House File 2384 - Introduced



                                       HOUSE FILE       
                                       BY  COMMITTEE ON COMMERCE

                                       (SUCCESSOR TO HF 354)


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

                                      A BILL FOR

  1 An Act relating to the deposit of public funds with corporate
  2    credit unions.
  3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
  4 TLSB 6535HV 82
  5 rn/rj/14

PAG LIN



  1  1    Section 1.  Section 12C.16, subsection 1, paragraph b,
  1  2 subparagraph (4), Code Supplement 2007, is amended to read as
  1  3 follows:
  1  4    (4)  To the extent of the guarantee, loans, obligations, or
  1  5 nontransferable letters of credit upon which the payment of
  1  6 principal and interest is fully secured or guaranteed by the
  1  7 United States of America or an agency or instrumentality of
  1  8 the United States of America or the United States central
  1  9 credit union, a corporate central credit union organized under
  1 10 section 533.213, or a corporate credit union organized under
  1 11 12 C.F.R. } 704 whose activities are subject to regulation by
  1 12 the national credit union administration, and the rating of
  1 13 any one of such credit unions remains within the two highest
  1 14 classifications of prime established by at least one of the
  1 15 standard rating services approved by the superintendent of
  1 16 banking by rule pursuant to chapter 17A.  The treasurer of
  1 17 state shall adopt rules pursuant to chapter 17A to implement
  1 18 this section.
  1 19    Sec. 2.  Section 12C.17, subsection 1, paragraph c, Code
  1 20 Supplement 2007, is amended to read as follows:
  1 21    c.  The securities shall be deposited with the federal
  1 22 reserve bank, the federal home loan bank of Des Moines, Iowa,
  1 23 or the United States central credit union, a corporate central
  1 24 credit union organized under section 533.213, or a corporate
  1 25 credit union organized under 12 C.F.R. } 704 whose activities
  1 26 are subject to regulation by the national credit union
  1 27 administration pursuant to a bailment agreement or a pledge
  1 28 custody agreement.
  1 29    Sec. 3.  Section 12C.17, subsection 4, Code Supplement
  1 30 2007, is amended to read as follows:
  1 31    4.  Upon written request from the appropriate public
  1 32 officer but not less than monthly, the federal reserve bank,
  1 33 the federal home loan bank of Des Moines, Iowa, the United
  1 34 States central credit union, a corporate central credit union
  1 35 organized under section 533.213, or a corporate credit union
  2  1 organized under 12 C.F.R. } 704 whose activities are subject
  2  2 to regulation by the national credit union administration
  2  3 shall report a description, the par value, and the market
  2  4 value of any pledged collateral by a credit union.
  2  5                           EXPLANATION
  2  6    This bill changes the manner in which corporate credit
  2  7 unions are referenced in the sections of Code chapter 12C
  2  8 dealing with securing deposits of public funds in credit
  2  9 unions.  Code sections 12C.16 and 12C.17 provide for the
  2 10 deposit of securities with, among other entities, corporate
  2 11 credit unions organized under 12 C.F.R. } 704, which regulates
  2 12 corporate credit unions.  In 12 C.F.R. } 700.2, a corporate
  2 13 credit union is defined as an organization which receives
  2 14 shares from and provides loan services to credit unions, and
  2 15 is operated primarily for the purpose of serving other credit
  2 16 unions.  The bill changes the reference to 12 C.F.R. } 704 to
  2 17 the more general designation of corporate credit unions whose
  2 18 activities are subject to regulation by the national credit
  2 19 union administration.
  2 20 LSB 6535HV 82
  2 21 rn/rj/14