H.F. 598 Section 1. Section 533D.9, subsection 2, Code 2015, is 1 amended by adding the following new paragraph: 2 NEW PARAGRAPH . e. That the licensee must provide the maker 3 of the check the option to enter into an extended repayment 4 plan agreement pursuant to section 533D.9A upon the maker’s 5 request and prior to the date the check is to be negotiable if 6 the maker is unable to repay the check on the date agreed upon. 7 Sec. 2. NEW SECTION . 533D.9A Extended repayment plan. 8 1. The licensee shall enter into an extended repayment plan 9 agreement if the maker of the check is unable to repay the 10 check and the maker requests to enter into such agreement prior 11 to the date upon which the check is to be negotiable. Except 12 as provided in this section, the licensee shall not initiate 13 debt collection, as defined by section 537.7102, civil court 14 proceedings, or arbitration to collect on the unpaid check 15 during the term of the extended repayment plan agreement. 16 2. A licensee is required to enter into only one extended 17 repayment plan agreement with a maker of a check in a 18 twelve-month period, measured from the commencement date of the 19 first extended repayment plan agreement until the commencement 20 date of the second extended repayment plan agreement. 21 3. A licensee shall not assess any other fee, interest 22 charge, or other charge on the maker as a result of entering 23 into an extended repayment plan agreement concerning the unpaid 24 check obligation. 25 4. a. The maker of a check shall be allowed to pay the 26 total unpaid check obligation to be charged in at least four 27 substantially equal installments due on dates or soon after 28 dates when the maker of the check will receive regular income. 29 The extended repayment plan agreement shall contain a schedule 30 for the payment of the total unpaid check obligation. 31 b. The extended repayment plan agreement shall be in writing 32 and signed by both the maker and the licensee. 33 5. Upon entering into an extended repayment plan agreement, 34 the licensee shall return any postdated check that the maker 35 -1- LSB 1668HV (2) 86 ad/sc 1/ 3

H.F. 598 has given to the licensee for the original delayed deposit 1 services transaction and shall do one of the following: 2 a. The licensee shall require the maker of the check at 3 the time of entering into an extended repayment plan agreement 4 to make a new check for the balance on the unpaid check and 5 upon each payment by the maker under the extended repayment 6 plan agreement, the licensee shall require a new check for the 7 remaining balance and return any previous check to the maker. 8 b. The licensee shall require the maker of the check at the 9 time of entering into the extended repayment plan agreement to 10 provide multiple checks, one for each of the scheduled payments 11 under the extended repayment plan agreement. 12 6. During the duration of the extended repayment plan 13 agreement, the obligation the maker owes on the unpaid check 14 is not delinquent and the licensee shall not charge a penalty 15 pursuant to section 533D.9, subsection 2. 16 7. Upon the maker’s failure to make a scheduled payment, 17 the licensee may charge a penalty pursuant to section 533D.9, 18 subsection 2, and may initiate debt collection as defined in 19 section 537.7102, civil court proceedings, or arbitration to 20 collect on the unpaid check. 21 EXPLANATION 22 The inclusion of this explanation does not constitute agreement with 23 the explanation’s substance by the members of the general assembly. 24 This bill relates to delayed deposit services by requiring 25 the option of a repayment plan. 26 The bill requires the licensee to enter into an extended 27 repayment plan agreement if the maker of the check is unable 28 to repay the check and the maker requests to enter into such 29 agreement prior to the date upon which the check is to be 30 negotiable. The licensee may not initiate debt collection, 31 civil court proceedings, or arbitration to collect on the 32 unpaid check during the term of the extended repayment plan 33 agreement. The bill requires a licensee to enter into only one 34 extended repayment plan agreement with a maker of a check in a 35 -2- LSB 1668HV (2) 86 ad/sc 2/ 3

H.F. 598 12-month period. The bill prohibits the licensee from charging 1 a fee, interest charge, or other charge as a result of entering 2 into an extended repayment plan agreement. The bill states 3 that during the duration of the agreement, the obligation 4 the maker owes on the unpaid check is not delinquent and the 5 licensee shall not charge the $15 penalty for a delinquent 6 obligation. 7 The bill provides that the extended repayment plan agreement 8 shall be in writing, signed by the maker and the licensee, and 9 shall contain the schedule for the payment of the total unpaid 10 check obligation. The bill specifies that the schedule for the 11 payment shall allow the maker of a check to pay the check in at 12 least four substantially equal installments. 13 The bill requires the licensee to return any postdated check 14 that the maker has given to the licensee for the original 15 delayed deposit services transaction. 16 The bill states that upon the maker’s failure to make a 17 scheduled payment, the licensee may charge a penalty pursuant 18 to Code section 533D.9, subsection 2, and may initiate debt 19 collection, civil court proceedings, or arbitration to collect 20 on the unpaid check. 21 A violation of the bill could result in an administrative 22 fine of not more than $5,000 for each violation and the cost of 23 investigation. 24 -3- LSB 1668HV (2) 86 ad/sc 3/ 3