Read the full stored bill text
Senate
File
2216
-
Introduced
SENATE
FILE
2216
BY
COMMITTEE
ON
COMMERCE
(SUCCESSOR
TO
SSB
3065)
A
BILL
FOR
An
Act
relating
to
interest
rates
and
charges
on
regulated
1
loans,
and
consumer
credit
transaction
service
charges.
2
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
3
TLSB
5403SV
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S.F.
2216
Section
1.
Section
536.13,
subsections
1,
2,
and
3,
Code
1
2026,
are
amended
by
striking
the
subsections.
2
Sec.
2.
Section
536.13,
subsections
4
and
5,
Code
2026,
are
3
amended
to
read
as
follows:
4
4.
Beginning
July
4,
1965,
and
until
such
time
as
a
5
different
rate
is
fixed
by
the
superintendent,
the
The
maximum
6
rate
of
interest
or
charges
upon
the
class
or
classes
of
7
regulated
loans
is
as
follows:
shall
be
three
percent
per
8
month.
9
a.
Three
percent
per
month
on
any
part
of
the
unpaid
10
principal
balance
of
the
loan
not
exceeding
one
hundred
fifty
11
dollars.
12
b.
Two
percent
per
month
on
any
part
of
the
loan
in
excess
13
of
one
hundred
fifty
dollars,
but
not
exceeding
three
hundred
14
dollars.
15
c.
One
and
one-half
percent
per
month
on
any
part
of
the
16
unpaid
principal
balance
of
the
loan
in
excess
of
three
hundred
17
dollars,
but
not
exceeding
seven
hundred
dollars.
18
d.
One
percent
per
month
on
any
part
of
the
unpaid
principal
19
balance
of
the
loan
in
excess
of
seven
hundred
dollars.
20
5.
A
licensee
under
this
chapter
may
lend
any
sum
of
money
21
not
exceeding
the
threshold
amount
as
defined
in
section
22
537.1301
in
amount
and
may
charge,
contract
for,
and
receive
23
on
the
loan
interest
or
charges
at
a
rate
not
exceeding
the
24
maximum
rate
of
interest
or
charges
determined
and
fixed
by
25
the
superintendent
under
authority
of
this
section
or
pursuant
26
to
subsection
7
for
those
amounts
in
excess
of
ten
thousand
27
dollars
4
.
28
Sec.
3.
Section
536.13,
subsection
7,
paragraph
a,
Code
29
2026,
is
amended
by
striking
the
paragraph.
30
Sec.
4.
Section
537.2501,
subsection
1,
paragraph
l,
Code
31
2026,
is
amended
to
read
as
follows:
32
l.
For
a
consumer
credit
transaction,
a
service
charge
in
an
33
amount
not
to
exceed
the
lesser
of
ten
either
three
percent
of
34
the
amount
financed
or
thirty
one
hundred
dollars.
35
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2216
EXPLANATION
1
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
2
the
explanation’s
substance
by
the
members
of
the
general
assembly.
3
This
bill
relates
to
interest
rates
and
charges
on
regulated
4
loans,
and
consumer
credit
transaction
service
charges.
5
The
bill
eliminates
provisions
under
current
law
relating
6
to
the
superintendent
of
banking’s
investigations
of
the
7
conditions
of
regulated
loans,
and
authority
to
redetermine
8
and
refix
the
maximum
rate
of
interest
or
charges
on
regulated
9
loans.
10
The
bill
eliminates
provisions
under
current
law
11
establishing
the
rate
of
interest
or
charges
upon
the
class
12
or
classes
of
regulated
loans,
and
instead
sets
the
rate
of
13
interest
or
charges
for
all
regulated
loans
at
3
percent
per
14
month.
15
Under
current
law,
for
a
consumer
credit
transaction,
in
16
addition
to
finance
charges,
a
creditor
may
contract
for
and
17
receive
a
service
charge
in
an
amount
not
to
exceed
the
lesser
18
of
10
percent
of
the
amount
financed
or
$30.
Under
the
bill,
19
such
service
charge
shall
not
exceed
the
lesser
of
3
percent
20
of
the
amount
financed
or
$100.
21
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