Senate File 586 - Enrolled
Senate File 586
AN ACT
RELATING TO BANKS, MAKING APPROPRIATIONS, AND MAKING CIVIL
PENALTIES APPLICABLE.
3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. Section 12.61, subsection 1, paragraph a, Code
2 2021, is amended to read as follows:
3 a. “Financial institution” means a state bank as defined in
4 section 524.103, subsection 41, a federally chartered state
5 bank having its principal office within this state, a federally
6 chartered credit union having its principal office within this
7 state, a federally chartered savings and loan association
8 having its principal office within the state, a credit union
9 organized under chapter 533, or a trust company organized or
10 incorporated under the laws of this state.
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11 Sec. 2. Section 422.61, subsection 1, Code 2021, is amended
12 to read as follows:
13 1. “Financial institution” means a state bank as defined in
14 section 524.103, subsection 41, a state bank chartered under
15 the laws of any other state, a national banking association,
16 a trust company, a federally chartered savings and loan
17 association, an out-of-state state chartered savings bank, a
18 financial institution chartered by the federal home loan bank
19 board, a non-Iowa chartered savings and loan association, or a
20 production credit association.
21 Sec. 3. Section 453A.8, subsection 6, Code 2021, is amended
22 to read as follows:
23 6. The director may authorize a bank as defined by section
24 524.103, subsection 8, to sell stamps. A bank authorized to
25 sell stamps shall comply with all of the requirements governing
26 the sale of stamps by the department. Section 453A.12 shall
27 apply to any bank authorized to sell stamps.
28 Sec. 4. Section 524.102, Code 2021, is amended by adding the
29 following new subsection:
30 NEW SUBSECTION. 10. The opportunity for state banks to
31 adopt, in a manner that is compatible with and subject to the
32 purposes of this chapter, new and emerging technologies that
33 enhance the efficiency and convenience of banking products and
34 services.
35 Sec. 5. Section 524.103, Code 2021, is amended by adding the
1 following new subsections:
2 NEW SUBSECTION. 2A. “Affiliate” means the same as defined
3 in section 524.1101.
4 NEW SUBSECTION. 22A. “Federal savings association” means a
5 corporation organized under 12 U.S.C. §1464.
6 NEW SUBSECTION. 32A. “National bank” means a corporation
7 organized under 12 U.S.C. §21 whose deposits are insured by
8 the federal deposit insurance corporation or whose powers are
9 limited exclusively to the exercise of trust or fiduciary
10 powers.
11 NEW SUBSECTION. 34A. “Out-of-state bank” means a
12 corporation, other than a credit union, industrial bank, or
13 trust company, that is authorized by the laws of another state
14 to solicit, receive, or accept money or its equivalent for
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15 deposit or to otherwise engage in the business of banking.
16 NEW SUBSECTION. 36A. “Safe deposit box” means a safe, lock
17 box, or other secure storage receptacle located on the premises
18 of a bank.
19 Sec. 6. Section 524.103, subsections 6, 8, 10, 12, 13, 16,
20 17, 20, 22, 25, 27, 29, 33, 34, 38, 39, 41, 44, and 48, Code
21 2021, are amended to read as follows:
22 6. “Articles of incorporation” means the original, amended,
23 or restated articles of incorporation and all amendments
24 thereto and includes articles of merger. “Articles of
25 incorporation” also means the original or restated articles of
26 organization and all amendments including articles of merger if
27 a state bank is organized as a limited liability company under
28 this chapter.
29 8. “Bank” means a corporation or limited liability company
30 organized under this chapter or 12 U.S.C. §21, a national bank,
31 a federal savings association, or an out-of-state bank.
32 10. “Board of directors” means the board of directors of a
33 state bank as provided in section 524.601. For a state bank
34 organized as a limited liability company under this chapter,
35 “board of directors” means a board of directors or board of
1 managers as designated by the limited liability company in its
2 articles of organization or operating agreement.
3 12. “Business of banking” means engaging in the regular
4 business of soliciting, receiving, or accepting money or its
5 equivalent for deposit, and any other business generally done
6 by banks.
7 13. “Calculation date” means the most recent of the
8 following:
9 a. The date the state bank’s statement of condition is
10 required to be filed pursuant to section 524.220, subsection 2.
11 b. The date an event occurs that reduces or increases the
12 state bank’s aggregate capital by ten percent or more.
13 c. As the superintendent may direct.
14 16. “Chief executive officer” means the person designated by
15 the board of directors to be responsible for the implementation
16 of and adherence to board policies and resolutions by all
17 officers and employees of the state bank.
18 17. a. “Contractual commitment to advance funds” means a
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19 state bank’s obligation to do either of the following:
20 (1) Advance funds under a standby letter of credit or other
21 similar arrangement.
22 (2) Make payment, directly or indirectly, to a third person
23 contingent upon default by a customer of the state bank in
24 performing an obligation and to make such payment in keeping
25 with the agreed upon terms of the customer’s contract with
26 a third person, or to make payments upon some other stated
27 condition.
28 b. The term does not include commercial letters of credit
29 and similar instruments where the issuing state bank expects
30 the beneficiary to draw on the issuer, that do not guarantee
31 payment, and that do not provide for payment in the event of a
32 default by a third person.
33 20. “Director” means a member of the board of directors
34 and includes a manager of a state bank organized as a limited
35 liability company under this chapter.
1 22. “Executive officer” means a person who participates or
2 has authority to participate, other than in the capacity of a
3 director or manager, in major policymaking functions of a state
4 bank, whether or not the officer has an official title, whether
5 or not such a title designates the officer as an assistant, or
6 whether or not the officer is serving without salary or other
7 compensation. The chief executive officer, chairperson of the
8 board, the president, every vice president, and the cashier
9 of a state bank are deemed to be executive officers, unless
10 such an officer is excluded, by resolution of the board of
11 directors of a state bank or by the bylaws of the state bank,
12 from participation, other than in the capacity of a director,
13 in major policymaking functions of the state bank, and the
14 officer does not actually participate in the major policymaking
15 functions. All officers who serve on a board of directors are
16 deemed to be executive officers, except as provided for in
17 section 524.701, subsection 3.
18 25. “Insured bank” means a state bank the deposits of which
19 are insured in accordance with the provisions of the Federal
20 Deposit Insurance Act.
21 27. “Member” means a person with a membership interest
22 in a state bank organized as a limited liability company or
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23 incorporated as a mutual corporation under this chapter.
24 29. “Membership interest” means a member’s share of the
25 profits and losses, the right to receive distributions of
26 assets, and any right to vote or participate in management of a
27 state bank organized as a limited liability company under this
28 chapter or of a state bank incorporated as a mutual corporation
29 under this chapter.
30 33. “Officer” means chief executive officer, executive
31 officer, or any other administrative official of a state bank
32 elected by the state bank’s board of directors to carry out any
33 of the state bank’s operating rules and policies.
34 34. “Operations subsidiary” means a wholly owned corporation
35 incorporated and controlled by a state bank that performs
1 functions which the state bank is authorized to perform.
2 38. “Shareholder” means one who is a holder of record of
3 shares in a state bank. If a state bank is organized as a
4 limited liability company under this chapter, “shareholder”
5 means a member of the limited liability company. If a state
6 bank is incorporated as a mutual corporation under this
7 chapter, “shareholder” means a member of the mutual corporation.
8 39. “Shares” means the units into which the proprietary
9 interests in a state bank incorporated as a stock corporation
10 are divided, including any membership interests of a state bank
11 organized as a limited liability company under this chapter.
12 41. “State bank” means any bank incorporated pursuant to
13 the provisions of this chapter after January 1, 1970, and any
14 “state bank” incorporated pursuant to the laws of this state and
15 doing business as such on January 1, 1970, or a bank organized
16 as a limited liability company or a mutual corporation under
17 this chapter.
18 44. “Supervised financial organization” as defined and used
19 in the Iowa consumer credit code, chapter 537, includes a
20 person state bank organized pursuant to this chapter.
21 48. “Unincorporated area” means a village within which an
22 area where a state bank or national bank has its principal
23 place of business that is not within a municipal corporation.
24 Sec. 7. Section 524.103, subsection 26, Code 2021, is
25 amended by striking the subsection.
26 Sec. 8. Section 524.105, subsection 2, Code 2021, is amended
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27 to read as follows:
28 2. All state banks are subject to the provisions and
29 requirements of this chapter in every particular, and all
30 national banks out-of-state banks, and federal savings
31 associations, now or hereafter doing business in this state,
32 are subject to the provisions of this chapter, to the extent
33 applicable, from July 1, 1995 2021.
34 Sec. 9. Section 524.107, subsections 1 and 2, Code 2021, are
35 amended to read as follows:
1 1. A person, other than a state bank which is subject to
2 the provisions of this chapter, an out-of-state bank, and
3 a national bank or federal savings association authorized
4 by the laws of the United States to engage in the business
5 of receiving money for deposit, and except as provided in
6 subsection 2, shall not engage in this state in the business
7 of receiving money for deposit, transact the business of
8 banking, or establish in this state a place of business for
9 such purpose.
10 2. A person doing business in this state shall not use
11 the words “bank” or “trust” or use any derivative, plural,
12 or compound of the words “bank”, “banking”, or “bankers”, or
13 “trust” in any manner which would tend to create the impression
14 that the person is authorized to engage in the business of
15 banking or to act in a fiduciary capacity, except a state
16 bank authorized to do so by this chapter or a an out-of-state
17 bank authorized to do so by the laws of another state, a
18 national bank to the extent permitted by the laws of the
19 United States, a bank holding company as defined in section
20 524.1801, a savings and loan holding company as defined in 12
21 U.S.C. §1467a, or a federal savings association to the extent
22 permitted by the laws of the United States, or, insofar as the
23 word “trust” is concerned, an individual permissibly serving
24 as a fiduciary in this state, pursuant to section 633.63,
25 or, insofar as the words “trust” and “bank” are concerned,
26 a nonresident corporate fiduciary permissibly serving as a
27 fiduciary in this state pursuant to section 633.64.
28 Sec. 10. Section 524.109, subsection 1, Code 2021, is
29 amended to read as follows:
30 1. A state bank may be organized under this chapter as a
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31 bankers’ bank. The bankers’ bank is subject to all rights,
32 privileges, duties, restrictions, penalties, liabilities,
33 conditions and limitations applicable to a state bank
34 generally, except as limited in the definition of bankers’
35 bank contained in section 524.103, subsection 9. However, a
1 bankers’ bank shall have the same powers as those granted by
2 federal law and regulation to a national bank organized as a
3 bankers’ bank under 12 U.S.C. §27.
4 Sec. 11. Section 524.203, Code 2021, is amended to read as
5 follows:
6 524.203 Superintendent —— vacancy.
7 If the office of the superintendent of banking is vacant
8 or the superintendent is unable to serve, the chief of the
9 bank bureau of the banking division shall be the acting
10 superintendent until the governor appoints a new superintendent
11 or acting superintendent. If the chief of the bank bureau is
12 unable to serve, the chief examiner of the finance bank bureau
13 of the banking division shall be the acting superintendent
14 until the governor appoints a new superintendent or acting
15 superintendent. If both the chief of the bank bureau and
16 the chief examiner of the finance bank bureau are unable to
17 serve, the chief of the professional licensing and regulation
18 finance bureau of the banking division shall be the acting
19 superintendent until the governor appoints a new superintendent
20 or acting superintendent.
21 Sec. 12. Section 524.207, subsections 2 and 6, Code 2021,
22 are amended to read as follows:
23 2. All fees and assessments generated as the result of
24 a federally chartered national bank or federal savings and
25 loan association converting to a state-chartered state bank
26 on or after December 31, 2015, and thereafter, are payable
27 to the superintendent. The superintendent shall pay all the
28 fees and assessments received by the superintendent pursuant
29 to this subsection to the treasurer of state within the time
30 required by section 12.10 and the fees and assessments shall
31 be deposited into the department of commerce revolving fund
32 created in section 546.12. An amount equal to such fees
33 and assessments deposited into the department of commerce
34 revolving fund is appropriated from the department of commerce
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35 revolving fund to the banking division of the department of
1 commerce for the fiscal year in which a federally chartered
2 national bank or federal savings and loan association converted
3 to a state-chartered state bank and an amount equal to such
4 annualized fees and assessments deposited into the department
5 of commerce revolving fund in succeeding years is appropriated
6 from the department of commerce revolving fund to the banking
7 division of the department of commerce for succeeding fiscal
8 years for purposes related to the discharge of the duties and
9 responsibilities imposed upon the banking division of the
10 department of commerce, the superintendent, and the state
11 banking council by the laws of this state. This appropriation
12 shall be in addition to the appropriation of moneys otherwise
13 described in this section. If a state-chartered state
14 bank converts to a federally chartered national bank or
15 federal savings and loan association, any appropriation made
16 pursuant to this subsection for the following fiscal year
17 shall be reduced by the amount of the assessment paid by the
18 state-chartered state bank during the fiscal year in which the
19 state-chartered state bank converted to a federally chartered
20 national bank or federal savings and loan association.
21 6. All moneys received by the superintendent pursuant
22 to a multi-state settlement with a provider of financial
23 services such as a mortgage lender, a mortgage servicer, or
24 any other person regulated by the banking division of the
25 department of commerce shall be deposited into the department
26 of commerce revolving fund created in section 546.12 and
27 an amount equal to the amount deposited into the fund is
28 appropriated to the banking division of the department of
29 commerce for the fiscal year in which such moneys are received
30 and in succeeding fiscal years for the purpose of promoting
31 financial-related education and supporting those duties of
32 the banking division related to financial regulation that are
33 limited to nonrecurring expenses such as equipment purchases,
34 training, technology, and retirement payouts related to the
35 oversight of mortgage lending, state-chartered state banks, and
1 other financial services regulated by the banking division.
2 This appropriation shall be in addition to the appropriation of
3 moneys otherwise described in this section. The superintendent
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