Senate
Study
Bill
1040
-
Introduced
SENATE/HOUSE
FILE
_____
BY
(PROPOSED
ATTORNEY
GENERAL
BILL)
A
BILL
FOR
An
Act
relating
to
the
consumer
credit
code
by
providing
1
for
increases
in
monetary
limits
applicable
to
motor
2
vehicle-related
credit
transactions
and
amending
the
3
incorporation
date
for
references
to
the
federal
Truth
in
4
Lending
Act.
5
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
6
TLSB
1270DP
(5)
85
rn/nh
S.F.
_____
H.F.
_____
Section
1.
Section
537.1301,
subsection
13,
paragraph
a,
1
Code
2013,
is
amended
to
read
as
follows:
2
a.
Except
as
provided
in
paragraph
“b”
,
a
consumer
credit
3
sale
is
a
sale
of
goods,
services,
or
an
interest
in
land
in
4
which
all
of
the
following
are
applicable:
5
(1)
Credit
is
granted
either
pursuant
to
a
seller
credit
6
card
or
by
a
seller
who
regularly
engages
as
a
seller
in
credit
7
transactions
of
the
same
kind.
8
(2)
The
buyer
is
a
person
other
than
an
organization.
9
(3)
The
goods,
services
,
or
interest
in
land
are
purchased
10
primarily
for
a
personal,
family
,
or
household
purpose.
11
(4)
Either
the
debt
is
payable
in
installments
or
a
finance
12
charge
is
made.
13
(5)
With
respect
to
a
sale
of
goods
or
services,
the
amount
14
financed
does
not
exceed
twenty-five
thousand
dollars.
15
(6)
With
respect
to
a
sale
of
a
motor
vehicle,
the
amount
16
financed
does
not
exceed
fifty-three
thousand
dollars.
17
Sec.
2.
Section
537.1301,
subsection
14,
paragraph
a,
18
subparagraph
(4),
Code
2013,
is
amended
to
read
as
follows:
19
(4)
The
amount
payable
under
the
lease
does
not
exceed
20
twenty-five
thousand
dollars
or,
if
the
lease
is
a
motor
21
vehicle
lease,
the
amount
payable
under
the
lease
does
not
22
exceed
fifty-three
thousand
dollars
.
23
Sec.
3.
Section
537.1301,
subsection
15,
paragraph
a,
24
subparagraph
(5),
Code
2013,
is
amended
to
read
as
follows:
25
(5)
The
amount
financed
does
not
exceed
twenty-five
26
thousand
dollars
or,
if
the
loan
is
obtained
to
finance
the
27
purchase
of
a
motor
vehicle,
the
amount
financed
does
not
28
exceed
fifty-three
thousand
dollars
.
29
Sec.
4.
Section
537.1302,
Code
2013,
is
amended
to
read
as
30
follows:
31
537.1302
Definition
——
Truth
in
Lending
Act.
32
As
used
in
this
chapter
,
“Truth
in
Lending
Act”
means
Tit.
1
33
of
the
Consumer
Credit
Protection
Act,
in
subch.
1
of
15
U.S.C.
34
ch.
41,
as
amended
to
and
including
July
1,
2010
2013
,
and
35
-1-
LSB
1270DP
(5)
85
rn/nh
1/
2
S.F.
_____
H.F.
_____
includes
regulations
issued
pursuant
to
that
Act
prior
to
July
1
1,
2010
2013
.
2
EXPLANATION
3
This
bill
increases
the
jurisdictional
monetary
limit
4
applicable
to
motor
vehicle-related
credit
transactions
5
contained
in
the
Iowa
consumer
credit
code.
Currently,
in
6
the
definitions
of
consumer
credit
sale,
consumer
lease,
7
and
consumer
loan,
the
applicable
maximum
monetary
limit
is
8
$25,000.
The
bill
increases
this
limit
to
$53,000
with
respect
9
to
consumer
credit
sales,
leases,
and
loans
involving
a
motor
10
vehicle.
11
The
bill
also
changes
the
date
by
which
amendments
to
the
12
federal
Truth
in
Lending
Act,
and
regulations
issued
pursuant
13
to
the
Act,
are
considered
incorporated
within
the
Act
for
14
purposes
of
Code
chapter
537
from
July
1,
2010,
to
July
1,
15
2013.
16
-2-
LSB
1270DP
(5)
85
rn/nh
2/
2