Senate Study Bill 3064 SENATE/HOUSE FILE BY (PROPOSED IOWA FINANCE AUTHORITY BILL) Passed Senate, Date Passed House, Date Vote: Ayes Nays Vote: Ayes Nays Approved A BILL FOR 1 An Act relating to real estate broker trust accounts. 2 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 3 TLSB 5363XD 82 4 jr/rj/5 PAG LIN 1 1 Section 1. Section 543B.46, subsection 1, Code Supplement 1 2 2007, is amended to read as follows: 1 3 1. Each real estate broker shall maintain a common trust 1 4 account in a bank, a savings and loan association, savings 1 5 bank, or credit union for the deposit of all down payments, 1 6 earnest money deposits, or other trust funds received by the 1 7 broker or the broker's salespersons on behalf of the broker's 1 8 principal, except that a broker acting as a salesperson shall 1 9 deposit these funds in the common trust account of the broker 1 10 for whom the broker acts as salesperson. The account shall be 1 11 an interest=bearing account. The interest on the account 1 12 shall be transferred quarterly to the treasurer of state and 1 13 transferred to thedepartment of economic developmentIowa 1 14 finance authority for deposit in thelocalhousingassistance 1 15 programtrust fund established in section15.35416.181 unless 1 16 there is a written agreement between the buyer and seller to 1 17 the contrary. The broker shall not benefit from interest 1 18 received on funds of others in the broker's possession. 1 19 EXPLANATION 1 20 Each real estate broker is required to maintain an 1 21 interest=bearing trust account. Under current law, the 1 22 interest on the account is transferred to the department of 1 23 economic development for deposit in the local housing 1 24 assistance program fund. This bill transfers the interest to 1 25 the Iowa finance authority for deposit in the housing trust 1 26 fund established in Code section 16.181. 1 27 LSB 5363XD 82 1 28 jr/rj/5