1. The treasurer of state shall accept or reject a linked investment loan package or any portion of the package based on the type or terms of the loan involved.
2. Upon acceptance of the linked investment loan package or any portion of the package, the treasurer of state shall place certificates of deposit with the eligible lending institution at a rate not more than three percent below the current market rate. After July 1, 1992, the treasurer of state shall not place a certificate of deposit with an eligible lending institution pursuant to this division, unless the certificate of deposit earns a rate of interest of at least two percent. When necessary, the treasurer may place certificates of deposit prior to acceptance of a linked investment loan package.
3. The eligible lending institution shall enter into an investment agreement with the treasurer of state, which shall include requirements necessary to carry out this division. The requirements shall reflect the market conditions prevailing in the eligible lending institution's lending area. The agreement may include a specification of the period of time in which the lending institution is to lend funds upon the placement of a linked investment, and shall include provisions for the certificates of deposit to be placed for one-year maturities that may be renewed for eight additional one-year periods. Interest shall be paid at the times determined by the treasurer of state.
86 Acts, ch 1096, § 6; 89 Acts, ch 234, § 6; 92 Acts, ch 1105, §1
Retroactive applicability of 1992 amendment to subsection 3; 92 Acts, ch 1105, § 4
© 1996 Cornell College and League of Women Voters of Iowa
Last update: Thu Feb 8 18:14:51 CST 1996