Senate File 2119

                                       SENATE FILE       
                                       BY  COMMITTEE ON COMMERCE

                                           (SUCCESSOR TO SSB 3017)


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

                                      A BILL FOR

  1 An Act relating to collateral required to be pledged by banks to
  2    the treasurer of state in order to secure the deposit of
  3    public moneys.
  4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
  5 TLSB 5626SV 80
  6 da/sh/8

PAG LIN

  1  1    Section 1.  Section 12C.22, subsection 5, paragraph d, Code
  1  2 2003, is amended to read as follows:
  1  3    d.  Establish procedures for adding collateral, releasing
  1  4 collateral, and substituting different collateral for
  1  5 collateral pledged under this section.
  1  6                           EXPLANATION
  1  7    This bill amends Code section 12C.22, which was enacted
  1  8 pursuant to House File 681 during the 2002 legislative session
  1  9 (2002 Acts, chapter 1096).  The section principally requires
  1 10 that financial institutions, and in particular banks, pledge
  1 11 certain types and amounts of collateral with the treasurer of
  1 12 state in order to secure the deposit of public moneys.
  1 13    The Code section requires the treasurer of state to adopt
  1 14 rules necessary to administer the section's provisions.  As
  1 15 part of its rulemaking duties, the treasurer of state must
  1 16 establish procedures which allow a bank to substitute
  1 17 different collateral for the collateral which was originally
  1 18 pledged.  The bill provides that the treasurer of state must
  1 19 also adopt rules that establish procedures to allow a bank to
  1 20 add or release pledged collateral.
  1 21 LSB 5626SV 80
  1 22 da/sh/8
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