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House File 260 - EnrolledAn Actrelating to permissible interest rates and charges for
certain loans.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
Section 1. Section 536.13, subsection 7, paragraph a, Code
2019, is amended to read as follows:
a. The superintendent may establish the maximum rate of
interest or charges as permitted under this chapter for those
loans with an unpaid principal balance of ten thirty thousand
dollars or less. For those loans with an unpaid principal
balance of over ten thirty thousand dollars, the maximum rate
of interest or charges which a licensee may charge shall be
the greater of the rate permitted by chapter 535 or the rate
authorized for supervised financial organizations by chapter
537.
Sec. 2. Section 537.2501, subsection 1, Code 2019, is
amended by adding the following new paragraph:
NEW PARAGRAPH. l. For an interest-bearing consumer credit
transaction, a service charge in an amount not to exceed the
lesser of ten percent of the amount financed or thirty dollars.
Sec. 3. Section 537.2510, subsection 3, paragraph a, Code
2019, is amended to read as follows:
a. If the prepayment is in full, the creditor may collect
or retain a minimum charge not exceeding five dollars in a
transaction which had an amount financed of seventy-five
dollars or less, or not exceeding seven dollars and fifty cents
in a transaction which had an amount financed of more than
seventy-five dollars, if the minimum charge was contracted
for, and the finance charge earned at the time of prepayment
is less than the minimum charge contracted for. If, however,
a creditor has collected a service charge in association with
an interest-bearing consumer credit transaction pursuant to
section 537.2501, subsection 1, paragraph “l”, the creditor
shall not collect or retain a minimum charge upon prepayment
pursuant to this subsection.
Sec. 4. Section 537.2510, Code 2019, is amended by adding
the following new subsection:
NEW SUBSECTION. 9. This section does not apply to a service
charge collected pursuant to section 537.2501, subsection 1,
-1-paragraph “l”.
______________________________
LINDA UPMEYERSpeaker of the House______________________________
CHARLES SCHNEIDERPresident of the Senate I hereby certify that this bill originated in the House and is known as House File 260, Eighty-eighth General Assembly.______________________________
CARMINE BOALChief Clerk of the HouseApproved _______________, 2019______________________________
KIM REYNOLDSGovernorgh/rn
certain loans.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
Section 1. Section 536.13, subsection 7, paragraph a, Code
2019, is amended to read as follows:
a. The superintendent may establish the maximum rate of
interest or charges as permitted under this chapter for those
loans with an unpaid principal balance of ten thirty thousand
dollars or less. For those loans with an unpaid principal
balance of over ten thirty thousand dollars, the maximum rate
of interest or charges which a licensee may charge shall be
the greater of the rate permitted by chapter 535 or the rate
authorized for supervised financial organizations by chapter
537.
Sec. 2. Section 537.2501, subsection 1, Code 2019, is
amended by adding the following new paragraph:
NEW PARAGRAPH. l. For an interest-bearing consumer credit
transaction, a service charge in an amount not to exceed the
lesser of ten percent of the amount financed or thirty dollars.
Sec. 3. Section 537.2510, subsection 3, paragraph a, Code
2019, is amended to read as follows:
a. If the prepayment is in full, the creditor may collect
or retain a minimum charge not exceeding five dollars in a
transaction which had an amount financed of seventy-five
dollars or less, or not exceeding seven dollars and fifty cents
in a transaction which had an amount financed of more than
seventy-five dollars, if the minimum charge was contracted
for, and the finance charge earned at the time of prepayment
is less than the minimum charge contracted for. If, however,
a creditor has collected a service charge in association with
an interest-bearing consumer credit transaction pursuant to
section 537.2501, subsection 1, paragraph “l”, the creditor
shall not collect or retain a minimum charge upon prepayment
pursuant to this subsection.
Sec. 4. Section 537.2510, Code 2019, is amended by adding
the following new subsection:
NEW SUBSECTION. 9. This section does not apply to a service
charge collected pursuant to section 537.2501, subsection 1,
-1-paragraph “l”.
______________________________
LINDA UPMEYERSpeaker of the House______________________________
CHARLES SCHNEIDERPresident of the Senate I hereby certify that this bill originated in the House and is known as House File 260, Eighty-eighth General Assembly.______________________________
CARMINE BOALChief Clerk of the HouseApproved _______________, 2019______________________________
KIM REYNOLDSGovernorgh/rn