House
Study
Bill
115
-
Introduced
SENATE/HOUSE
FILE
_____
BY
(PROPOSED
DEPARTMENT
OF
COMMERCE/CREDIT
UNION
DIVISION
BILL)
A
BILL
FOR
An
Act
relating
to
matters
under
the
purview
of
the
credit
1
union
division
of
the
department
of
commerce,
and
making
2
penalties
applicable.
3
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
4
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H.F.
_____
Section
1.
Section
533.102,
subsection
4,
Code
2013,
is
1
amended
to
read
as
follows:
2
4.
“Credit
union
service
organization”
means
a
corporation
,
3
or
limited
partnership
,
or
limited
liability
company
organized
4
under
state
law
to
provide
financial
and
financial-related
5
services
for
one
or
more
credit
unions,
each
of
which
owns
part
6
of
the
capital
stock
of
the
credit
union
service
organization,
7
as
authorized
under
section
533.301,
subsection
5
,
paragraph
8
“f”
,
and
which
corporation
,
or
limited
partnership
,
or
limited
9
liability
company
is
subject
to
examination
by
the
credit
10
union
division
of
the
Iowa
department
of
commerce
or
a
federal
11
supervisory
agency.
12
Sec.
2.
Section
533.205,
subsection
1,
paragraph
d,
Code
13
2013,
is
amended
to
read
as
follows:
14
d.
A
chief
financial
officer
whose
title
shall
be
designated
15
by
the
board.
16
Sec.
3.
Section
533.301,
subsections
28
and
29,
Code
2013,
17
are
amended
to
read
as
follows:
18
28.
Sell,
to
persons
in
the
field
of
membership,
negotiable
19
checks,
including
traveler’s
checks;
money
orders;
and
other
20
similar
money
transfer
instruments
including
international
and
21
domestic
electronic
fund
transfers
and
remittance
checks
.
22
29.
Cash
checks
and
money
orders,
and
send
and
receive
23
international
and
domestic
electronic
fund
transfers
and
24
remittance
transfers
,
for
persons
in
the
field
of
membership.
25
Sec.
4.
Section
533.401,
subsection
3,
paragraphs
a
and
b,
26
Code
2013,
are
amended
to
read
as
follows:
27
a.
Notice
of
the
meeting
called
to
consider
balloting
for
28
the
membership
vote
on
the
merger
was
mailed
to
each
member
of
29
the
merging
credit
union
entitled
to
vote
upon
the
question
30
at
least
twenty
days
prior
to
the
date
of
the
merger
meeting
31
scheduled
conclusion
of
the
vote
.
32
b.
The
notice
of
balloting
disclosed
the
purpose
of
the
33
meeting
vote
and
properly
informed
the
membership
that
approval
34
of
the
merger
would
be
sought
pursuant
to
this
section
.
35
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S.F.
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H.F.
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Sec.
5.
Section
533.401,
subsection
9,
Code
2013,
is
amended
1
by
striking
the
subsection.
2
Sec.
6.
Section
533.404,
subsection
4,
Code
2013,
is
amended
3
by
striking
the
subsection.
4
Sec.
7.
Section
533.405,
subsection
2,
Code
2013,
is
amended
5
by
adding
the
following
new
paragraph:
6
NEW
PARAGRAPH
.
d.
The
board
of
directors
shall
notify
the
7
national
credit
union
administration
of
the
intent
to
dissolve,
8
as
required
by
federal
regulation.
9
Sec.
8.
Section
533.405,
Code
2013,
is
amended
by
adding
the
10
following
new
subsection:
11
NEW
SUBSECTION
.
4A.
a.
(1)
Within
ten
days
of
the
12
conclusion
of
a
membership
vote
approving
the
voluntary
13
dissolution,
the
board
of
directors
or
the
liquidating
agent
14
appointed
pursuant
to
subsection
4
shall
cause
notice,
as
15
provided
in
this
subsection,
to
be
given
to
creditors
of
the
16
state
credit
union
to
present
their
claims.
17
(2)
A
copy
of
the
notice
of
voluntary
dissolution
shall
be
18
mailed
to
all
creditors
reflected
on
the
records
of
the
state
19
credit
union.
20
b.
In
addition
to
mailing
notice
to
known
creditors,
the
21
state
credit
union
shall
also
publish
notice
of
the
voluntary
22
dissolution
as
follows:
23
(1)
State
credit
unions
with
assets
in
excess
of
$5
24
million
as
of
the
month
ending
immediately
prior
to
the
date
25
of
the
conclusion
of
the
vote
by
the
membership
approving
26
the
dissolution
shall
publish
the
notice
once
a
week
for
two
27
successive
weeks
in
a
newspaper
of
general
circulation
in
each
28
county
in
which
the
state
credit
union
maintains
an
office
or
29
branch
for
the
transaction
of
business.
30
(2)
State
credit
unions
with
assets
of
$5
million
or
31
less
as
of
the
month
ending
immediately
prior
to
the
date
of
32
the
conclusion
of
the
vote
by
the
membership
approving
the
33
dissolution
shall
publish
the
notice
once
in
a
newspaper
of
34
general
circulation
in
each
county
in
which
the
state
credit
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union
maintains
an
office
or
branch.
1
c.
Mailed
and
published
notices
under
this
subsection
shall
2
indicate
all
of
the
following:
3
(1)
A
creditor
shall
have
thirty
days
from
the
date
the
4
notice
was
sent
or
first
published
to
submit
the
creditor’s
5
claim.
The
state
credit
union
must
receive
the
claim
on
or
6
before
the
thirtieth
day,
or
the
claim
is
barred.
7
(2)
Information
that
must
be
included
in
a
claim.
8
(3)
A
mailing
address
where
a
claim
is
to
be
sent.
9
Sec.
9.
Section
533.405,
subsections
5
and
6,
Code
2013,
are
10
amended
to
read
as
follows:
11
5.
a.
Upon
such
proof
as
is
satisfactory
to
the
12
superintendent
that
all
assets
of
the
following
have
occurred,
13
the
superintendent
shall
issue
a
certificate
of
dissolution:
14
(1)
Assets
have
been
liquidated
from
which
there
is
a
15
reasonable
expectance
of
realization
,
that
the
.
16
(2)
The
liabilities
of
the
state
credit
union
have
been
17
discharged
and
distribution
.
18
(3)
Distribution
has
been
made
to
its
members,
and
that
the
19
pursuant
to
section
533.404,
subsection
1.
20
(4)
The
liquidation
has
been
completed
,
the
superintendent
21
shall
issue
a
certificate
of
dissolution,
which
.
22
b.
The
certificate
shall
be
filed
and
recorded
in
the
county
23
in
which
the
state
credit
union
has
its
principal
place
of
24
business
and
in
the
county
in
which
its
original
articles
of
25
incorporation
were
filed
and
recorded.
26
b.
c.
Upon
the
issuance
filing
of
a
certificate
of
27
dissolution,
the
existence
of
the
state
credit
union
shall
28
cease.
29
6.
a.
At
any
time
prior
to
any
the
final
distribution
30
of
its
assets,
a
state
credit
union
may
revoke
the
voluntary
31
dissolution
proceedings
by
the
affirmative
vote
of
a
majority
32
of
its
members
eligible
to
vote,
according
to
the
provisions
33
of
section
533.203
.
At
least
twenty
days’
notice
shall
be
34
provided
between
the
sending
of
notice
and
the
scheduled
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conclusion
of
the
vote.
1
b.
Upon
the
conclusion
of
the
vote,
the
board
of
directors
2
shall
immediately
notify
the
superintendent
of
any
such
action
3
to
revoke
voluntary
dissolution
proceedings.
4
EXPLANATION
5
This
bill
makes
specified
changes
relating
to
the
6
administration
and
regulation
of
state
credit
unions.
7
The
bill
adds
a
limited
liability
company
to
the
list
of
8
business
entities
encompassed
within
the
definition
of
“credit
9
union
service
organization”
for
purposes
of
Code
chapter
10
533.
Additionally,
the
bill
modifies
the
designation
of
a
11
specified
elected
officer
within
the
board
of
directors
of
12
a
credit
union
such
that
one
officer
shall
be
a
financial
13
officer
whose
title
shall
be
designated
by
the
board,
rather
14
than
a
“chief”
financial
officer
as
the
position
is
currently
15
described.
Also,
the
bill
specifies
that
credit
unions
shall
16
be
authorized
to
sell
remittance
checks
to,
and
send
and
17
receive
remittance
transfers
for,
persons
in
the
credit
union’s
18
field
of
membership.
19
The
bill
alters
one
of
the
requirements
for
approval
by
20
the
superintendent
of
credit
unions
of
a
credit
union
merger.
21
References
to
a
meeting
to
be
held
on
the
question
of
merger
22
are
changed
to
balloting
upon
the
question.
The
bill
deletes
a
23
definition
of
the
terms
“merger”
or
“merge”
within
the
context
24
of
a
credit
union
merger.
25
Relating
to
the
dissolution
of
a
credit
union,
the
bill
26
deletes
a
provision
which
currently
preserves
remedies
27
available
to
or
against
a
credit
union
or
its
directors,
28
officers,
or
members
for
rights
or
claims
existing
or
liability
29
incurred
prior
to
a
voluntary
or
involuntary
dissolution
if
30
an
action
or
other
proceeding
to
enforce
the
right
or
claim
31
was
commenced
within
two
years
after
the
date
of
filing
of
32
a
certificate
or
decree
of
dissolution.
Also
with
regard
to
33
dissolution,
the
bill
adds
that
the
board
of
directors
of
a
34
credit
union
undergoing
dissolution
shall
notify
the
national
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H.F.
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credit
union
administration
of
its
intent
to
dissolve.
1
The
bill
further
modifies
voluntary
dissolution
provisions
2
to
establish
creditor
notification
requirements
and
procedures
3
concerning
the
presentation
of
claims
and
requirements
that
4
must
be
satisfied
prior
to
issuance
of
a
certificate
of
5
dissolution.
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