Senate File 2275 - Enrolled

PAG LIN



  1  1                                       SENATE FILE 2275
  1  2
  1  3                             AN ACT
  1  4 RELATING TO DEBT CANCELLATION COVERAGE OFFERED BY BANKS
  1  5    AND CREDIT UNIONS.
  1  6
  1  7 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
  1  8
  1  9    Section 1.  Section 524.913, Code 2005, is amended by
  1 10 adding the following new subsection:
  1 11    NEW SUBSECTION.  3.  Notwithstanding subsection 1, a state
  1 12 bank may offer voluntary debt cancellation coverage, whether
  1 13 insurance or debt waiver, to consumers.  The amount charged
  1 14 for the coverage shall be included in the amount financed, as
  1 15 defined in section 537.1301.  However, the charge for such
  1 16 coverage may be excluded from the finance charge under the
  1 17 federal Truth in Lending Act as defined in section 537.1302.
  1 18    Sec. 2.  Section 533.16, subsection 9, Code 2005, is
  1 19 amended to read as follows:
  1 20    9.  a.  The provisions of the Iowa consumer credit code,
  1 21 chapter 537, shall apply to consumer loans made by a credit
  1 22 union, and a provision of that code shall supersede any
  1 23 conflicting provision of this chapter with respect to a
  1 24 consumer loan.
  1 25    b.  Notwithstanding paragraph "a", a credit union may offer
  1 26 voluntary debt cancellation coverage, whether insurance or
  1 27 debt waiver, to members.  The amount charged for the coverage
  1 28 shall be included in the amount financed, as defined in
  1 29 section 537.1301.  However, the charge for such coverage may
  1 30 be excluded from the finance charge under the federal Truth in
  1 31 Lending Act as defined in section 537.1302.
  1 32
  1 33
  1 34                                                             
  1 35                               JEFFREY M. LAMBERTI
  2  1                               President of the Senate
  2  2
  2  3
  2  4                                                             
  2  5                               CHRISTOPHER C. RANTS
  2  6                               Speaker of the House
  2  7
  2  8    I hereby certify that this bill originated in the Senate and
  2  9 is known as Senate File 2275, Eighty=first General Assembly.
  2 10
  2 11
  2 12                                                             
  2 13                               MICHAEL E. MARSHALL
  2 14                               Secretary of the Senate
  2 15 Approved                , 2006
  2 16
  2 17
  2 18                                
  2 19 THOMAS J. VILSACK
  2 20 Governor