Senate Study Bill 1065 SENATE FILE BY (PROPOSED COMMITTEE ON COMMERCE BILL BY CHAIRPERSON WARNSTADT) Passed Senate, Date Passed House, 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 1693XC 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 1693XC 82 1 35 rn:rj/gg/14.1