House
File
236
-
Enrolled
House
File
236
AN
ACT
RELATING
TO
LIFE
INSURANCE
COMPANY
OR
ASSOCIATION
CASH
REINVESTMENTS
IN
REPURCHASE
AGREEMENTS
COLLATERALIZED
BY
SECURITIES,
AND
INCLUDING
APPLICABILITY
PROVISIONS.
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
Section
1.
Section
511.8,
subsection
23,
paragraph
c,
Code
2021,
is
amended
to
read
as
follows:
c.
If
the
loan
is
collateralized
by
cash
or
cash
equivalents,
the
cash
or
cash
equivalent
collateral
may
be
reinvested
by
the
life
insurance
company
or
association
in
rule
2a-7
money
market
funds
as
defined
in
subsection
24
,
individual
securities
which
are
eligible
for
inclusion
in
the
legal
reserve
of
the
life
insurance
company
or
association,
or
in
repurchase
agreements
fully
collateralized
by
such
securities
if
the
life
insurance
company
or
association
takes
delivery
of
the
collateral
either
directly
or
through
an
authorized
custodian
or
pooled
fund
comprised
of
individual
securities
which
are
eligible
for
inclusion
in
the
legal
reserve
of
the
life
insurance
company
or
association.
If
such
reinvestment
is
made
in
individual
securities
,
or
in
repurchase
agreements
collateralized
by
securities
other
than
United
States
government
obligations
as
described
in
subsection
1
,
the
individual
securities
or
the
securities
which
collateralize
the
repurchase
agreements
shall
mature
in
less
than
two
hundred
seventy
days.
If
such
reinvestment
is
made
in
a
pooled
fund,
the
average
maturity
of
the
securities
comprising
such
pooled
House
File
236,
p.
2
fund
must
be
one
hundred
eighty
days
or
less
and
the
individual
maturities
of
the
securities
comprising
such
pooled
fund
must
be
three
hundred
ninety-seven
days
or
less.
Individual
securities
and
securities
comprising
the
pooled
fund
shall
be
investment
grade.
As
used
in
this
paragraph,
“maturity”
means
the
earlier
of
the
fixed
date
on
which
the
holder
of
the
security
is
unconditionally
entitled
to
receive
principal
and
interest
in
full
or
the
date
on
which
the
holder
of
the
security
is
unconditionally
entitled
upon
demand
to
receive
principal
and
interest
in
full.
Sec.
2.
APPLICABILITY.
This
Act
applies
to
cash
or
cash
equivalent
reinvestments
by
a
life
insurance
company
or
association
made
in
repurchase
agreements
collateralized
by
securities
on
or
after
January
1,
2022.
______________________________
PAT
GRASSLEY
Speaker
of
the
House
______________________________
JAKE
CHAPMAN
President
of
the
Senate
I
hereby
certify
that
this
bill
originated
in
the
House
and
is
known
as
House
File
236,
Eighty-ninth
General
Assembly.
______________________________
MEGHAN
NELSON
Chief
Clerk
of
the
House
Approved
_______________,
2021
______________________________
KIM
REYNOLDS
Governor