This bill establishes new regulations regarding the acceptance of negotiable instruments by financial institutions in Iowa. It defines "financial institution" to include banks, savings and loan associations, credit unions, industrial loan companies, and their affiliates, and defines "negotiable instrument" in accordance with existing law. The bill mandates that financial institutions must accept negotiable instruments in exchange for conditional credit, make a good-faith effort to obtain payment from the original issuer, and remit cash to the issuer within two days of receiving payment. Additionally, it allows financial institutions to charge a fee for these services, capped at either $20 or 1% of the lesser of the instrument's face value or the proceeds received.

Furthermore, the bill prohibits financial institutions from requiring individuals to open an account or present identification when tendering a negotiable instrument. It also provides remedies for individuals who suffer violations of these provisions, allowing them to seek damages up to five times the amount of the negotiable instrument, along with attorney fees. If a financial institution denies acceptance of a negotiable instrument three or more times, it may face a civil penalty ranging from $10,000 to $25,000, as determined by the court.