The bill establishes a new section in Iowa law that restricts the annual percentage rate (APR) for delayed deposit service transactions to a maximum of 36 percent. This means that any licensee operating under Code chapter 533D is prohibited from charging an APR higher than this limit. If a delayed deposit service transaction is conducted in violation of this provision, it will be deemed void, and the licensee will not be allowed to collect any principal, interest, fees, or other charges associated with that transaction.

Additionally, the bill provides specific protections for individuals on active military duty, as well as their spouses and dependents, by ensuring that the APR imposed on them does not exceed the rates permitted under 10 U.S.C. 987. This aims to safeguard military personnel and their families from excessive financial charges related to delayed deposit services.