House File 442

                                       HOUSE FILE       
                                       BY  FORD


    Passed House,  Date               Passed Senate, Date             
    Vote:  Ayes        Nays           Vote:  Ayes        Nays         
                 Approved                            

                                      A BILL FOR

  1 An Act relating to trust services provided by a credit union
  2    service organization.
  3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
  4 TLSB 2831HH 80
  5 rh/pj/5

PAG LIN

  1  1    Section 1.  NEW SECTION.  533.50  CREDIT UNION SERVICE
  1  2 ORGANIZATION == TRUST SERVICES.
  1  3    An organization, corporation, or association, the
  1  4 membership or ownership of which is primarily confined or
  1  5 restricted to credit unions or organizations of credit unions,
  1  6 and which primarily provides services to credit unions,
  1  7 organizations of credit unions, or credit union members, may
  1  8 provide trust services and act in a fiduciary capacity as
  1  9 approved by, and pursuant to rules adopted by, the
  1 10 superintendent.  The organization, corporation, or association
  1 11 is subject to the state corporate income tax.
  1 12    A credit union may participate in or receive trust services
  1 13 from a service organization under this section, only if the
  1 14 credit union has a policy of making cash or in=kind
  1 15 contributions to local nonprofit groups or community
  1 16 development projects which serve the needs of the community
  1 17 and various population groups within the community in which
  1 18 the credit union is located.  The superintendent shall adopt
  1 19 rules to administer this section.
  1 20    This section only applies to trust services offered by
  1 21 credit union service organizations.
  1 22                           EXPLANATION
  1 23    This bill provides that an organization, corporation, or
  1 24 association, the membership or ownership of which is primarily
  1 25 confined or restricted to credit unions or organizations of
  1 26 credit unions, and which primarily provides services to credit
  1 27 unions, organizations of credit unions, or credit union
  1 28 members, may provide trust services and act in a fiduciary
  1 29 capacity as approved by, and pursuant to rules adopted by, the
  1 30 superintendent.  The bill provides that such organization,
  1 31 corporation, or association is subject to the state corporate
  1 32 income tax.
  1 33    The bill further provides that a credit union may
  1 34 participate in or receive trust services from a service
  1 35 organization only if the credit union has a policy of making
  2  1 cash or in=kind contributions to local nonprofit groups or
  2  2 community development projects which serve the community and
  2  3 various population groups within the community in which the
  2  4 credit union is located.
  2  5    The bill only applies to trust services offered by credit
  2  6 union service organizations.
  2  7 LSB 2831HH 80
  2  8 rh/pj/5