Senate File 2119

PAG LIN

  1  1                                             SENATE FILE 2119
  1  2
  1  3                             AN ACT
  1  4 RELATING TO OBLIGATIONS SECURED BY COLLATERAL REQUIRED TO BE
  1  5    PLEDGED BY BANKS TO THE TREASURER OF STATE IN ORDER TO
  1  6    SECURE THE DEPOSIT OF PUBLIC MONEYS, AND PROVIDING AN
  1  7    EFFECTIVE DATE.
  1  8
  1  9 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
  1 10
  1 11    Section 1.  Section 12C.22, subsection 1, paragraph b, Code
  1 12 2003, is amended by striking the paragraph.
  1 13    Sec. 2.  Section 12C.22, subsection 1, paragraph c, Code
  1 14 2003, is amended to read as follows:
  1 15    c.  In the event an assessment is paid by a bank to the
  1 16 treasurer of state pursuant to section 12C.23A, or in the
  1 17 event that collateral pledged by the bank is liquidated
  1 18 pursuant to section 12C.23A, subsection 3, paragraph "e", and
  1 19 the proceeds are used to pay the assessment, the bank is
  1 20 subrogated to the claim of a public funds depositor to the
  1 21 extent the claim is paid from funds paid by the bank or
  1 22 proceeds of collateral pledged by the bank are used to pay the
  1 23 assessment.
  1 24    Sec. 3.  Section 12C.22, subsection 5, paragraph d, Code
  1 25 2003, is amended to read as follows:
  1 26    d.  Establish procedures for adding collateral, releasing
  1 27 collateral, and substituting different collateral for
  1 28 collateral pledged under this section.
  1 29    Sec. 4.  Section 12C.23A, subsection 3, paragraph e, Code
  1 30 Supplement 2003, is amended to read as follows:
  1 31    e.  If a bank fails to pay its assessment when due, the
  1 32 treasurer of state shall satisfy the assessment by liquidating
  1 33 collateral pledged by the bank upon such notice as is required
  1 34 by chapter 554.  If the collateral pledged by the bank is
  1 35 inadequate to pay the assessment, the treasurer of state shall
  2  1 make additional assessments as may be necessary against other
  2  2 banks that hold uninsured public funds to satisfy any unpaid
  2  3 assessment.  Any additional assessments shall be determined,
  2  4 collected, and satisfied in the same manner as the first
  2  5 assessment except that in calculating the amount of each such
  2  6 additional assessment, the amount of uninsured public funds
  2  7 held by the bank that fails to pay the assessment shall not be
  2  8 counted.
  2  9    Sec. 5.  Section 12C.23A, subsection 3, paragraph f, Code
  2 10 Supplement 2003, is amended by striking the paragraph.
  2 11    Sec. 6.  Section 12C.23A, subsection 3, paragraph g, Code
  2 12 Supplement 2003, is amended to read as follows:
  2 13    g.  If a bank fails to pay its assessment when due and the
  2 14 proceeds from liquidation of the collateral pledged by the
  2 15 bank are not sufficient to pay the assessment against the
  2 16 bank, the treasurer of state shall notify the superintendent
  2 17 or the comptroller of the currency, as applicable, of the
  2 18 failure to pay the assessment.  If the bank that has failed to
  2 19 pay the assessment is a nationally chartered financial
  2 20 institution, the superintendent shall immediately notify the
  2 21 bank's primary federal regulator.  If the assessment is not
  2 22 paid within thirty days after the bank received the notice of
  2 23 assessment, the treasurer of state shall initiate a lawsuit to
  2 24 collect the amount of the assessment.  If a bank is found to
  2 25 have failed to pay the assessment as required by this
  2 26 subsection and is ordered to pay the assessment, the court
  2 27 shall also order that the bank pay court costs and reasonable
  2 28 attorney fees based on the amount of time the attorney
  2 29 general's office spent preparing and bringing the action, and
  2 30 reasonable expenses incurred by the treasurer of state.
  2 31    Sec. 7.  EFFECTIVE DATE.  This Act, being deemed of
  2 32 immediate importance, takes effect upon enactment.
  2 33
  2 34
  2 35                                                             
  3  1                               JEFFREY M. LAMBERTI
  3  2                               President of the Senate
  3  3
  3  4
  3  5                                                             
  3  6                               CHRISTOPHER C. RANTS
  3  7                               Speaker of the House
  3  8
  3  9    I hereby certify that this bill originated in the Senate and
  3 10 is known as Senate File 2119, Eightieth General Assembly.
  3 11
  3 12
  3 13                                                             
  3 14                               MICHAEL E. MARSHALL
  3 15                               Secretary of the Senate
  3 16 Approved                , 2004
  3 17
  3 18
  3 19                                
  3 20 THOMAS J. VILSACK
  3 21 Governor