H.F. 2039 Section 1. Section 533D.9, subsection 2, paragraph b, Code 1 2026, is amended to read as follows: 2 b. The annual percentage rate as computed pursuant to the 3 federal Truth in Lending Act. The annual percentage rate shall 4 not exceed ten percent. 5 Sec. 2. Section 533D.9, subsection 2, Code 2026, is amended 6 by adding the following new paragraph: 7 NEW PARAGRAPH . e. That a maker obtaining more than four 8 delayed deposit service loans from one licensee in a two-month 9 period shall have the option to enter into an extended 10 repayment plan agreement with the licensee pursuant to section 11 533D.9A upon the maker’s request and prior to the date the last 12 check accepted by the licensee is to be negotiable. 13 Sec. 3. NEW SECTION . 533D.9A Extended repayment plan. 14 1. Any maker obtaining more than four delayed deposit 15 service loans from one licensee in a two-month period may enter 16 into an extended repayment plan agreement with the licensee 17 if the maker requests to enter into such agreement prior to 18 the date upon which the last check accepted by the licensee 19 is to be negotiable. Except as provided in this section, the 20 licensee shall not initiate debt collection, as defined in 21 section 537.7102, civil court proceedings, or arbitration to 22 collect on any unpaid checks during the term of the extended 23 repayment plan agreement. 24 2. A licensee is required to enter into only one extended 25 repayment plan agreement with a maker in a twelve-month period, 26 measured from the commencement date of the first extended 27 repayment plan agreement until the commencement date of the 28 second extended repayment plan agreement. 29 3. A licensee shall not assess any other fee, interest 30 charge, or other charge on the maker as a result of entering 31 into an extended repayment plan agreement concerning any unpaid 32 check obligations. 33 4. a. The maker shall be allowed to pay the total unpaid 34 check obligations to be charged in at least four substantially 35 -1- LSB 5711YH (1) 91 nls/ko 1/ 4

H.F. 2039 equal installments due on dates or soon after dates when the 1 maker will receive regular income, or on dates as mutually 2 agreed upon by the maker and the licensee. The extended 3 repayment plan agreement shall contain a schedule for the 4 payment of the total unpaid check obligations. 5 b. The extended repayment plan agreement shall be in writing 6 and signed by both the maker and the licensee. 7 5. Upon entering into an extended repayment plan agreement, 8 the licensee shall return any postdated checks that the maker 9 has given to the licensee for the original delayed deposit 10 services transactions and shall do one of the following: 11 a. The licensee shall require the maker at the time of 12 entering into an extended repayment plan agreement to make 13 a new check for the balance on any unpaid checks and upon 14 each payment by the maker under the extended repayment plan 15 agreement, the licensee shall require a new check for the 16 remaining balance and shall return any previous check to the 17 maker. 18 b. The licensee shall require the maker at the time of 19 entering into the extended repayment plan agreement to provide 20 multiple checks, one for each of the scheduled payments under 21 the extended repayment plan agreement. 22 6. During the duration of the extended repayment plan 23 agreement, the obligations the maker owes on any unpaid checks 24 are not delinquent and the licensee shall not charge a penalty 25 pursuant to section 533D.9, subsection 2. 26 7. Upon the maker’s failure to make a scheduled payment 27 pursuant to the extended repayment plan agreement, the licensee 28 may charge a penalty pursuant to section 533D.9, subsection 29 2, and may initiate debt collection as defined in section 30 537.7102, civil court proceedings, or arbitration to collect on 31 any unpaid checks. 32 EXPLANATION 33 The inclusion of this explanation does not constitute agreement with 34 the explanation’s substance by the members of the general assembly. 35 -2- LSB 5711YH (1) 91 nls/ko 2/ 4

H.F. 2039 This bill modifies provisions applicable to delayed deposit 1 services. 2 The bill limits the annual percentage rate applicable to a 3 delayed deposit services transaction to 10 percent, as computed 4 pursuant to the federal Truth in Lending Act. 5 The bill allows a maker obtaining more than four delayed 6 deposit service loans from one licensee in a two-month period 7 to enter into an extended repayment plan agreement with the 8 licensee if the maker requests to enter into such an agreement 9 prior to the date upon which the last check accepted by the 10 licensee is to be negotiable. 11 The bill requires a licensee holding multiple checks from 12 one maker at any one time to enter into an extended repayment 13 plan agreement if the maker of the multiple checks requests 14 to enter into such agreement prior to the date upon which the 15 checks are to be negotiable. The licensee may not initiate 16 debt collection, civil court proceedings, or arbitration to 17 collect on the unpaid checks during the term of the extended 18 repayment plan agreement. A licensee need only enter into one 19 extended repayment plan agreement with a maker of multiple 20 checks in a 12-month period. A licensee cannot charge a fee, 21 interest charge, or other charge as a result of entering into 22 an extended repayment plan agreement. During the duration 23 of the agreement, the obligations that the maker owes on the 24 unpaid checks are not delinquent and the licensee cannot charge 25 penalties for a delinquent obligation. 26 The bill requires the extended repayment plan agreement 27 to be in writing, signed by the maker and the licensee, and 28 contain the schedule for payment of the total unpaid check 29 obligations. The schedule must allow the maker to pay the 30 checks in at least four substantially equal installments. 31 The bill requires the licensee to return any postdated 32 checks that the maker has given to the licensee for the 33 original transactions. The licensee may then either require 34 the maker to provide a new check for the balance on the unpaid 35 -3- LSB 5711YH (1) 91 nls/ko 3/ 4

H.F. 2039 checks or provide multiple checks for each scheduled payment 1 under the agreement. 2 The bill states that upon the maker’s failure to make a 3 scheduled payment, the licensee may charge a penalty pursuant 4 to Code section 533D.9(2) not to exceed $15, and may initiate 5 debt collection, civil court proceedings, or arbitration to 6 collect on the unpaid checks. 7 A violation of the bill may result in an administrative fine 8 of not more than $5,000 for each violation and the cost of 9 investigation. 10 -4- LSB 5711YH (1) 91 nls/ko 4/ 4