Senate Study Bill 3017 SENATE FILE BY (PROPOSED COMMITTEE ON COMMERCE BILL BY CHAIRPERSON BEHN) 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 5626SC 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 5626SC 80 1 22 da/sh/8 1 23 1 24 1 25 1 26 1 27 1 28 1 29 1 30 1 31 1 32 1 33 1 34 1 35