House
File
131
-
Enrolled
House
File
131
AN
ACT
RELATING
TO
MATTERS
UNDER
THE
PURVIEW
OF
THE
CREDIT
UNION
DIVISION
OF
THE
DEPARTMENT
OF
COMMERCE.
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
Section
1.
Section
12C.16,
subsection
1,
paragraph
b,
subparagraph
(1),
unnumbered
paragraph
1,
Code
2024,
is
amended
to
read
as
follows:
The
credit
union
may
deposit,
maintain,
pledge
and
assign
for
the
benefit
of
the
public
officer
in
the
manner
provided
in
this
chapter
,
securities
approved
by
the
public
officer,
the
market
value
of
which
is
not
less
than
one
hundred
ten
one
hundred
percent
of
the
total
deposits
of
public
funds
placed
by
that
public
officer
in
the
credit
union
,
less
the
amount
of
deposits
that
are
federally
insured
.
The
securities
shall
consist
of
any
of
the
following:
Sec.
2.
Section
533.205,
subsection
8,
Code
2024,
is
amended
to
read
as
follows:
8.
A
credit
union
director
shall
not
receive
compensation
for
service
as
a
director.
However,
a
A
credit
union
director
may
be
reimbursed
for
reasonable
expenses
directly
related
to
such
service
as
a
director
.
Subject
to
its
bylaws,
a
credit
union
may
provide
compensation
to
members
of
the
credit
union’s
board,
elected
pursuant
to
section
533.204,
in
an
amount
not
to
exceed
sixteen
thousand
dollars
per
year
per
board
member
for
a
credit
union
with
one
billion
dollars
or
greater
in
assets,
or
not
to
exceed
eight
thousand
dollars
per
year
per
board
House
File
131,
p.
2
member
for
a
credit
union
with
less
than
one
billion
dollars
in
assets.
Sec.
3.
Section
533.205,
Code
2024,
is
amended
by
adding
the
following
new
subsections:
NEW
SUBSECTION
.
10.
A
director
of
a
state
credit
union
shall
not
receive
terms
or
be
paid
a
rate
of
interest
on
deposits
by
a
state
credit
union
of
which
the
person
is
a
director
that
are
more
favorable
than
that
provided
to
any
other
member
under
similar
circumstances.
Any
waiver
of
ordinary
or
customary
charges
related
to
deposit
accounts
shall
not
violate
this
subsection.
NEW
SUBSECTION
.
11.
A
director
of
a
state
credit
union
shall
not
purchase
any
assets
from,
lease
any
assets
from,
sell
any
assets
to,
or
lease
any
assets
to
a
state
credit
union
of
which
the
person
is
a
director
except
upon
terms
not
less
favorable
to
the
state
credit
union
than
those
offered
to
or
by
other
persons.
All
purchases
from,
leases
from,
sales
to,
and
leases
to
a
director
shall
receive
prior
approval
from
the
majority
of
the
board
of
directors
voting
in
the
absence
of
the
interested
director.
NEW
SUBSECTION
.
12.
A
director
of
a
state
credit
union
shall
not
receive
anything
of
value,
other
than
compensation
and
expense
reimbursement
authorized
by
this
section,
for
procuring,
or
attempting
to
procure,
any
loan
or
extension
of
credit
to
the
state
credit
union
or
for
procuring,
or
attempting
to
procure,
an
investment
by
the
state
credit
union.
NEW
SUBSECTION
.
13.
a.
In
addition
to
any
other
liability
imposed
by
law
upon
the
directors
of
a
state
credit
union,
the
directors
of
a
state
credit
union
shall
be
liable
for
all
of
the
following:
(1)
The
directors
of
a
state
credit
union
who
vote
for,
or
assent
to,
the
declaration
of
any
dividend
or
other
distribution
of
the
assets
of
the
state
credit
union
to
the
state
credit
union’s
members
in
willful
or
negligent
violation
of
this
chapter,
any
restrictions
contained
in
the
articles
of
incorporation,
or
any
order
by
the
superintendent
restricting
the
payment
of
dividends
or
other
distribution
of
assets,
shall
be
jointly
and
severally
liable
to
the
state
credit
union
for
the
amount
of
the
dividend
which
is
paid,
or
the
value
of
House
File
131,
p.
3
such
assets
which
are
distributed,
in
excess
of
the
amount
of
such
dividend
or
distribution
which
could
have
been
paid
or
distributed
had
the
violation
not
occurred.
(2)
The
directors
of
a
state
credit
union
who
vote
for,
or
assent
to,
any
distribution
of
the
assets
of
the
state
credit
union
to
the
state
credit
union’s
members
during
the
dissolution
of
the
state
credit
union
without
the
payment
and
discharge
of,
or
making
adequate
provision
for,
all
known
debts,
obligations,
and
liabilities
of
the
state
credit
union
shall
be
jointly
and
severally
liable
to
the
state
credit
union
for
the
value
of
the
distributed
assets
to
the
extent
that
such
debts,
obligations,
and
liabilities
of
the
state
credit
union
are
not
thereafter
paid
and
discharged.
(3)
The
directors
of
a
state
credit
union
who
willfully
or
negligently
vote
for,
or
assent
to,
a
loan
or
an
extension
of
credit
in
violation
of
this
chapter
shall
be
jointly
and
severally
liable
to
the
state
credit
union
for
the
total
amount
of
any
loss
sustained
by
the
state
credit
union.
(4)
The
directors
of
a
state
credit
union
who
willfully
or
negligently
vote
for,
or
assent
to,
any
investment
of
funds
of
the
state
credit
union
in
violation
of
this
chapter
shall
be
jointly
and
severally
liable
to
the
state
credit
union
for
the
amount
of
any
loss
sustained
by
the
state
credit
union
on
the
investment
of
funds.
b.
A
director
shall
not
be
liable
under
paragraph
“a”
if
the
director
relied
and
acted
in
good
faith
on
information
that
was
held
out
to
the
director
to
be
correct
by
any
officer
of
the
state
credit
union,
or
was
stated
in
a
written
report
by
a
certified
public
accountant
or
firm
of
certified
public
accounts.
A
director
shall
not
be
deemed
to
be
negligent
if
the
director
in
good
faith
exercised
the
diligence,
care,
and
skill
which
an
ordinarily
prudent
person
would
exercise
as
a
director
under
similar
circumstances.
c.
When
deemed
necessary
by
the
superintendent,
and
after
affording
an
opportunity
for
a
hearing
upon
adequate
notice,
the
superintendent
may
require
that
a
director
whom
the
superintendent
reasonably
believes
to
be
liable
to
a
state
credit
union
pursuant
to
paragraph
“a”
to
place
in
an
escrow
account
in
an
insured
credit
union
located
in
this
state,
House
File
131,
p.
4
as
directed
by
the
superintendent,
an
amount
sufficient
to
discharge
any
liability
which
may
accrue
pursuant
to
paragraph
“a”
.
Upon
a
final
determination
of
the
amount
of
liability
owed
pursuant
to
paragraph
“a”
,
the
superintendent
shall
pay
over
the
amount
due
to
the
state
credit
union
from
the
escrow
account.
Any
portion
of
the
escrow
account
in
excess
of
the
amount
of
liability
owed
shall
be
refunded
on
a
pro
rata
basis
to
the
directors
required
to
contribute
to
the
escrow
account
pursuant
to
this
paragraph.
d.
The
liability
provisions
of
this
subsection
shall
not
apply
to
a
director
of
a
credit
union
who
is
not
directly
compensated
for
services
as
a
director
other
than
the
reimbursement
of
actual
expenses.
NEW
SUBSECTION
.
14.
a.
Any
director
held
liable
for
the
payment
of
a
dividend
or
other
distribution
of
assets
of
a
state
credit
union
under
subsection
13
shall
be
entitled
to
contribution
from
any
member
of
the
state
credit
union
who
accepted
or
received
a
dividend
or
other
distribution
of
assets,
knowing
that
the
dividend
or
distribution
of
assets
was
made
in
violation
of
this
chapter,
in
proportion
to
the
amount
received
by
each
member.
b.
Any
director
held
liable
under
subsection
13
shall
be
entitled
to
contribution
from
any
other
director
found
to
be
similarly
liable.
NEW
SUBSECTION
.
15.
a.
A
director
of
a
state
credit
union
who
is
present
at
a
meeting
of
the
state
credit
union’s
board
of
directors
shall
be
presumed
to
have
assented
to
any
matter
taken
up
by,
or
action
taken
by,
the
board,
unless
the
director
dissents
by
doing
any
of
the
following:
(1)
Has
the
director’s
dissent
entered
into
the
minutes
of
the
board
meeting.
(2)
Files
the
director’s
written
dissent
with
the
individual
acting
as
the
secretary
of
the
board
meeting
before
the
adjournment
of
the
board
meeting.
(3)
Forwards
the
director’s
written
dissent
by
registered
or
certified
mail
to
the
board
secretary
of
the
state
credit
union
promptly
after
the
adjournment
of
the
board
meeting.
b.
The
right
to
dissent
pursuant
to
paragraph
“a”
shall
not
apply
to
a
director
who
votes
in
favor
of
the
action
of
the
House
File
131,
p.
5
board.
NEW
SUBSECTION
.
16.
Any
action
seeking
to
impose
liability
under
this
section,
other
than
liability
for
contribution,
shall
be
commenced
within
five
years
of
the
event
giving
rise
to
the
liability.
Sec.
4.
Section
533.206,
Code
2024,
is
amended
to
read
as
follows:
533.206
Meetings
of
the
board.
1.
The
board
of
directors
shall
hold
at
least
six
regular
board
meetings
each
calendar
year.
No
more
than
one
regular
meeting
shall
be
held
in
any
one
calendar
month,
nor
shall
a
credit
union
go
longer
than
two
consecutive
months
without
holding
a
board
meeting.
If
a
credit
union
has
an
individual
rating
of
a
four
or
five,
or
a
composite
rating
of
three,
four,
or
five
under
the
Iowa
regulatory
risk
rating
system,
the
board
shall
meet
monthly.
2.
With
respect
to
a
newly
chartered
credit
union,
the
board
of
directors
shall
meet
not
less
frequently
than
monthly
during
each
of
the
first
five
years
of
the
credit
union’s
existence.
3.
Unless
the
bylaws
provide
otherwise,
the
board
of
directors
may
permit
any
and
all
directors
to
participate
in
all
except
one
meeting
per
year
of
the
board
of
directors
through
the
use
of
any
means
of
communication
by
which
all
directors
participating
in
the
meeting
may
simultaneously
hear
each
other
and
communicate
during
the
meeting.
A
director
participating
in
a
meeting
by
this
means
is
deemed
to
be
present
at
the
meeting.
Sec.
5.
Section
533.210,
subsections
1
and
2,
Code
2024,
are
amended
to
read
as
follows:
1.
The
board
of
directors
may
expel
any
a
member
of
a
state
credit
union
who
has
failed
to
do
either
engaged
in
any
of
the
following:
a.
Carry
Failing
to
carry
out
the
member’s
obligations
to
the
state
credit
union.
b.
Comply
Failing
to
comply
with
the
state
credit
union’s
bylaws
or
policies.
c.
Being
physically
or
verbally
abusive
to
credit
union
members
or
staff.
d.
Committing
fraud,
attempted
fraud,
or
other
illegal
House
File
131,
p.
6
conduct
that
a
member
has
been
convicted
of
in
relation
to
the
credit
union.
2.
A
member
of
a
state
credit
union
may
be
expelled
by
a
majority
vote
of
the
board
of
directors
at
a
regular
or
special
meeting
of
the
board.
a.
An
expelled
member
may
request
a
hearing
before
the
membership
of
the
state
credit
union
superintendent
,
which
shall
be
held
within
sixty
ninety
days
of
an
expelled
member’s
request.
b.
At
the
hearing,
the
membership
superintendent
may
reinstate
the
expelled
member
by
majority
vote,
upon
terms
and
conditions
prescribed
at
the
hearing
if
the
credit
union
fails
to
prove
the
member
was
noncompliant
with
the
obligations
in
this
section
.
______________________________
PAT
GRASSLEY
Speaker
of
the
House
______________________________
AMY
SINCLAIR
President
of
the
Senate
I
hereby
certify
that
this
bill
originated
in
the
House
and
is
known
as
House
File
131,
Ninetieth
General
Assembly.
______________________________
MEGHAN
NELSON
Chief
Clerk
of
the
House
Approved
_______________,
2024
______________________________
KIM
REYNOLDS
Governor