Title XIII, COMMERCE (Ch. 505 - 554I)

1. The superintendent may appoint an employee of the credit union division as deputy superintendent to perform the duties of the superintendent during the superintendent’s absence or inability to act. 2. The deputy superintendent shall serve at the pleasure of the superintendent.…

1. a. The superintendent may appoint assistants, examiners, and other employees as the superintendent considers necessary to the proper discharge of duties imposed upon the superintendent by the laws of this state. b. Pay plans shall be established for the credit union division e…

1. The credit union division may conduct a background investigation on an applicant for employment with the division. The division shall inform an applicant that the position requires a background investigation and shall obtain the applicant’s written authorization prior to condu…

1. A credit union review board is created. The review board shall consist of seven members, five of whom shall have been members in good standing for at least the previous five years of either an Iowa state chartered credit union, or a credit union chartered under the Federal Cre…

1. a. Records of the credit union division are public records subject to the provisions of chapter 22 , except as otherwise provided in this chapter . b. Papers, documents, writings, reports, reports of examinations and other information relating specifically to the supervision a…

1. The superintendent shall acquire good and sufficient bond in a company authorized to do business in this state in order to ensure both of the following: a. The faithful performance of the deputy superintendent, assistants, examiners, and all other employees of the credit union…

1. The superintendent, deputy superintendent, assistants, examiners, and other employees of the credit union division are entitled to receive reimbursement for expenses incurred in the performance of their duties. 2. The superintendent, and when specifically authorized by the sup…

1. a. All expenses required in the discharge of the duties and responsibilities imposed upon the credit union division, the superintendent, and the review board by the laws of this state shall be paid from fees provided by the laws of this state and appropriated by the general as…

1. Each state credit union shall pay an annual fee for examination and supervision as determined by the superintendent based on the actual cost of operating the credit union division. a. The cost of operating the credit union division shall include but not be limited to costs and…

1. The superintendent may do any or all of the following: a. Make or cause to be made an examination of a credit union whenever the superintendent believes such examination is necessary or advisable, but in no event less frequently than once during each twenty-four-month period. …

1. Whenever the superintendent deems it necessary and advisable, the superintendent may notify the board of directors of a state credit union that a meeting will be held at a place and time and manner as the superintendent directs. The superintendent’s notice may disclose the pur…

1. The superintendent shall report annually to the governor in the manner and within the time required by chapter 7A . A copy of the report shall be furnished by the superintendent to each state credit union and to the Iowa credit union league and its affiliates. 2. In addition t…

1. Subject to rules of the superintendent, a credit union organized in another state may do business in Iowa if state credit unions organized in Iowa may do business in the state in which the out-of-state credit union is organized. 2. Notwithstanding subsection 1 , an out-of-stat…

If a state credit union has an office and conducts business in another state having laws or regulations allowing credit unions to exercise additional powers, the state credit union may request permission from the superintendent to exercise such additional powers while operating i…

1. The superintendent shall enforce the Iowa consumer credit code with respect to state credit unions, as provided in sections 537.2303 , 537.2305 , and 537.6105 . 2. The superintendent shall cooperate with the administrator of the Iowa consumer credit code as designated in secti…

This chapter does not apply to any person engaged in the business of loaning money under chapter 536 . 2007 Acts, ch 174, §17

1. In order to simplify the organization of state credit unions, the superintendent shall cause to be prepared an approved form of articles of incorporation and a form of bylaws, consistent with this chapter , which shall be used by state credit union incorporators. 2. a. A group…

1. A state credit union shall notify the superintendent of any change in its principal place of business within ten days of the change. A state credit union shall also file an application to relocate an office as provided by rule. 2. A state credit union changing its principal pl…

1. a. State credit union organization shall be available to groups of individuals who have a common bond of association such as, but not limited to, occupation, common employer, or residence within specified geographic boundaries. b. Changes in the common bond may be made by the …

1. The fiscal year of all state credit unions shall end December 31. 2. Annual meetings shall be held, and special meetings may be held, in the manner indicated in the bylaws. a. A member shall have one vote regardless of the number of or class of shares held by the member. b. Th…

1. The majority of members present at any meeting may vote to modify, amend, or reverse any act of the board of directors or instruct the board to take action not inconsistent with the articles, bylaws, or this chapter . 2. In order to be binding upon the board of directors, any …

1. At the organizational meeting, and at each annual meeting after initial organization, a board of directors shall be elected to hold office. The board shall consist of at least seven members, but in every instance shall be composed of an odd number of directors. The directors s…

1. Within five days following the organizational meeting and each annual meeting, the directors shall elect the following officers from the membership of the board of directors: a. A chairperson of the board. b. A vice chairperson. c. A secretary. d. A financial officer whose tit…

1. The board of directors shall hold at least six regular board meetings each calendar year. No more than one regular meeting shall be held in any one calendar month, nor shall a credit union go longer than two consecutive months without holding a board meeting. If a credit union…

1. The credit committee shall have responsibility for the general supervision of all loans to members. 2. Applications for loans shall be on a form approved by the credit committee. a. All applications shall set forth the purpose for which the loan is desired, the security, if an…

The auditing committee shall perform the following functions: 1. Make or cause to be made an examination of the affairs of the state credit union at least annually, including an audit of its financial records. If the auditing committee feels such action to be necessary, the audit…

1. A director, committee member, officer, or employee of a state credit union shall not directly or indirectly participate in either the deliberation upon or the determination of any matter in which the director, committee member, officer, or employee has a direct or indirect int…

A director shall not be related by consanguinity or affinity within the third degree to any person employed by a state credit union in a senior management position. For purposes of this section , “senior management position” includes a state credit union’s chief executive officer…

1. The board of directors may expel a member of a state credit union who has engaged in any of the following: a. Failing to carry out the member’s obligations to the state credit union. b. Failing to comply with the state credit union’s bylaws or policies. c. Being physically or …

1. A state credit union may suspend or deny certain services to members who have done any of the following: a. Caused a loss to the state credit union. b. Violated the membership agreement or any policy adopted by the board. c. Been physically or verbally abusive to state credit …

1. a. A state credit union organized in accordance with this chapter shall include the words “credit union” in its name. b. All state credit union offices shall be identified by use of the state credit union’s full name. c. The full name of a state credit union shall be used in a…

1. A corporate central credit union may be established. a. Credit unions organized under this chapter , the Federal Credit Union Act , 12 U.S.C. §1751 et seq. , or any other credit union act and credit union organizations may be members. b. Regulated financial institutions, nonpr…

Credit unions known as central credit unions may exist for the purpose of serving directors, officers, and employees of credit unions, members of dissolved and existing credit unions, credit unions, employee groups as described in section 533.301, subsection 13 , and such other p…

A state credit union shall have the power to do all of the following: 1. Receive payments for ownership shares, for other shares, or as deposits from any or all of the following: a. Members of the state credit union. b. Nonmembers as prescribed by rule where the state credit unio…

1. The capital of a credit union shall consist of the payments that have been made to it by the several members thereof on shares. A credit union may charge an entrance fee as may be provided by the bylaws. 2. A credit union may establish an equity share having a par value not to…

1. At the end of each dividend period, but no less than quarterly, the gross income of the state credit union shall be determined. 2. A legal reserve against losses on loans and against such other losses as may be specified by rule shall be set aside from the gross income in acco…

1. For purposes of this section , unless the context otherwise requires: a. “Equity interests” means limited partnership interests and other equity investments in which liability is limited to the amount of the investment, but does not mean general partnership interests or other …

1. Investment in banks. A state credit union may, with the prior approval of the superintendent, invest in the capital stock, obligations, or other securities of a bank. 2. Investment in savings banks. A state credit union may, with the prior approval of the superintendent, inves…

A state credit union may borrow from any source in total a sum that shall not exceed fifty percent of the sum of its share and deposit account balances. 2007 Acts, ch 174, §37

Except as provided in section 533.302, subsection 3 , a credit union organized under this chapter , as a condition of maintaining its privilege of organization, shall acquire and maintain insurance to protect each shareholder and each depositor against loss of funds held on accou…

1. A state credit union shall maintain a fidelity bond for state credit union employees and officials in a sufficient amount to indemnify the state credit union against losses that may be incurred by reason of any act or acts of fraud, dishonesty, forgery, theft, larceny, embezzl…

A state credit union may have share accounts including but not limited to the following types: 1. Ownership share account. The ownership share account shall consist of an account balance held by the state credit union in accordance with the state credit union’s bylaws. Each membe…

When a deposit is made in a state credit union in the names of two or more individuals that is payable to any one or more of them or is payable to the survivor or survivors, the deposit, including interest, or any part, may be paid to any one or more of the individuals, whether o…

When a state credit union is insolvent, the state credit union shall not do either of the following: 1. Accept any deposits or investments in ownership shares. 2. Renew or extend the term of any time deposits or time investments. 2007 Acts, ch 174, §42

1. The board of directors may declare dividends at such rates and upon such classes of shares as are determined by the board, at such intervals and for such periods as the board may authorize, and after provision for required reserves pursuant to section 533.303 . 2. Dividends sh…

1. A state credit union may provide its members with share draft accounts. a. “Share draft” means a negotiable draft which is payable upon demand and is used to withdraw funds from a share draft account. b. A share draft is an item for purposes of chapter 554, article 4 . c. The …