Read the full stored bill text
Senate
File
2217
-
Introduced
SENATE
FILE
2217
BY
COMMITTEE
ON
COMMERCE
(SUCCESSOR
TO
SSB
3066)
A
BILL
FOR
An
Act
relating
to
certain
sales
of
auto
club
memberships
and
1
vehicle
warranties.
2
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
3
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2217
Section
1.
Section
536.13,
Code
2026,
is
amended
by
adding
1
the
following
new
subsection:
2
NEW
SUBSECTION
.
5A.
After
a
licensee
has
approved
a
loan
3
to
a
borrower,
the
licensee
may
offer
the
borrower
the
option
4
to
purchase
an
auto
club
membership
or
vehicle
warranty.
If
5
the
licensee
offers
a
borrower
the
option
to
purchase
an
auto
6
club
membership
or
vehicle
warranty,
all
of
the
following
shall
7
apply:
8
a.
The
licensee
shall
inform
the
borrower,
in
a
written
9
document
initialed
by
the
borrower,
that
the
purchase
of
an
10
auto
club
membership
or
vehicle
warranty
is
optional
and
11
failure
to
purchase
an
auto
club
membership
or
vehicle
warranty
12
will
not
affect
the
receipt
of
the
loan
by
the
borrower.
13
b.
If
the
borrower
chooses
to
purchase
an
auto
club
14
membership
or
vehicle
warranty
the
licensee
shall
permit
the
15
borrower
either
to
pay
the
cost
of
the
auto
club
membership
or
16
vehicle
warranty
with
funds
that
are
not
the
proceeds
of
the
17
loan,
or
to
include
the
cost
in
the
loan
the
borrower
obtains
18
from
the
licensee.
19
c.
A
licensee
shall
permit
a
borrower
to
cancel
an
auto
20
club
membership
or
vehicle
warranty
and
to
receive
a
full
21
refund
of
the
purchase
price
at
any
time
within
thirty
calendar
22
days
following
the
date
of
purchase
from
the
licensee
if
the
23
borrower
has
not
used
any
service
provided
through
the
auto
24
club
membership
or
vehicle
warranty.
25
EXPLANATION
26
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
27
the
explanation’s
substance
by
the
members
of
the
general
assembly.
28
This
bill
relates
to
certain
sales
of
auto
club
memberships
29
and
vehicle
warranties.
30
Under
the
bill,
a
licensed
loan
officer
(licensee)
may,
31
after
approving
a
loan
to
a
borrower,
offer
the
borrower
the
32
option
to
purchase
an
auto
club
membership
(membership)
or
33
vehicle
warranty
(warranty).
If
the
licensee
offers
the
option
34
to
purchase
a
membership
or
warranty,
the
licensee
shall:
35
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2
S.F.
2217
inform
the
borrower,
in
a
written
document
initialed
by
the
1
borrower,
that
the
purchase
of
a
membership
or
warranty
is
2
optional
and
will
not
affect
the
receipt
of
the
loan
by
the
3
borrower;
if
the
borrower
chooses
to
purchase
a
membership
or
4
warranty,
permit
the
borrower
either
to
pay
for
the
cost
with
5
funds
that
are
not
the
proceeds
of
the
loan,
or
to
include
the
6
cost
in
the
total
amount
financed
by
the
loan
the
borrower
7
obtains
from
the
licensee;
and
permit
the
borrower
to
cancel
8
the
membership
or
warranty
and
receive
a
full
refund
of
the
9
purchase
price
at
any
time
within
30
days
following
the
date
10
of
purchase
if
the
borrower
has
not
used
the
membership
or
11
warranty.
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