Senate File 557 - Enrolled

PAG LIN

1	1	SENATE FILE 557
1	2
1	3	AN ACT
1	4 RELATING TO THE REGULATION OF CREDIT UNIONS BY REVISING AND
1	5	REORGANIZING THE IOWA CREDIT UNION ACT, MAKING CONFORMING
1	6	CHANGES, AND PROVIDING FOR TAXES, FEES, AND PENALTIES.
1	7
1	8 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1	9
1 10	DIVISION I
1 11	Section 1.	NEW SECTION.	533.101	TITLE.
1 12	This chapter shall be known as the "Iowa Credit Union Act".
1 13	Sec. 2.	NEW SECTION.	533.102	DEFINITIONS.
1 14	As used in this chapter, unless the context otherwise
1 15 requires:
1 16	1.	"Account insurance plan" means an arrangement providing
1 17 account and share insurance which is of a type authorized
1 18 under section 533.307.
1 19	2.	"Common bond" means the shared characteristic of
1 20 members of a credit union.
1 21	3.	"Credit union" means a cooperative, nonprofit
1 22 association, organized or incorporated in accordance with the
1 23 provisions of this chapter or under the laws of another state
1 24 or the Federal Credit Union Act, 12 U.S.C. } 1751, et seq.,
1 25 for the purposes of creating a source of credit at a fair and
1 26 reasonable rate of interest, of encouraging habits of thrift
1 27 among its members, and of providing an opportunity for its
1 28 members to use and control their own money on a democratic
1 29 basis in order to improve their economic and social condition.
1 30	A credit union is also a supervised financial organization
1 31 as that term is defined and used in chapter 537, the Iowa
1 32 consumer credit code.
1 33	4.	"Credit union service organization" means a corporation
1 34 or limited partnership organized under state law to provide
35 financial and financial=related services for one or more
1 credit unions, each of which owns part of the capital stock of
2	2 the credit union service organization, as authorized under
2	3 section 533.301, subsection 5, paragraph "f", and which
2	4 corporation or limited partnership is subject to examination
2	5 by the credit union division of the Iowa department of
2	6 commerce or a federal supervisory agency.
2	7	5.	"Ownership share" means a share of a credit union
2	8 acquired by a member at the time membership is initiated.
2	9	6.	"Review board" means the credit union review board.
2 10	7.	"State credit union" means a credit union organized
2 11 pursuant to section 533.201.
2 12	8.	"Superintendent" means the superintendent of credit
2 13 unions appointed pursuant to section 533.104.
2 14	Sec. 3.	NEW SECTION.	533.103	CREDIT UNION DIVISION
2 15 CREATED.
2 16	A credit union division of the department of commerce is
2 17 created to administer this chapter.
2 18	Sec. 4.	NEW SECTION.	533.104	SUPERINTENDENT.
2 19	1.	A superintendent of credit unions shall be appointed by
2 20 the governor, subject to confirmation by the senate, to
2 21 regulate credit unions.
2 22	a.	The appointee shall be selected solely with regard to
2 23 qualification and fitness to discharge the duties of office.
2 24	b.	The individual appointed shall have at least five
2 25 years' experience as a director or executive officer of a
2 26 credit union, or comparable experience in the regulation or
2 27 examination of credit unions.	For purposes of this paragraph,
2 28 credit union membership does not qualify as credit union
2 29 experience.
2 30	2.	The superintendent shall have an office at the seat of
2 31 government.	The superintendent's term of office shall be four
2 32 years beginning and ending as provided by section 69.19.	The
2 33 governor may remove the superintendent for malfeasance in
2 34 office, or for any cause that renders the superintendent
35 ineligible, incapable, or unfit to discharge the duties of the
1 office.
3	2	3.	The superintendent shall receive a salary set by the
3	3 governor within a range established by the general assembly.

3	4	4.	A vacancy in the office of superintendent shall be
3	5 filled for the unexpired portion of the regular term.
3	6	5.	The superintendent may adopt rules as necessary or
3	7 appropriate to administer this chapter, subject to the prior
3	8 approval of the rules by the review board.
3	9	Sec. 5.	NEW SECTION.	533.105	DEPUTY SUPERINTENDENT.
3 10	1.	The superintendent may appoint an employee of the
3 11 credit union division as deputy superintendent to perform the
3 12 duties of the superintendent during the superintendent's
3 13 absence or inability to act.
3 14	2.	The deputy superintendent shall serve at the pleasure
3 15 of the superintendent.	If the office of the superintendent
3 16 becomes vacant, the deputy superintendent shall have all
3 17 powers and duties of the superintendent until a new
3 18 superintendent is appointed by the governor in accordance with
3 19 this chapter.
3 20	3.	The deputy superintendent shall receive a salary to be
3 21 fixed by the superintendent.
3 22	Sec. 6.	NEW SECTION.	533.106	EMPLOYEES.
3 23	1.	a.	The superintendent may appoint assistants,
3 24 examiners, and other employees as the superintendent considers
3 25 necessary to the proper discharge of duties imposed upon the
3 26 superintendent by the laws of this state.
3 27	b.	Pay plans shall be established for the credit union
3 28 division employees, other than clerical employees, who
3 29 supervise and examine the accounts and affairs of credit
3 30 unions and other persons, subject to supervision and
3 31 regulation by the superintendent, that are substantially
3 32 equivalent to those paid by the national credit union
3 33 administration and other federal supervisory agencies in this
3 34 area of the United States.
35	2.	a.	A state credit union, or its officers, directors,
1 or employees, shall not directly or indirectly make a loan of
4	2 money or property to the superintendent.
4	3	b.	The superintendent shall not directly or indirectly
4	4 accept a loan of money or property from a state credit union,
4	5 or its officers, directors, or employees.
4	6	3.	a.	An employee of the credit union division, other
4	7 than the superintendent, may borrow money from a state credit
4	8 union only on comparable terms and conditions to those
4	9 ordinarily extended to all members of the credit union.	The
4 10 employee shall notify the superintendent of the acceptance of
4 11 a loan from a state credit union.
4 12	b.	The superintendent may restrict borrowing by employees
4 13 from state credit unions if the superintendent determines such
4 14 borrowing will interfere with the functions of the credit
4 15 union division.
4 16	c.	An employee shall not participate in the examination of
4 17 a credit union where the employee has a loan.
4 18	4.	The superintendent or an employee of the credit union
4 19 division, other than a member of the review board, shall not
4 20 perform any services for or be an officer, director, or
4 21 employee of a state credit union or any other entity
4 22 supervised or regulated by the credit union division.
4 23	5.	A person who violates this section shall be permanently
4 24 disqualified from acting as an officer, director, or employee
4 25 of a state credit union and permanently disqualified from
4 26 acting as superintendent or an employee of the credit union
4 27 division.
4 28	6.	The superintendent or an employee of the credit union
4 29 division who is convicted of theft, burglary, robbery,
4 30 larceny, embezzlement, or other crime involving breach of
4 31 trust shall be forever disqualified from holding any position
4 32 in the credit union division.
4 33	Sec. 7.	NEW SECTION.	533.107	CREDIT UNION REVIEW BOARD.
4 34	1.	A credit union review board is created.	The review
35 board shall consist of seven members, five of whom shall have
1 been members in good standing for at least the previous five
5	2 years of either an Iowa state chartered credit union, or a
5	3 credit union chartered under the Federal Credit Union Act and
5	4 having its principal place of business in Iowa.	Two of the
5	5 members may be public members; however, at no time shall more
5	6 than five of the members be directors or employees of a credit
5	7 union.	The members shall serve for three=year staggered terms
5	8 beginning and ending as provided by section 69.19.
5	9	2.	The members of the review board shall be appointed by
5 10 the governor subject to confirmation by the senate.	The
5 11 governor may appoint the members of the review board from a
5 12 list of nominees submitted to the governor by the credit
5 13 unions located in this state.
5 14	3.	The review board shall meet at least four times each

5 15 year and shall hold special meetings at the call of the
5 16 chairperson.	Four members constitute a quorum.
5 17	4.	Each member of the review board shall receive actual
5 18 and necessary expenses incurred in the discharge of official
5 19 duties.	Each member of the review board may also be eligible
5 20 to receive compensation as provided in section 7E.6.
5 21	5.	A member of the review board shall not take part in any
5 22 action or participate in any decision when the matter under
5 23 consideration specifically relates to a credit union of which
5 24 the review board member is a member.
5 25	6.	The review board may adopt rules pursuant to chapter
5 26 17A or take other action as it deems necessary or suitable, to
5 27 administer this chapter.
5 28	Sec. 8.	NEW SECTION.	533.108	RECORDS OF CREDIT UNION
5 29 DIVISION.
5 30	1.	a.	Records of the credit union division are public
5 31 records subject to the provisions of chapter 22, except as
5 32 otherwise provided in this chapter.
5 33	b.	Papers, documents, writings, reports, reports of
5 34 examinations and other information relating specifically to
35 the supervision and regulation of a specific state credit
1 union or of other persons by the superintendent pursuant to
6	2 the laws of this state are not public records and shall not be
6	3 open for examination or copying by the public or for
6	4 examination or publication by the news media.	The
6	5 superintendent or an employee of the credit union division
6	6 shall not disclose such information in any manner to any
6	7 person other than the person examined, except as otherwise
6	8 authorized by this section.
6	9	2.	a.	The superintendent or an employee of the credit
6 10 union division shall not be subpoenaed in any cause or
6 11 proceeding to give testimony concerning papers, documents,
6 12 writings, reports, reports of examinations, or other
6 13 information relating to the supervision and regulation of a
6 14 specific state credit union or persons by the superintendent
6 15 pursuant to the laws of this state.
6 16	b.	The papers, documents, writings, reports, reports of
6 17 examinations, and other information of the credit union
6 18 division that relate to the supervision and regulation of a
6 19 specific state credit union or persons shall not be offered in
6 20 evidence in a court or be subject to subpoena by a party,
6 21 except when relevant in the following matters:
6 22	(1)	In actions or proceedings brought by the
6 23 superintendent.
6 24	(2)	In matters in which an interested and proper party
6 25 seeks review of a decision of the superintendent.
6 26	(3)	In actions or proceedings that arise out of the
6 27 criminal provisions of the laws of this state or of the United
6 28 States.
6 29	(4)	In actions brought as shareholder derivative suits
6 30 against a credit union by a member who has acquired an
6 31 ownership share.
6 32	(5)	In actions brought to recover moneys or to recover
6 33 upon an indemnity bond for embezzlement, misappropriation, or
6 34 misuse of credit union funds.
35	3.	a.	Information, records, and documents utilized for
1 the purpose of, or in the course of, investigation,
7	2 regulation, or examination of a specific credit union,
7	3 received by the credit union division from some other
7	4 governmental entity that treats such information, records, and
7	5 documents as confidential, are confidential and shall not be
7	6 disclosed by the division and are not subject to subpoena.
7	7	b.	Information, records, and documents under paragraph "a"
7	8 do not constitute a public record subject to examination and
7	9 copying under chapter 22.
7 10	c.	The superintendent may exchange with governmental
7 11 regulatory officials confidential information, records, and
7 12 documents that are not a public record subject to examination
7 13 and copying under chapter 22 provided that the other officials
7 14 are subject to, or agree to comply with, standards of
7 15 confidentiality comparable to those contained in this section.
7 16	Sec. 9.	NEW SECTION.	533.109	INSURANCE AND SURETY BOND.
7 17	1.	The superintendent shall acquire good and sufficient
7 18 bond in a company authorized to do business in this state in
7 19 order to ensure both of the following:
7 20	a.	The faithful performance of the deputy superintendent,
7 21 assistants, examiners, and all other employees of the credit
7 22 union division.
7 23	b.	Protection from any liability that may accrue in case
7 24 of the loss of property of a state credit union, or of a
7 25 member of a state credit union or of any other person, in the

7 26 course of an examination, investigation, or other function
7 27 required or allowed by the laws of this state.
7 28	2.	The superintendent shall be bonded in accordance with
7 29 chapter 64, provided that such bond shall be in the amount of
7 30 one hundred thousand dollars.
7 31	Sec. 10.	NEW SECTION.	533.110	REIMBURSEMENT OF EXPENSES.
7 32	1.	The superintendent, deputy superintendent, assistants,
7 33 examiners, and other employees of the credit union division
7 34 are entitled to receive reimbursement for expenses incurred in
35 the performance of their duties.
1	2.	The superintendent, and when specifically authorized by
8	2 the superintendent, the deputy superintendent, assistants,
8	3 examiners, and other employees of the division, are entitled
8	4 to receive reimbursement for expenses incurred while attending
8	5 conventions, meetings, conferences, schools, or seminars
8	6 relating to the performance of their duties.
8	7	Sec. 11.	NEW SECTION.	533.111	EXPENSES OF THE CREDIT
8	8 UNION DIVISION.
8	9	1.	a.	All expenses required in the discharge of the
8 10 duties and responsibilities imposed upon the credit union
8 11 division, the superintendent, and the review board by the laws
8 12 of this state shall be paid from fees provided by the laws of
8 13 this state and appropriated by the general assembly from the
8 14 general fund of the state.
8 15	b.	All fees imposed under this chapter are payable to the
8 16 superintendent, who shall pay all fees and other moneys
8 17 received to the treasurer of state within the time required by
8 18 section 12.10.	The treasurer of state shall deposit such
8 19 funds in the general fund of the state.
8 20	2.	The superintendent shall account for receipts and
8 21 disbursements according to the separate duties imposed upon
8 22 the superintendent by the laws of this state, and each
8 23 separate duty shall be fiscally self=sustaining.
8 24	3.	The credit union division may expend additional funds,
8 25 including funds for additional personnel, if the additional
8 26 expenditures are actual expenses that exceed the funds
8 27 budgeted for credit union examinations and directly result
8 28 from examinations of state credit unions.
8 29	a.	The amounts necessary to fund the excess examination
8 30 expenses shall be collected from state credit unions being
8 31 regulated, and the collections shall be treated as repayment
8 32 receipts as defined in section 8.2.
8 33	b.	The division shall notify in writing the legislative
8 34 services agency and the department of management when hiring
35 additional personnel.	The written notification shall include
1 documentation that any additional expenditure related to such
9	2 hiring will be totally reimbursed to the general fund of the
9	3 state, and shall also include the division's justification for
9	4 hiring such personnel.	The division must obtain the approval
9	5 of the department of management only if the number of
9	6 additional personnel to be hired exceeds the number of full=
9	7 time equivalent positions authorized by the general assembly.
9	8	4.	a.	All fees and other moneys collected shall be
9 deposited into the general fund of the state and expenses
9 10 required to be paid under this section shall be paid from
9 11 funds appropriated for those purposes.	Moneys deposited into
9 12 the general fund of the state pursuant to this section shall
9 13 be subject to the requirements of section 8.60.
9 14	b.	Funds appropriated to the credit union division shall
9 15 be subject at all times to the warrant of the director of
9 16 revenue, drawn upon written requisition of the superintendent
9 17 or a designated representative, for the payment of all
9 18 salaries and other expenses necessary to carry out the duties
9 19 of the credit union division.
9 20	5.	The credit union division may accept reimbursement of
9 21 expenses related to the examination of a state credit union
9 22 from the national credit union administration or any other
9 23 guarantor or insurance plan authorized by this chapter.	These
9 24 reimbursements shall be deposited into the general fund of the
9 25 state.
9 26	Sec. 12.	NEW SECTION.	533.112	ANNUAL FEES == EXAMINATION
9 27 FEES == DELINQUENCIES.
9 28	1.	Each state credit union shall pay an annual fee as
9 29 determined by the superintendent based on the actual cost of
9 30 operating the credit union division.	The superintendent shall
9 31 consider recommendations from the review board and from state
9 32 credit unions in determining the amount of the annual fee.
9 33	2.	Each state credit union, corporation, credit union
9 34 service organization, or other person subject to an
9 35 examination pursuant to section 533.113 shall pay an
1 examination fee.	The superintendent shall establish by rule

10	2 an examination fee schedule.
10	3	3.	a.	Failure of a state credit union, corporation,
10	4 credit union service organization, or other person to pay a
10	5 fee pursuant to subsection 1 or 2 shall result in the fee
10	6 being considered delinquent and a penalty equal to five
10	7 percent of the original fee may be assessed for each day or
10	8 part of a day the payment remains delinquent.
10	9	b.	A fee delinquency under this subsection by a
10 10 corporation, credit union service organization, or other
10 11 person may result in the superintendent collecting the
10 12 delinquent fee and penalty from the state credit union owning
10 13 shares or investments or having business transactions or a
10 14 relationship with such corporation, credit union service
10 15 organization, or other person.
10 16	c.	A fee delinquency under this subsection may also
10 17 constitute grounds for revocation of the certificate of
10 18 approval of the credit union to operate in this state.
10 19	Sec. 13.	NEW SECTION.	533.113	EXAMINATIONS.
10 20	1.	The superintendent may do any or all of the following:
10 21	a.	Make or cause to be made an examination of a credit
10 22 union whenever the superintendent believes such examination is
10 23 necessary or advisable, but in no event less frequently than
10 24 once during each twenty=four=month period.
10 25	b.	Make or cause to be made such limited examinations at
10 26 such times and with such frequency as the superintendent deems
10 27 necessary and advisable to determine the condition of any
10 28 state credit union and whether any person has violated the
10 29 provisions of this chapter.
10 30	c.	Make or cause to be made an examination of any
10 31 corporation or credit union service organization in which a
10 32 state credit union owns shares or has made an investment.
10 33	d.	Make or cause to be made an examination of any person
10 34 having business transactions or a relationship with any state
35 credit union, upon application to and order of the district
1 court of Polk county, when such examination is deemed
11	2 necessary and advisable in order to determine whether the
11	3 capital of the state credit union is impaired or whether the
11	4 safety of its deposits is imperiled.
11	5	e.	Accept, in lieu of the examination of a state credit
11	6 union, or any corporation or credit union service organization
11	7 in which a state credit union owns shares or has made an
11	8 investment, or of any person having business transactions or a
11	9 relationship with any state credit union, an examination
11 10 report prepared by a federal regulatory authority.
11 11	f.	Accept, in lieu of the examination of a state credit
11 12 union, an audit report conducted by a certified public
11 13 accounting firm selected from a list of firms previously
11 14 approved by the superintendent.	The cost of the audit shall
11 15 be paid by the state credit union.
11 16	g.	Accept, in lieu of the examination of an out=of=state
11 17 credit union which also conducts business in this state, an
11 18 examination report prepared by a state or federal regulatory
11 19 authority.
11 20	h.	Retain, at the examinee's expense, accountants,
11 21 investigators, and other experts as reasonably necessary to
11 22 assist in the conduct of the examination.	Any person so
11 23 retained shall serve in a purely advisory capacity at the
11 24 direction of the superintendent.
11 25	2.	A state credit union and all of its officers and agents
11 26 shall give to the representatives of the superintendent free
11 27 and unimpeded access to all books, papers, securities,
11 28 records, and other sources of information under their control.
11 29	3.	a.	A report of examination shall be forwarded to the
11 30 chairperson of a state credit union within thirty days after
11 31 the completion of the examination.	Within thirty days of the
11 32 receipt of this report, a meeting of the directors shall be
11 33 called by the state credit union to consider matters contained
11 34 in the report and the action taken shall be set forth in the
35 minutes of the board.
1	b.	The report of examination of any affiliate or of any
12	2 person examined as provided in this subsection shall not be
12	3 transmitted by the superintendent to any such affiliate or
12	4 person or to the board of directors of any state credit union
12	5 unless authorized or requested by such affiliate or person.
12	6	4.	a.	Whenever the superintendent deems it necessary and
12	7 advisable, the superintendent may notify the board of
12	8 directors of a state credit union that a meeting will be held
12	9 at a place and time and manner as the superintendent directs.
12 10 The superintendent's notice may disclose the purpose of the
12 11 meeting.
12 12	b.	The superintendent may present to the board at the

12 13 meeting any item the superintendent desires to bring to the
12 14 attention of the board, including but not limited to any
12 15 report of an examination required or allowed by this chapter,
12 16 any conclusions or projections drawn by the superintendent,
12 17 any recommendations made relative to a report of an
12 18 examination, and any other matters concerning the operation
12 19 and condition of the state credit union.
12 20	c.	The state credit union shall cause the matters
12 21 presented at the meeting to be recorded in the minutes of the
12 22 meeting.
12 23	d.	Each member of the board of directors shall furnish the
12 24 superintendent a statement on forms supplied by the
12 25 superintendent that the member is familiar with the matters
12 26 presented by the superintendent.
12 27	5.	The superintendent may require any of the following
12 28 state credit unions to submit to an additional examination or
12 29 to an independent audit performed by a certified public
12 30 accounting firm as provided in subsection 1, paragraph "f", at
12 31 the expense of the state credit union:
12 32	a.	A state credit union where the records are inadequate.
12 33	b.	A state credit union in which the books have not been
12 34 balanced as of the end of the month not less than thirty days
35 previously.
1	c.	A state credit union whose affairs are in an
13	2 unfavorable condition.
13	3	6.	The superintendent may furnish a copy of the
13	4 examination report and materials relating to any or all
13	5 examinations made of any state credit union and any affiliate
13	6 of a state credit union to any or all of the following,
13	7 including any official or supervising examiner of any office
13	8 or regulatory authority:
13	9	a.	The national credit union administration.
13 10	b.	The federal deposit insurance corporation.
13 11	c.	The federal reserve system.
13 12	d.	The office of the comptroller of the currency.
13 13	e.	The office of thrift supervision.
13 14	f.	The federal home loan bank.
13 15	g.	Financial institution regulatory authorities of other
13 16 states.
13 17	h.	The financial crimes enforcement network of the United
13 18 States department of the treasury.
13 19	7.	If the superintendent concludes that a state credit
13 20 union's affairs are in an unfavorable condition, the
13 21 superintendent may direct the state credit union to consider
13 22 consolidation, dissolution, or any other form of
13 23 reorganization.
13 24	Sec. 14.	NEW SECTION.	533.114	ANNUAL REPORT OF
13 25 SUPERINTENDENT.
13 26	1.	The superintendent shall report annually to the
13 27 governor in the manner and within the time required by chapter
13 28 7A.	A copy of the report shall be furnished by the
13 29 superintendent to each state credit union and to the Iowa
13 30 credit union league and its affiliates.
13 31	2.	In addition to the matters required by chapter 7A, the
13 32 annual report of the superintendent shall contain all of the
13 33 following:
13 34	a.	A summary of applications approved or denied by the
35 superintendent pursuant to this chapter since the last
1 previous report.
14	2	b.	A summary of the assets, liabilities, and capital
14	3 structures of all state credit unions, and a summary of the
14	4 volume of consumer installment credit outstanding per state
14	5 credit union, as of December 31 of the year for which the
14	6 report is made.
14	7	c.	A statement of the receipts and disbursements of funds
14	8 of the superintendent during the calendar year ending on the
14	9 preceding December 31 and of the funds on hand on that
14 10 December 31, including an estimate of the disbursements of
14 11 credit union division funds for consumer credit protection
14 12 during the year for which the report is made.
14 13	d.	Information that the administrator of the Iowa consumer
14 14 credit code may require to be included.
14 15	e.	A list of state credit unions that have been designated
14 16 as serving predominantly low=income members pursuant to
14 17 section 533.301, subsection 1.
14 18	f.	Other information the superintendent deems appropriate
14 19 and advisable to disclose in the discharge of the duties
14 20 imposed upon the superintendent by this chapter.
14 21	Sec. 15.	NEW SECTION.	533.115	RECIPROCITY.
14 22	1.	Subject to rules of the superintendent, a credit union
14 23 organized in another state may do business in Iowa if state

14 24 credit unions organized in Iowa may do business in the state
14 25 in which the out=of=state credit union is organized.
14 26	2.	Notwithstanding subsection 1, an out=of=state credit
14 27 union shall meet the same deposit insurance requirements
14 28 established by this chapter for a state credit union prior to
14 29 doing business in Iowa.
14 30	Sec. 16.	NEW SECTION.	533.116	ENFORCEMENT OF IOWA
14 31 CONSUMER CREDIT CODE.
14 32	1.	The superintendent shall enforce the Iowa consumer
14 33 credit code with respect to state credit unions, as provided 14 34 in sections 537.2303, 537.2305, and 537.6105.
35	2.	The superintendent shall cooperate with the
1 administrator of the Iowa consumer credit code as designated
15	2 in section 537.6103, and shall assist that administrator
15	3 whenever necessary to provide for the discharge of the duties
15	4 of that administrator.
15	5	3.	Notwithstanding other provisions of this chapter to the
15	6 contrary, the superintendent shall furnish to the
15	7 administrator of the Iowa consumer credit code, access to or
15	8 copies of records in the custody of the credit union division
15	9 that relate to a state credit union when necessary to enable
15 10 the administrator of the Iowa consumer credit code to enforce
15 11 chapter 537.
15 12	Sec. 17.	NEW SECTION.	533.117	SMALL LOANS LEGISLATION.
15 13	This chapter does not apply to any person engaged in the
15 14 business of loaning money under chapter 536.
15 15	Sec. 18.	NEW SECTION.	533.201	ORGANIZATION.
15 16	1.	In order to simplify the organization of state credit
15 17 unions, the superintendent shall cause to be prepared an
15 18 approved form of articles of incorporation and a form of
15 19 bylaws, consistent with this chapter, which shall be used by
15 20 state credit union incorporators.
15 21	2.	a.	A group comprised of at least seven residents of
15 22 the state of Iowa may apply to the superintendent for
15 23 permission to organize a state credit union.
15 24	b.	A state credit union shall be organized by delivering
15 25 to the superintendent articles of incorporation that state all
15 26 of the following:
15 27	(1)	The name and location of the proposed state credit
15 28 union.
15 29	(2)	The names and addresses of the subscribers to the
15 30 articles and the number of shares subscribed to by each.
15 31	(3)	The share structure of the state credit union.	A
15 32 state credit union may have more than one class of shares.
15 33 The par value of the shares of the state credit union shall be
15 34 established by the board of directors.
35	3.	The applicants shall prepare and adopt bylaws for the
1 general governance of the state credit union consistent with
16	2 the provisions of this chapter.
16	3	4.	The articles and the bylaws, both executed in
16	4 duplicate, shall be forwarded with a fee of ten dollars to the
16	5 superintendent.
16	6	5.	a.	The superintendent shall determine whether the
16	7 articles and bylaws conform to the provisions of this chapter
16	8 within thirty days of receipt.
16	9	b.	The superintendent shall notify the applicants of the
16 10 determination after review of the articles and bylaws.
16 11	c.	If the decision is favorable, the superintendent shall
16 12 issue a certificate of approval, which shall be attached to
16 13 the duplicate articles of incorporation and returned, together
16 14 with the duplicate bylaws, to the applicants.
16 15	d.	Articles and bylaws approved by the superintendent
16 16 shall be binding upon the applicants and the board of
16 17 directors of a state credit union.	If the board of directors
16 18 does not follow the articles of incorporation and bylaws, the
16 19 members of the state credit union may pursue a derivative
16 20 action in Iowa district court.
16 21	6.	a.	The applicants shall file the duplicate of the
16 22 articles of incorporation and the attached certificate of
16 23 approval with the county recorder of the county within which
16 24 the state credit union is to have its principal place of
16 25 business.
16 26	b.	The county recorder shall record and index the
16 27 duplicate of the articles of incorporation and the attached
16 28 certificate of approval and return the articles of
16 29 incorporation and the certificate of approval, with the
16 30 recorder's certificate of record attached, to the
16 31 superintendent for permanent record.
16 32	7.	Articles of incorporation may be amended by a favorable
16 33 vote of a majority of the members present at a meeting, if
16 34 that number constitutes a quorum and if the proposed amendment

35 was contained in the notice of the meeting.
1	8.	Bylaws may be amended by any of the following methods:
17	2	a.	The favorable vote of a majority of the members present
17	3 at a meeting, if that number constitutes a quorum and if the
17	4 proposed amendment was contained in the notice of the meeting.
17	5	b.	The favorable vote of a majority of the members of the
17	6 board.
17	7	c.	By a majority vote of members voting by mailed or
17	8 electronic ballot, ensuring the confidentiality of voters,
17	9 according to procedures specified by rule of the
17 10 superintendent, requiring at least twenty days' notice to all
17 11 members.	An announcement shall be made to members of the
17 12 results of the vote.	Ballots shall be preserved for a
17 13 reasonable period of time following the vote.
17 14	d.	A combination of procedures as specified in paragraphs
17 15 "a" and "c", whereby members are allowed to vote either in
17 16 person at a meeting or by mailed or electronic ballot,
17 17 according to procedures specified by rule of the
17 18 superintendent.	If the proposed amendment receives a
17 19 favorable majority of the total votes cast in person and by
17 20 mailed or electronic ballot, the bylaws shall be amended.
17 21	9.	An amendment to the articles of incorporation or bylaws
17 22 must be approved by the superintendent before the amendment
17 23 becomes effective.
17 24	10.	The original articles or amended articles may contain
17 25 a provision eliminating or limiting the personal liability of
17 26 a director, officer, or employee of the state credit union or
17 27 its shareholders for monetary damages for breach of fiduciary
17 28 duty as a director, officer, or employee, provided that the
17 29 provision does not eliminate or limit the liability of a
17 30 director, officer, or employee for any breach of the
17 31 director's, officer's, or employee's duty of loyalty to the
17 32 state credit union or its shareholders, for acts or omissions
17 33 not in good faith or that involve intentional misconduct or a
17 34 knowing violation of law, or for any transaction from which
35 the director, officer, or employee derives an improper
1 personal benefit.	However, a provision shall not eliminate or
18	2 limit the liability of a director, officer, employee, or
18	3 shareholder for any act or omission occurring prior to the
18	4 date when the provision in the articles of incorporation
18	5 becomes effective.
18	6	Sec. 19.	NEW SECTION.	533.202	COMMON BOND == MEMBERSHIP
18	7 == OWNERSHIP SHARE.
18	8	1.	a.	State credit union organization shall be available
18	9 to groups of individuals who have a common bond of association
18 10 such as, but not limited to, occupation, common employer, or
18 11 residence within specified geographic boundaries.
18 12	b.	Changes in the common bond may be made by the board of
18 13 directors.
18 14	2.	a.	The membership of a state credit union consists of
18 15 those persons in the common bond who have subscribed to one
18 16 ownership share and have complied with the other requirements
18 17 specified by the articles of incorporation and bylaws.
18 18	b.	Organizations, incorporated or otherwise, may be
18 19 members.
18 20	c.	Unless the state credit union's bylaws state otherwise,
18 21 once a person or organization becomes a member of a state
18 22 credit union in accordance with this chapter, the person or
18 23 organization may remain a member of that state credit union,
18 24 and retain all membership privileges, until the person or
18 25 organization chooses to withdraw from the membership of the
18 26 state credit union, or is expelled pursuant to section 18 27 533.210.
18 28	Sec. 20.	NEW SECTION.	533.203	FISCAL YEAR == MEMBERSHIP
18 29 MEETINGS.
18 30	1.	The fiscal year of all state credit unions shall end
18 31 December 31.
18 32	2.	Annual meetings shall be held, and special meetings may
18 33 be held, in the manner indicated in the bylaws.
18 34	a.	At all meetings, a member shall have one vote
35 regardless of the number of or class of shares held by the
1 member.
19	2	b.	There shall be no voting by proxy.
19	3	c.	A member other than a natural person may cast a single
19	4 vote through a delegated agent.
19	5	3.	a.	The majority of members present at any meeting may
19	6 vote to modify, amend, or reverse any act of the board of
19	7 directors or instruct the board to take action not
19	8 inconsistent with the articles, bylaws, or this chapter.
19	9	b.	In order to be binding upon the board of directors, any
19 10 action taken by the membership to modify, amend, or reverse an

19 11 act of the board, or to instruct the board to take action,
19 12 requires an affirmative vote of a majority of all eligible
19 13 members obtained by submitting the modification, amendment, or
19 14 reversal to the members by mail or electronic ballot, pursuant
19 15 to rules adopted by the superintendent.
19 16	Sec. 21.	NEW SECTION.	533.204	ELECTION OF BOARD.
19 17	1.	At the organizational meeting a board of directors of
19 18 not less than nine members shall be elected to hold office for
19 19 such terms as the bylaws provide and until successors are
19 20 elected and qualified.
19 21	2.	At each annual meeting one member shall be elected to
19 22 fill each position vacated by reason of an expiring term or
19 23 other cause.
19 24	3.	Pursuant to rules adopted by the superintendent, state
19 25 credit unions may allow members to vote on the election of
19 26 directors via electronic means including but not limited to
19 27 the internet or telephone.
19 28	4.	A record of the names and addresses of the directors,
19 29 officers, and committee persons shall be filed with the
19 30 superintendent within ten days following each election.
19 31	5.	A state credit union wishing to maintain a board of
19 32 directors of less than nine members may apply to the
19 33 superintendent for permission to reduce the required number of
19 34 directors.	An application to reduce the required number of
35 directors under this subsection must demonstrate both of the
1 following:
20	2	a.	The application is necessitated by a hardship or other
20	3 special circumstance.
20	4	b.	A lesser number of directors is in the best interest of
20	5 the state credit union and its members.
20	6	In no event may the superintendent allow fewer than seven
20	7 directors on a state credit union board.
20	8	Sec. 22.	NEW SECTION.	533.205	BOARD OF DIRECTORS ==
20	9 DUTIES.
20 10	1.	Within five days following the organizational meeting
20 11 and each annual meeting, the directors shall elect the
20 12 following officers from the membership of the board of
20 13 directors:
20 14	a.	A chairperson of the board.
20 15	b.	A vice chairperson.
20 16	c.	A secretary.
20 17	d.	A chief financial officer whose title shall be
20 18 designated by the board.
20 19	2.	a.	The board of directors shall appoint the following
20 20 committees:
20 21	(1)	A credit committee of not less than three members.
20 22	(2)	An auditing committee of not less than three members.
20 23	b.	The board may also appoint alternate members of the
20 24 credit committee.
20 25	c.	Only a member of the board or a member of the state
20 26 credit union may be appointed to the credit committee or to
20 27 the auditing committee.
20 28	d.	The board may appoint an executive committee to act on
20 29 its behalf.
20 30	3.	The duties and responsibilities of a director and of
20 31 the board of directors shall include, but are not limited to,
20 32 all of the following:
20 33	a.	General management of the affairs of the state credit
20 34 union.
35	b.	Setting the amount of the surety bond that shall be
1 required of all officers and employees handling money.
21	2	c.	Attendance at no less than seventy=five percent of the
21	3 regular board meetings held during the calendar year.
21	4	d.	Periodic review of the original records of the state
21	5 credit union, or comprehensive summaries prepared by the
21	6 officers of the state credit union, pertaining to loans,
21	7 security interests, and investments.
21	8	e.	Review of the adequacy of the state credit union's
21	9 internal controls.
21 10	f.	Periodic review of utilization of security measures.
21 11	g.	Establishing education and training programs to ensure
21 12 that the director possesses adequate knowledge to manage the
21 13 affairs of the state credit union.
21 14	4.	a.	Directors of a state credit union shall discharge
21 15 the duties of their position in good faith and with that
21 16 diligence, care, and skill which ordinarily prudent persons
21 17 would exercise under similar circumstances in like positions.
21 18	b.	The directors have a continuing responsibility to
21 19 assure themselves that the state credit union is being managed
21 20 according to law and that the practices and policies adopted
21 21 by the board are being implemented.

21 22	5.	a.	The board of directors shall name or employ an
21 23 individual who performs active executive or official duties
21 24 for the state credit union as its chief executive officer.
21 25	b.	The board shall fix the tenure and provide for the
21 26 reasonable compensation of the chief executive officer.
21 27	c.	The chief executive officer may be a member of the
21 28 board of directors.
21 29	6.	a.	The chief executive officer or the chief executive
21 30 officer's designee shall determine the compensation and tenure
21 31 of employees of the state credit union.
21 32	b.	An employee of the state credit union shall not be a
21 33 member of the board of directors.
21 34	c.	For purposes of this section, an employee of the state
35 credit union means an individual employed by the state credit
1 union other than the chief executive officer.
22	2	7.	A state credit union shall not pay an overdraft of a
22	3 director, officer, or employee of the state credit union on an
22	4 account at the state credit union, unless the payment of funds
22	5 is made in accordance with either of the following:
22	6	a.	A written, preauthorized, interest=bearing extension of
22	7 credit plan that specifies a method of repayment.
22	8	b.	A written, preauthorized transfer of collected funds
22	9 from another account of the account holder at the state credit
22 10 union.
22 11	8.	A credit union director shall not receive compensation
22 12 for service as a director.	However, a director may be
22 13 reimbursed for reasonable expenses directly related to such
22 14 service.
22 15	Sec. 23.	NEW SECTION.	533.206	MEETINGS OF THE BOARD.
22 16	Unless the bylaws provide otherwise, the board of directors
22 17 may permit any and all directors to participate in all except
22 18 one meeting per year of the board of directors through the use
22 19 of any means of communication by which all directors
22 20 participating in the meeting may simultaneously hear each
22 21 other and communicate during the meeting.	A director
22 22 participating in a meeting by this means is deemed to be
22 23 present at the meeting.
22 24	Sec. 24.	NEW SECTION.	533.207	CREDIT COMMITTEE.
22 25	1.	The credit committee shall have responsibility for the
22 26 general supervision of all loans to members.
22 27	2.	Applications for loans shall be on a form approved by
22 28 the credit committee.
22 29	a.	All applications shall set forth the purpose for which
22 30 the loan is desired, the security, if any, offered and such
22 31 other data as may be required.
22 32	b.	Within the meaning of this section, an assignment of
22 33 shares or deposits or the endorsement of a note may be deemed
22 34 security.
35	3.	At least a majority of the members of the credit
1 committee shall review and act on all loan applications and
23	2 may grant approval, or the credit committee, with the prior
23	3 approval of the board of directors, may grant one or more loan
23	4 officers the power to approve or reject loans subject to
23	5 written conditions and regulations adopted by the credit
23	6 committee.
23	7	4.	The credit committee shall meet as often as may be
23	8 necessary after due notice to each member.
23	9	Sec. 25.	NEW SECTION.	533.208	AUDITING COMMITTEE.
23 10	The auditing committee shall perform the following
23 11 functions:
23 12	1.	Make or cause to be made an examination of the affairs
23 13 of the state credit union at least annually, including an
23 14 audit of its financial records.	If the auditing committee
23 15 feels such action to be necessary, the auditing committee
23 16 shall call the members together after the audit and submit to
23 17 them its report.
23 18	2.	Make or cause to be made an annual report and submit it
23 19 at the annual meeting of the members.
23 20	3.	Suspend by unanimous vote any officer, director, or
23 21 member of the auditing committee and call the members together
23 22 to act on the suspension, if the auditing committee deems the
23 23 action to be necessary to the proper conduct of the state
23 24 credit union.	The members at the meeting may sustain the
23 25 suspension and remove the officer, director, or member
23 26 permanently or may reinstate the officer, director, or member.
23 27	4.	Call a special meeting of state credit union members by
23 28 majority vote to consider a matter to be submitted by the
23 29 auditing committee.
23 30	Sec. 26.	NEW SECTION.	533.209	CONFLICTS OF INTEREST.
23 31	1.	A director, committee member, officer, or employee of a
23 32 state credit union shall not directly or indirectly

23 33 participate in either the deliberation upon or the
23 34 determination of any matter in which the director, committee
35 member, officer, or employee has a direct or indirect
1 interest.
24	2	2.	For the purposes of this section, an interest may
24	3 include, but is not limited to, a pecuniary or familial
24	4 interest.
24	5	Sec. 27.	NEW SECTION.	533.210	EXPULSION OF CREDIT UNION
24	6 MEMBER.
24	7	1.	The board of directors may expel any member of a state
24	8 credit union who has failed to do either of the following:
24	9	a.	Carry out the member's obligations to the state credit
24 10 union.
24 11	b.	Comply with the state credit union's bylaws or
24 12 policies.
24 13	2.	A member of a state credit union may be expelled by a
24 14 majority vote of the board of directors at a regular or
24 15 special meeting of the board.
24 16	a.	An expelled member may request a hearing before the
24 17 membership of the state credit union, which shall be held
24 18 within sixty days of an expelled member's request.
24 19	b.	At the hearing, the membership may reinstate the
24 20 expelled member by majority vote, upon terms and conditions
24 21 prescribed at the hearing.
24 22	3.	Any member may withdraw from the state credit union at
24 23 any time, but advance notice of withdrawal may be required as
24 24 provided in this section.
24 25	4.	After deducting all amounts due from the member to the
24 26 state credit union and the amount necessary to honor
24 27 outstanding share drafts drawn against accounts of the member,
24 28 all amounts paid on shares or as deposits of an expelled or
24 29 withdrawing member, along with accrued dividends and interest
24 30 to the date of expulsion or withdrawal, shall be paid to that
24 31 member.
24 32	5.	Upon expulsion or withdrawal of a member from a state
24 33 credit union, or at any other time, the state credit union may
24 34 require sixty days' notice of intention to withdraw shares and
35 thirty days' notice of intention to withdraw deposits, except
1 that a state credit union shall not at any time require notice
25	2 of withdrawal with respect to funds that are subject to
25	3 withdrawal by share drafts.
25	4	6.	Withdrawing or expelled members shall have no further
25	5 rights in the state credit union.	However, withdrawing or
25	6 expelled members shall not be released from any remaining
25	7 liability to the state credit union because of the expulsion
25	8 or withdrawal.
25	9	Sec. 28.	NEW SECTION.	533.211	SUSPENSION OR RESTRICTION
25 10 OF SERVICES.
25 11	1.	A state credit union may suspend or deny certain
25 12 services to members who have done any of the following:
25 13	a.	Caused a loss to the state credit union.
25 14	b.	Violated the membership agreement or any policy adopted
25 15 by the board.
25 16	c.	Been physically or verbally abusive to state credit
25 17 union members or staff.
25 18	2.	Members with suspended services may maintain a share
25 19 account, and continue to vote at annual and special meetings.
25 20	Sec. 29.	NEW SECTION.	533.212	USE OF NAME "CREDIT UNION"
25 21 REQUIREMENTS == RESTRICTIONS == EXCEPTIONS.
25 22	1.	a.	A state credit union organized in accordance with
25 23 this chapter shall include the words "credit union" in its
25 24 name.
25 25	b.	All state credit union offices shall be identified by
25 26 use of the state credit union's full name.
25 27	c.	The full name of a state credit union shall be used in
25 28 all legal documents of the state credit union.
25 29	2.	a.	A person other than a credit union shall not use a
25 30 name or title containing the words "credit union", or any
25 31 derivation, and shall not represent in advertising or
25 32 otherwise that the person is conducting business as a credit
25 33 union, except as provided in subsection 3.
25 34	b.	A person who violates paragraph "a" may be enjoined
35 from the use of words, advertising, or other representation
1 prohibited by paragraph "a".
26	2	3.	The prohibitions contained in subsection 2 do not apply
26	3 to any of the following entities:
26	4	a.	A credit union organized under this chapter or the laws
26	5 of another state.
26	6	b.	A credit union organized under the Federal Credit Union 26	7 Act, 12 U.S.C. } 1751 et seq.
26	8	c.	The Iowa credit union league, a chapter, affiliate, or

26	9 subsidiary of the Iowa credit union league or a political
26 10 action committee formed pursuant to the Federal Election
26 11 Campaign Act, 2 U.S.C. } 431 et seq., or chapter 68A by the
26 12 Iowa credit union league or by credit unions organized under
26 13 this chapter or federal law.
26 14	d.	A joint service center operated by two or more credit
26 15 unions where credit union services are made available to
26 16 credit union members.
26 17	e.	An organization formed for educational purposes in
26 18 association with an accredited elementary or secondary school
26 19 that engages in receipt of deposits of no more than twenty
26 20 dollars per depositor and uses the words "educational credit
26 21 union" in its name.	An educational credit union must be
26 22 affiliated with a state credit union organized under this
26 23 chapter.	Notwithstanding this recognition given to an
26 24 educational credit union, an educational credit union is not a
26 25 state credit union within the scope or regulation of this
26 26 chapter.
26 27	Sec. 30.	NEW SECTION.	533.213	CORPORATE CENTRAL CREDIT
26 28 UNION.
26 29	1.	A corporate central credit union may be established.
26 30	a.	Credit unions organized under this chapter, the Federal
26 31 Credit Union Act, or any other credit union act and credit
26 32 union organizations may be members.
26 33	b.	Regulated financial institutions, nonprofit
26 34 organizations, and cooperative organizations may also be
35 members to the extent and manner provided for in the bylaws of
1 the corporate central credit union.
27	2	2.	A corporate central credit union shall not be required
27	3 to transfer to its legal reserve more than five percent of its
27	4 net income for the year.
27	5	3.	A corporate central credit union shall have all the
27	6 powers, restrictions, and obligations imposed upon, or granted
27	7 to a state credit union under this chapter, except that the
27	8 corporate central credit union may also exercise any of the
27	9 following additional powers subject to the adoption of rules
27 10 by the superintendent and with the prior written approval of
27 11 the superintendent:
27 12	a.	Borrow any amount from any source.
27 13	b.	Invest in or purchase obligations or securities or
27 14 other designated investments to the same extent authorized for
27 15 other supervised financial institutions.
27 16	c.	Invest in or acquire shares, stocks, or other
27 17 obligations of an organization providing services that are
27 18 associated with the operations of credit unions.	However, the
27 19 aggregate amount invested pursuant to this paragraph shall not
27 20 exceed fifty percent of the total of all reserves and
27 21 undivided earnings of the corporate central credit union.
27 22	d.	Buy or sell investment securities and corporate bonds
27 23 that are evidences of indebtedness.	However, the purchase or
27 24 sale is limited to marketable obligations of a corporation or
27 25 state or federal agency issued without recourse.
27 26	e.	Establish one or more capital accounts in the same
27 27 manner as if it were a federal credit union.
27 28	f.	Sell all or part of its assets to another corporate
27 29 central credit union and assume the liabilities of a selling
27 30 corporate central credit union if the action is pursuant to a
27 31 plan agreed upon by a majority of the board of directors and,
27 32 in the case of the sale of all of its assets, the affirmative
27 33 vote of a majority of its members either by mail or in person
27 34 at a meeting called for that purpose.
35	g.	Invest in the shares or deposits of another similarly
1 organized corporate central credit union, or central liquidity
28	2 facility.
28	3	h.	Make other investments approved by the superintendent.
28	4	Sec. 31.	NEW SECTION.	533.214	CENTRAL CREDIT UNIONS.
28	5	Credit unions known as central credit unions may exist for
28	6 the purpose of serving credit unions, members of dissolved and
28	7 members of other credit unions, directors, officers, and
28	8 employees of credit unions, employee groups as described in
28	9 section 533.301, subsection 13, and such other persons as the
28 10 superintendent approves.
28 11	Sec. 32.	NEW SECTION.	533.301	POWERS.
28 12	A state credit union shall have the power to do all of the
28 13 following:
28 14	1.	Receive payments for ownership shares, other shares, or
28 15 as deposits from any or all of the following:
28 16	a.	Members of the state credit union.
28 17	b.	Nonmembers as prescribed by rule where the state credit
28 18 union is serving predominantly low=income members.	Rules
28 19 adopted allowing nonmember deposits in state credit unions

28 20 serving predominantly low=income members shall be designed
28 21 solely to meet the needs of the low=income members.
28 22	c.	Other state credit unions.
28 23	d.	Federal, state, county, and city governments.
28 24	2.	Make loans or leases to members.
28 25	3.	Make loans to a cooperative society or other
28 26 organization having membership in the state credit union.
28 27	4.	Make deposits in state and national banks, state and
28 28 federal savings banks or savings and loan associations, and
28 29 state and federal credit unions, the accounts of which are
28 30 insured by the federal deposit insurance corporation or the
28 31 national credit union share insurance fund.
28 32	5.	Make investments in any or all of the following:
28 33	a.	Time deposits in state and national banks, state and
28 34 federal savings banks or savings and loan associations, and
35 state and federal credit unions, the deposits of which are
1 insured by the federal deposit insurance corporation or the
29	2 national credit union share insurance fund.
29	3	b.	Obligations, participations, or other instruments of or
29	4 issued by, or fully guaranteed as to principal and interest by
29	5 the United States government or any agency of the United
29	6 States government, or any trust or trusts established for
29	7 investing directly or collectively in the United States
29	8 government or any agency of the United States government.
29	9	c.	General obligations of this state and any subdivision
29 10 of this state.
29 11	d.	Purchase of notes of liquidating credit unions with the
29 12 approval of the superintendent.
29 13	e.	Shares and deposits in other credit unions.
29 14	f.	Shares, stocks, loans, and other obligations or a
29 15 combination of shares, stocks, loans, and other obligations of
29 16 a credit union service organization, corporation, or
29 17 association, provided the membership or ownership, as the case
29 18 may be, of the credit union service organization, corporation,
29 19 or association is primarily confined or restricted to credit
29 20 unions or organizations of credit unions, and provided that
29 21 the purpose of the credit union service organization,
29 22 corporation, or association is primarily designed to provide
29 23 services to credit unions, organizations of credit unions, or
29 24 credit union members.	However, the aggregate amount invested
29 25 pursuant to this paragraph shall not exceed five percent of
29 26 the assets of the credit union.
29 27	g.	Obligations issued by federal land banks, federal
29 28 intermediate credit banks, banks for cooperatives, or any of
29 29 the federal farm credit banks.
29 30	h.	Commercial paper issued by United States corporations
29 31 as defined by rule.
29 32	i.	Corporate bonds as defined by and subject to terms and
29 33 conditions imposed by the superintendent, provided that the
29 34 superintendent shall not approve investment in corporate bonds
35 unless the bonds are rated in the two highest grades of
1 corporate bonds by a nationally accepted rating agency.
30	2	j.	Any permissible investment for federal credit unions,
30	3 provided that this paragraph shall not permit a credit union
30	4 to invest in a credit union service organization except as
30	5 provided in paragraph "f".
30	6	6.	Borrow money as provided in this chapter.
30	7	7.	Assess penalties as may be provided by the bylaws.
30	8	8.	Sue and be sued.
30	9	9.	Make contracts.
30 10	10.	Purchase, hold, and dispose of property necessary and
30 11 incidental to its operation, except that any property acquired
30 12 through foreclosure shall be disposed of within a period not
30 13 to exceed ten years.
30 14	11.	Exercise such incidental powers as may be necessary or
30 15 requisite to enable the state credit union to carry on the
30 16 business effectively for which it is incorporated.
30 17	12.	Apply for share account and deposit account insurance
30 18 that meets the requirements of this chapter, and take all
30 19 actions necessary to maintain an insured status.
30 20	13.	Serve a group of persons having an insufficient number
30 21 of members to form or conduct the affairs of a separate credit
30 22 union, upon the approval of the superintendent.	The existence
30 23 of a common bond relationship between the group and the credit
30 24 union affecting that service shall not be required.
30 25	14.	Deposit with a credit union that has been in existence
30 26 for not more than a year, an amount not to exceed twenty=five
30 27 percent of the assets of the new credit union, but only one
30 28 credit union may, at any time, make such a deposit.
30 29	15.	Acquire the conditional sales contracts, promissory
30 30 notes, or other similar instruments executed by its members,

30 31 but the rate of interest existing on the instruments shall not
30 32 exceed the highest rate charged by the acquiring credit union
30 33 on its outstanding loans.
30 34	16.	a.	Sell, participate in, or discount the obligations
35 of its members with or without recourse.
1	b.	Purchase the obligations of credit union members,
31	2 provided the obligations meet the requirements of this
31	3 chapter.
31	4	17.	Acquire and hold shares in a corporation engaged in
31	5 providing and operating facilities through which a credit
31	6 union and its members may engage, by means of either the
31	7 direct transmission of electronic impulses to and from the
31	8 credit union or the recording of electronic impulses or other
31	9 indicia of a transaction for delayed transmission to the
31 10 credit union, in transactions in which such credit union is
31 11 otherwise permitted to engage pursuant to applicable law,
31 12 subject to the prior approval of the superintendent.
31 13	18.	Engage in any transaction otherwise permitted by this
31 14 chapter and applicable law, by means of either the direct
31 15 transmission of electronic impulses to or from the state
31 16 credit union or the recording of electronic impulses or other
31 17 indicia of a transaction for delayed transmission to the state
31 18 credit union.
31 19	a.	Subject to the provisions of chapter 527, a state
31 20 credit union may utilize, establish, or operate, alone or with
31 21 one or more other credit unions, banks incorporated under
31 22 chapter 524 or federal law, savings and loan associations
31 23 incorporated under chapter 534 or federal law, corporations
31 24 licensed under chapter 536A, or third parties, the satellite
31 25 terminals permitted under chapter 527, by means of which the
31 26 state credit union may transmit to or receive from any member
31 27 electronic impulses constituting transactions pursuant to this
31 28 subsection.	However, such utilization, establishment, or
31 29 operation shall be lawful only when in compliance with chapter 31 30 527.
31 31	b.	This subsection shall not be construed as authority for
31 32 any person to engage in transactions not otherwise permitted
31 33 by applicable law, and shall not be deemed to repeal, replace,
31 34 or in any other way affect any applicable law or rule
35 regarding the maintenance of or access to financial
1 information maintained by any credit union.
32	2	19.	Establish one or more state credit union offices other
32	3 than its main office.
32	4	a.	A state credit union may furnish at any of its offices
32	5 all credit union services ordinarily furnished to the
32	6 membership at its principal place of business.
32	7	b.	The central executive and official business and
32	8 recordkeeping functions of a state credit union shall be
32	9 exercised at its principal place of business or at another
32 10 state credit union office or a location authorized by the
32 11 superintendent for these functions.
32 12	c.	A state credit union shall file an informational
32 13 statement in the form prescribed by the superintendent prior
32 14 to opening a state credit union office.
32 15	d.	A state credit union office shall not be opened without
32 16 a certificate to establish a state credit union office issued
32 17 by the superintendent.
32 18	e.	The establishment of a state credit union office must
32 19 be reasonably necessary for service to, and in the best
32 20 interests of, the members of the state credit union, and shall
32 21 not endanger the safety and soundness of the state credit
32 22 union opening the office.
32 23	f.	A state credit union may join with one or more credit
32 24 unions in the operation of an office facility to meet the
32 25 service needs of its members.
32 26	20.	Contract with another credit union to furnish services
32 27 which either could otherwise legally perform.	Contracted
32 28 services provided under this subsection are subject to
32 29 regulation and examination like other services.
32 30	21.	Purchase insurance or make the purchase of insurance
32 31 available for members.
32 32	22.	Charge fees and penalties and apply them to income.
32 33	23.	a.	(1)	Act as agent of the federal government when
32 34 requested by the secretary of the United States department of
35 treasury.
1	(2)	Perform such services as may be required in connection
33	2 with the collection of taxes and other obligations due the
33	3 United States and the lending, borrowing, and repayment of
33	4 moneys by the United States.
33	5	(3)	Act as a depository of public money when designated
33	6 for that purpose.

33	7	b.	(1)	Act as agent of this state when requested by the
33	8 treasurer of state.
33	9	(2)	Perform such services as may be required in connection
33 10 with the collection of taxes and other obligations due this
33 11 state and the lending, borrowing, and repayment of moneys by
33 12 this state.
33 13	(3)	Act as a depository of public moneys when designated
33 14 for that purpose.
33 15	24.	Receive public funds pursuant to chapter 12C and
33 16 pledge its assets to secure the deposit of public funds.
33 17	25.	Engage in any activity authorized by the
33 18 superintendent which would be permitted if the state credit
33 19 union were federally chartered and which is consistent with
33 20 state law.
33 21	26.	To promote the public welfare, make donations for
33 22 religious, charitable, scientific, educational, or community
33 23 betterment purposes.
33 24	27.	Set off a member's accounts against any of the
33 25 member's debts or liabilities owed the state credit union
33 26 pursuant to an agreement entered into between the member and
33 27 the state credit union.	The state credit union shall also
33 28 have a lien on the shares and deposits of a member for any sum
33 29 due to the state credit union from the member or for any loan
33 30 endorsed by the member.
33 31	Sec. 33.	NEW SECTION.	533.302	CAPITAL.
33 32	1.	The capital of a credit union shall consist of the
33 33 payments that have been made to it by the several members
33 34 thereof on shares.	A credit union may charge an entrance fee
35 as may be provided by the bylaws.
1	2.	A credit union may establish an equity share having a
34	2 par value not to exceed one hundred dollars which shall be a
34	3 part of the capital of the credit union and shall not be
34	4 withdrawn or transferred except upon termination of membership
34	5 in the credit union.	At the option of the credit union, the
34	6 equity share may earn a dividend and may be insured.
34	7	Sec. 34.	NEW SECTION.	533.303	RESERVES.
34	8	1.	At the end of each dividend period, but no less than
34	9 quarterly, the gross income of the state credit union shall be
34 10 determined.
34 11	2.	A legal reserve against losses on loans and against
34 12 such other losses as may be specified by rule shall be set
34 13 aside from the gross income in accordance with the following
34 14 schedule:
34 15	a.	A state credit union in operation for more than four
34 16 years and having assets of five hundred thousand dollars or
34 17 more shall set aside the following amounts in the following
34 18 order:
34 19	(1)	Ten percent of the gross income until the legal
34 20 reserve equals four percent of the total outstanding loans and
34 21 risk assets.
34 22	(2)	Five percent of the gross income until the legal
34 23 reserve equals six percent of the total outstanding loans and
34 24 risk assets.
34 25	b.	A state credit union in operation for less than four
34 26 years or having assets of less than five hundred thousand
34 27 dollars shall set aside the following amounts in the order set
34 28 forth:
34 29	(1)	Ten percent of the gross income until the legal
34 30 reserve equals seven and one=half percent of the total
34 31 outstanding loans and risk assets.
34 32	(2)	Five percent of the gross income until the legal
34 33 reserve equals ten percent of the total outstanding loans and
34 34 risk assets.
35	3.	a.	If the legal reserve falls below the percent of the
1 total outstanding loans and risk assets required for a state
35	2 credit union by this section, the state credit union shall
35	3 replenish the legal reserve by regular contributions in the
35	4 amounts needed to reach the required reserve.	However, the
35	5 superintendent may waive the reserve requirement when in the
35	6 superintendent's opinion the waiver is necessary or desirable.
35	7	b.	The legal reserve shall belong to the state credit
35	8 union and shall be used to meet losses.
35	9	c.	The reserve shall not be distributed to members as
35 10 interest or dividends except on liquidation of the state
35 11 credit union or in accordance with a plan approved by the
35 12 superintendent.
35 13	4.	The superintendent may require a state credit union to
35 14 set aside additional amounts as a special reserve if an
35 15 examination of assets discloses that the legal reserve of the
35 16 state credit union is inadequate.
35 17	5.	A state credit union shall maintain an adequate

35 18 allowance for loan and lease losses account and such other
35 19 valuation allowance accounts as may be necessary to provide
35 20 for the full and fair disclosure, in the state credit union's
35 21 financial statements, of the assets, liabilities, and equity
35 22 of the state credit union.
35 23	6.	For the purpose of establishing legal reserves, the
35 24 following shall not be considered risk assets:
35 25	a.	Cash on hand.
35 26	b.	Deposits and shares in federally insured banks, savings
35 27 banks, and credit unions.
35 28	c.	Assets which are insured by, fully guaranteed as to
35 29 principal and interest by, or due from the United States
35 30 government, its agencies, and instrumentalities.
35 31	d.	Loans to other credit unions.
35 32	e.	Student loans insured under the provisions of 20 U.S.C.
35 33 } 1071=1087 or similar state programs.
34	f.	Loans insured by the federal housing administration 35 35 under 12 U.S.C. } 1703.
1	g.	Loans fully insured or guaranteed by the federal
36	2 government, a state government, or any agency of either.
36	3	h.	Common trust investments which deal in investments
36	4 authorized in section 533.301.
36	5	i.	Prepaid expenses.
36	6	j.	Accrued interest on nonrisk investments.
36	7	k.	Furniture and equipment.
36	8	l.	Land and buildings.
36	9	m.	Loans fully secured by a pledge of shares within the
36 10 state credit union.
36 11	n.	Deposits in the national credit union share insurance
36 12 fund.
36 13	o.	Real estate loans in transit to the secondary market as
36 14 specified by rule.
36 15	7.	Notwithstanding any other provision of this section, a
36 16 state credit union shall maintain a sufficient amount of net
36 17 worth as required by the state credit union's deposit insurer
36 18 and rules of the superintendent.
36 19	Sec. 35.	NEW SECTION.	533.304	INVESTMENT IN CERTAIN
36 20 SHARES OR EQUITY INTERESTS.
36 21	1.	For purposes of this section, unless the context
36 22 otherwise requires:
36 23	a.	"Equity interests" means limited partnership interests
36 24 and other equity investments in which liability is limited to
36 25 the amount of the investment, but does not mean general
36 26 partnership interests or other interests involving general
36 27 liability.
36 28	b.	"Small business" means a corporation, partnership,
36 29 proprietorship, or other entity formed under the laws of the
36 30 United States, or a state, district, or territory of the
36 31 United States, that meets the appropriate United States small
36 32 business administration definition of small business and that
36 33 is principally engaged in the development or exploitation of
36 34 inventions, technological improvements, new processes, or
35 other products not previously generally available in this
1 state, or other investments which provide an economic benefit
37	2 to this state.
37	3	c.	"Venture capital fund" means a corporation,
37	4 partnership, proprietorship, or other entity formed under the
37	5 laws of the United States, or a state, district, or territory
37	6 of the United States, whose principal business is or will be
37	7 the making of investments in and the provision of significant
37	8 managerial assistance to small businesses that meet the United
37	9 States small business administration definition of small
37 10 business.
37 11	2.	A state credit union may invest in either of the
37 12 following to the extent that the total investments under this
37 13 section shall not be more than five percent of the state
37 14 credit union's assets:
37 15	a.	Shares or equity interests in venture capital funds
37 16 that agree to invest an amount equal to at least fifty percent
37 17 of the state credit union's investment in small businesses
37 18 having their principal offices within this state and having
37 19 either more than one=half of their assets within this state or
37 20 more than one=half of their employees employed within this
37 21 state.
37 22	b.	Shares or equity interests in small businesses having
37 23 their principal offices within this state and having either
37 24 more than one=half of their assets within this state or more
37 25 than one=half of their employees employed within this state.
37 26 A state credit union shall not invest in more than twenty
37 27 percent of the total capital and surplus of any one small
37 28 business under this paragraph.

37 29	Sec. 36.	NEW SECTION.	533.305	INVESTMENT IN BANKS OR
37 30 SAVINGS BANKS == REQUIRED FINDINGS.
37 31	1.	INVESTMENTS IN BANKS.	A state credit union may, with
37 32 the prior approval of the superintendent, invest in the
37 33 capital stock, obligations, or other securities of a bank.
37 34	2.	INVESTMENT IN SAVINGS BANKS.	A state credit union may,
35 with the prior approval of the superintendent, invest in the
1 capital stock, obligations, or other securities of a savings
38	2 bank.
38	3	3.	FINDINGS REQUIRED.	The superintendent shall not grant
38	4 an approval under subsection 1 or 2, unless the superintendent
38	5 makes one of the following findings:
38	6	a.	Based upon a preponderance of the evidence presented,
38	7 the proposed investment will not have the immediate effect of
38	8 significantly reducing competition between depository
38	9 financial institutions located in the same community as the
38 10 institution whose shares would be acquired.
38 11	b.	Based upon a preponderance of the evidence presented,
38 12 the proposed investment would have an anticompetitive effect
38 13 as described in paragraph "a", but other factors, specifically
38 14 cited, outweigh the anticompetitive effect so that there would
38 15 be a net public benefit as a result of the investment.
38 16	4.	COMPETITION PRESERVED.	a.	The subsequent liquidation
38 17 of a bank or savings bank whose shares are acquired under this
38 18 section shall not prevent the subsequent incorporation of
38 19 another bank or savings bank in the same community.
38 20	b.	The superintendent of banking shall not find the
38 21 liquidation of a bank whose shares are acquired under this
38 22 section to be grounds for disapproving the incorporation of
38 23 another bank in the same community under section 524.305.
38 24	c.	The superintendent of savings and loan associations
38 25 shall not find the liquidation of a savings and loan
38 26 association whose shares are acquired under this section to be
38 27 grounds for disapproving the incorporation of another savings
38 28 and loan association in the same community under chapter 534.
38 29	Sec. 37.	NEW SECTION.	533.306	POWER TO BORROW.
38 30	A state credit union may borrow from any source in total a
38 31 sum that shall not exceed fifty percent of the sum of its
38 32 share and deposit account balances.
38 33	Sec. 38.	NEW SECTION.	533.307	ACCOUNT INSURANCE.
38 34	Except as provided in section 533.302, subsection 2, a
35 credit union organized under this chapter, as a condition of
1 maintaining its privilege of organization, shall acquire and
39	2 maintain insurance to protect each shareholder and each
39	3 depositor against loss of funds held on account by the credit
39	4 union.	The insurance shall be obtained from the national
39	5 credit union administrator or from some other share guarantor
39	6 or insurance plan approved by the Iowa commissioner of
39	7 insurance and the superintendent, provided that each credit
39	8 union shall acquire deposit insurance from the appropriate
39	9 agency of the federal government.
39 10	Sec. 39.	NEW SECTION.	533.308	FIDELITY BOND AND GENERAL
39 11 INSURANCE COVERAGE.
39 12	1.	A state credit union shall maintain a fidelity bond for
39 13 state credit union employees and officials in a sufficient
39 14 amount to indemnify the state credit union against losses that
39 15 may be incurred by reason of any act or acts of fraud,
39 16 dishonesty, forgery, theft, larceny, embezzlement, wrongful
39 17 abstraction, misapplication, misappropriation, or other
39 18 unlawful act committed by the employee or official directly or
39 19 through connivance with others, and general insurance coverage
39 20 for losses caused by persons not associated with the state
39 21 credit union.
39 22	a.	The fidelity bond and general insurance coverage shall
39 23 be obtained from a company authorized to do business in this
39 24 state.
39 25	b.	The superintendent may require additional coverage for
39 26 a state credit union if, in the opinion of the superintendent,
39 27 current coverage is insufficient.	The board of directors of
39 28 the state credit union shall obtain the additional coverage
39 29 within thirty days after written notice from the
39 30 superintendent.
39 31	2.	The superintendent may furnish to any official of an
39 32 insurance plan by which the accounts of a state credit union
39 33 are insured or by which its employees and officials are
39 34 bonded, any information relating to examinations,
35 investigations, and reports of the status of that state credit
1 union or its employees and officials for the purpose of
40	2 facilitating the availability or continuation of the insurance
40	3 or bond of the state credit union or resolution of a claim.
40	4	Sec. 40.	NEW SECTION.	533.309	SHARE ACCOUNTS.

40	5	A state credit union may have share accounts including, but
40	6 not limited to, the following types:
40	7	1.	OWNERSHIP SHARE ACCOUNT.	The ownership share account
40	8 shall consist of an account balance held by the state credit
40	9 union in accordance with the state credit union's bylaws.
40 10 Each member may acquire only one ownership share.	In the case
40 11 of a joint account, the joint account owners may acquire only
40 12 one ownership share unless each joint account owner applies
40 13 for and is accepted as an individual member.	The state credit
40 14 union shall not set off fees against a member's ownership
40 15 share.
40 16	2.	JOINT ACCOUNTS.	A member may designate any person or
40 17 persons to hold shares, deposits, and thrift club accounts
40 18 with the member in joint tenancy with the right of
40 19 survivorship, but such joint tenants shall not be permitted to
40 20 cast more than one vote per ownership share jointly held in
40 21 the state credit union.	However, a joint tenant may have
40 22 other rights of a jointly held ownership share, including the
40 23 ability to obtain loans, or hold office or be required to pay
40 24 an entrance fee.	Payment of part or all of such joint
40 25 accounts to any of the joint tenants shall, to the extent of
40 26 such payment, discharge the liability to all.
40 27	3.	ACCOUNT FOR MINORS.	Shares may be issued and deposits
40 28 accepted in the name of a minor.	Such shares and deposits may
40 29 be withdrawn by the minor and payments made on such
40 30 withdrawals shall be valid.	A minor under sixteen years of
40 31 age shall not be entitled to vote in the meetings of the
40 32 members either personally or through the minor's parent or
40 33 guardian, and a minor shall not become a director until the
40 34 minor reaches the minor's eighteenth birthday.
35	4.	BENEFICIARY ACCOUNT.	If a member makes a deposit for
1 the benefit of a person other than the depositor, the name and
41	2 residence address of the beneficiary shall be disclosed and
41	3 the account shall be kept in the name of the depositor, for
41	4 the benefit of the beneficiary.	The account balance may be
41	5 withdrawn by the depositor or, upon the death of the
41	6 depositor, by the beneficiary or the beneficiary's legal
41	7 representative.
41	8	Sec. 41.	NEW SECTION.	533.310	DEPOSITS IN THE NAMES OF
41	9 TWO OR MORE INDIVIDUALS.
41 10	When a deposit is made in a state credit union in the names
41 11 of two or more individuals that is payable to any one or more
41 12 of them or is payable to the survivor or survivors, the
41 13 deposit, including interest, or any part, may be paid to any
41 14 one or more of the individuals, whether or not the others are
41 15 living.	The receipt or a quittance of the individuals who are
41 16 paid is a valid and sufficient release and discharge of the
41 17 state credit union for any payment made pursuant to this
41 18 section.
41 19	Sec. 42.	NEW SECTION.	533.311	ACCEPTANCE OF DEPOSITS AND
41 20 INVESTMENTS WHILE INSOLVENT.
41 21	When a state credit union is insolvent, the state credit
41 22 union shall not do either of the following:
41 23	1.	Accept any deposits or investments in ownership shares.
41 24	2.	Renew or extend the term of any time deposits or time
41 25 investments.
41 26	Sec. 43.	NEW SECTION.	533.312	DIVIDENDS AND INTEREST.
41 27	1.	The board of directors may declare dividends at such
41 28 rates and upon such classes of shares as are determined by the
41 29 board, at such intervals and for such periods as the board may
41 30 authorize, and after provision for required reserves pursuant 41 31 to section 533.303.
41 32	2.	Dividends shall be considered a normal operating
41 33 expense of the state credit union and shall be paid on all
41 34 paid=up shares outstanding at the close of the period for
35 which the dividend is declared and shall be available only
1 from undivided earnings.
42	2	3.	The superintendent may restrict or prohibit the payment
42	3 of a dividend or interest when an impairment of capital
42	4 exists.
42	5	Sec. 44.	NEW SECTION.	533.313	SHARE DRAFTS.
42	6	1.	A state credit union may provide its members with share
42	7 draft accounts.
42	8	a.	"Share draft" means a negotiable draft which is payable
42	9 upon demand and is used to withdraw funds from a share draft
42 10 account.
42 11	b.	A share draft is an item for purposes of chapter 554,
42 12 article 4.
42 13	c.	The term does not include a draft issued by a state
42 14 credit union for the transfer of funds between the issuing
42 15 credit union and another credit union, a bank, a savings and

42 16 loan association, or another depository financial institution.
42 17	2.	A share draft account is an account that is a demand
42 18 account from which a state credit union has agreed that funds
42 19 may be withdrawn by means of a share draft.	A share draft
42 20 account may bear interest or dividends as determined by the
42 21 board of directors, provided that the state credit union shall
42 22 not pay interest or dividends on a share draft account at a
42 23 rate that exceeds the maximum interest rate which a regulated
42 24 financial institution is able to pay on comparable instruments
42 25 as allowed by the depository institutions deregulatory
42 26 committee.
42 27	3.	A state credit union may guarantee payment for a share
42 28 draft if both the following conditions are met:
42 29	a.	A specific guarantee authorization is obtained for the
42 30 share draft from the state credit union.
42 31	b.	The guarantee authorization is immediately noted on the
42 32 share draft account to prevent the withdrawal of funds needed
42 33 to pay the guaranteed share draft.
42 34	4.	A state credit union may charge fees and penalties on
35 share drafts and apply fees and penalties to the state credit
1 union's income in relation to share draft services.
43	2	5.	The superintendent may adopt rules relating to share
43	3 draft programs as necessary to administer this chapter.
43	4	Sec. 45.	NEW SECTION.	533.314	PAYMENT OF SHARE DRAFTS
43	5 DURING DISSOLUTION.
43	6	Other provisions of section 533.404 notwithstanding, when a
43	7 state credit union is dissolved, first priority of payment
43	8 shall be given to unpaid share drafts.	However, a share draft
43	9 shall not be paid if any of the following conditions exist:
43 10	1.	The share draft was issued on or after the date of
43 11 dissolution, or on or after the date the state credit union is
43 12 required by section 533.405, subsection 2, to cease doing
43 13 business in the event of a voluntary dissolution.
43 14	2.	The share draft is written against an account that does
43 15 not contain sufficient funds with which to pay the share
43 16 draft.
43 17	3.	The share draft is payable to a member of the state
43 18 credit union, or to a member of the family of the issuer of
43 19 the share draft, or to a business in which the issuer of the
43 20 share draft has an interest.	However, the exception contained
43 21 in this subsection does not apply to any person referred to in
43 22 this subsection if the person is a holder in due course, as
43 23 provided in chapter 554, article 3.
43 24	Sec. 46.	NEW SECTION.	533.315	LOANS.
43 25	1.	GENERAL LENDING POWER.	A state credit union may loan
43 26 to a member for a provident or productive purpose.
43 27	a.	Loans are subject to the conditions contained in this
43 28 section and in the bylaws.
43 29	b.	A loan may be repaid by the borrower, in whole or in
43 30 part, any day the office of the state credit union is open for
43 31 business.
43 32	c.	A loan shall be made pursuant to an application with
43 33 supportive credit information.
43 34	d.	The superintendent may adopt rules requiring periodic
35 updating of credit or financial information for all loans or
1 for classes of loans designated in the rules.
44	2	2.	AGGREGATE LENDING TO ONE MEMBER.	A state credit union
44	3 shall not lend in the aggregate to a member more than ten
44	4 percent of its member savings.
44	5	3.	LENDING TO A CREDIT UNION DIRECTOR.	A director of a
44	6 state credit union may borrow from that state credit union
44	7 under the provisions of this chapter, but the rates, terms,
44	8 and conditions of a loan or line of credit either made to or
44	9 endorsed or guaranteed by the director shall not be more
44 10 favorable than the rates, terms, or conditions of comparable
44 11 existing loans or lines of credit provided to other members.
44 12 The aggregate amount of all director loans and lines of credit
44 13 shall not exceed twenty=five percent of the assets of the
44 14 state credit union.
44 15	4.	LOANS ON REAL PROPERTY.	a.	A state credit union may
44 16 make permanent loans, construction loans, combined
44 17 construction and permanent loans, or second mortgage loans
44 18 secured by liens on real property, as authorized by rules
44 19 adopted by the superintendent.	The rules shall contain
44 20 provisions as necessary to ensure the safety and soundness of
44 21 these loans, and to ensure full and fair disclosure to
44 22 borrowers of the effects of provisions in agreements for these
44 23 loans, including provisions permitting change or adjustment of
44 24 any terms of a loan, provisions permitting, requiring, or
44 25 prohibiting repayment of a loan on a basis other than of equal
44 26 periodic installments of interest plus principal over a fixed

44 27 term, provisions imposing penalties for a borrower's
44 28 noncompliance with requirements of a loan agreement, or
44 29 provisions allowing or requiring a borrower to choose from
44 30 alternative courses of action at any time during the
44 31 effectiveness of a loan agreement.
44 32	b.	(1)	A state credit union may include in the loan
44 33 documents signed by the borrower a provision requiring the
44 34 borrower to pay the state credit union each month in addition
35 to interest and principal under the note an amount equal to
1 one=twelfth of the estimated annual real estate taxes, special
45	2 assessments, hazard insurance premium, mortgage insurance
45	3 premium, or any other payment agreed to by the borrower and
45	4 the state credit union in order to better secure the loan.
45	5 The state credit union shall be deemed to be acting in a
45	6 fiduciary capacity with respect to these funds.
45	7	(2)	A state credit union receiving funds in escrow
45	8 pursuant to an escrow agreement executed on or after July 1,
45	9 1982, in connection with a loan as defined in section 535.8,
45 10 subsection 1, shall pay interest to the borrower on those
45 11 funds, calculated on a daily basis, at the rate the state
45 12 credit union pays to its members on ordinary savings deposits.
45 13	(3)	A state credit union that maintains an escrow account
45 14 in connection with any loan authorized by subsection 4,
45 15 whether or not the mortgage has been assigned to a third
45 16 person, shall each year deliver to the mortgagor a written
45 17 annual accounting of all transactions made with respect to the
45 18 loan and escrow account.
45 19	c.	A state credit union that obtains a report or opinion
45 20 by an attorney or from another mortgage lender relating to
45 21 defects in or liens or encumbrances on the title to real
45 22 property, the unmarketability of the title to real property,
45 23 or the invalidity or unenforceability of liens or encumbrances
45 24 on real property, shall provide a copy of the report or
45 25 opinion to the mortgagor and the mortgagor's attorney.
45 26	5.	ESCROW REPORTS.	A state credit union may act as an
45 27 escrow agent with respect to real property that is mortgaged
45 28 to the state credit union, and may receive funds and make
45 29 disbursements from escrowed funds in that capacity.	The state
45 30 credit union shall be deemed to be acting in a fiduciary
45 31 capacity with respect to escrowed funds.	A state credit union
45 32 that maintains an escrow account, whether or not a mortgage
45 33 has been assigned to a third person, shall deliver to the
45 34 mortgagor a written summary of all transactions made with
35 respect to the loan and escrow accounts during each calendar
1 year.	However, the mortgagor and mortgagee may, by mutual
46	2 agreement, select a fiscal year reporting period other than
46	3 the calendar year.	The summary shall be delivered or mailed
46	4 not later than thirty days following the year to which the
46	5 disclosure relates.	The summary shall contain all of the
46	6 following information:
46	7	a.	The name and address of the mortgagee.
46	8	b.	The name and address of the mortgagor.
46	9	c.	A summary of escrow account activity during the year as
46 10 follows:
46 11	(1)	The balance of the escrow account at the beginning of
46 12 the year.
46 13	(2)	The aggregate amount of deposits to the escrow account
46 14 during the year.
46 15	(3)	The aggregate amount of withdrawals from the escrow
46 16 account for each of the following categories:
46 17	(a)	Payments against loan principal.
46 18	(b)	Payments against interest.
46 19	(c)	Payments against real estate taxes.
46 20	(d)	Payments for real property insurance premiums.
46 21	(e)	All other withdrawals.
46 22	(4)	The balance of the escrow account at the end of the
46 23 year.
46 24	d.	A summary of loan principal for the year as follows:
46 25	(1)	The amount of principal outstanding at the beginning
46 26 of the year.
46 27	(2)	The aggregate amount of payments against principal
46 28 during the year.
46 29	(3)	The amount of principal outstanding at the end of the
46 30 year.
46 31	6.	OTHER LOANS.	Loans that are not secured by real
46 32 property shall be subject to the following conditions:
46 33	a.	Loans to any one member that in the aggregate exceed
46 34 the unsecured loan limit established by the board of directors
35 of a state credit union shall be secured by one or more
1 cosigners or guarantors, or by a first lien on collateral
47	2 having a value that is approximately equal to the amount in

47	3 excess of such unsecured loan limit.	Every cosigner or
47	4 guarantor shall furnish the state credit union with evidence
47	5 of financial responsibility.
47	6	b.	This subsection shall not be deemed to preclude a
47	7 credit committee or loan officer from requiring security for
47	8 any loan.
47	9	c.	A state credit union may make loans according to any or
47 10 all of the following:
47 11	(1)	Loans insured under the provisions of 20 U.S.C. }
47 12 1071=1087 or similar state programs.
47 13	(2)	Loans insured by the federal housing administration 47 14 under 12 U.S.C. } 1703.
47 15	(3)	Loans to families of low or moderate income as a part
47 16 of programs authorized in chapter 16.
47 17	d.	The restrictions and limitations contained in this
47 18 subsection do not apply to loans made to a member credit union
47 19 by a corporate central credit union.
47 20	7.	LOAN RENEWALS AND EXTENSIONS.	This section shall not
47 21 prevent the renewal or extension of loans.
47 22	8.	PENALTIES.	The superintendent may impose a penalty on
47 23 a state credit union for each loan made in violation of this
47 24 section.	If a state credit union, after notice in writing,
47 25 and opportunity for hearing, fails to satisfactorily resolve
47 26 the matter within sixty days from receipt of such notice, the
47 27 superintendent may impose a penalty against such state credit
47 28 union in an amount not to exceed one hundred dollars per day
47 29 per violation for each day the violation remains unresolved.
47 30	9.	CONSUMER CREDIT CODE.
47 31	a.	The provisions of the Iowa consumer credit code shall
47 32 apply to consumer loans made by a state credit union, and a
47 33 provision of that code shall supersede any conflicting
47 34 provision of this chapter with respect to a consumer loan.
35	b.	Notwithstanding paragraph "a", a state credit union may
1 offer voluntary debt cancellation coverage, whether insurance
48	2 or debt waiver, to members.	The amount charged for the
48	3 coverage shall be included in the amount financed, as defined
48	4 in section 537.1301.	However, the charge for such coverage
48	5 may be excluded from the finance charge under the federal
48	6 Truth in Lending Act as defined in section 537.1302.
48	7	10.	EARLY LOAN REPAYMENT.	If a member elects to repay a
48	8 loan secured by a mortgage or deed of trust upon real property
48	9 that is a single=family or a two=family dwelling or
48 10 agricultural land at a date earlier than is required by the
48 11 terms of the loan, the state credit union shall be governed by 48 12 section 535.9.
48 13	11.	INTEREST ON PREPAYMENT.	Real estate loans on
48 14 one=family to four=family dwellings may be repaid in part or
48 15 in full at any time, except that a state credit union may
48 16 charge not to exceed six months' advance interest on that part
48 17 of the aggregate amount of all prepayments made on such loan
48 18 in any twelve=month period which exceeds twenty percent of the
48 19 original principal amount of the loan; and may charge any
48 20 negotiated rate on other loans.	This subsection, however,
48 21 does not authorize a state credit union to charge any advance
48 22 interest or prepayment penalty where prohibited by section 48 23 535.9.
48 24	Sec. 47.	NEW SECTION.	533.316	INTEREST RATES.
48 25	1.	a.	Interest rates on loans made by a state credit
48 26 union, other than loans secured by a mortgage or deed of trust
48 27 which is a first lien upon real property, shall not exceed the
48 28 finance charge permitted in sections 537.2401 and 537.2402 on
48 29 consumer loans.
48 30	b.	Interest rates on business loans shall not exceed the
48 31 finance charge permitted by section 535.2.
48 32	2.	With respect to a loan secured by a mortgage or deed of
48 33 trust which is a first lien upon real property, a state credit
48 34 union shall not charge a rate of interest that exceeds the
35 maximum rate permitted by section 535.2.
1	3.	The provisions of this section do not apply to a loan
49	2 that is subject to section 636.46.
49	3	Sec. 48.	NEW SECTION.	533.317	AUTHORITY TO LEASE SAFE
49	4 DEPOSIT BOXES.
49	5	1.	A state credit union may lease safe deposit boxes for
49	6 the storage of property on terms and conditions prescribed by
49	7 the state credit union.	The terms and conditions shall not
49	8 bind any person to whom the state credit union does not give
49	9 notice of the terms and conditions by delivery of a lease and
49 10 agreement in writing containing the terms and conditions.
49 11	2.	A state credit union may limit its liability provided
49 12 that the limitations are set forth in the lease and agreement
49 13 in at least the same size and type as the other substantive

49 14 provisions of the contract.
49 15	3.	The lease and agreement of a safe deposit box may
49 16 provide that evidence tending to prove that property was left
49 17 in a safe deposit box upon the last entry by the member or the
49 18 member's authorized agent, and that the property or any part
49 19 of the property was found missing upon subsequent entry, is
49 20 not sufficient to raise a presumption that the property was
49 21 lost by any negligence or wrongdoing for which the state
49 22 credit union is responsible, or put upon the state credit
49 23 union the burden of proof that the alleged loss was not the
49 24 fault of the state credit union.
49 25	4.	A state credit union may lease a safe deposit box to a
49 26 minor.
49 27	a.	A state credit union may deal with a minor with respect
49 28 to a safe deposit lease and agreement without the consent of a
49 29 parent, guardian, or conservator and with the same effect as
49 30 though the minor were an adult.
49 31	b.	Any action of the minor with respect to such safe
49 32 deposit lease and agreement is binding on the minor with the
49 33 same effect as though the minor were an adult.
49 34	5.	A state credit union that has on file a power of
35 attorney of a member covering a safe deposit lease and
1 agreement, which has not been revoked by the member, shall
50	2 incur no liability as a result of continuing to honor the
50	3 provisions of the power of attorney in the event of the death
50	4 or incompetence of the donor of the power of attorney until
50	5 the state credit union receives written notice of the death,
50	6 or written notice of adjudication by a court of the
50	7 incompetence of the member and the appointment of a guardian
50	8 or conservator.
50	9	Sec. 49.	NEW SECTION.	533.318	SAFE DEPOSIT BOX ACCESS.
50 10	1.	A state credit union shall permit a person named in and
50 11 authorized by a court order to open, examine, and remove the
50 12 contents of a safe deposit box located at the state credit
50 13 union.
50 14	2.	If a court order has not been delivered to a state
50 15 credit union, the following persons may access and remove any
50 16 or all contents of a safe deposit box located at the state
50 17 credit union and described in an ownership or rental agreement
50 18 or lease between the state credit union and a deceased owner
50 19 or lessee:
50 20	a.	A co=owner or co=lessee of the safe deposit box.
50 21	b.	A person designated in the safe deposit box agreement
50 22 or lease to have access to the safe deposit box upon the death
50 23 of the lessee, to the extent provided in the safe deposit box
50 24 agreement or lease.
50 25	c.	An executor or administrator of the estate of a
50 26 deceased owner or lessee upon delivery to the state credit
50 27 union of a certified copy of letters of appointment.
50 28	d.	A person named as an executor in a copy of a purported
50 29 will produced by the person, provided such access shall be
50 30 limited to the removal of a purported will, and no other
50 31 contents shall be removed.
50 32	e.	A trustee of a trust created by the deceased owner or
50 33 lessee upon delivery to the state credit union of a copy of
50 34 the trust together with an affidavit by the trustee that
35 certifies that the copy of the trust delivered to the state
1 credit union with the affidavit is an accurate and complete
51	2 copy of the trust, the trustee is the duly authorized and
51	3 acting trustee under the trust, the trust property includes
51	4 property in the safe deposit box, and that to the knowledge of
51	5 the trustee the trust has not been revoked.
51	6	3.	A person removing any contents of a safe deposit box
51	7 pursuant to subsection 1 or 2 shall deliver any writing
51	8 purported to be a will of the decedent to the court having
51	9 jurisdiction over the decedent's estate.
51 10	4.	a.	If a person authorized to have access under
51 11 subsection 1 or 2 does not request access to the safe deposit
51 12 box within the thirty=day period immediately following the
51 13 date of death of the owner or lessee of a safe deposit box,
51 14 and the state credit union has knowledge of the death of the
51 15 owner or lessee of the safe deposit box, the safe deposit box
51 16 may be opened by or in the presence of two employees of the
51 17 state credit union.
51 18	b.	If a safe deposit box is opened pursuant to paragraph
51 19 "a", the state credit union employees present at such opening
51 20 shall do all of the following:
51 21	(1)	Remove any purported will of the deceased owner or
51 22 lessee.
51 23	(2)	Unseal, copy, and retain in the records of the state
51 24 credit union a copy of a purported will removed from the safe

51 25 deposit box.	An additional copy of such purported will shall
51 26 be made, dated, and signed by the credit union employees
51 27 present at the safe deposit box opening and placed in the safe
51 28 deposit box.	The safe deposit box shall then be resealed.
51 29	(3)	The original of a purported will shall be sent by
51 30 certified mail or restricted certified mail or personally
51 31 delivered to the district court in the county of the last
51 32 known residence of the deceased owner or lessee, or the court
51 33 having jurisdiction over the testator's estate.	If the
51 34 residence is unknown or last known and not in this state, the
35 purported will shall be sent by certified mail or restricted
1 certified mail or personally delivered to the district court
52	2 in the county where the safe deposit box is located.
52	3	c.	If no key is produced, the state credit union may cause
52	4 the safe deposit box to be opened and the state credit union
52	5 shall have a claim against the estate of the deceased owner or
52	6 lessee and a lien upon the contents of the safe deposit box
52	7 for the costs of opening and resealing the safe deposit box.
52	8	5.	a.	A state credit union may rely upon published
52	9 information or other reasonable proof of death of an owner or
52 10 lessee.
52 11	b.	A state credit union has no duty to inquire about or
52 12 discover, and is not liable to any person for failure to
52 13 inquire about or discover, the death of the owner or lessee of
52 14 a safe deposit box.
52 15	c.	A state credit union has no duty to open or cause to be
52 16 opened, and is not liable to any person for failure to open or
52 17 cause to be opened, a safe deposit box of a deceased owner or
52 18 lessee.
52 19	d.	Upon compliance with the requirements of this section
52 20 as appropriate, the state credit union is not liable to any
52 21 person as a result of the opening of the safe deposit box,
52 22 removal and delivery of the purported will, or retention of
52 23 the unopened safe deposit box and contents.
52 24	Sec. 50.	NEW SECTION.	533.319	ADVERSE CLAIMS TO PROPERTY
52 25 IN SAFE DEPOSIT AND SAFEKEEPING.
52 26	1.	A state credit union shall not be required, in the
52 27 absence of a court order or indemnity required by this
52 28 section, to recognize any claim to, or claim of authority to
52 29 exercise control over, property held in safe deposit or
52 30 property held for safekeeping pursuant to section 533.321 made
52 31 by a person or persons other than the following:
52 32	a.	The member in whose name the property is held by the
52 33 state credit union.
52 34	b.	An individual or group of individuals who are
35 authorized to have access to the safe deposit box, or to the
1 property held for safekeeping, pursuant to a certified
53	2 corporate resolution or other written arrangement with the
53	3 member, currently on file with the state credit union, which
53	4 has not been revoked by valid corporate action in the case of
53	5 a corporation, or by a valid agreement or other valid action
53	6 appropriate for the form of legal organization of any other
53	7 member, of which the state credit union has received notice
53	8 and which is not the subject of a dispute known to the state
53	9 credit union as to its original validity.	The safe deposit
53 10 and safekeeping account records of a state credit union shall
53 11 be presumptive evidence as to the identity of the member on
53 12 whose behalf the property is held.
53 13	2.	A person making an adverse claim to, or an adverse
53 14 claim of authority to control, property held in a safe deposit
53 15 box or for safekeeping, must do either of the following:
53 16	a.	Obtain and serve on the state credit union an
53 17 appropriate court order or judicial process directed to the
53 18 state credit union, restraining any action with respect to the
53 19 property until further order of the court or instructing the
53 20 state credit union to deliver the property, in whole or in
53 21 part, as indicated in the order or process.
53 22	b.	Deliver to the state credit union a bond, in form and
53 23 amount with sureties satisfactory to the state credit union,
53 24 indemnifying the state credit union against any liability,
53 25 loss, or expense which the state credit union might incur
53 26 because of its refusal to deliver the property to any person
53 27 described in subsection 1, paragraph "a" or "b".
53 28	Sec. 51.	NEW SECTION.	533.320	REMEDIES AND PROCEEDINGS
53 29 FOR NONPAYMENT OF RENT ON SAFE DEPOSIT BOX.
53 30	1.	A state credit union has a lien upon the contents of a
53 31 safe deposit box for past due rentals and any expense incurred
53 32 in opening the safe deposit box, replacement of the locks on
53 33 the safe deposit box, and of a sale made pursuant to this
53 34 section.
35	2.	If the rental of a safe deposit box is not paid within

1 six months from the day the rental is due, at any time after
54	2 the six months and while the rental remains unpaid, the state
54	3 credit union shall mail a notice by restricted certified mail
54	4 to the member at the member's last known address as shown upon
54	5 the records of the state credit union, stating that if the
54	6 amount due for the rental is not paid on or before a specified
54	7 day, which shall be at least thirty days after the date of
54	8 mailing such notice, the state credit union will remove the
54	9 contents of the safe deposit box and hold the contents for the
54 10 account of the member.
54 11	3.	If the rental for the safe deposit box has not been
54 12 paid after the expiration of the period specified in a notice
54 13 mailed pursuant to subsection 2, the state credit union, in
54 14 the presence of two of its officers, may cause the safe
54 15 deposit box to be opened and the contents removed.	An
54 16 inventory of the contents of the safe deposit box shall be
54 17 made by the two officers present and the contents held by the
54 18 state credit union for the account of the member.
54 19	4.	a.	If the contents are not claimed within two years
54 20 after their removal from the safe deposit box, the state
54 21 credit union may proceed to sell so much of the contents as is
54 22 necessary to pay the past due rentals and expense incurred in
54 23 opening the safe deposit box, replacement of the locks on the
54 24 safe deposit box, and the sale of the contents.
54 25	b.	The sale shall be held at the time and place specified
54 26 in a notice published prior to the sale once each week for two
54 27 successive weeks in a newspaper of general circulation
54 28 published in the city or unincorporated area in which the
54 29 state credit union has its principal place of business, or if
54 30 there is none, a newspaper of general circulation published in
54 31 the county, or in a county adjoining the county, in which the
54 32 state credit union has its principal place of business.
54 33	c.	A copy of the published notice shall be mailed to the
54 34 member at the member's last known address as shown upon the
35 records of the state credit union.
1	d.	The notice shall contain the name of the member and
55	2 need only describe the contents of the safe deposit box in
55	3 general terms.
55	4	e.	The contents of any number of safe deposit boxes may be
55	5 sold under one notice of sale and the cost of the sale
55	6 apportioned ratably among the several safe deposit box members
55	7 involved.
55	8	f.	At the time and place designated in the notice the
55	9 contents taken from each respective safe deposit box shall be
55 10 sold separately to the highest bidder for cash and the
55 11 proceeds of each sale applied to the rentals and expenses due
55 12 to the state credit union and the residue from any such sale
55 13 shall be held by the state credit union for the account of the
55 14 member or members.
55 15	g.	An amount held as proceeds from such sale shall be
55 16 credited with interest at the customary annual rate for
55 17 savings accounts at the state credit union, or in lieu, at the
55 18 customary rate of interest in the community where such
55 19 proceeds are held.	The crediting of interest does not
55 20 activate the account to avoid an abandonment as unclaimed
55 21 property under chapter 556.
55 22	5.	a.	Notwithstanding the provisions of this section,
55 23 shares, bonds, or other securities which, at the time of a
55 24 sale pursuant to subsection 4, are listed on an established
55 25 stock exchange in the United States shall not be sold at
55 26 public sale but may be sold through an established stock
55 27 exchange.
55 28	b.	Upon making a sale of any such securities, an officer
55 29 of the state credit union shall execute and attach to the
55 30 securities an affidavit reciting facts showing that the
55 31 securities were sold pursuant to this section, and that the
55 32 state credit union has complied with the provisions of this
55 33 section.	The affidavit constitutes sufficient authority to
55 34 any corporation whose shares are sold or to any registrar or
35 transfer agent of such corporation to cancel the certificates
1 representing the shares to the purchaser of the shares, and to
56	2 any registrar, trustee, or transfer agent of registered bonds
56	3 or other securities, to register any such bonds or other
56	4 securities in the name of the purchaser of the bonds or other
56	5 securities.
56	6	6.	The proceeds of any sale made pursuant to this section,
56	7 after the payment of any amounts with respect to which the
56	8 state credit union has a lien, any property that was not
56	9 offered for sale and property which, although offered for
56 10 sale, was not sold, shall be retained by the state credit
56 11 union until such time as the property is presumed abandoned

56 12 according to section 556.2, and shall be handled pursuant to
56 13 chapter 556.
56 14	Sec. 52.	NEW SECTION.	533.321	AUTHORITY TO RECEIVE
56 15 PROPERTY FOR SAFEKEEPING.
56 16	1.	A state credit union may accept property for
56 17 safekeeping if the state credit union issues a receipt for the
56 18 property, except in the case of night depositories.
56 19	a.	A state credit union accepting property for safekeeping
56 20 shall purchase and maintain reasonable insurance coverage to
56 21 ensure against loss incurred in connection with the acceptance
56 22 of property for safekeeping.
56 23	b.	Property held for safekeeping shall not be commingled
56 24 with the property of the state credit union or the property of
56 25 others.
56 26	2.	A state credit union has a lien upon any property held
56 27 for safekeeping and for expenses incurred in any sale made
56 28 pursuant to this subsection.
56 29	a.	If the charge for safekeeping of property is not paid
56 30 within six months from the day the charge is due, at any time
56 31 after the six months and while the charge remains unpaid, the
56 32 state credit union may mail a notice to the member at the
56 33 member's last known address as shown upon the records of the
56 34 state credit union, stating that if the amount due is not paid
35 on or before a specified day, which shall be at least thirty
1 days after the date of mailing the notice, the state credit
57	2 union will remove the property from safekeeping and hold the
57	3 property for the account of the member.
57	4	b.	After the expiration of the period specified in the
57	5 notice, if the charge for safekeeping has not been paid, the
57	6 state credit union may remove the property from safekeeping,
57	7 cause the property to be inventoried, and hold the property
57	8 for the account of the member.
57	9	c.	If the property is not claimed within two years after
57 10 its removal from safekeeping, the state credit union may
57 11 proceed to sell so much of the property as is necessary to pay
57 12 the charge which remains unpaid and the expense incurred in
57 13 making the sale in the manner provided for in section 533.320,
57 14 subsections 4 and 5.
57 15	d.	The proceeds of any sale made pursuant to this section,
57 16 after payment of any amounts with respect to which the state
57 17 credit union has a lien, any property that was not offered for
57 18 sale, and property which, although offered for sale, was not
57 19 sold, shall be retained by the state credit union until such
57 20 time as the property is presumed abandoned according to
57 21 section 556.2, and shall be handled pursuant to chapter 556.
57 22	Sec. 53.	NEW SECTION.	533.322	PRESERVATION OF RECORDS.
57 23	1.	The superintendent may adopt rules regarding the
57 24 preservation of records and files of a state credit union or
57 25 any other person supervised or regulated by the
57 26 superintendent.	A state credit union is not required to
57 27 preserve its records for a period longer than eleven years
57 28 after the first day of January of the year following the time
57 29 of the making or filing of such records.	However, account
57 30 records showing unpaid balances due to depositors shall not be
57 31 destroyed.
57 32	2.	A copy of an original may be kept in lieu of any
57 33 original records.
57 34	a.	For purposes of this section, a copy includes any
35 duplicate, rerecording or reproduction of an original record
1 from any photograph, photostat, microfilm, microcard,
58	2 miniature or microphotograph, computer printout,
58	3 electronically stored data or image, or other process that
58	4 accurately reproduces or forms a durable medium for accurately
58	5 and legibly reproducing an unaltered image or reproduction of
58	6 the original record.
58	7	b.	A copy is deemed to be an original and shall be treated
58	8 as an original record in a judicial or administrative
58	9 proceeding for purposes of admissibility in evidence.	A
58 10 facsimile, exemplification, or certified copy of any such copy
58 11 reproduced from a film record is deemed to be a facsimile,
58 12 exemplification, or certified copy of the original.
58 13	Sec. 54.	NEW SECTION.	533.323	PHOTOGRAPHIC RECORDS.
58 14	1.	Any state credit union writing or record, or a
58 15 photostatic or photographic reproduction of such writing or
58 16 record, whether in the form of an entry in a book or
58 17 otherwise, made as a memorandum or record of any act,
58 18 transaction, occurrence, or event, shall be admissible in
58 19 evidence as proof of the act, transaction, occurrence, or
58 20 event, if made in the regular course of business.
58 21	2.	A printout or other tangible output, readable by sight,
58 22 shown to accurately reflect data contained in a promissory

58 23 note, negotiable instrument, or letter of credit, that
58 24 contains a signature made or created by electronic or digital
58 25 means such that it is stored by a computer or similar device,
58 26 is deemed to be an original of such note, instrument, or
58 27 letter for purposes of presenting such note, instrument, or
58 28 letter for payment, acceptance, or honor, or for purposes of a
58 29 judicial proceeding involving a claim based upon such note,
58 30 instrument, or letter.
58 31	Sec. 55.	NEW SECTION.	533.324	LIABILITY FOR DESTRUCTION.
58 32	1.	With the exception of certain account records which
58 33 shall not be destroyed pursuant to section 533.322, liability
58 34 shall not accrue against a state credit union for destroying
35 records if the records were maintained for the minimum time
1 provided for in this chapter.
59	2	2.	In any cause or proceeding in which state credit union
59	3 records or files may be called in question or be demanded of
59	4 the state credit union, or any officer or employee of the
59	5 state credit union, a showing that such records or files have
59	6 been destroyed in accordance with the provisions of this
59	7 chapter or rules adopted pursuant to this chapter shall be a
59	8 sufficient excuse for the failure to produce them.
59	9	Sec. 56.	NEW SECTION.	533.325	CONFIDENTIALITY OF STATE
59 10 CREDIT UNION INFORMATION.
59 11	1.	The directors, officers, committee members, and
59 12 employees of a state credit union shall hold in confidence all
59 13 information regarding transactions of the state credit union,
59 14 including information regarding transactions with its members
59 15 and their personal affairs, except to the extent necessary in
59 16 connection with making, extending, or collecting a loan or
59 17 line of credit, guaranteeing of member share drafts by third
59 18 parties, or complying with the examination of credit union
59 19 records by regulatory authorities or compliance with an order
59 20 from a court having jurisdiction over the state credit union.
59 21	2.	The board of directors may authorize participation of a
59 22 state credit union in a credit or consumer reporting agency if
59 23 the board has determined that use of such an agency is
59 24 essential in making and extending a loan or line of credit, or
59 25 guaranteeing member share drafts, and that information
59 26 supplied by the state credit union to such agency will be made
59 27 available only to legitimate members of that agency having a
59 28 legitimate business need for the information in connection
59 29 with a business transaction involving the state credit union.
59 30	Sec. 57.	NEW SECTION.	533.326	GOVERNMENTAL EMPLOYEES.
59 31	1.	When a state credit union has been organized by the
59 32 employees of the state or any political subdivision of the
59 33 state, the officer who writes warrants for the state or other
59 34 governmental body by which any public employee state credit
35 union member is employed, may withhold from the salary or
1 wages of the employee, and pay over to such state credit
60	2 union, sums as may be designated by written authorization
60	3 signed by the employee.
60	4	2.	The provisions of section 539.4 shall have no
60	5 application to this section.
60	6	Sec. 58.	NEW SECTION.	533.327	CHANGE IN PLACE OF
60	7 BUSINESS.
60	8	A state credit union may change its place of business on
60	9 written notice to the superintendent.
60 10	Sec. 59.	NEW SECTION.	533.328	CONDUCTING BUSINESS
60 11 OUTSIDE OF STATE.
60 12	If a state credit union has an office and conducts business
60 13 in another state having laws or regulations allowing credit
60 14 unions to exercise additional powers, the state credit union
60 15 may request permission from the superintendent to exercise
60 16 such additional powers while operating in the other state with
60 17 only the resident members of that other state.
60 18	Sec. 60.	NEW SECTION.	533.329	TAXATION.
60 19	1.	A state credit union shall be deemed an institution for
60 20 savings and is subject to taxation only as to its real estate
60 21 and moneys and credits.	The shares shall not be taxed.
60 22	2.	a.	The moneys and credits tax on state credit unions
60 23 is imposed at a rate of one=half cent on each dollar of the
60 24 legal and special reserves that are required to be maintained
60 25 by the state credit union under section 533.303, and shall be
60 26 levied by the board of supervisors and placed upon the tax
60 27 list and collected by the county treasurer.	However, an
60 28 exemption shall be given to each state credit union in the
60 29 amount of forty thousand dollars.
60 30	b.	The amount collected in each taxing district within a
60 31 city shall be apportioned twenty percent to the county, thirty
60 32 percent to the city general fund, and fifty percent to the
60 33 general fund of the state, and the amount collected in each

60 34 taxing district outside of cities shall be apportioned fifty
35 percent to the county and fifty percent to the general fund of
1 the state.
61	2	c.	The moneys and credits tax shall be collected at the
61	3 location of the state credit union as shown in its articles of
61	4 incorporation.
61	5	d.	The moneys and credits tax imposed under this section
61	6 shall be reduced by a tax credit authorized pursuant to
61	7 section 15.331C for certain sales taxes paid by a third=party
61	8 developer.
61	9	e.	The moneys and credits tax imposed under this section
61 10 shall be reduced by an investment tax credit authorized
61 11 pursuant to section 15.333.
61 12	f.	The moneys and credits tax imposed under this section
61 13 shall be reduced by an investment tax credit authorized
61 14 pursuant to section 15E.43.
61 15	g.	The moneys and credits tax imposed under this section
61 16 shall be reduced by an investment tax credit authorized
61 17 pursuant to section 15E.51.
61 18	h.	The moneys and credits tax imposed under this section
61 19 shall be reduced by an Iowa fund of funds tax credit
61 20 authorized pursuant to section 15E.66.
61 21	i.	The moneys and credits tax imposed under this section
61 22 shall be reduced by an economic development region revolving
61 23 fund contribution tax credit authorized pursuant to section 61 24 15E.232.
61 25	j.	The moneys and credits tax imposed under this section
61 26 shall be reduced by an endow Iowa tax credit authorized
61 27 pursuant to section 15E.305.
61 28	k.	The moneys and credits tax imposed under this section
61 29 shall be reduced by a wage=benefits tax credit authorized
61 30 pursuant to section 15I.2.
61 31	Sec. 61.	NEW SECTION.	533.330	REPORTS.
61 32	1.	A state credit union shall report quarterly at a
61 33 specified time to the superintendent in a format prescribed by
61 34 the superintendent for that purpose.
35	a.	If any quarterly report is in arrears, a penalty of one
1 hundred dollars for each day or fraction of a day such report
62	2 is in arrears may be levied by the superintendent against the
62	3 offending state credit union.	This penalty shall be in
62	4 addition to the penalty for failure to pay the annual fee
62	5 pursuant to section 533.112.
62	6	b.	If a quarterly report is not provided to the
62	7 superintendent within thirty days of the due date, the
62	8 superintendent may, after written notice to the board of
62	9 directors of the state credit union, suspend or revoke the
62 10 certificate of approval, take possession of the business and
62 11 property of the state credit union, and order its dissolution.
62 12	2.	In addition to the quarterly report, the superintendent
62 13 may, from time to time, require a state credit union to
62 14 provide other supplemental reports at a specified time.
62 15 Failure of a state credit union to provide supplemental
62 16 reports when due may result in the superintendent levying a
62 17 penalty of fifty dollars per day for each day or fraction of a
62 18 day such report is late.
62 19	Sec. 62.	NEW SECTION.	533.401	MERGER.
62 20	1.	With the approval of the superintendent, a state credit
62 21 union may merge with another credit union under the existing
62 22 certificate of approval of the other credit union if the
62 23 merger is pursuant to a plan agreed upon by a majority of the
62 24 board of directors of each credit union joining in the merger
62 25 and the merger is approved by the affirmative vote of a
62 26 majority of the members of the merging credit union either by
62 27 mail or in person at a meeting called for the purpose of
62 28 voting on the merger.
62 29	2.	A plan of merger, whether by act of consolidation,
62 30 acquisition, or business combination, along with evidence that
62 31 the plan has been approved by the members of the merging
62 32 credit union in accordance with the provisions of this
62 33 section, shall be submitted to the superintendent, along with
62 34 any additional materials the superintendent may request.
35	3.	The superintendent may approve a merger according to
1 the plan agreed upon by the majority of the board of directors
63	2 of each credit union if the superintendent receives a written
63	3 and verified application filed by the board of directors of
63	4 each credit union and finds all of the following:
63	5	a.	Notice of the meeting called to consider the merger was
63	6 mailed to each member of the merging credit union entitled to
63	7 vote upon the question at least twenty days prior to the date
63	8 of the merger meeting.
63	9	b.	The notice disclosed the purpose of the meeting and

63 10 properly informed the membership that approval of the merger
63 11 would be sought pursuant to this section.
63 12	c.	At the meeting called to consider the merger, a
63 13 majority of the votes received, by regular mail or in person,
63 14 upon the question were in favor of the merger.
63 15	d.	Control of the merging credit union shall transfer to
63 16 the board of directors of the continuing credit union upon
63 17 approval of the merger by the superintendent and the favorable
63 18 vote of a majority of the members as prescribed in paragraph
63 19 "c".	Upon transfer of control, the board of directors of the
63 20 merging credit union may only do such things necessary to
63 21 execute the merger.
63 22	4.	The superintendent may disapprove a merger if the
63 23 superintendent finds either of the following:
63 24	a.	The merger would not result in a safe and sound credit
63 25 union.
63 26	b.	The procedures required by this section, particularly
63 27 those used to obtain member approval for the merger, were not
63 28 followed or were irregular.
63 29	5.	The superintendent may waive the membership merger vote
63 30 if the superintendent finds that an emergency exists which
63 31 justifies the waiver.
63 32	6.	The certificate of merger and a copy of the agreed plan
63 33 of merger shall be forwarded to the superintendent, certified
63 34 by the superintendent, and returned to both credit unions
35 within thirty days of the date of receipt by the
1 superintendent.
64	2	7.	a.	Upon return of the certificate from the
64	3 superintendent, all of the merging credit union's property,
64	4 property rights, and members' interests shall vest in the
64	5 continuing credit union without the legal need for deeds,
64	6 endorsements or other instruments of transfer, and all debts,
64	7 obligations, and liabilities of the merging credit union shall
64	8 be assumed by the continuing credit union.
64	9	b.	The rights and privileges of the members of the merging
64 10 credit union shall continue as provided in the plan.
64 11	c.	Credit union membership in the continuing credit union
64 12 shall be available to persons within the common bond of the
64 13 merging credit union.
64 14	8.	This section shall be construed to permit a credit
64 15 union organized under any other statute to merge with one
64 16 organized under this chapter, or to permit one organized under
64 17 this chapter to merge with one organized under any other
64 18 statute.
64 19	9.	As used in the section, the term "merger" or "merge"
64 20 means the combination of assets and liabilities of one credit
64 21 union with those of another credit union such that one credit
64 22 union continues and the other credit union surrenders its
64 23 charter to operate as a credit union.
64 24	Sec. 63.	NEW SECTION.	533.402	CONVERSION OF FINANCIAL
64 25 INSTITUTION TO STATE CREDIT UNION.
64 26	1.	Any financial institution may convert to a state credit
64 27 union by complying with the laws of the original chartered
64 28 authority and upon the approval of the superintendent.	As
64 29 used in this section, "financial institution" means any credit
64 30 union, bank, savings bank, or savings and loan association
64 31 chartered under federal or state law.
64 32	a.	Application for approval of the conversion to a state
64 33 credit union shall be submitted to the superintendent in the
64 34 form prescribed by the superintendent, together with the
35 articles of incorporation and bylaws as required for
1 organization of a state credit union pursuant to this chapter.
65	2	b.	The superintendent may cause an examination to be made
65	3 of any converting financial institution.	The converting
65	4 financial institution shall reimburse the superintendent for
65	5 the division's costs related to the conversion.
65	6	2.	a.	If the superintendent approves the application of a
65	7 financial institution for conversion to a state credit union,
65	8 the superintendent shall cause the articles of incorporation
65	9 of the resulting state credit union to be filed and recorded
65 10 in the county in which the state credit union has its
65 11 principal place of business and the superintendent shall issue
65 12 a certificate of authority to do business under the laws of
65 13 this state to the resulting state credit union.	The financial
65 14 institution shall then become a state credit union subject to
65 15 the laws of this state.
65 16	b.	The superintendent shall furnish a copy of the
65 17 certificate to the administrator of the national credit union
65 18 administration.
65 19	3.	a.	Upon conversion, the existence of the original
65 20 financial institution shall cease.

65 21	b.	The state credit union resulting from the conversion
65 22 shall have only the authority to engage in the business and
65 23 exercise the powers of a state credit union.
65 24	4.	a.	A liability of the original financial institution
65 25 or of its members, directors, or officers shall not be
65 26 affected, and any lien on any property of the financial
65 27 institution shall not be impaired by the conversion.
65 28	b.	Any claim existing or action pending by or against the
65 29 original financial institution may be prosecuted to judgment
65 30 as if the conversion had not taken place, or the resulting
65 31 state credit union may be substituted in its place.
65 32	Sec. 64.	NEW SECTION.	533.403	CONVERSION OF STATE CREDIT
65 33 UNION INTO FEDERAL CREDIT UNION.
65 34	1.	A state credit union may convert into a federal credit
35 union with the approval of the administrator of the national
1 credit union administration and by the affirmative vote of a
66	2 majority of the credit union's members who vote on the
66	3 proposal.	This vote, if taken, shall be at a meeting called
66	4 for that purpose and shall be in the manner prescribed by the
66	5 bylaws.
66	6	2.	The board of directors of the state credit union shall
66	7 notify the superintendent of any proposed conversion and of
66	8 any abandonment or disapproval of the conversion by the
66	9 members or by the administrator of the national credit union
66 10 administration.	The board of directors of the state credit
66 11 union shall file with the superintendent appropriate evidence
66 12 of approval of the conversion by the administrator of the
66 13 national credit union administration and shall notify the
66 14 superintendent of the date on which the conversion is to be
66 15 effective.
66 16	3.	Upon receipt of satisfactory proof that the state
66 17 credit union has complied with all applicable laws of this
66 18 state and of the United States, the superintendent shall issue
66 19 a certificate of conversion which shall be filed and recorded
66 20 in the county in which the state credit union has its
66 21 principal place of business and in the county in which its
66 22 original articles of incorporation were filed and recorded.
66 23	Sec. 65.	NEW SECTION.	533.404	DISSOLUTION GENERALLY.
66 24	The following shall apply to dissolution of a state credit
66 25 union under this chapter, whether voluntary or involuntary:
66 26	1.	Distribution of the assets of the state credit union
66 27 shall be made in the following order:
66 28	a.	The payment of costs and expense of the administrator
66 29 of dissolution.
66 30	b.	The payment of claims for public funds deposited
66 31 pursuant to chapter 12C and the payment of claims which are
66 32 given priority by applicable statutes.	If the assets are
66 33 insufficient for payment of the claims in full, priority shall
66 34 be determined by the statutes or, in the absence of
35 conflicting provisions, on a pro rata basis.
1	c.	The payment of deposits, including accrued interest, up
67	2 to the date of the special meeting of the members at which
67	3 voluntary dissolution was authorized, or in the case of
67	4 involuntary dissolution, the date of appointment of a
67	5 receiver.
67	6	d.	The pro rata apportionment of the balance among the
67	7 members of record on the date of the special meeting of the
67	8 members at which voluntary dissolution was authorized, or in
67	9 the case of involuntary dissolution, the members of record on
67 10 the date of appointment of a receiver.
67 11	2.	All amounts due members who are unknown, or who are
67 12 under a disability and no person is legally competent to
67 13 receive the amounts, or who cannot be found after the exercise
67 14 of reasonable diligence, shall be transmitted to the treasurer
67 15 of state who shall hold the amounts in the manner prescribed
67 16 by chapter 556.	All amounts due creditors as described in
67 17 section 490.1440 shall be transmitted to the treasurer of
67 18 state in accordance with that section and shall be retained by
67 19 the treasurer of state and subject to claim as provided for in
67 20 that section.
67 21	3.	The superintendent shall assume custody of the records
67 22 of a state credit union dissolved pursuant to this chapter and
67 23 shall retain the records which, in the superintendent's
67 24 discretion, are deemed necessary, in accordance with the
67 25 provisions of section 533.322.	The superintendent may cause
67 26 film, photographic, photostatic, or other copies of the
67 27 records to be made and the superintendent shall retain the
67 28 copies in lieu of the original records.
67 29	4.	a.	The dissolution of a state credit union shall not
67 30 remove or impair any remedy available to or against such state
67 31 credit union, its directors, officers, or members for any

67 32 right or claim existing or any liability incurred prior to
67 33 such dissolution if an action or other proceeding to enforce
67 34 the right or claim is commenced within two years after the
35 date of filing of a certificate or decree of dissolution with
1 the county recorder in the county in which the state credit
68	2 union has its principal place of business.
68	3	b.	Any such action or proceeding by or against the state
68	4 credit union may be prosecuted or defended by the state credit
68	5 union in its corporate name.
68	6	c.	The members, directors, and officers shall have power
68	7 to take such corporate or other action as shall be appropriate
68	8 to protect such remedy, right, or claim.
68	9	Sec. 66.	NEW SECTION.	533.405	VOLUNTARY DISSOLUTION.
68 10	The process of voluntary dissolution shall be as follows:
68 11	1.	At a special meeting called for that purpose, a state
68 12 credit union may dissolve upon the affirmative vote of a
68 13 majority of its members eligible to vote at the special
68 14 meeting.
68 15	a.	Notice of the meeting's purpose shall be contained in
68 16 the meeting's notice.
68 17	b.	Any member eligible to vote and not present at the
68 18 meeting may, within twenty days after the date on which the
68 19 meeting was held, vote in favor of dissolution by signing a
68 20 statement in a form approved by the superintendent.	This vote
68 21 shall have the same force and effect as if cast at the
68 22 meeting.
68 23	2.	a.	The state credit union shall cease to do business
68 24 except for the purposes of liquidation immediately upon giving
68 25 notice of the special meeting called for the members' vote on
68 26 dissolution.
68 27	b.	The board of directors shall immediately notify the
68 28 superintendent of the intention of the state credit union to
68 29 dissolve.
68 30	c.	The state credit union shall not resume its regular
68 31 business unless the dissolution fails to receive the required
68 32 vote of the members or unless the members have revoked prior
68 33 affirmative action to dissolve as provided for in subsection 68 34 6.
35	3.	a.	The board of directors shall have power to
1 terminate and settle the affairs of a state credit union in
69	2 voluntary dissolution.
69	3	b.	The state credit union shall continue in existence for
69	4 the purpose of discharging its liabilities, collecting and
69	5 distributing its assets, and doing all acts required in order
69	6 to terminate its affairs.
69	7	c.	The state credit union may sue and be sued for the
69	8 purpose of enforcing such liabilities and for the purpose of
69	9 collecting its assets until its affairs are fully settled.
69 10	d.	During the course of dissolution proceedings, the state
69 11 credit union shall make such reports and shall be subject to
69 12 such examinations as the superintendent may require.
69 13	e.	If at any time after the affirmative vote of a majority
69 14 of the members of a state credit union to dissolve the state
69 15 credit union, the superintendent finds that the state credit
69 16 union is not making reasonable progress toward terminating its
69 17 affairs, the superintendent may apply to the district court
69 18 for appointment of a receiver to terminate the affairs of the
69 19 state credit union.
69 20	f.	If the superintendent finds that a dissolving state
69 21 credit union is insolvent, the superintendent may proceed as
69 22 otherwise provided in this chapter.
69 23	4.	a.	The board of directors may appoint by resolution
69 24 any responsible person as defined in section 4.1, whose
69 25 appointment has been approved by the superintendent, to
69 26 exercise its powers to terminate and settle the affairs of the
69 27 state credit union pursuant to this section.
69 28	b.	The superintendent may adopt rules establishing the
69 29 qualifications that must be met by such appointees, including
69 30 but not limited to filing a surety bond with the
69 31 superintendent.
69 32	5.	a.	Upon such proof as is satisfactory to the
69 33 superintendent that all assets have been liquidated from which
69 34 there is a reasonable expectance of realization, that the
35 liabilities of the state credit union have been discharged and
1 distribution made to its members, and that the liquidation has
70	2 been completed, the superintendent shall issue a certificate
70	3 of dissolution, which certificate shall be filed and recorded
70	4 in the county in which the state credit union has its
70	5 principal place of business and in the county in which its
70	6 original articles of incorporation were filed and recorded.
70	7	b.	Upon the issuance of a certificate of dissolution, the

70	8 existence of the state credit union shall cease.
70	9	6.	a.	At any time prior to any distribution of its
70 10 assets, a state credit union may revoke the voluntary
70 11 dissolution proceedings by the affirmative vote of a majority
70 12 of its members eligible to vote.	This vote, if taken, shall
70 13 be at a special meeting called for that purpose in the manner
70 14 prescribed by the bylaws.
70 15	b.	The board of directors shall immediately notify the
70 16 superintendent of any such action to revoke voluntary
70 17 dissolution proceedings.
70 18	Sec. 67.	NEW SECTION.	533.406	STATE CREDIT UNION MERGER,
70 19 CONVERSION, OR DISSOLUTION.
70 20	Notwithstanding section 533.301, subsection 25, a state
70 21 credit union shall comply with the state law requirements for
70 22 merger, conversion, or dissolution of a state credit union.
70 23	Sec. 68.	NEW SECTION.	533.501	SUPERVISORY ACTION.
70 24	1.	CEASE AND DESIST ORDER.
70 25	a.	(1)	If the superintendent has reason to believe that
70 26 an officer, director, employee, or committee member of a state
70 27 credit union has violated any law, rule, or cease and desist
70 28 order relating to a state credit union, or has engaged in an
70 29 unsafe or unsound practice in conducting the business of a
70 30 state credit union, the superintendent may cause notice to be
70 31 served upon the officer, director, employee, or committee
70 32 member to appear before the superintendent to show cause why
70 33 the person should not be removed from office or employment.	A
70 34 copy of such notice shall be sent by certified mail or
35 restricted certified mail to each director of the state credit
1 union affected.
71	2	(2)	If the superintendent finds that the accused has
71	3 violated a law, rule, or cease and desist order relating to a
71	4 state credit union, or has engaged in an unsafe or unsound
71	5 practice in conducting the business of a state credit union,
71	6 after granting the accused a hearing before an independent
71	7 administrative law judge, the superintendent in the
71	8 superintendent's discretion may order that the accused be
71	9 removed from office and from any position of employment with
71 10 the state credit union.	The superintendent may further order
71 11 that the accused not accept employment in any state credit
71 12 union under the superintendent's jurisdiction without the
71 13 superintendent's prior approval.
71 14	(3)	A copy of the order shall be served upon the accused
71 15 and upon the state credit union affected, at which time the
71 16 accused shall cease to be an officer, director, employee, or
71 17 committee member of the state credit union.
71 18	b.	(1)	If the superintendent determines that a state
71 19 credit union has violated any of the provisions of this
71 20 chapter, after notice and opportunity for hearing, the
71 21 superintendent shall order the state credit union to correct
71 22 the violation, except when the state credit union is
71 23 insolvent.
71 24	(2)	The superintendent may specify the manner in which the
71 25 violation is to be corrected and grant the state credit union
71 26 not more than sixty days within which to comply with the
71 27 order.
71 28	(3)	The superintendent may revoke a state credit union's
71 29 certificate of approval for failure to comply with the order.
71 30	(4)	If the certificate of approval has been revoked, the
71 31 superintendent may apply to the district court of the county
71 32 in which the state credit union is located for the appointment
71 33 of a receiver for the state credit union.
71 34	2.	SUMMARY CEASE AND DESIST ORDER.
35	a.	(1)	If it appears to the superintendent that a state
1 credit union, or any director, officer, employee, or committee
72	2 member of a state credit union, is engaging in or is about to
72	3 engage in an unsafe or unsound practice or dishonest act in
72	4 conducting the business of the state credit union that is
72	5 likely to cause insolvency or substantial dissipation of
72	6 assets or earnings of the state credit union, or is likely to
72	7 seriously weaken the condition of the state credit union or
72	8 otherwise seriously prejudice the interests of its members,
72	9 the superintendent may issue an interim summary cease and
72 10 desist order requiring the state credit union, or any
72 11 director, officer, employee, or committee member, to cease and
72 12 desist from any such practice or act, and may take affirmative
72 13 action, including suspension of the director, officer,
72 14 employee, or committee member to prevent such insolvency,
72 15 dissipation, condition, or prejudice.
72 16	(2)	The interim order shall become effective upon personal
72 17 service upon the state credit union, or upon the director,
72 18 officer, employee, or committee member of the state credit

72 19 union, and remain effective and enforceable pending the
72 20 completion of administrative proceedings conducted pursuant to
72 21 this section and issuance of a final order.
72 22	b.	(1)	The interim order shall contain a concise
72 23 statement of the facts constituting the alleged unsafe or
72 24 unsound practice or alleged dishonest act, and shall fix a
72 25 time and place at which a hearing will be held to determine
72 26 whether a final order to cease and desist should issue against
72 27 the state credit union, or any director, officer, employee, or
72 28 committee member.
72 29	(2)	The hearing shall be fixed for a date not later than
72 30 thirty days after service of the interim order unless a later
72 31 date is set at the request of the party served.
72 32	(3)	If the state credit union, or the director, officer,
72 33 employee, or committee member, fails to appear at the hearing,
72 34 the state credit union, or the director, officer, employee, or
35 committee member, is deemed to have consented to the issuance
1 of a final cease and desist order.
73	2	(4)	In the event of such consent, or if upon the record
73	3 made at the hearing the superintendent finds that any unsafe
73	4 or unsound practice or dishonest act specified in the interim
73	5 order has been established, the superintendent may issue and
73	6 serve upon the state credit union, or the director, officer,
73	7 employee, or committee member, a final order to cease and
73	8 desist from any such practice or act.	The order may require
73	9 the state credit union, or the director, officer, employee, or
73 10 committee member, to cease and desist from any such practice
73 11 or act and direct affirmative action, including suspension of
73 12 the director, officer, employee, or committee member.
73 13	c.	(1)	A hearing provided for in this section shall be
73 14 presided over by an administrative law judge appointed in
73 15 accordance with section 17A.11.
73 16	(2)	The hearing shall be private, unless the
73 17 superintendent determines after full consideration of the
73 18 views of the party afforded the hearing, that a public hearing
73 19 is necessary to protect the public interest.
73 20	(3)	After the hearing, and within thirty days after the
73 21 case has been submitted for decision, the superintendent shall
73 22 review the proposed order of the administrative law judge and
73 23 render a final decision, including findings of fact upon which
73 24 the decision is predicated, and issue and serve upon each
73 25 party to the proceeding an order consistent with this section.
73 26	(4)	Records and information relating to the hearing shall
73 27 be confidential and not subject to subpoena.	Such records and
73 28 information shall not constitute a public record subject to
73 29 examination or copying under chapter 22.
73 30	d.	Any final order issued by the superintendent shall
73 31 become effective upon service upon the state credit union,
73 32 director, officer, employee, or committee member.
73 33	e.	In the case of violation or threatened violation of, or
73 34 failure to obey, an order, the superintendent may apply to the
35 district court of the county in which the state credit union
1 has its principal place of business for the enforcement of the
74	2 order and such court shall have jurisdiction and power to
74	3 order and require compliance with the order.
74	4	f.	(1)	Within ten days after a state credit union or any
74	5 director, officer, employee, or committee member is served
74	6 with a summary cease and desist order, the state credit union
74	7 or director, officer, employee, or committee member affected
74	8 may apply to the district court in the county in which the
74	9 state credit union has its principal place of business for an
74 10 injunction setting aside, limiting, or suspending the
74 11 enforcement, operation, or effectiveness of the interim order
74 12 pending the completion of administrative proceedings.
74 13	(2)	If serious prejudice to the interests of the
74 14 superintendent, the state credit union, or the officer,
74 15 director, employee, or committee member would result from a
74 16 court hearing, the court may order the judicial proceeding to
74 17 be conducted in camera.
74 18	Sec. 69.	NEW SECTION.	533.502	GROUNDS FOR MANAGEMENT OF
74 19 STATE CREDIT UNION BY SUPERINTENDENT.
74 20	1.	Notwithstanding any other provision of this chapter,
74 21 the superintendent may take over the management of the
74 22 property and business of a state credit union when it appears
74 23 to the superintendent that any of the following actions have
74 24 occurred or conditions exist:
74 25	a.	The state credit union has violated any law of this
74 26 state.
74 27	b.	The capital of the state credit union is impaired.
74 28	c.	The state credit union is conducting its business in an
74 29 unsafe or unsound manner.

74 30	d.	The state credit union is in such condition that it is
74 31 unsound, unsafe, or inexpedient for it to transact business.
74 32	e.	The state credit union has suspended or refused payment
74 33 of its deposits or other liabilities.
74 34	f.	The state credit union refuses to make its records
35 available to the superintendent for examination or otherwise
1 refuses to make available, through an officer or employee
75	2 having knowledge, information required by the superintendent
75	3 for the proper discharge of the duties of the superintendent's
75	4 office.
75	5	g.	The state credit union neglects or refuses to observe
75	6 any order of the superintendent made pursuant to the
75	7 provisions of this chapter, unless the enforcement of such
75	8 order is stayed in a court proceeding brought by the state
75	9 credit union.
75 10	h.	The state credit union has not transacted any business
75 11 or performed any of the duties contemplated by its
75 12 authorization to do business for a period of at least one
75 13 hundred eighty days.
75 14	2.	The superintendent shall thereafter manage the property
75 15 and business of the state credit union until such time as the
75 16 superintendent may relinquish to the state credit union the
75 17 management, upon such conditions as the superintendent may
75 18 prescribe, or until the affairs of the state credit union are
75 19 finally dissolved as provided in this chapter.
75 20	3.	Judicial review of the actions of the superintendent
75 21 may be sought in accordance with chapter 17A.	However,
75 22 contested case provisions of chapter 17A, the Iowa
75 23 administrative procedure Act, do not apply to an action by the
75 24 superintendent to take over the management of or to manage a
75 25 state credit union, as authorized by this section.
75 26	Sec. 70.	NEW SECTION.	533.503	SUPERINTENDENT AS
75 27 RECEIVER.
75 28	1.	In all situations in which the superintendent has been
75 29 appointed as receiver as provided in this chapter, the
75 30 superintendent shall make a diligent effort to collect and
75 31 realize on the assets of the state credit union, and shall
75 32 make distribution of the proceeds from time to time to those
75 33 entitled in the order provided for by law.
75 34	a.	The superintendent may execute as receiver, or after
35 the receivership has terminated, assignments, releases, and
1 satisfactions to effectuate sales and transfers.
76	2	b.	Upon the order of the court in which the receivership
76	3 is pending, the superintendent may sell or compound all bad or
76	4 doubtful debts.
76	5	c.	Upon the order of the court in which the receivership
76	6 is pending, the superintendent may sell all the real and
76	7 personal property of the state credit union, on such terms as
76	8 the court shall direct.
76	9	2.	All expenses of the receivership and dissolution shall
76 10 be determined by the superintendent, subject to the approval
76 11 of the district court, and shall be paid out of the assets of
76 12 the state credit union.
76 13	3.	At the completion of the receivership, the
76 14 superintendent shall file a final report which shall contain
76 15 details of receivership activity and such additional facts as
76 16 the court may require.
76 17	4.	a.	Upon the submission and approval of the final
76 18 report, the court shall enter a decree dissolving the state
76 19 credit union and discharging the receiver, at which time the
76 20 existence of the state credit union shall cease.
76 21	b.	The clerk of the district court shall file and record
76 22 certified copies of the decree with the county recorder of the
76 23 county in which the state credit union has its principal place
76 24 of business and with the county recorder of the county in
76 25 which its original articles of incorporation were filed and
76 26 recorded.	A fee shall not be charged by the county recorder
76 27 for the filing or recording of such decree.
76 28	Sec. 71.	NEW SECTION.	533.504	TENDER OF RECEIVERSHIP TO
76 29 INSURANCE PLAN.
76 30	1.	a.	The superintendent may tender to the administrator
76 31 of an account insurance plan approved under this chapter the
76 32 appointment as receiver for an insured state credit union.
76 33	b.	If the insurance plan administrator accepts the
76 34 appointment as receiver, the rights of the members and other
35 creditors of the insured state credit union shall be
1 determined in accordance with the laws of this state and the
77	2 insurance plan administrator shall comply with all applicable
77	3 provisions of this chapter.
77	4	2.	The administrator of an account insurance plan as
77	5 receiver shall possess the powers, rights, and privileges

77	6 given to the superintendent as provided by law.
77	7	3.	If the administrator of an account insurance plan pays
77	8 or makes available for payment the insured liabilities of a
77	9 state credit union, the administrator shall be subrogated by
77 10 operation of law to all rights of the members against the
77 11 insured state credit union in the same manner and to the same
77 12 extent as subrogation is provided for in applicable laws in
77 13 the case of a closed federal credit union.
77 14	Sec. 72.	NEW SECTION.	533.505	SUBPOENA == CONTEMPT.
77 15	1.	The superintendent or the superintendent's designee may
77 16 subpoena witnesses, compel their attendance, administer an
77 17 oath, examine any person under oath, and require the
77 18 production of any relevant record during the period of
77 19 examination.
77 20	2.	An examination may be conducted on any subject relating
77 21 to the duties imposed upon or powers vested in the
77 22 superintendent.
77 23	3.	Whenever a person subpoenaed pursuant to subsection 1
77 24 fails to produce a record or to give testimony as required by
77 25 the terms of the subpoena, the superintendent may apply to the
77 26 district court of Polk county for the enforcement of the
77 27 subpoena or the issuance of an order compelling compliance.
77 28	4.	The refusal of any person to obey an order of the
77 29 district court issued pursuant to subsection 1, without
77 30 reasonable cause, shall be considered a contempt of court.
77 31	Sec. 73.	NEW SECTION.	533.506	LIMITATION OF ACTIONS.
77 32	1.	All causes of action against a state credit union based
77 33 upon a claim or claims inconsistent with an entry or entries
77 34 in a state credit union record or ledger, made in the regular
35 course of business, shall be deemed to have accrued, and shall
1 accrue, one year after the date of such entry or entries.
78	2	2.	An action founded upon such a cause shall not be
78	3 brought after the expiration of ten years from the date of
78	4 such accrual.
78	5	Sec. 74.	NEW SECTION.	533.507	FALSE STATEMENTS FOR
78	6 CREDIT == FRAUDULENT PRACTICE.
78	7	A person who knowingly makes or causes to be made, directly
78	8 or indirectly, any false statement in writing, or who
78	9 procures, knowing that a false statement in writing has been
78 10 made concerning the financial condition or means or ability to
78 11 pay of such person or any other person in which such person is
78 12 interested or for whom such person is acting with the intent
78 13 that such statement shall be relied upon by a state credit
78 14 union for the purpose of procuring the delivery of property,
78 15 the payment of cash, or the receipt of credit in any form, for
78 16 the benefit of such person or of any other person in which
78 17 such person is interested or for whom such person is acting,
78 18 is guilty of a fraudulent practice.
78 19	Sec. 75.	NEW SECTION.	533.508	FALSE STATEMENTS ==
78 20 PENALTIES.
78 21	1.	A director, officer, or employee of a state credit
78 22 union shall not intentionally publish, disseminate, or
78 23 distribute any advertising or notice containing any false,
78 24 misleading, or deceptive statements concerning rates, terms,
78 25 or conditions on which loans are made, or deposits or share
78 26 installments are received, or concerning any charge which the
78 27 state credit union is authorized to impose pursuant to this
78 28 chapter, or concerning the financial condition of the state
78 29 credit union.	Any director, officer, or employee of a state
78 30 credit union who violates the provisions of this section is
78 31 guilty of a fraudulent practice.
78 32	2.	Any person who maliciously or with intent to deceive
78 33 makes, publishes, utters, repeats, or circulates any false
78 34 statement concerning any state credit union which imputes or
35 tends to impute insolvency, unsound financial condition or
1 financial embarrassment, or which may tend to cause or provoke
79	2 or aid in causing or provoking a general withdrawal of
79	3 deposits from such state credit union, or which may otherwise
79	4 injure or tend to injure the business or goodwill of such
79	5 state credit union, is guilty of a simple misdemeanor.
79	6	Sec. 76.	NEW SECTION.	533.509	PENALTY FOR FALSIFICATION.
79	7	A director, officer, agent, or employee of a state credit
79	8 union, a credit union service organization, or any other
79	9 person who knowingly signs, makes, or consents to another
79 10 person making any false statement or false entry in the books
79 11 of the state credit union or credit union service
79 12 organization, or knowingly signs, makes, or consents to the
79 13 making of any false report regarding a state credit union or
79 14 credit union service organization, or knowingly diverts the
79 15 funds of the state credit union, is guilty of a class "C"
79 16 felony and is forever after barred from holding any office or

79 17 position in a state credit union or credit union service
79 18 organization.
79 19	DIVISION II
79 20	Sec. 77.	Section 12C.13, Code 2007, is amended to read as
79 21 follows:
79 22	12C.13	DEPOSIT NOT MEMBERSHIP.
79 23	Notwithstanding chapter 534, the deposit of public funds in
79 24 an association a credit union defined in section 533.1 533.102
79 25 or an association defined in 534.102 does not constitute being
79 26 a shareholder, stockholder, or owner of a corporation in
79 27 violation of Article VIII of the Constitution of the State of
79 28 Iowa or any other provision of law.
79 29	Sec. 78.	Section 12C.16, subsection 1, paragraph b,
79 30 subparagraph (4), Code 2007, is amended to read as follows:
79 31	(4)	To the extent of the guarantee, loans, obligations, or
79 32 nontransferable letters of credit upon which the payment of
79 33 principal and interest is fully secured or guaranteed by the
79 34 United States of America or an agency or instrumentality of
35 the United States of America or the U. S. United States
1 central credit union, a corporate central credit union
80	2 organized under section 533.38 533.213, or a corporate credit
80	3 union organized under 12 C.F.R. } 704, and the rating of any
80	4 one of such credit unions remains within the two highest
80	5 classifications of prime established by at least one of the
80	6 standard rating services approved by the superintendent of
80	7 banking by rule pursuant to chapter 17A.	The treasurer of
80	8 state shall adopt rules pursuant to chapter 17A to implement
80	9 this section.
80 10	Sec. 79.	Section 12C.17, subsection 1, paragraph c, Code
80 11 2007, is amended to read as follows:
80 12	c.	The securities shall be deposited with the federal
80 13 reserve bank, the federal home loan bank of Des Moines, Iowa,
80 14 or the U. S. United States central credit union, a corporate
80 15 central credit union organized under section 533.38 533.213,
80 16 or a corporate credit union organized under 12 C.F.R. } 704
80 17 pursuant to a bailment agreement or a pledge custody
80 18 agreement.
80 19	Sec. 80.	Section 12C.17, subsection 4, Code 2007, is
80 20 amended to read as follows:
80 21	4.	Upon written request from the appropriate public
80 22 officer but not less than monthly, the federal reserve bank,
80 23 the federal home loan bank of Des Moines, Iowa, the U. S.
80 24 United States central credit union, a corporate central credit
80 25 union organized under section 533.38 533.213, or a corporate
80 26 credit union organized under 12 C.F.R. } 704 shall report a
80 27 description, the par value, and the market value of any
80 28 pledged collateral by a credit union.
80 29	Sec. 81.	Section 12C.23, subsection 3, paragraph b, Code
80 30 2007, is amended to read as follows:
80 31	b.	The loss to public depositors shall be satisfied, first
80 32 through any applicable deposit insurance and then through the
80 33 sale of securities pledged by the defaulting credit union, and
80 34 then the assets of the defaulting credit union.	The priority
35 of claims are those established pursuant to section 533.22
1 533.404, subsection 1, paragraph "b".	To the extent permitted
81	2 by federal law, in the distribution of an insolvent federally
81	3 chartered credit union's assets, the order of payment of
81	4 liabilities if its assets are insufficient to pay in full all
81	5 its liabilities for which claims are made shall be in the same
81	6 order as for the equivalent type of state chartered credit
81	7 union as provided in section 533.22 533.404, subsection 1,
81	8 paragraph "b".
81	9	Sec. 82.	Section 15.333, subsection 1, Code 2007, is
81 10 amended to read as follows:
81 11	1.	An eligible business may claim a tax credit equal to a
81 12 percentage of the new investment directly related to new jobs
81 13 created by the location or expansion of an eligible business
81 14 under the program.	The tax credit shall be amortized equally
81 15 over five calendar years.	The tax credit shall be allowed
81 16 against taxes imposed under chapter 422, division II, III, or
81 17 V, and against the moneys and credits tax imposed in section
81 18 533.24 533.329.	If the business is a partnership, S
81 19 corporation, limited liability company, cooperative organized
81 20 under chapter 501 and filing as a partnership for federal tax
81 21 purposes, or estate or trust electing to have the income taxed
81 22 directly to the individual, an individual may claim the tax
81 23 credit allowed.	The amount claimed by the individual shall be
81 24 based upon the pro rata share of the individual's earnings of
81 25 the partnership, S corporation, limited liability company,
81 26 cooperative organized under chapter 501 and filing as a
81 27 partnership for federal tax purposes, or estate or trust.	The

81 28 percentage shall be determined as provided in section 15.335A.
81 29 Any tax credit in excess of the tax liability for the tax year
81 30 may be credited to the tax liability for the following seven
81 31 years or until depleted, whichever occurs first.
81 32	Subject to prior approval by the department of economic
81 33 development, in consultation with the department of revenue,
81 34 an eligible business whose project primarily involves the
35 production of value=added agricultural products or uses
1 biotechnology=related processes may elect to receive a refund
82	2 of all or a portion of an unused tax credit.	For purposes of
82	3 this subsection, such an eligible business includes a
82	4 cooperative described in section 521 of the Internal Revenue
82	5 Code which is not required to file an Iowa corporate income
82	6 tax return, and whose project primarily involves the
82	7 production of ethanol.	The refund may be applied against a
82	8 tax liability imposed under chapter 422, division II, III, or
82	9 V, and against the moneys and credits tax imposed in section
82 10 533.24 533.329.	If the business is a partnership, S
82 11 corporation, limited liability company, cooperative organized
82 12 under chapter 501 and filing as a partnership for federal tax
82 13 purposes, or estate or trust electing to have the income taxed
82 14 directly to the individual, an individual may claim the tax
82 15 credit allowed.	The amount claimed by the individual shall be
82 16 based upon the pro rata share of the individual's earnings of
82 17 the partnership, S corporation, limited liability company,
82 18 cooperative organized under chapter 501 and filing as a
82 19 partnership for federal tax purposes, or estate or trust.
82 20	Sec. 83.	Section 15E.43, subsection 1, paragraph a, Code
82 21 2007, is amended to read as follows:
82 22	a.	For tax years beginning on or after January 1, 2002, a
82 23 tax credit shall be allowed against the taxes imposed in
82 24 chapter 422, divisions II, III, and V, and in chapter 432, and
82 25 against the moneys and credits tax imposed in section 533.24
82 26 533.329, for a portion of a taxpayer's equity investment, as
82 27 provided in subsection 2, in a qualifying business or a
82 28 community=based seed capital fund.	An individual may claim a
82 29 tax credit under this paragraph of a partnership, limited
82 30 liability company, S corporation, estate, or trust electing to
82 31 have income taxed directly to the individual.	The amount
82 32 claimed by the individual shall be based upon the pro rata
82 33 share of the individual's earnings from the partnership,
82 34 limited liability company, S corporation, estate, or trust.
35	Sec. 84.	Section 15E.44, subsection 4, Code 2007, is
1 amended to read as follows:
83	2	4.	After verifying the eligibility of a qualifying
83	3 business, the board shall issue a tax credit certificate to be
83	4 attached to the equity investor's tax return.	The tax credit
83	5 certificate shall contain the taxpayer's name, address, tax
83	6 identification number, the amount of credit, the name of the
83	7 qualifying business, and other information required by the
83	8 department of revenue.	The tax credit certificate, unless
83	9 rescinded by the board, shall be accepted by the department of
83 10 revenue as payment for taxes imposed pursuant to chapter 422,
83 11 divisions II, III, and V, and in chapter 432, and for the
83 12 moneys and credits tax imposed in section 533.24 533.329,
83 13 subject to any conditions or restrictions placed by the board
83 14 upon the face of the tax credit certificate and subject to the
83 15 limitations of section 15E.43.
83 16	Sec. 85.	Section 15E.45, subsection 4, Code 2007, is
83 17 amended to read as follows:
83 18	4.	After verifying the eligibility of the community=based
83 19 seed capital fund, the board shall issue a tax credit
83 20 certificate to be attached to the taxpayer's tax return.	The
83 21 tax credit certificate shall contain the taxpayer's name,
83 22 address, tax identification number, the amount of the tax
83 23 credit, the name of the community=based seed capital fund, and
83 24 other information required by the department of revenue.	The
83 25 tax credit certificate, unless rescinded by the board, shall
83 26 be accepted by the department of revenue or a local taxing
83 27 district, as applicable, as payment for taxes imposed pursuant
83 28 to chapter 422, divisions II, III, and V, and chapter 432, and
83 29 as payment for the moneys and credits tax imposed pursuant to
83 30 section 533.24 533.329, subject to any conditions or
83 31 restrictions placed by the board on the face of the tax credit
83 32 certificate and subject to the limitations of section 15E.43.
83 33	Sec. 86.	Section 15E.51, subsection 2, Code 2007, is
83 34 amended to read as follows:
35	2.	A tax credit shall be allowed against the taxes imposed
1 in chapter 422, divisions II, III, and V, and in chapter 432,
84	2 and against the moneys and credits tax imposed in section
84	3 533.24 533.329, for a portion of a taxpayer's equity

84	4 investment in a venture capital fund.	An individual may claim
84	5 a tax credit under this section of a partnership, limited
84	6 liability company, S corporation, estate, or trust electing to
84	7 have income taxed directly to the individual.	The amount
84	8 claimed by the individual shall be based upon the pro rata
84	9 share of the individual's earnings from the partnership,
84 10 limited liability company, S corporation, estate, or trust.
84 11	Sec. 87.	Section 15E.62, subsection 6, Code 2007, is
84 12 amended to read as follows:
84 13	6.	"Tax credit" means a contingent tax credit issued
84 14 pursuant to section 15E.66 that is available against tax
84 15 liabilities imposed by chapter 422, divisions II, III, and V,
84 16 and by chapter 432 and against the moneys and credits tax
84 17 imposed by section 533.24 533.329.
84 18	Sec. 88.	Section 15E.232, subsection 2, paragraph a, Code
84 19 2007, is amended to read as follows:
84 20	a.	A nongovernmental entity making a contribution to an
84 21 economic development region revolving fund, except those
84 22 described in paragraph "b", may claim a tax credit equal to
84 23 twenty percent of the amount contributed to the revolving
84 24 fund.	The tax credit shall be allowed against taxes imposed
84 25 in chapter 422, divisions II, III, and V, and in chapter 432,
84 26 and against the moneys and credits tax imposed in section
84 27 533.24 533.329.	An individual may claim under this subsection
84 28 the tax credit of a partnership, limited liability company, S
84 29 corporation, estate, or trust electing to have income taxed
84 30 directly to the individual.	The amount claimed by the
84 31 individual shall be based upon the pro rata share of the
84 32 individual's earnings from the partnership, limited liability
84 33 company, S corporation, estate, or trust.	Any tax credit in
84 34 excess of the taxpayer's liability for the tax year may be
35 credited to the tax liability for the following ten years or
1 until depleted, whichever occurs first.	A tax credit shall
85	2 not be carried back to a tax year prior to the tax year in
85	3 which the taxpayer redeems the tax credit.	A tax credit under
85	4 this section is not transferable.
85	5	Sec. 89.	Section 15E.305, subsection 1, Code 2007, is
85	6 amended to read as follows:
85	7	1.	For tax years beginning on or after January 1, 2003, a
85	8 tax credit shall be allowed against the taxes imposed in
85	9 chapter 422, divisions II, III, and V, and in chapter 432, and
85 10 against the moneys and credits tax imposed in section 533.24
85 11 533.329 equal to twenty percent of a taxpayer's endowment gift
85 12 to an endow Iowa qualified community foundation.	An
85 13 individual may claim a tax credit under this section of a
85 14 partnership, limited liability company, S corporation, estate,
85 15 or trust electing to have income taxed directly to the
85 16 individual.	The amount claimed by the individual shall be
85 17 based upon the pro rata share of the individual's earnings
85 18 from the partnership, limited liability company, S
85 19 corporation, estate, or trust.	A tax credit shall be allowed
85 20 only for an endowment gift made to an endow Iowa qualified
85 21 community foundation for a permanent endowment fund
85 22 established to benefit a charitable cause in this state.	Any
85 23 tax credit in excess of the taxpayer's tax liability for the
85 24 tax year may be credited to the tax liability for the
85 25 following five years or until depleted, whichever occurs
85 26 first.	A tax credit shall not be carried back to a tax year
85 27 prior to the tax year in which the taxpayer claims the tax
85 28 credit.
85 29	Sec. 90.	Section 15I.2, subsection 1, paragraph a,
85 30 unnumbered paragraph 1, Code 2007, is amended to read as
85 31 follows:
85 32	Any nonretail, nonservice business may claim a tax credit
85 33 equal to a percentage of the annual wages and benefits paid
85 34 for a qualified new job created by the location or expansion
35 of the business in the state.	The tax credit shall be allowed
1 against taxes imposed under chapter 422, division II, III, or
86	2 V, and chapter 432 and against the moneys and credits tax
86	3 imposed in section 533.24 533.329.	The percentage shall be
86	4 equal to the amount provided in subsection 2.
86	5	Sec. 91.	Section 252I.1, subsection 4, Code 2007, is
86	6 amended to read as follows:
86	7	4.	"Credit union" means "credit union" as defined in 86	8 section 533.51 533.102.
86	9	Sec. 92.	Section 331.427, subsection 1, unnumbered
86 10 paragraph 1, Code 2007, is amended to read as follows:
86 11	Except as otherwise provided by state law, county revenues
86 12 from taxes and other sources for general county services shall
86 13 be credited to the general fund of the county, including
86 14 revenues received under sections 9I.11, 101A.3, 101A.7,

86 15 123.36, 123.143, 142B.6, 176A.8, 321.105, 321.152, 321G.7,
86 16 321I.8, section 331.554, subsection 6, sections 341A.20,
86 17 364.3, 368.21, 423A.7, 428A.8, 430A.3, 433.15, 434.19, 445.57,
86 18 453A.35, 458A.21, 483A.12, 533.24 533.329, 556B.1, 583.6,
86 19 602.8108, 904.908, and 906.17, and the following:
86 20	Sec. 93.	Section 421.17A, subsection 1, paragraph c, Code
86 21 2007, is amended to read as follows:
86 22	c.	"Credit union" means "credit union" as defined in 86 23 section 533.51 533.102.
86 24	Sec. 94.	Section 535B.11, subsection 3, unnumbered
86 25 paragraph 2, Code 2007, is amended to read as follows:
86 26	Compliance with sections 524.905, 533.16 533.315, 534.206,
86 27 and 536A.20 shall constitute compliance with this subsection.
86 28	Sec. 95.	Section 537.2305, subsection 1, Code 2007, is
86 29 amended to read as follows:
86 30	1.	For the purpose of discovering violations of this
86 31 chapter or securing information lawfully required, the
86 32 licensing authority shall examine periodically at intervals
86 33 the licensing authority deems appropriate, but not less
34 frequently than is required for other examinations of the  86 35 licensee by section 524.217, 533.6 533.113, 534.401, 536.10,
1 or 536A.15, whichever is applicable, the loans, business, and
87	2 records of every licensee, except a licensee which has no
87	3 office physically located in this state and engages in no
87	4 face=to=face solicitation in this state.	In addition, the
87	5 licensing authority may at any time investigate the loans,
87	6 business, and records of any lender.	For these purposes the
87	7 licensing authority shall be given free and reasonable access
87	8 to the offices, places of business, and records of the lender.
87	9	Sec. 96.	Section 546.4, Code 2007, is amended to read as
87 10 follows:
87 11	546.4	CREDIT UNION DIVISION.
87 12	1.	The credit union division created by section 533.103
87 13 shall regulate and supervise credit unions under chapter 533.
87 14	2.	The division is headed by the superintendent of credit
87 15 unions who shall be appointed pursuant to section 533.55 87 16 533.104.
87 17	3.	The credit union review board shall perform duties
87 18 within the division as prescribed in chapter 533.
87 19	Sec. 97.	Section 602.8102, subsection 73, Code 2007, is
87 20 amended to read as follows:
87 21	73.	Certify copies of a decree dissolving a credit union
87 22 as provided in section 533.21 533.503, subsection 4.
87 23	Sec. 98.	Chapter 533, Code 2007, is repealed.
87 24	Sec. 99.	CODE EDITOR DIRECTIVE.
87 25	1.	The Code editor shall establish the following divisions
87 26 in chapter 533:
87 27	a.	Division I, entitled "administration of Act", shall be
87 28 comprised of sections 533.101 through 533.117.
87 29	b.	Division II, entitled "organization of credit unions",
87 30 shall be comprised of sections 533.201 through 533.214.
87 31	c.	Division III, entitled "credit union operations", shall
87 32 be comprised of sections 533.301 through 533.330.
87 33	d.	Division IV, entitled "merger, conversion, and
34 dissolution of credit unions", shall be comprised of sections 87 35 533.401 through 533.406.
1	e.	Division V, entitled "supervisory actions, limitations,
88	2 and penalties", shall be comprised of sections 533.501 through 88	3 533.509.
88	4	2.	The Code editor shall make such other revisions
88	5 throughout the Code to update references to particular
88	6 provisions of the Iowa credit union Act, and such other
88	7 revisions consistent with this Act. 88	8
88	9
88 10
88 11	JOHN P. KIBBIE
88 12	President of the Senate
88 13
88 14
88 15
88 16	PATRICK J. MURPHY
88 17	Speaker of the House
88 18
88 19	I hereby certify that this bill originated in the Senate and
88 20 is known as Senate File 557, Eighty=second General Assembly. 88 21
88 22
88 23
88 24	MICHAEL E. MARSHALL
88 25	Secretary of the Senate

88 26 Approved	, 2007
88 27
88 28
88 29  	
88 30 CHESTER J. CULVER
88 31 Governor