House File 328 H-1102 Amend House File 328 as follows: 1 1. Page 4, after line 12 by inserting: 2 < Sec. ___. Section 533D.9, subsection 2, paragraph 3 b, Code 2011, is amended to read as follows: 4 b. The annual percentage rate as computed pursuant 5 to the federal Truth in Lending Act. The annual 6 percentage rate shall not exceed thirty-six percent, 7 as computed pursuant to the federal Truth in Lending 8 Act, unless a licensee makes an election and submits to 9 the indebtedness limitations and electronic database 10 reporting requirements specified in section 533D.10A. 11 Sec. ___. Section 533D.9, subsection 2, Code 2011, 12 is amended by adding the following new paragraph: 13 NEW PARAGRAPH . e. That the licensee cannot 14 initiate debt collection procedures, civil court 15 proceedings, or arbitration to collect an unpaid check 16 unless the licensee has provided the maker of the check 17 the opportunity to repay the obligation without any 18 additional charges, other than the penalty provided in 19 paragraph “d” of this subsection, in biweekly payments 20 of not more than ten percent of the face of the check 21 until the debt is paid in full. Additionally, that 22 during this repayment period the licensee may not 23 transfer or sell the debt owing on the unpaid check, 24 and the loan shall not be considered to be in default. 25 Further, that the maker of the check’s failure to make 26 a biweekly payment under this paragraph shall place 27 the loan in default and the licensee may, after proper 28 notice, exercise rights against the maker under the 29 law. 30 Sec. ___. Section 533D.10, subsection 1, Code 2011, 31 is amended to read as follows: 32 1. A licensee shall not do any of the following: 33 a. Hold from any one maker more than two checks at 34 any one time. 35 b. Hold from any one maker a check or checks in an 36 aggregate face amount of more than five hundred dollars 37 at any one time. 38 c. Hold or agree to hold a check for more less than 39 thirty-one fourteen days. 40 d. Require the maker to receive payment by a method 41 which causes the maker to pay additional or further 42 fees and charges to the licensee or another person. 43 e. Repay, refinance, or otherwise consolidate 44 a postdated check transaction with the proceeds of 45 another postdated check transaction made by the same 46 licensee. A licensee may not enter into another 47 delayed deposit services transaction with the maker of 48 a check if the licensee presently has a transaction 49 outstanding with the maker or if the maker had a 50 -1- HF328.583 (2) 84 rn/sc 1/ 4 #1.

previous transaction with the licensee within two 1 days of the new transaction, unless the licensee has 2 provided the following notice both verbally and in 3 writing, and the maker has acknowledged receipt of the 4 notice with a signature and date: 5 Notice to Borrower 6 (1) The licensee may not repay, refinance, or 7 otherwise consolidate a postdated check transaction 8 with the proceeds of another postdated check 9 transaction made by the same licensee. 10 (2) While a licensee may charge a penalty if a 11 check is not negotiable on the date agreed upon, the 12 penalty shall not exceed fifteen dollars. This penalty 13 shall only be collected by the licensee once on a 14 check no matter how long that check remains unpaid. 15 This penalty is the only additional charge a lender 16 may charge you (the borrower) when a check is not 17 negotiable on the date agreed upon. 18 (3) If your check is not negotiable on the date 19 agreed upon, the licensee must provide you (the 20 borrower) the opportunity to repay the obligation 21 without any additional charges, other than the penalty 22 described above, in biweekly payments of not more than 23 ten percent of the face of the check until the debt is 24 paid in full. 25 By signing and dating this notice, you acknowledge 26 the statements above, but yet still desire to obtain 27 another loan with the licensee. 28 Borrower(s) signature: _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ Date: _ _ _ _ _ _ _ _ 29 Borrower(s) signature: _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ Date: _ _ _ _ _ _ _ _ 30 f. Receive any other charges or fees in addition to 31 the fees listed in section 533D.9 , subsections 1 and 2 . 32 g. Initiate debt collection procedures, civil 33 court proceedings, or civil or private arbitration 34 proceedings to collect an unpaid check unless the 35 licensee has provided the maker the opportunity to 36 repay the obligation without any additional charges, 37 other than the penalty provided in section 533D.9, 38 subsection 2, paragraph “d” , in biweekly payments of 39 not more than ten percent of the face of the check 40 until the debt is paid in full. During this repayment 41 period the licensee may not transfer or sell the debt 42 owing on the unpaid check, and the loan shall not be 43 considered to be in default. The failure of the maker 44 of the check to make a biweekly payment as required 45 shall place the loan in default and the licensee may, 46 after proper notice, exercise rights against the maker 47 under the law. 48 Sec. ___. NEW SECTION . 533D.10A Alternative annual 49 percentage rate —— indebtedness limitation —— electronic 50 -2- HF328.583 (2) 84 rn/sc 2/ 4

database. 1 1. A licensee may elect to impose an annual 2 percentage rate, as computed pursuant to the federal 3 Truth in Lending Act, which exceeds thirty-six percent 4 by filing with the superintendent a written notice of 5 intent. An election pursuant to this section shall 6 apply to all delayed deposit services transactions 7 entered into by the licensee. A licensee having made 8 an election pursuant to this section who desires to 9 discontinue imposition of an alternative interest rate 10 and consents to imposition of the thirty-six percent 11 annual percentage rate otherwise applicable under 12 this chapter, or a licensee previously imposing an 13 annual percentage rate not exceeding thirty-six percent 14 who desires to make an election pursuant to this 15 subsection, may submit a request to the superintendent, 16 not more than once a year. 17 2. A licensee electing to impose an alternative 18 annual percentage rate pursuant to this section 19 shall be prohibited from entering into a delayed 20 deposit services transaction which will cause the 21 maker of the check, when all other delayed deposit 22 services transactions entered into with any licensee 23 involving the maker of the check are accounted for, 24 and when the term of the transaction is aggregated 25 with the other transactions, to be indebted for a 26 period exceeding ninety days during the preceding 27 twelve-month period. For purposes of this paragraph, 28 if the maker of the check has entered into more than 29 one delayed deposit services transaction with the 30 same or another licensee, and the periods during which 31 the transactions are outstanding overlap, each day 32 of each respective transaction shall be counted in 33 satisfying the ninety-day restriction. For purposes 34 of this subsection, if a maker of a check is making 35 biweekly payments during a repayment period as provided 36 in section 533D.9, subsection 2, paragraph “e” , the 37 repayment period shall not be counted in satisfying the 38 ninety-day restriction. 39 3. a. Each licensee making an election pursuant to 40 this section shall, by October 1, 2011, subscribe to, 41 report to, and utilize an electronic database tracking 42 service to be developed or selected pursuant to rules 43 adopted by the banking division of the department 44 of commerce, that permits the licensee to determine 45 whether a maker of a check has an outstanding unpaid 46 check or debit authorization that is, or reasonably 47 appears to be, connected to a delayed deposit services 48 transaction. Each licensee shall require a maker 49 of a check to sign a written declaration confirming 50 -3- HF328.583 (2) 84 rn/sc 3/ 4

that, pursuant to section 533D.10A, subsection 2, the 1 maker of the check is eligible to enter into a delayed 2 deposit services transaction. 3 b. Records of a licensee and the electronic 4 database tracking service shall be subject to review 5 and examination by the division to determine whether 6 the licensee is in compliance with this section and 7 other applicable provisions of this chapter. 8 c. Information, records, and documents obtained 9 in the performance of the review and examination, 10 including the amount of any outstanding unpaid check or 11 debit authorization and the identity of the maker of 12 the check, are confidential and shall not be disclosed 13 by the division and are not subject to subpoena. Such 14 information, records, and documents do not constitute 15 a public record under chapter 22. The superintendent 16 may disclose such information to representatives of 17 other state or federal regulatory authorities and 18 may release summary complaint information so long as 19 the information does not specifically identify the 20 complainant. The superintendent may also provide this 21 information to the attorney general for purposes of 22 enforcing this chapter. > 23 2. Page 5, by striking lines 18 and 19 and 24 inserting: 25 < Sec. ___. EFFECTIVE DATE. 26 1. The section of this Act amending section 524.904 27 takes effect upon enactment. 28 2. Section 533D.10A, subsection 2, as enacted in 29 this Act, takes effect October 1, 2011. > 30 ______________________________ PETERSEN of Polk -4- HF328.583 (2) 84 rn/sc 4/ 4 #2.