 that is not a savings and loan or an out-of-state bank. 3 30 Sec. 8. NEW SECTION. 12C.22 REQUIRED COLLATERAL – 3 31 BANKS. 3 32 1. A bank shall pledge to the treasurer of state the 3 33 amount of collateral required under subsection 2 by depositing 3 34 the collateral in restricted accounts at a financial 3 35 institution that has been designated by the treasurer of state 4 1 and that is not owned or controlled directly or indirectly by 4 2 the bank pledging the collateral or any affiliate of the bank 4 3 as defined in section 524.1101. Each bank shall execute as 4 4 debtor and deliver to the treasurer of state a security 4 5 agreement and such other documents, instruments, and 4 6 agreements in form approved by the treasurer of state as are 4 7 required to grant to the treasurer of state, as secured party 4 8 in its capacity as agent for the depositors of all public 4 9 funds from time to time deposited in the bank, a perfected 4 10 security interest in the collateral described in the security 4 11 agreement. The security agreement shall among other 4 12 provisions contain all of the following provisions: 4 13 a. A security interest in the collateral is granted as 4 14 collateral for the obligation of the bank to repay all 4 15 uninsured public funds deposited in the bank. 4 16 b. The security interest in the collateral is also granted 4 17 as collateral security for the obligation of the bank to repay 4 18 the uninsured public funds deposited in a closed bank by 4 19 paying an assessment to the treasurer of state to the extent 4 20 required under section 12C.23A, subsection 3. 4 21 c. In the event an assessment is paid by a bank to the 4 22 treasurer of state pursuant to section 12C.23A, or in the 4 23 event that collateral pledged by the bank is liquidated 4 24 pursuant to section 12C.23A, subsection 3, paragraph "e", and 4 25 the proceeds are used to pay the assessment, the bank is 4 26 subrogated to the claim of a public funds depositor to the 4 27 extent the claim is paid from funds paid by the bank or 4 28 proceeds of collateral pledged by the bank are used to pay the 4 29 assessment. 4 30 d. The treasurer of state is appointed as agent of the 4 31 bank to assert the claim on behalf of the bank as subrogee. 4 32 Any amount recovered by the treasurer by reason of the claim 4 33 shall be deposited in the state sinking fund for public 4 34 deposits in banks. 4 35 2. The amount of the collateral required to be pledged by 5 1 a bank shall at all times equal or exceed the total of the 5 2 amount by which the public funds deposits in the bank exceeds 5 3 the total capital of the bank. For purposes of this chapter, 5 4 unless the context otherwise requires, "total capital of the 5 5 bank" means its tier one capital plus both of the following 5 6 components of tier two capital: 5 7 a. Qualifying subordinated debt and redeemable preferred 5 8 stock. 5 9 b. Cumulative perpetual preferred stock. 5 10 3. The amount of collateral pledged by an out-of-state 5 11 bank that operates a branch in Iowa shall be calculated in 5 12 accordance with the following formula: 5 13 a. Total deposits of the bank. 5 14 b. Total deposits in Iowa branches of the bank. 5 15 c. The total of paragraph "b" divided by the total of 5 16 paragraph "a", in order to establish the deposits of Iowa 5 17 branches as a percentage of total deposits. 5 18 d. Total capital of the bank as defined in subsection 2. 5 19 e. The total of paragraph "d" multiplied by the total of 5 20 paragraph "c", in order to establish Iowa branch capital. 5 21 f. Total public funds deposits in the bank. 5 22 g. The excess of the total of paragraph "f" over the total 5 23 of paragraph "e", if any. 5 24 4. The value of the collateral shall be its market value. 5 25 5. The treasurer of state shall adopt rules pursuant to 5 26 chapter 17A to administer this section, including rules to do 5 27 the following: 5 28 a. Designate not less than four financial institutions 5 29 that may be custodians of collateral pledged under this 5 30 chapter and establish regulations for qualification and 5 31 compliance by the custodians and remedies and sanctions for 5 32 noncompliance by the custodians. 5 33 b. Establish requirements for reporting to the treasurer 5 34 of state by a financial institution of the amount and value of 5 35 collateral held by the financial institution as custodian of 6 1 collateral for the uninsured public funds on deposit in a 6 2 bank. 6 3 c. Establish procedures for the valuation of collateral 6 4 that does not have a readily ascertainable market value. 6 5 d. Establish procedures for substituting different 6 6 collateral for collateral pledged under this section. 6 7 e. Establish procedures to determine the amount of the 6 8 uninsured public funds of each bank or branch of an out-of- 6 9 state bank as of the date of closing of a closed bank and the 6 10 amount of the assessment to be made upon each bank. 6 11 f. Establish additional procedures necessary to administer 6 12 this chapter and other rules as may be necessary to accomplish 6 13 the purposes of this chapter. 6 14 g. Provide forms and procedures for compliance with this 6 15 chapter, including electronic compliance. 6 16 h. Establish amounts and procedures for payment of fees to 6 17 cover the costs of administration of this chapter. 6 18 6. The collateral used to secure public deposits shall be 6 19 in one or more of the following forms acceptable to the 6 20 treasurer of state: 6 21 a. Investment securities and shares in which a bank is 6 22 permitted to invest under section 524.901, subsections 1, 2, 6 23 and 3. 6 24 b. Investment securities, as defined in section 524.901, 6 25 subsection 1, paragraph "a", representing general obligations 6 26 of a state or a political subdivision of a state that is 6 27 geographically contiguous with the state, provided that such 6 28 investment securities are rated within the four highest grades 6 29 according to a reputable rating service or represent unrated 6 30 issues of equivalent value. 6 31 c. Investment securities, as defined in section 524.901, 6 32 subsection 1, paragraph "a", representing general obligations 6 33 of a state or a political subdivision of a state that is not 6 34 contiguous with the state, provided that such investment 6 35 securities are rated within the two highest grades according 7 1 to a reputable rating service. 7 2 d. Nontransferable letters of credit upon which the 7 3 payment of principal and interest is fully secured or 7 4 guaranteed by the United States of America or an agency or 7 5 instrumentality, including government-sponsored enterprises of 7 6 the United States of America. 7 7 e. Private insurance policies or bonds written by 7 8 companies approved by the superintendent. 7 9 7. A bank may borrow collateral to be pledged under 7 10 subsection 2 if the collateral is free of any liens, security 7 11 interests, claims, or encumbrances. 7 12 Sec. 9. Section 12C.23A, Code 2001, is amended to read as 7 13 follows: 7 14 12C.23A PAYMENT OF LOSSES IN A BANK. 7 15 1. The acceptance of public funds by a bank pursuant to 7 16 this chapter constitutesconsentall of the following: 7 17 a. Agreement by the bank to pledge collateral as required 7 18 by section 12C.22. 7 19 b. Consent by the bank to the disposition of the 7 20 collateral in accordance with this section. 7 21 c. Consent by the bank to assessments by the treasurer of 7 22 state in accordance with this chapter. 7 23 d. Agreement by the bank to provide accurate information 7 24 and to otherwise comply with the requirements of this chapter. 7 25 2.TheA bank is liable for payment if the bank fails to 7 26 pay a check, draft, or warrant drawn bythe public officera 7 27 public funds depositor or to account for a check, draft, 7 28 warrant, order, orcertificatescertificate of deposit, or any 7 29 public funds entrusted toitthe bank if, in failing to pay, 7 30 the bank acts contrary to the terms of an agreement between 7 31 the bank and the publicbody treasurerfunds depositor. The 7 32 bank is also liable to the treasurer of state for payment if 7 33 the bank fails to pay an assessment by the treasurer of state 7 34 under subsection 3 when the assessment is due. 7 35 3. If a bank is closed by its primaryregulatory officials8 1 state or federal regulator,the public bodyeach public funds 8 2 depositor with deposits in the bank shall notify the treasurer 8 3 of state of the amount of any claim within thirty days of the 8 4 closing. The treasurer of state shall implement the following 8 5 procedures: 8 6 a. In cooperation with the responsible regulatory 8 7 officials for the closed bank, the treasurer shall validate 8 8 the amount of public funds on deposit at thedefaultingclosed 8 9 bank and the amount of deposit insurance applicable to the 8 10 deposits. 8 11 b.The recovery of anyAny loss topublica public funds 8 12depositorsdepositor shallbegin with applicablebe satisfied 8 13 first by any federal deposit insurance, then by the sale or 8 14 other disposition of collateral pledged by the closed bank, 8 15 then from the assets of the closed bank.TheTo the extent 8 16 permitted by federal law, the priority of claims are those 8 17 established pursuant to section 524.1312, subsection 2. To 8 18 the extent permitted by federal law, in the distribution of an 8 19 insolvent federally chartered bank's assets, the order of 8 20 payment of liabilities, if its assets are insufficient to pay 8 21 in full all its liabilities for which claims are made, shall 8 22 be in the same order as for astate-charteredstate bank as 8 23 provided in section 524.1312, subsection 2. 8 24 c. The claim of a public funds depositor for purposes of 8 25 this section shall be the amount of the depositor's public 8 26 funds deposits plus interest to the date the funds are 8 27 distributed to the public funds depositor at the rate the bank 8 28 agreed to pay on the public funds reduced by the portion of 8 29 the public fundswhichthat is insured by federal deposit 8 30 insurance. 8 31 d. If the losstoof public funds is not covered by 8 32 federal deposit insurance and the proceeds of thefailed8 33 closed bank's assetswhichthat are liquidated within thirty 8 34 days of the closing of the bank are not sufficient to cover 8 35 the loss, then any further payments to cover the loss will 9 1 come from the state sinking fund for public deposits in banks. 9 2 If the balance in that sinking fund is inadequate to pay the 9 3 entire loss, then the treasurer shall obtain the additional 9 4 amount needed by making an assessment against other banks 9 5 whose public funds deposits exceed federal deposit insurance 9 6 coverage. A bank's assessment shall be determined by 9 7 multiplying the total amount of the remaining loss to all 9 8 public depositors in the closed bank by a percentage that 9 9 representsthatthe assessed bank's proportional share of the 9 10 total of uninsured public funds deposits held by all banks and 9 11 all branches of out-of-state banks, based upon the average of 9 12 the uninsured public funds of the assessed bank or branch of 9 13 an out-of-state bank as of the end of the four calendar 9 14 quarters prior to the date of closing of the closed bank and 9 15 the average of the uninsured public funds in all banks and 9 16 branches of out-of-state banks as of the end of the four 9 17 calendar quarters prior to the date of closing of the closed 9 18 bank, excluding the amount of uninsured public funds held by 9 19 the closed bank at the end of the four calendar quarters held 9 20 by the closed bank. Each bank shall pay its assessment to the 9 21 treasurer of state within three business days after it 9 22 receives notice of assessment. 9 23 e. If a bank fails to pay its assessment when due, the 9 24 treasurer of state shallinitiate a lawsuit to collectsatisfy 9 25 the assessment by liquidating collateral pledged by the bank 9 26 upon such notice as is required by chapter 554. If the 9 27 collateral pledged by the bank is inadequate to pay the 9 28 assessment, the treasurer of state shall make additional 9 29 assessments as may be necessary against other banks that hold 9 30 uninsured public funds to satisfy any unpaid assessment. Any 9 31 additional assessments shall be determined, collected, and 9 32 satisfied in the same manner as the first assessment except 9 33 that in calculating the amount of each such additional 9 34 assessment, the amount of uninsured public funds held by the 9 35 bank that fails to pay the assessment shall not be counted. 10 1 f. If the treasurer of state liquidates collateral pledged 10 2 by a bank, the bank shall within three business days following 10 3 receipt of notice from the treasurer of state deposit 10 4 additional collateral to provide the collateral required under 10 5 section 12C.22. 10 6 g. If a bank fails to pay its assessment when due and the 10 7 proceeds from liquidation of the collateral pledged by the 10 8 bank are not sufficient to pay the assessment against the 10 9 bank, the treasurer of state shall notify the superintendent 10 10 or the comptroller of the currency, as applicable, of the 10 11 failure to pay the assessment. If the bank that has failed to 10 12 pay the assessment is a nationally chartered financial 10 13 institution, the superintendent shall immediately notify the 10 14 bank's primary federal regulator. If the assessment is not 10 15 paid within thirty days after the bank received the notice of 10 16 assessment, the treasurer of state shall initiate a lawsuit to 10 17 collect the amount of the assessment. If a bank is found to 10 18 have failed to pay the assessment as required by this 10 19paragraph,subsection and is ordered to pay the assessment, 10 20 the court shall also orderit tothat the bank paythe10 21assessment,court costs,and reasonable attorney fees based on 10 22 the amount of time the attorney general's office spent 10 23 preparing and bringing the action, and reasonable expenses 10 24 incurred by the treasurer of state.Idle balances in the fund10 25shall be invested by the treasurer with earnings credited to10 26the fund. Fees paid by banks for administration of this10 27chapter shall be credited to the fund and the treasurer may10 28deduct actual costs of administration from the fund.10 29e.h. Following collection of the assessments, thestate10 30 treasurer of state shall distribute funds to the public 10 31 depositors of thefailedclosed bank according to their 10 32 validated claims unless a public depositor requests in writing 10 33 that the claims of other public depositors be paid prior to 10 34 payment to the public depositor making the request.If the10 35assets available are less than the total deposits, the11 1treasurer shall prorate the claims. A public depositorBy 11 2 receiving payment under this section, a public depositor shall 11 3assignbe deemed to have assigned to the treasurer of state 11 4 anyinterestclaim the public depositor may have against the 11 5 closed bank by reason of the deposit of its public funds and 11 6 all rights the public depositor may have in funds that 11 7 subsequently become available to depositors of thedefaulting11 8 closed bank. 11 9 Sec. 10. Section 12C.24, Code 2001, is amended to read as 11 10 follows: 11 11 12C.24 LIABILITY. 11 12 When public deposits are made in accordance with this 11 13 chapter in a financial institution that is eligible to accept 11 14 public funds deposits at the time a deposit of public funds is 11 15 made, a public body depositing public fundsor its agents,11 16employees, officers, and board members are, and any person 11 17 that is an agent, employee, officer, or board member of the 11 18 public funds depositor, is exempt from liability for any loss 11 19 resulting from the loss ofa depositorypublic funds in the 11 20 absence of negligence, malfeasance, misfeasance, or 11 21 nonfeasance on the part of theofficialpublic body or such 11 22 person.If the treasurer of state sells a depository's11 23collateral securities, the depository shall deposit additional11 24collateral to meet required collateral levels.11 25In making an assessment against depositories holding public11 26funds as a result of a failure, the treasurer of state is11 27exempt from any liability for loss, damage or expense to a11 28depository which has accepted public funds.11 29 Sec. 11. Section 12C.25, Code 2001, is amended by adding 11 30 the following new unnumbered paragraph after subsection 2: 11 31 NEW UNNUMBERED PARAGRAPH. Idle balances in the state 11 32 sinking fund for public deposits in banks shall be invested by 11 33 the treasurer of state with earnings credited to that fund. 11 34 Fees paid by banks for administration of this chapter shall be 11 35 credited to the state sinking fund for public deposits in 12 1 banks and the treasurer of state may deduct actual costs of 12 2 administration from that fund. 12 3 Sec. 12. Section 12C.26, Code 2001, is amended by striking 12 4 the section and inserting in lieu thereof the following: 12 5 12C.26 REFUND FROM SINKING FUNDS. 12 6 1. If at the end of any calendar year the amount in the 12 7 sinking fund exceeds three million one hundred thousand 12 8 dollars, then to the extent the amount in the sinking fund 12 9 exceeds three million dollars, the treasurer shall, on or 12 10 before January 31 of the following year, refund to each bank 12 11 that paid an assessment after the year 1999 to the sinking 12 12 fund resulting from the closing of a bank, its pro rata share 12 13 of the unreimbursed portion of the total assessment paid by 12 14 all banks. If assessments remain unreimbursed by reason of 12 15 the closing of more than one bank, the reimbursements shall be 12 16 made to the banks that paid assessments by reason of the bank 12 17 which closed first until those banks are reimbursed in full, 12 18 and then to the banks that paid assessments by reason of the 12 19 bank which closed next. Such a refund shall not be made to a 12 20 bank if the refund would exceed the amount of previous 12 21 assessments paid by the bank. 12 22 2. Upon recovery of a loss of public funds due to a closed 12 23 credit union, the treasurer of state may refund all or a 12 24 portion of the recovered amount to the credit unions that paid 12 25 an assessment under this chapter as a result of the closing of 12 26 that credit union. 12 27 Sec. 13. NEW SECTION. 12C.27 FAILURE TO MAINTAIN 12 28 REQUIRED COLLATERAL. 12 29 If a bank fails to maintain the amount of collateral 12 30 subject to a perfected security interest held by the treasurer 12 31 of state required to comply with section 12C.22, subsections 2 12 32 and 3, the treasurer of state shall notify the bank of the 12 33 amount of additional collateral required. If the bank fails 12 34 to provide the additional required collateral within ten days 12 35 following the date the notice is given, the treasurer shall 13 1 notify the office of thrift supervision, the office of the 13 2 comptroller of the currency, or the superintendent as 13 3 applicable, who may take such action against the bank, its 13 4 board of directors and officers as permitted by law. 13 5 Sec. 14. NEW SECTION. 12C.28 ELECTRONIC REPORTING. 13 6 Any notice, information, report, or other communication 13 7 required by this chapter shall be deemed effective and in 13 8 compliance with this chapter if sent or given electronically 13 9 as provided in rules adopted pursuant to chapter 17A by the 13 10 superintendent or the treasurer of state. 13 11 Sec. 15. Section 524.213, Code 2001, is amended to read as 13 12 follows: 13 13 524.213 DUTIES AND POWERS OF SUPERINTENDENT. 13 14 The superintendent shall have general control, supervision 13 15 and regulation of all state banks and shall be charged with 13 16 the administration and execution of the laws of this state 13 17 relating to banks and banking and with such other duties and 13 18 responsibilities as are imposed upon the superintendent by the 13 19 laws of this state. The superintendent shall have power to 13 20 adopt and promulgate such rules and regulations asin the13 21superintendent's opinion will benecessary toproperly and13 22effectivelycarry out and enforce, properly and effectively, 13 23 the provisions of this chapter and chapter 12C applicable to 13 24 banks. 13 25 Sec. 16. Section 524.223, Code 2001, is amended to read as 13 26 follows: 13 27 524.223 POWER OF SUPERINTENDENT TO ISSUE ORDERS. 13 28 1. Whenever it shall appear to the superintendent that a 13 29 state bank is engaging or has engaged, or the superintendent 13 30 has reasonable cause to believe that the state bank is about 13 31 to engage, in an unsafe or unsound practice in conducting the 13 32 business of such state bank, or is violating or has violated, 13 33 or the superintendent has reasonable cause to believe that the 13 34 state bank is about to violate, any provision of this chapter 13 35 or of any regulation adopted pursuant to this chapter, or any 14 1 condition imposed in writing by the superintendent in 14 2 connection with the approval of any matter required by this 14 3 chapter, or any written agreement entered into with the 14 4 superintendent, or any provision of chapter 12C or any rules 14 5 adopted pursuant to chapter 12C, the superintendent may issue 14 6 and serve upon the state bank a notice containing a statement 14 7 of the facts constituting the alleged violation or violations, 14 8 or the unsafe or unsound practice or practices, and fixing a 14 9 time and place at which a hearing will be held to determine 14 10 whether an order to cease and desisttherefromshould be 14 11 issued to the state bank. 14 12 2. If the state bank fails to appear at the hearing it 14 13 shall be deemed to have consented to the issuance of a cease 14 14 and desist order. In the event of such consent, or if upon 14 15 the record made at such hearing, the superintendent shall find 14 16 that any violation or unsafe or unsound practice specified in 14 17 the notice has been established, the superintendent may issue 14 18 and serve upon the bank an order to cease and desist from any 14 19 such violation or practice. Such order may require the state 14 20 bank and its directors, officers and employees to cease and 14 21 desist from any such violation or practice and, further, to 14 22 take affirmative action to correct the conditions resulting 14 23 from any such violation or practice. In addition, if the 14 24 violation or practice involves a failure to comply with 14 25 chapter 12C or any rules adopted pursuant to chapter 12C, the 14 26 superintendent may recommend to the committee established 14 27 under section 12C.6 that the bank be removed from the list of 14 28 financial institutions eligible to accept public funds under 14 29 section 12C.6A and may require that during the current 14 30 calendar quarter and up to the next succeeding eight calendar 14 31 quarters that the bank do any one or more of the following: 14 32 a. Not accept public funds deposits. 14 33 b. Return to the depositors some or all uninsured public 14 34 funds held in demand deposits and, when deposit instruments or 14 35 agreements mature, return to the depositors some or all 15 1 deposits representing proceeds of such instruments or 15 2 agreements. 15 3 c. Pledge collateral to the treasurer of state having a 15 4 value at all times up to one hundred ten percent of the public 15 5 funds held by the bank. 15 6 d. Comply with such other requirements as the 15 7 superintendent may impose. 15 8 3. Any order issued pursuant to this section shall become 15 9 effective upon servicethereofof the order on the state bank 15 10 and shall remain effective except to such extent that it is 15 11 stayed, modified, terminated, or set aside by action of the 15 12 superintendent or of the district court of the county in which 15 13 the state bank has its principal place of business. 15 14 4. The superintendent may apply to the district court of 15 15 the county in which the state bank has its principal place of 15 16 business for the enforcement of any order pursuant to this 15 17 section and such court shall have jurisdiction and power to 15 18 order and require compliancetherewith. 15 19 Sec. 17. EFFECTIVE DATE AND APPLICABILITY. This Act takes 15 20 effect on July 1, 2002, with the following exceptions: 15 21 1. Certification to the superintendent under section 15 22 12C.20, subsection 1, shall not be required until January 31, 15 23 2003. 15 24 2. Notification by the superintendent to the treasurer of 15 25 state under section 12C.20, subsection 4, shall not be 15 26 required until April 30, 2003. 15 27 3. The pledging of collateral to the treasurer of state 15 28 pursuant to section 12C.22 shall not be required until July 1, 15 29 2003. 15 30 15 31 15 32 15 33 BRENT SIEGRIST 15 34 Speaker of the House 15 35 16 1 16 2 16 3 MARY E. KRAMER 16 4 President of the Senate 16 5 16 6 I hereby certify that this bill originated in the House and 16 7 is known as House File 681, Seventy-ninth General Assembly. 16 8 16 9 16 10 16 11 MARGARET THOMSON 16 12 Chief Clerk of the House 16 13 Approved , 2002 16 14 16 15 16 16 16 17 THOMAS J. VILSACK 16 18 Governor
Text: HF00680 Text: HF00682 Text: HF00600 - HF00699 Text: HF Index Bills and Amendments: General Index Bill History: General Index
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