House Study Bill 250 



                                       HOUSE FILE       
                                       BY  (PROPOSED COMMITTEE ON
                                            JUDICIARY BILL BY
                                            CHAIRPERSON SWAIM)


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

                                      A BILL FOR

  1 An Act relating to the applicability of the motor vehicle dealer
  2    licensing requirements to certain financial institutions which
  3    are holders of retail installment contracts secured by motor
  4    vehicles.
  5 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
  6 TLSB 2409HC 83
  7 lh/nh/24

PAG LIN



  1  1    Section 1.  Section 322.2, unnumbered paragraph 2, Code
  1  2 2009, is amended by striking the unnumbered paragraph.
  1  3    Sec. 2.  Section 322.15, Code 2009, is amended to read as
  1  4 follows:
  1  5    322.15  LIBERAL CONSTRUCTION == EXCEPTION.
  1  6    1.  All provisions of this chapter shall be liberally
  1  7 construed to the end that the practice or commission of fraud
  1  8 in the sale, barter, or disposition of motor vehicles at
  1  9 retail in this state may be prohibited and prevented, and
  1 10 irresponsible, unreliable, or dishonest persons may be
  1 11 prevented from engaging in the business of selling, bartering,
  1 12 or otherwise dealing in motor vehicles at retail in this state
  1 13 and reliable persons may be encouraged to engage in the
  1 14 business of selling, bartering, and otherwise dealing in motor
  1 15 vehicles at retail in this state.
  1 16    2.  This chapter shall not be construed to require the
  1 17 licensing of any bank, savings and loan, credit union, or
  1 18 trust company as to any motor vehicle on which that bank,
  1 19 savings and loan, credit union, or trust company is a holder
  1 20 of a retail installment contract secured by that motor
  1 21 vehicle.
  1 22                           EXPLANATION
  1 23    This bill strikes language from the definitions section of
  1 24 Code chapter 322 dealing with the licensing of motor vehicle
  1 25 dealers, and adds a new exception to the provision that
  1 26 outlines how the chapter is to be construed.  The language
  1 27 that is stricken was added in 1957 Iowa Acts, chapter 311, and
  1 28 states that "nothing contained herein is to be construed to
  1 29 require the licensing or to apply to any bank, credit union or
  1 30 trust company in Iowa".  The language added in this bill
  1 31 includes savings and loan companies, in addition to banks,
  1 32 credit unions, or trust companies, to the list of financial
  1 33 institutions excepted from licensing under Code chapter 322
  1 34 and limits the exception to those listed financial
  1 35 institutions which are holders of a retail installment
  2  1 contract secured by a motor vehicle.
  2  2 LSB 2409HC 83
  2  3 lh/nh/24