Bill Text: IA HF260 | 2019-2020 | 88th General Assembly | Enrolled
Bill Title: A bill for an act relating to permissible interest rates and charges for certain loans. (Formerly HSB 31.) Effective 7-1-19.
Spectrum: Committee Bill
Status: (Passed) 2019-04-15 - Signed by Governor. H.J. 858. [HF260 Detail]
Download: Iowa-2019-HF260-Enrolled.html
House
File
260
-
Enrolled
House
File
260
AN
ACT
RELATING
TO
PERMISSIBLE
INTEREST
RATES
AND
CHARGES
FOR
CERTAIN
LOANS.
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
Section
1.
Section
536.13,
subsection
7,
paragraph
a,
Code
2019,
is
amended
to
read
as
follows:
a.
The
superintendent
may
establish
the
maximum
rate
of
interest
or
charges
as
permitted
under
this
chapter
for
those
loans
with
an
unpaid
principal
balance
of
ten
thirty
thousand
dollars
or
less.
For
those
loans
with
an
unpaid
principal
balance
of
over
ten
thirty
thousand
dollars,
the
maximum
rate
of
interest
or
charges
which
a
licensee
may
charge
shall
be
the
greater
of
the
rate
permitted
by
chapter
535
or
the
rate
authorized
for
supervised
financial
organizations
by
chapter
537
.
Sec.
2.
Section
537.2501,
subsection
1,
Code
2019,
is
amended
by
adding
the
following
new
paragraph:
NEW
PARAGRAPH
.
l.
For
an
interest-bearing
consumer
credit
transaction,
a
service
charge
in
an
amount
not
to
exceed
the
lesser
of
ten
percent
of
the
amount
financed
or
thirty
dollars.
Sec.
3.
Section
537.2510,
subsection
3,
paragraph
a,
Code
2019,
is
amended
to
read
as
follows:
a.
If
the
prepayment
is
in
full,
the
creditor
may
collect
or
retain
a
minimum
charge
not
exceeding
five
dollars
in
a
transaction
which
had
an
amount
financed
of
seventy-five
dollars
or
less,
or
not
exceeding
seven
dollars
and
fifty
cents
House
File
260,
p.
2
in
a
transaction
which
had
an
amount
financed
of
more
than
seventy-five
dollars,
if
the
minimum
charge
was
contracted
for,
and
the
finance
charge
earned
at
the
time
of
prepayment
is
less
than
the
minimum
charge
contracted
for.
If,
however,
a
creditor
has
collected
a
service
charge
in
association
with
an
interest-bearing
consumer
credit
transaction
pursuant
to
section
537.2501,
subsection
1,
paragraph
ālā
,
the
creditor
shall
not
collect
or
retain
a
minimum
charge
upon
prepayment
pursuant
to
this
subsection.
Sec.
4.
Section
537.2510,
Code
2019,
is
amended
by
adding
the
following
new
subsection:
NEW
SUBSECTION
.
9.
This
section
does
not
apply
to
a
service
charge
collected
pursuant
to
section
537.2501,
subsection
1,
paragraph
ālā
.
______________________________
LINDA
UPMEYER
Speaker
of
the
House
______________________________
CHARLES
SCHNEIDER
President
of
the
Senate
I
hereby
certify
that
this
bill
originated
in
the
House
and
is
known
as
House
File
260,
Eighty-eighth
General
Assembly.
______________________________
CARMINE
BOAL
Chief
Clerk
of
the
House
Approved
_______________,
2019
______________________________
KIM
REYNOLDS
Governor