This bill amends existing laws regarding the investment of public funds in Iowa. It allows the uninsured portion of public funds deposited in a depository to be invested in insured deposits or certificates of deposit issued by credit unions, expanding the options for public fund investments. Additionally, it establishes that a political subdivision may invest up to 25 percent of its public funds in a joint investment trust, provided that the trust complies with specific regulations. The governing body of the political subdivision must acknowledge in writing the risks associated with investing in such trusts, including the lack of federal insurance and the potential for loss of principal.

Furthermore, the bill introduces penalties for violations of these provisions, categorizing them as breaches of fiduciary duty that may lead to criminal and civil remedies. It also removes corporate central credit unions from the list of entities eligible for securities deposits and allows credit unions to pledge securities through registered securities broker-dealers. These broker-dealers are required to report on the pledged collateral regularly, ensuring transparency and accountability in the management of public funds.

Statutes affected:
Introduced: 12B.10, 12C.2, 12C.17