Senate File 347 - Reprinted



                                       SENATE FILE       
                                       BY  COMMITTEE ON COMMERCE

                                       (SUCCESSOR TO SSB 1065)
                                       (COMPANION TO HF 500 BY
                                        COMMITTEE ON COMMERCE)


    Passed Senate, Date               Passed House,  Date             
    Vote:  Ayes        Nays           Vote:  Ayes        Nays         
                 Approved                            

                                      A BILL FOR

  1 An Act relating to the authority of creditors and credit unions
  2    in consumer credit or credit union transactions.
  3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
  4 TLSB 1693SV 82
  5 rn/gg/14

PAG LIN



  1  1    Section 1.  Section 533.4, Code 2007, is amended by adding
  1  2 the following new subsections:
  1  3    NEW SUBSECTION.  29.  Sell, to persons in the field of
  1  4 membership, negotiable checks, including traveler's checks;
  1  5 money orders; and other similar money transfer instruments
  1  6 including international and domestic electronic fund
  1  7 transfers.
  1  8    NEW SUBSECTION.  30.  Cash checks and money orders, and
  1  9 receive international and domestic electronic fund transfers,
  1 10 for persons in the field of membership.
  1 11    Sec. 2.  Section 537.2501, subsection 1, Code 2007, is
  1 12 amended by adding the following new paragraph:
  1 13    NEW PARAGRAPH.  j.  For a consumer loan where the amount
  1 14 financed does not exceed three thousand dollars and the term
  1 15 of the loan does not exceed twelve months, a bank, savings
  1 16 bank, savings and loan association, or credit union
  1 17 incorporated pursuant to state or federal law may charge an
  1 18 additional application fee not to exceed the lesser of ten
  1 19 percent of the amount financed or thirty dollars.  If the loan
  1 20 is not approved, the application fee shall not exceed the
  1 21 lesser of ten percent of the amount applied for by the
  1 22 applicant or thirty dollars.  The fee permitted pursuant to
  1 23 this paragraph shall not be charged in connection with a loan
  1 24 used for the purchase of a motor vehicle, or for a loan where
  1 25 the borrower's dwelling is used as security.
  1 26    Sec. 3.  IMPLEMENTATION OF LAW.
  1 27    The provisions of this Act amending section 533.4 shall be
  1 28 deemed to amend section 533.301, relating to powers of credit
  1 29 unions, if enacted in 2007 Iowa Acts, Senate File 557, or
  1 30 successor legislation, and the Code editor shall harmonize the
  1 31 provisions as necessary.
  1 32 SF 347
  1 33 rn:rj/cc/26