House Journal: Page 944: Monday, March 25, 2002
44 from funds paid by the bank or proceeds of collateral
45 pledged by the bank are used to pay the assessment."
46 10. Page 3, line 14, by inserting after the word
47 "agent" the following: "of the bank".
48 11. By striking page 3, line 19, through page 5,
49 line 33, and inserting the following:
50 "2. The amount of the collateral required to be
Page 3
1 pledged by a bank shall at all times equal or exceed
2 the total of the amount by which the public funds
3 deposits in the bank exceeds the total capital of the
4 bank. For purposes of this chapter, unless the
5 context otherwise requires, "total capital of the
6 bank" means its tier one capital plus both of the
7 following components of tier two capital:
8 a. Qualifying subordinated debt and redeemable
9 preferred stock.
10 b. Cumulative perpetual preferred stock.
11 3. The amount of collateral pledged by an out-of-
12 state bank that operates a branch in Iowa shall be
13 calculated in accordance with the following formula:
14 a. Total deposits of the bank.
15 b. Total deposits in Iowa branches of the bank.
16 c. The total of paragraph "b" divided by the total
17 of paragraph "a", in order to establish the deposits
18 of Iowa branches as a percentage of total deposits.
19 d. Total capital of the bank as defined in
20 subsection 2.
21 e. The total of paragraph "d" multiplied by the
22 total of paragraph "c", in order to establish Iowa
23 branch capital.
24 f. Total public funds deposits in the bank.
25 g. The excess of the total of paragraph "f" over
26 the total of paragraph "e", if any.
27 4. The value of the collateral shall be its market
28 value.
29 5. The treasurer of state shall adopt rules
30 pursuant to chapter 17A to administer this section,
31 including rules to do the following:
32 a. Designate not less than four financial
33 institutions that may be custodians of collateral
34 pledged under this chapter and establish regulations
35 for qualification and compliance by the custodians and
36 remedies and sanctions for noncompliance by the
37 custodians.
38 b. Establish requirements for reporting to the
39 treasurer of state by a financial institution of the
40 amount and value of collateral held by the financial
41 institution as custodian of collateral for the
42 uninsured public funds on deposit in a bank.
© 2002 Cornell College and
League of Women Voters of Iowa
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