House Study Bill 77 



                                       HOUSE FILE       
                                       BY  (PROPOSED COMMITTEE ON
                                            COMMERCE BILL BY
                                            CHAIRPERSON PETERSEN)


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

                                      A BILL FOR

  1 An Act relating to the authority of creditors and credit unions
  2    in consumer credit or credit union transactions.
  3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
  4 TLSB 1693HC 82
  5 rn/gg/14

PAG LIN



  1  1    Section 1.  Section 533.4, Code 2007, is amended by adding
  1  2 the following new subsections:
  1  3    NEW SUBSECTION.  29.  Sell, to persons in the field of
  1  4 membership, negotiable checks, including traveler's checks;
  1  5 money orders; and other similar money transfer instruments
  1  6 including international and domestic electronic fund
  1  7 transfers.
  1  8    NEW SUBSECTION.  30.  Cash checks and money orders, and
  1  9 receive international and domestic electronic fund transfers,
  1 10 for persons in the field of membership.
  1 11    Sec. 2.  Section 537.2501, subsection 1, Code 2007, is
  1 12 amended by adding the following new paragraph:
  1 13    NEW PARAGRAPH.  j.  For a consumer loan where the amount
  1 14 financed does not exceed three thousand dollars and the term
  1 15 of the loan does not exceed twelve months, an additional
  1 16 charge may be made as an application fee not to exceed thirty
  1 17 dollars.
  1 18                           EXPLANATION
  1 19    This bill provides that a lender of a consumer loan may, in
  1 20 addition to other finance charges permitted in Code chapter
  1 21 537, charge an application fee not to exceed $30 when the
  1 22 amount to be financed does not exceed $3,000 and the term of
  1 23 the loan does not exceed one year.
  1 24    The bill also expands the list of powers specified in Code
  1 25 section 533.4 applicable to credit unions.  The bill provides
  1 26 that a credit union may sell to persons in the field of
  1 27 membership negotiable checks, including traveler's checks;
  1 28 money orders; and other similar money transfer instruments
  1 29 including international and domestic electronic fund
  1 30 transfers.  A credit union is also authorized to cash checks
  1 31 and money orders, and to receive international and domestic
  1 32 electronic fund transfers, for persons in the field of
  1 33 membership.
  1 34 LSB 1693HC 82
  1 35 rn:rj/gg/14.1