The bill establishes a new restriction on the annual percentage rates (APRs) that can be charged for delayed deposit service transactions in Iowa. Specifically, it prohibits licensed providers from imposing an APR greater than 36 percent. Any transaction that violates this rate cap will be considered void, and the licensee will be barred from collecting any principal, interest, fees, or other charges associated with that transaction.

Additionally, the bill provides special protections for individuals on active military duty, as well as their spouses and dependents, by limiting the APR to the rates permitted under federal law (10 U.S.C. 987). This aims to ensure that military personnel and their families are not subjected to excessively high interest rates in connection with delayed deposit services.