1. As a condition of exercising the privilege of utilizing a satellite terminal, a financial institution is liable to each of its customers for all losses incurred by the customer as a result of the transmission or recording of electronic impulses as a part of a transaction not authorized by the customer or to which the customer was not a party. However, if the financial institution has provided the customer with an access device for engaging in a transaction at a satellite terminal which is unique to the customer, and losses are incurred by the customer as a result of the theft, loss or other compromise of that access device, the liability of the financial institution pursuant to this section shall not include the first fifty dollars of any losses incurred prior to the time the customer notifies the financial institution of the theft, loss or compromise except that the financial institution shall have no liability if the losses are a result of the customer's fraudulent acts or omissions.
2. If, upon receipt of a periodic statement of account from a financial institution, a customer or member of the financial institution believes that the statement contains an error with respect to a transaction engaged in by such person through a satellite terminal, then such person shall, within sixty days of the date on which such statement was mailed or otherwise delivered by the financial institution, notify the financial institution by means of a writing which (a) sets forth or otherwise enables the financial institution to identify the member or customer and the number of the account in question; (b) indicates the customer's or member's belief that the statement contains an error with respect to a transaction engaged in by such person through a satellite terminal, and states the amount of the alleged error; and (c) sets forth the reasons for the person's belief that the statement contains such an error. Unless the action required in subsection 3 is taken prior to the end of the thirty-day period, the financial institution shall acknowledge in writing its receipt of the notice provided for in this subsection within thirty days of its actual receipt thereof.
3. Within ninety days of the financial institution's receipt of the notice described in subsection 2, it shall either:
a. Correct the account in question and provide the customer or member with written notification of the correction and, if the correction is not in the exact amount of the alleged error, provide such person with a written explanation of any difference between the alleged error and the correction made; or
b. Provide the customer or member with a written explanation, after having conducted an investigation of the matter, stating the reason the financial institution believes the statement is correct and, within thirty days of further written request of the customer or member, provide such person with a written copy of the record of the transaction in question, as maintained by the financial institution pursuant to section 527.7.
4. A financial institution which has received a notice specified in subsection 2 shall not, prior to its compliance with subsection 3, close the account concerning which the dispute exists or restrict transactions in such account which affect only the portion thereof which is not in dispute. A financial institution which has complied with the provisions of subsection 3 with respect to an alleged error concerning a transaction engaged in through a satellite terminal shall have no further responsibility under subsections 2 to 4 if the customer or member continues to make substantially the same allegation with respect to such error.
5. If the correction of any error relating to a transaction engaged in through a satellite terminal in an account of a customer or member results in a credit to such account, the financial institution shall additionally credit such account with any amount of interest which would have been paid to such customer or member by the financial institution except for the error, or which was paid by such person to the financial institution as a result of the error.
6. A financial institution which fails to comply with the provisions of subsections 2 to 5 shall be liable to the customer or member who has complied with such provisions for a civil penalty in the amount of fifty dollars.
[C77, 79, 81, § 527.8]
87 Acts, ch 158, §12; 89 Acts, ch 86, §15
Iowa General Assembly
Search: Iowa Code 1995
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