HSB 538 (LSB 5182DP (5) 85)

SENATE/HOUSE FILE _____

BY  (PROPOSED DEPARTMENT OF COMMERCE/BANKING DIVISION BILL)

A BILL FOR

An Act relating to matters under the purview of the banking division of the department of commerce.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 524.107, subsections 1 and 2, Code 2014, are amended to read as follows:
   1.  A person, other than a state bank which is subject to the provisions of this chapter and a national bank authorized by the laws of the United States to engage in the business of receiving money for deposit, and except as provided in subsection 2, shall not engage in this state in the business of receiving money for deposit, transact the business of banking, or establish in this state a place of business for such purpose.
   2.  A person doing business in this state shall not use the words “bank” or “trust” or use any derivative, plural, or compound of the words “bank”, “banking”, “bankers”, or “trust” in any manner which would tend to create the impression that the person is authorized to engage in the business of banking or to act in a fiduciary capacity, except a state bank authorized to do so by this chapter or a bank authorized to do so by the laws of another state, a national bank to the extent permitted by the laws of the United States, a bank holding company as defined in section 524.1801, a savings and loan holding company as defined in 12 U.S.C. § 1467a, or a federal association to the extent permitted by the laws of the United States, or, insofar as the word “trust” is concerned, an individual permissibly serving as a fiduciary in this state, pursuant to section 633.63, or, insofar as the words “trust” and “bank” are concerned, a nonresident corporate fiduciary permissibly serving as a fiduciary in this state pursuant to section 633.64.
    Sec. 2.  Section 544A.13, subsection 1, paragraph h, Code 2014, is amended to read as follows:
   h.  Willful or repeated violations of the provisions of this Act chapter.
    Sec. 3.  REPEAL.  Section 544A.21, Code 2014, is repealed.
EXPLANATION
The inclusion of this explanation does not constitute agreement with

the explanation’s substance by the members of the general assembly.
   This bill concerns matters under the purview of the banking division of the department of commerce.
   The bill modifies provisions in Code section 524.107 relating to when a person doing business in Iowa may be permitted to use the words “bank” or “trust”, or any derivative, plural, or compound of “bank” or “trust”, in a manner which creates the impression that the person is authorized to engage in the business of banking or act in a fiduciary capacity. Currently, the specified list of persons so authorized includes, among others, a bank authorized pursuant to Code chapter 524. The bill adds the provision that a bank authorized by the laws of another state to utilize “bank” or “trust” in a manner tending to create the impression that the person is authorized to engage in the business of banking or act in a fiduciary capacity shall also be authorized to do so in this state. The bill also makes a conforming change to promote consistency between section 524.107, subsections 1 and 2.
   The bill also makes a technical correction to Code section 544A.13, subsection 1, changing a reference to “provisions of this Act” to “provisions of this chapter”.
   Additionally, the bill repeals Code section 544A.21. That section permits specified business entities to engage in the practice of architecture in Iowa if certain requirements are met.