House File 131 H-1016 Amend House File 131 as follows: 1 1. Page 1, line 21, after < loan bank > by inserting < of Des 2 Moines, Iowa > 3 2. Page 1, line 22, by striking < activities are > 4 and inserting < activities are capital level remains 5 well-capitalized pursuant to 12 C.F.R. pt. 704 and is > 6 3. Page 1, lines 27 and 28, by striking < and whose capital 7 level remains well-capitalized pursuant to 12 C.F.R. pt. 704 > 8 4. Page 1, line 30, by striking < shall may > and inserting 9 < shall > 10 5. Page 1, after line 31 by inserting: 11 < Sec. ___. Section 12C.16, Code 2023, is amended by adding 12 the following new subsection: 13 NEW SUBSECTION . 3. If the credit rating of the national 14 cooperative bank or the federal home loan bank of Des Moines, 15 Iowa, is lowered to a rating not within the two highest 16 classifications of prime as established by at least one of 17 the standard rating services approved by the superintendent 18 of banking by rule pursuant to chapter 17A, or a corporate 19 credit union’s capital levels fall below the well-capitalized 20 standard in 12 C.F.R. pt. 704, then the national cooperative 21 bank, federal home loan bank of Des Moines, Iowa, or corporate 22 credit union shall immediately notify the treasurer of state 23 and each credit union that is securing public deposits by use 24 of a letter of credit issued by the bank or corporate credit 25 union. Each credit union, upon such a notification from the 26 national cooperative bank, federal home loan bank of Des 27 Moines, Iowa, corporate credit union, or treasurer of state, 28 shall immediately return the deposits, with interest accrued to 29 the date of notification, to the public units that are secured 30 by letter of credit. 31 Sec. ___. Section 12C.17, subsection 1, paragraph c, Code 32 2023, is amended to read as follows: 33 c. The securities shall be deposited with the federal 34 reserve bank, national cooperative bank, the federal home loan 35 -1- HF 131.264 (2) 90 es/rn 1/ 3 #1. #2. #3. #4. #5.

bank of Des Moines, Iowa, a corporate central credit union 1 organized under section 533.213 , or a corporate credit union 2 whose activities are subject to regulation by the national 3 credit union administration pursuant to a bailment agreement 4 or a pledge custody agreement. > 5 6. Page 2, after line 4 by inserting: 6 < Sec. ___. Section 533.205, Code 2023, is amended by adding 7 the following new subsections: 8 NEW SUBSECTION . 10. A director of a state credit union 9 shall not receive terms or be paid a rate of interest on 10 deposits by a state credit union of which the person is a 11 director that are more favorable than that provided to any 12 other member under similar circumstances. Any waiver of 13 ordinary or customary charges related to deposit accounts shall 14 not violate this subsection. 15 NEW SUBSECTION . 11. A director of a state credit union 16 shall not purchase any assets from, lease any assets from, sell 17 any assets to, or lease any assets to a state credit union 18 of which the person is a director except upon terms not less 19 favorable to the state credit union than those offered to or 20 by other persons. All purchases from, leases from, sales to, 21 and leases to a director shall receive prior approval from the 22 majority of the board of directors voting in the absence of the 23 interested director. 24 NEW SUBSECTION . 12. A director of a state credit union 25 shall not receive anything of value, other than compensation 26 and expense reimbursement authorized by this section, for 27 procuring, or attempting to procure, any loan or extension 28 of credit to the state credit union or for procuring, or 29 attempting to procure, an investment by the state credit 30 union. > 31 7. Page 4, by striking lines 2 and 3 and inserting: 32 < c. Shares or equity interests of any corporation or 33 other entity which develops or utilizes new or innovative 34 technologies that are or may be applicable to the provision of 35 -2- HF 131.264 (2) 90 es/rn 2/ 3 #6. #7.

financial services or products, subject to the approval of the 1 superintendent. > 2 8. By renumbering as necessary. 3 ______________________________ MOHR of Scott -3- HF 131.264 (2) 90 es/rn 3/ 3 #8.