House File 539 - Introduced



                                       HOUSE FILE       
                                       BY  FORD


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

                                      A BILL FOR

  1 An Act relating to minimum ratings required for financial
  2    institution eligibility to receive deposits of state public
  3    funds.
  4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
  5 TLSB 2618HH 83
  6 rn/nh/5

PAG LIN



  1  1    Section 1.  Section 12C.6A, subsection 2, Code 2009, is
  1  2 amended to read as follows:
  1  3    2.  In addition to establishing a minimum interest rate for
  1  4 public funds pursuant to section 12C.6, the committee composed
  1  5 of the superintendent of banking, the superintendent of credit
  1  6 unions, the auditor of state or a designee, and the treasurer
  1  7 of state shall develop a list of financial institutions
  1  8 eligible to accept state public funds.  The committee shall
  1  9 require that a financial institution seeking to qualify for
  1 10 the list shall annually provide the committee a written
  1 11 statement that the financial institution has complied with the
  1 12 requirements of this chapter and has a commitment to community
  1 13 reinvestment consistent with the safe and sound operation of a
  1 14 financial institution, unless the financial institution has
  1 15 received a rating of satisfactory or higher pursuant to the
  1 16 federal Community Reinvestment Act, 12 U.S.C. } 2901 et seq.,
  1 17 and such shall require certification of the rating is
  1 18 certified to the committee by the superintendent of banking.
  1 19 To qualify for the list, a financial institution must
  1 20 demonstrate a continuing commitment to meet the credit needs
  1 21 of the local community in which it is chartered.
  1 22                           EXPLANATION
  1 23    This bill relates to eligibility requirements applicable to
  1 24 financial institutions in order to receive deposits of state
  1 25 public funds.
  1 26    Currently, a financial institution shall be eligible to be
  1 27 added to a list of financial institutions eligible to accept
  1 28 state public funds compiled by a committee consisting of the
  1 29 superintendent of banking, the superintendent of credit
  1 30 unions, the auditor of state or a designee, and the treasurer
  1 31 of state.  Code section 12C.6A provides that the committee
  1 32 shall require that a financial institution seeking to qualify
  1 33 for the list must annually provide a written statement that
  1 34 the financial institution has complied with the requirements
  1 35 of the Code chapter and has a commitment to community
  2  1 reinvestment consistent with the safe and sound operation of a
  2  2 financial institution.  This requirement is waived, however,
  2  3 if the financial institution has received a rating of
  2  4 satisfactory or higher pursuant to the federal Community
  2  5 Reinvestment Act and the rating is certified to the committee
  2  6 by the superintendent of banking.
  2  7    The bill deletes the provision permitting a financial
  2  8 institution that has not received a rating of satisfactory or
  2  9 higher to qualify for the list pursuant to the written
  2 10 statement of compliance and commitment.
  2 11 LSB 2618HH 83
  2 12 rn/nh/5