House File 354 - Introduced HOUSE FILE BY KRESSIG 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 1539HH 82 5 rn/gg/14 PAG LIN 1 1 Section 1. Section 12C.16, subsection 1, paragraph b, 1 2 subparagraph (4), Code 2007, is amended to read as follows: 1 3 (4) To the extent of the guarantee, loans, obligations, or 1 4 nontransferable letters of credit upon which the payment of 1 5 principal and interest is fully secured or guaranteed by the 1 6 United States of America or an agency or instrumentality of 1 7 the United States of America or the U. S. central credit 1 8 union, a corporate central credit union organized under 1 9 section 533.38, or a corporate credit unionorganized under 12 1 10 C.F.R. } 704whose activities are subject to regulation by the 1 11 national credit union administration, and the rating of any 1 12 one of such credit unions remains within the two highest 1 13 classifications of prime established by at least one of the 1 14 standard rating services approved by the superintendent of 1 15 banking by rule pursuant to chapter 17A. The treasurer of 1 16 state shall adopt rules pursuant to chapter 17A to implement 1 17 this section. 1 18 Sec. 2. Section 12C.17, subsection 1, paragraph c, Code 1 19 2007, is amended to read as follows: 1 20 c. The securities shall be deposited with the federal 1 21 reserve bank, the federal home loan bank of Des Moines, Iowa, 1 22 or the U. S. central credit union, a corporate central credit 1 23 union organized under section 533.38, or a corporate credit 1 24 unionorganized under 12 C.F.R. } 704whose activities are 1 25 subject to regulation by the national credit union 1 26 administration pursuant to a bailment agreement or a pledge 1 27 custody agreement. 1 28 Sec. 3. Section 12C.17, subsection 4, Code 2007, is 1 29 amended to read as follows: 1 30 4. Upon written request from the appropriate public 1 31 officer but not less than monthly, the federal home loan bank 1 32 of Des Moines, Iowa, the U. S. central credit union, a 1 33 corporate central credit union organized under section 533.38, 1 34 or a corporate credit unionorganized under 12 C.F.R. } 7041 35 whose activities are subject to regulation by the national 2 1 credit union administration shall report a description, the 2 2 par value, and the market value of any pledged collateral by a 2 3 credit union. 2 4 EXPLANATION 2 5 This bill changes the manner in which corporate credit 2 6 unions are referenced in the sections of Code chapter 12C 2 7 dealing with securing deposits of public funds in credit 2 8 unions. Code sections 12C.16 and 12C.17 provide for the 2 9 deposit of securities with, among other entities, corporate 2 10 credit unions organized under 12 C.F.R. } 704, which regulates 2 11 corporate credit unions. In 12 C.F.R. } 700.2, a corporate 2 12 credit union is defined as an organization which receives 2 13 shares from and provides loan services to credit unions, and 2 14 is operated primarily for the purpose of serving other credit 2 15 unions. The bill changes the reference to 12 C.F.R. } 704 to 2 16 the more general designation of corporate credit unions whose 2 17 activities are subject to regulation by the national credit 2 18 union administration. 2 19 LSB 1539HH 82 2 20 rn:rj/gg/14