reglab/statecodes huggingface dataset:
Iowa Administrative Code › Agency 189 - Credit Union Division › Chapter 14 - Examination Reviews and Investigations › Rule 189-14.3 - Examination Reviews

Current through Register Vol. 47, No. 3, July 24, 2024
(1) Based on
			 the division's examination of a credit union, the superintendent may, by
			 written notice, request a credit union or its directors to appear at an
			 examination review at the division's office.
(2) If a credit union or its directors fail
			 to appear at an examination review, the superintendent may: institute a formal
			 investigation and issue subpoenas; or institute a contested case
			 hearing.
(3) At any time, including
			 during an examination or an examination review, the superintendent may issue a
			 written warning directing a credit union or an officer, director or employee of
			 a credit union, to take action as deemed consistent with Iowa Code chapter 533
			 or as necessary for the safety and soundness of the credit union.
(4) If a credit union fails to comply with a
			 warning of the superintendent, the superintendent may institute a formal
			 investigation or a contested case hearing.
(5) If an officer, director or employee of a
			 credit union fails to comply with the superintendent's warning, the
			 superintendent may: institute a formal investigation; initiate a contested case
			 hearing regarding removal of the officer, director or employee of the credit
			 union; or refer the matter for criminal prosecution.
Iowa Administrative Code › Agency 189 - Credit Union Division › Chapter 14 - Examination Reviews and Investigations › Rule 189-14.4 - Preliminary Informal Investigations

Current through Register Vol. 47, No. 3, July 24, 2024
An informal investigation may be conducted if the division receives an indication that there may be a violation of Iowa Code chapter 533 or that the safety and soundness of a credit union may be threatened based on any of the following: information received from a member of a credit union, from a member of the public, or from a federal or a state agency; from the examination of filings, financial reports, or credit union business records; from an examination review, or from some other occurrence or fact. In a preliminary informal investigation, no process shall be issued or testimony compelled.
Iowa Administrative Code › Agency 189 - Credit Union Division › Chapter 14 - Examination Reviews and Investigations › Rule 189-14.5 - Nonpublic Proceedings and Transcripts of Examination Reviews or Informal Preliminary Investigatory Proceedings

Current through Register Vol. 47, No. 3, July 24, 2024
Examination reviews and preliminary informal investigations shall be nonpublic. Transcripts of any examination review or informal investigatory proceeding may be officially recorded as provided for in subrule 14.6(4).
Iowa Administrative Code › Agency 189 - Credit Union Division › Chapter 14 - Examination Reviews and Investigations › Rule 189-14.7 - Action Following an Examination, Examination Review or an Informal or Formal Investigation

Current through Register Vol. 47, No. 3, July 24, 2024
After an examination, an examination review, or an informal or formal investigation, the division may take one or more of the following actions as consistent with Iowa Code chapter 533: issue a warning; conduct an examination review or an informal or formal investigation; institute a contested case hearing looking to the imposition of remedial sanctions; or refer the matter for criminal prosecution.
Iowa Administrative Code › Agency 189 - Credit Union Division › Chapter 14 - Examination Reviews and Investigations › Rule 189-14.8 - Voluntary Submission of Information

Current through Register Vol. 47, No. 3, July 24, 2024
Any person who becomes involved in an examination review or in a preliminary or formal investigation may, on the person's own initiative, submit a written statement to the division which sets forth the person's interests and position with regard to the subject matter involved.
Iowa Administrative Code › Agency 189 - Credit Union Division › Chapter 14 - Examination Reviews and Investigations › Rule 189-14.9 - Effect of Disposition and Settlement on Criminal Proceedings

Current through Register Vol. 47, No. 3, July 24, 2024
In the course of the division's examinations or investigations, contested cases, or lawsuits, the division staff, with the superintendent's authorization, may discuss the disposition of the matters with persons involved. A disposition may be by consent, by settlement, or in some other manner; however, it is the policy of the division that the disposition of any matter may not expressly or unpliedly extend to any criminal charges that have been or may be brought against any person, and may not affect any recommendation with respect thereto. Accordingly, any person involved in an enforcement matter of the division who consents or agrees to consent to any judgment or order, does so solely for the purpose of resolving the claims against the person in a division's investigation, contested case, or civil suit, and not for the purpose of resolving any criminal charges that have been or might be brought against the person. This policy reflects the fact that neither the division nor its staff has the authority or responsibility for instituting, conducting, settling or otherwise disposing of criminal proceedings. This authority and responsibility are vested in the country attorneys, the attorney general, or representatives of the U.S. Department of Justice.
Iowa Administrative Code › Agency 189 - Credit Union Division › Chapter 15 - Foreign Credit Union Branch Offices › Rule 189-15.1 - Definitions

Current through Register Vol. 47, No. 3, July 24, 2024
The definition of terms included in Iowa Code section 17A.2 and 189-1.1 (533) shall apply to such terms used in this chapter In addition, as used in this chapter:
"Account insurance "
means either the federal NCUA insurer or a state guaranty corporation which has been approved by the regulator who supervises the foreign credit union.
"Foreign credit union "
means a credit union chartered by a state regulator other than the Iowa regulator
"Reciprocal state"
means a state whose statute allows Iowa's state chartered credit unions to establish branch offices in that state.
Iowa Administrative Code › Agency 189 - Credit Union Division › Chapter 15 - Foreign Credit Union Branch Offices › Rule 189-15.2 - Application of Foreign Credit Union

Current through Register Vol. 47, No. 3, July 24, 2024
(1) An application
			 for a credit union organized and duly qualified as a credit union in a
			 reciprocal state to establish a branch office in Iowa shall be submitted on a
			 form furnished by the superintendent.
(2) The application may be obtained by
			 writing the Superintendent, Credit Union Division, 200 East Grand Avenue, Suite
			 370, Des Moines, Iowa 50309; or calling (515)725-0505.
Iowa Administrative Code › Agency 189 - Credit Union Division › Chapter 15 - Foreign Credit Union Branch Offices › Rule 189-15.3 - Exhibits

Current through Register Vol. 47, No. 3, July 24, 2024
Attached to the application submitted pursuant to 15.2(1) shall be the following exhibits:
(1)
			 Reserved.
(2) A schedule of
			 interest rates to be charged on loans to be made to the residents of this
			 state, a statement that the applicant understands the provisions of Iowa Code
			 chapter 537, and a copy of that portion of the applicable law under which the
			 credit union operates establishing maximum interest rates.
(3) Evidence that the credit union members'
			 share and deposit accounts are insured by Title II of the Federal Credit Union
			 Act (12 U.S.C. Sees. 1781et seq.) or other comparable insurance acceptable to
			 the superintendent. (See rule 189-151(17A).)
(4) Evidence that the credit union has
			 obtained surety bond coverage and fidelity bond coverage as required by the
			 laws of the state under which the credit union operates.
(5) A letter from the supervisory agency
			 indicating the credit union is in good standing in the state where the
			 principal office is located.
(6) A
			 copy of the last report, audit or examination by the applicable regulatory or
			 supervisory agency and response to that report, audit or examination, if such
			 response was required.
(7) If the
			 credit union operates on a fiscal year different from the calendar year, a
			 statement indicating the period covered by the credit union's last fiscal
			 year.
(8) A copy of the audited
			 balance sheet and income statement, prepared by an independent accountant or
			 certified public accountant, for the most recently completed calendar or fiscal
			 year.
(9) A copy of the most recent
			 month-end balance sheet and income statement.
(10) Statistics indicating the present number
			 of members in the credit union, the total number of persons eligible for
			 membership, the number of persons eligible for membership in Iowa, and the
			 number of members residing in Iowa.
(11) A statement of exact present field of
			 membership and the location of any branch offices in Iowa as well as any
			 proposed field of membership, if a change is to be made concurrently with the
			 establishment of the branch office.
(12) Copy of articles of
			 incorporation.
(13) Copy of
			 official bylaws.
(14) An analysis
			 of delinquent loans prepared as of the date of the most recent financial
			 statements.
(15) A report of the
			 names, addresses and telephone numbers of the person(s) managing each branch
			 office in this state.
(16) The
			 language to be used in connection with the credit union's name in
			 Iowa.
(17) A copy of a resolution
			 of the board of directors agreeing to keep the superintendent or the
			 superintendent's duly designated representative advised at all times of the
			 address at which the books, accounts, papers, records, files, safes and vaults
			 are located in Iowa and the office hours of the credit union. (See
			 189-15.8 (533)).
Iowa Administrative Code › Agency 189 - Credit Union Division › Chapter 15 - Foreign Credit Union Branch Offices › Rule 189-15.5 - Annual Reporting Requirements

Current through Register Vol. 47, No. 3, July 24, 2024
By resolution, a copy of which shall be furnished to the superintendent, the board of directors shall commit the credit union to furnish to the superintendent the following:
(1) The names of the officers, within 15 days
			 after the board of directors elects the officers of the credit union. At this
			 time, the credit union shall also notify the superintendent of the names of the
			 board of directors, the members and alternate members of the credit committee
			 and the members of the supervisory committee. Such reporting may be done by
			 providing copies of the oath of directors or whatever form the credit union
			 uses to report such information to the regulator of their state.
(2) The names of the directors, officers,
			 members and alternate members of the credit committee and members of the
			 supervisory committee within 15 days of any change. Such reporting shall be
			 done as outlined in 15.5(1).
(3)
			 The names, addresses and telephone numbers of the person(s) managing each
			 branch office in this state within 15 days of any change.
(4) Reports of annual audits or examinations,
			 on a continuing basis, performed by the applicable regulatory or supervisory
			 agency within 30 days of receipt by the credit union and copies of any
			 responses to those reports at the time they are sent to the agency.
(5) All amendments to the articles of
			 incorporation, bylaws and the field of membership within 30 days of adoption
			 and approved by the applicable regulatory or supervisory agency.
(6) Should the branch office be closed such
			 action shall be reported to the superintendent at least 30 days prior to the
			 actual closing.
Iowa Administrative Code › Agency 189 - Credit Union Division › Chapter 15 - Foreign Credit Union Branch Offices › Rule 189-15.6 - Fees

Current through Register Vol. 47, No. 3, July 24, 2024
(1) Each credit union operating in this state
			 pursuant to these rules and Iowa Code section 533.115 shall pay an annual
			 registration fee of $1,000 plus $250 for each branch or office located in Iowa
			 to the superintendent on or before February 1 of each year.
(2) If payment is not made to the
			 superintendent by the due date, the certificate then in effect stating that the
			 foreign credit union has been approved to operate a branch office in Iowa may
			 by order be summarily suspended or revoked by the superintendent ten days after
			 giving of notice by the superintendent that such amount is due and
			 unpaid.
(3) If, after such an order
			 as described in subrule 15.6(2) is made, a request for hearing is filed in
			 writing and a hearing is not held within 60 days thereafter, the order is
			 rescinded as of its effective date.
Iowa Administrative Code › Agency 189 - Credit Union Division › Chapter 15 - Foreign Credit Union Branch Offices › Rule 189-15.7 - Certificate of Approval

Current through Register Vol. 47, No. 3, July 24, 2024
(1) Within 60
			 days of the receipt of the application and all required exhibits the
			 superintendent shall transmit in writing a decision granting or denying the
			 application.
(2) In the case of
			 approval of the application the superintendent shall issue a Certificate of
			 Approval for the foreign credit union to operate a branch office in the state
			 of Iowa. Said certificate shall be suitable for framing and shall be displayed
			 in the branch office.
Iowa Administrative Code › Agency 189 - Credit Union Division › Chapter 15 - Foreign Credit Union Branch Offices › Rule 189-15.8 - Change of Location of a Branch Office

Current through Register Vol. 47, No. 3, July 24, 2024
(1) A foreign credit union desiring to move
			 its branch office within the state of Iowa shall be required by 15.3(17) and
			 this rule to notify the superintendent at least 60 days prior to the date the
			 office is moved; except in the event of dissolution of the credit union the
			 60-day notice requirement shall be automatically waived by the
			 superintendent.
(2) Notification of
			 the proposed change in location shall be submitted on an Application to
			 Relocate a Branch Office. The rules governing the establishment of a branch
			 office by a foreign credit union shall also govern the relocation of a branch
			 office.
Iowa Administrative Code › Agency 189 - Credit Union Division › Chapter 16 - Mergers › Rule 189-16.1 - Spin-offs

Current through Register Vol. 47, No. 3, July 24, 2024
A spin-oil occurs during a merger process when, by agreement of the parties to the merger, a portion of the field of membership, assets, liabilities, shares, and capital of one credit union is transferred to another credit union. A spin-off of a well-defined segment or branch of a credit union's membership to another credit union is an option undertaken to benefit the members of both credit unions. This process may occur with the physical transfer of one or more branches from one credit union to another credit union, but less than a complete merger of the two credit unions occurs. A spin-off is unique in that one credit union has a field of membership expansion and the other loses a portion of its field of membership.
Iowa Administrative Code › Agency 189 - Credit Union Division › Chapter 16 - Mergers › Rule 189-16.2 - Plan Requirements

Current through Register Vol. 47, No. 3, July 24, 2024
All credit unions proposing a merger plan that would result in a spin-off must file, in addition to other merger documents detailed by the division, a plan that addresses the following points, at a minimum, in support for their spin-off plan:
(1) Why the
			 spin-off is being requested.
(2)
			 What part of the field of membership is to be spun off.
(3) Which assets, liabilities, shares, and
			 capital are to be transferred.
(4)
			 The financial impact of the spin-off on the affected credit unions.
(5) The ability of the acquiring credit union
			 effectively to serve the new members.
(6) The proposed spin-off date.
(7) Disclosure to the members of the
			 requirements set forth in this rule.
Iowa Administrative Code › Agency 189 - Credit Union Division › Chapter 16 - Mergers › Rule 189-16.3 - Additional Requirements

Current through Register Vol. 47, No. 3, July 24, 2024
In addition to the plan, the credit unions must include the most current monthly financial statements from both credit unions and a copy of the proposed voting ballot.
(1)
			 Membership notice and voting requirements shall be the same as for regular
			 mergers under rule 189-12.6 (533), with certain exceptions. Only those members
			 directly affected by a spin-off, that is, those members whose shares are to be
			 transferred to the other credit union, are permitted to vote. A quorum is
			 determined according to the quorum size for the credit union as a whole. In the
			 notice of balloting sent to the members affiliated with any affected branch and
			 field of membership, the credit union shall give notice of the right of any
			 member who wants to remain as a member of the credit union to opt out of
			 participating in the merger vote by giving written notice to the credit union
			 at any time prior to the merger vote. The shares of members who opt out will
			 not be transferred in the event the merger vote is successful. All other
			 members of the group to be spun off, whether they voted in favor, against, or
			 not at all, will be transferred if the spin-off is approved by the voting
			 membership.
(2) Members of the
			 credit union who are not affiliated with the branch and field of membership
			 being spun off and whose shares are not being transferred will not be afforded
			 the opportunity to vote.
(3)
			 Spin-offs involving federally insured credit unions in different regions of the
			 National Credit Union Administration must be approved by all regional directors
			 where the credit unions are headquartered and by state regulators, as
			 applicable.
These rules are intended to implement Iowa Code section 533.401.
Iowa Administrative Code › Agency 189 - Credit Union Division › Chapter 17 - Investment and Deposit Activities for Credit Unions › Rule 189-17.1 - Authority and Purpose

Current through Register Vol. 47, No. 3, July 24, 2024
(1) These rules
			 implement the authority of credit unions organized in accordance with Iowa Code
			 chapter 533 to engage in investment and deposit activities which would be
			 permitted if the credit union were federally chartered in accordance with Iowa
			 Code sections 533.301(5)
"j"
and 533.301(25), and are promulgated under the authority
			 of Iowa Code section 533.104.
(2) These rules identify certain investments
			 and deposit activities permissible under the Federal Credit Union Act,
			 12 U.S.C. Section 1757, and National Credit Union
			 Administration (NCUA) rules and regulations,
			 12 CFR Part 703, and prescribe the rules governing those
			 investments and deposit activities on the basis of safety and soundness
			 concerns. Additionally, these rules identify and prohibit certain investments
			 and deposit activities, which may or may not be permitted for federal credit
			 unions and which are considered inconsistent with state law or unsafe or
			 unsound investment for Iowa state-chartered credit unions. Finally, these rules
			 address investment authority granted to Iowa state-chartered credit unions in
			 Iowa Code chapter 533, which may or may not be permitted for federal credit
			 unions.
(3) Exceptions. These rules
			 do not apply to:
a. Investment in loans to
			 members and other activities pursuant to Iowa Code sections
			 533.301(2),
			 533.301(3),
			 533.301(15)
			  and 533.301(16);
b. Investment in real estate-secured loans to
			 members pursuant to Iowa Code section
			 533.315(4);
c. Investment in credit union service
			 organizations pursuant to Iowa Code section
			 533.301(5)
			  '/";
d. Investment in fixed assets
			 pursuant to Iowa Code section
			 533.301(10).
Iowa Administrative Code › Agency 189 - Credit Union Division › Chapter 17 - Investment and Deposit Activities for Credit Unions › Rule 189-17.3 - Investment Policies

Current through Register Vol. 47, No. 3, July 24, 2024
A state-chartered credit union's board of directors must establish written investment policies consistent with Iowa Code chapter 533, the Federal Credit Union Act, these rules, and other applicable laws and regulations and must review the policies at least annually. These policies may be part of a broader, asset-liability management policy. Written investment policies must address, at a minimum, the following:
(1) The purposes and objectives of the credit
			 union's investment activities;
(2)
			 The characteristics of the investments the credit union may make, including the
			 issuer, maturity, index, cap, floor, coupon rate, coupon formula, call
			 provision, average life, and interest rate risk;
(3) How the credit union will manage interest
			 rate risk;
(4) How the credit union
			 will manage liquidity risk;
(5) How
			 the credit union will manage credit risk including specifically listing
			 institutions, issuers, and counterparties that may be used, or criteria for the
			 credit union's selection, and limits on the amounts that may be invested with
			 each;
(6) How the credit union will
			 manage concentration risk, which can result from dealing with a single issuer
			 or related issuers, lack of geographic distribution, holding obligations with
			 similar characteristics like maturities and indexes, holding bonds having the
			 same trustee, and holding securitized loans having the same originator,
			 packager, or guarantor;
(7) Who has
			 investment authority and the extent of that authority. Those with authority
			 must be qualified by education or experience to assess the risk characteristics
			 of investments and investment transactions. Only officials or employees of the
			 credit union may be voting members of an investment-related
			 committee;
(8) The name of the
			 broker-dealer(s) the credit union may use;
(9) The name of the safekeeper(s) the credit
			 union may use;
(10) How the credit
			 union will handle an investment that, after purchase, is outside of board
			 policy or fails a requirement of these rules; and
(11) How the credit union will conduct
			 investment trading activities, if applicable, including addressing:
a. Who has purchase and sale
			 authority;
b. Limits on trading
			 account size;
c. Allocation of cash
			 flow to trading accounts;
d. Stop
			 loss or sale provisions;
e. Dollar
			 size limitations of specific types, quantity and maturity to be
			 purchased;
Iowa Administrative Code › Agency 189 - Credit Union Division › Chapter 17 - Investment and Deposit Activities for Credit Unions › Rule 189-17.4 - Record Keeping and Documentation Requirements

Current through Register Vol. 47, No. 3, July 24, 2024
(1) State-chartered
			 credit unions with assets of $10 million or greater must comply with generally
			 accepted accounting principles (GAAP) in reports filed with the superintendent
			 and maintained by the credit union. State-chartered credit unions with assets
			 less than $10 million may comply with GAAP or other regulatory accounting
			 principles in reports filed with the superintendent and maintained by the
			 credit union.
(2) A credit union
			 must maintain documentation for each investment transaction for as long as it
			 holds the investment and until the documentation has been audited in accordance
			 with Iowa Code section 533.208 or NCUA rules and regulations, 12 CFR Part
			 701.12, or both, and examined by the superintendent or the NCUA, or both. The
			 documentation should include, where applicable, bids and prices at purchase and
			 sale and for periodic updates, relevant disclosure documents or a description
			 of the security from an industry-recognized information provider, financial
			 data, and tests and reports required by the credit union's investment policy
			 and these rules.
(3) A credit union
			 must maintain documentation that its board of directors used to approve a
			 broker-dealer or a safekeeper for as long as the broker-dealer or safekeeper is
			 approved and until the documentation has been audited in accordance with Iowa
			 Code section 533.208 or NCUA rules and regulations, 12 CFR Part 701.12, or
			 both, and examined by the superintendent or the NCUA, or both.
(4) A credit union must obtain an individual
			 confirmation statement from each broker-dealer for each investment purchased or
			 sold.
Iowa Administrative Code › Agency 189 - Credit Union Division › Chapter 17 - Investment and Deposit Activities for Credit Unions › Rule 189-17.5 - Discretionary Control Over Investments and Investment Advisers

Current through Register Vol. 47, No. 3, July 24, 2024
(1) Except as provided in 17.5(2), 17.5(3) and
			 17.5(4), a credit union must retain discretionary control over its purchase and
			 sale of investments. A credit union has not delegated discretionary control to an
			 investment adviser when the credit union reviews all recommendations from
			 investment advisers and is required to authorize a recommended purchase or sale
			 transaction before its execution.
(2)
			 A credit union may delegate discretionary control over the purchase and sale of
			 investments to a person other than a credit union official or employee:
a. Provided the person is an investment adviser
			 registered with the Securities and Exchange Commission under the Investment
			 Advisers Act of 1940 (  15 U.S.C. 80 b); and
b. Provided the amount of investment authority
			 does not exceed 100 percent of the credit union's net worth, in the aggregate, at
			 the time of delegation.
Iowa Administrative Code › Agency 189 - Credit Union Division › Chapter 17 - Investment and Deposit Activities for Credit Unions › Rule 189-17.6 - Credit Analysis

Current through Register Vol. 47, No. 3, July 24, 2024
A credit union must conduct and document a credit analysis on an investment and the issuing entity before purchasing it, except for investments issued or fully guaranteed as to principal and interest by the U.S. government or its agencies, enterprises, or corporations or fully insured (including accumulated interest) by the National Credit Union Administration or the Federal Deposit Insurance Corporation. A credit union must update this analysis at least annually for as long as it holds the investment.
Iowa Administrative Code › Agency 189 - Credit Union Division › Chapter 17 - Investment and Deposit Activities for Credit Unions › Rule 189-17.7 - Notice of Noncompliant Investments

Current through Register Vol. 47, No. 3, July 24, 2024
A credit union's board of directors must receive notice, no later than the next regularly scheduled monthly board meeting, of any investment that either is outside of board policy after purchase or has failed a requirement of these rules. The board of directors must document its action regarding the investment in the minutes of the board meeting, including a detailed explanation of any decision not to sell the investment. The credit union must notify the superintendent in writing of an investment that has failed a requirement of these rules within five days after the board meeting.
Iowa Administrative Code › Agency 189 - Credit Union Division › Chapter 17 - Investment and Deposit Activities for Credit Unions › Rule 189-17.8 - Broker-dealers

Current through Register Vol. 47, No. 3, July 24, 2024
(1) A credit union may purchase and sell
			 investments through a broker-dealer as long as the broker-dealer is registered as
			 a broker-dealer with the Securities and Exchange Commission under the Securities
			 Exchange Act of 1934 (  15 U.S.C. 78 a, et seq.) or is a depository
			 institution whose broker-dealer activities are regulated by a federal or state
			 regulatory agency.
(2) Before
			 purchasing an investment through a broker-dealer, a credit union must analyze and
			 annually update the following:
a. The background
			 of any sales representative with whom the credit union is doing
			 business;
b. Information available
			 from state or federal securities regulators and securities industry
			 self-regulatory organizations, such as the National Association of Securities
			 Dealers and the North American Securities Administrators Association, about any
			 enforcement actions against the broker-dealer, its affiliates, or associated
			 personnel; and
c. If the
			 broker-dealer is acting as the credit union's counterparty, the ability of the
			 broker-dealer and its subsidiaries or affiliates to fulfill commitments, as
			 evidenced by capital strength, liquidity, and operating results. The credit union
			 should consider current financial data, annual reports, external assessments of
			 creditworthiness, relevant disclosure documents, and other sources of financial
			 information.
Iowa Administrative Code › Agency 189 - Credit Union Division › Chapter 17 - Investment and Deposit Activities for Credit Unions › Rule 189-17.9 - Safekeeping of Investments

Current through Register Vol. 47, No. 3, July 24, 2024
(1) A credit union's
			 purchased investments and repurchase collateral must be in the credit union's
			 possession, recorded as owned by the credit union through the Federal Reserve
			 Book Entry System, or held by a board of directors-approved safekeeper under a
			 written custodial agreement that requires the safekeeper to exercise, at least,
			 ordinary care.
(2) Any safekeeper
			 used by a credit union must be regulated and supervised by either the Securities
			 and Exchange Commission, a federal or state depository institution regulatory
			 agency, or a state trust company regulatory agency.
(3) A credit union must obtain and reconcile
			 monthly a statement of purchased investments and repurchase collateral held in
			 safekeeping.
(4) Annually, the credit
			 union must analyze the ability of the safekeeper to fulfill the safekeeper's
			 custodial responsibilities, as evidenced by capital strength, liquidity, and
			 operating results. The credit union should consider current financial data,
			 annual reports, external assessments of creditworthiness, relevant disclosure
			 documents, and other sources of financial information.
Iowa Administrative Code › Agency 189 - Credit Union Division › Chapter 17 - Investment and Deposit Activities for Credit Unions › Rule 189-17.10 - Monitoring Nonsecurity Investments

Current through Register Vol. 47, No. 3, July 24, 2024
(1) At least quarterly, a credit union must
			 prepare a written report listing all of its shares and deposits in banks,
			 credit unions, and other depository institutions, that have one or more of the
			 following features:
a. Embedded
			 options;
b. Remaining maturities
			 greater than three years; or
c.
			 Coupon formulas that are related to more than one index or are inversely
			 related to, or are multiples of, an index.
Iowa Administrative Code › Agency 189 - Credit Union Division › Chapter 17 - Investment and Deposit Activities for Credit Unions › Rule 189-17.11 - Valuing Securities

Current through Register Vol. 47, No. 3, July 24, 2024
(1) Before
			 purchasing or selling a security, a credit union must obtain either price
			 quotations on the security from at least two broker-dealers or a price
			 quotation on the security from an industry-recognized information provider This
			 requirement to obtain price quotations does not apply to new issues purchased
			 at par or at original issue discount..
(2) At least monthly, a credit union must
			 determine the fair value of each security it holds. It may determine fair value
			 by obtaining a price quotation on the security from an industry-recognized
			 information provider, a broker-dealer, or a safekeeper
(3) At least annually, the credit union's
			 auditing/supervisory committee or its external auditor must independently
			 assess the reliability of monthly price quotations received from a
			 broker-dealer or safekeeper The credit union's auditing/supervisory committee
			 or external auditor must follow generally accepted auditing standards, which
			 require either recomputation or reference to market quotations.
(4) If a credit union is unable to obtain a
			 price quotation required by this rule for a particular security, then it may
			 obtain a quotation for a security with substantially similar
			 characteristics.
Iowa Administrative Code › Agency 189 - Credit Union Division › Chapter 17 - Investment and Deposit Activities for Credit Unions › Rule 189-17.12 - Monitoring Securities

Current through Register Vol. 47, No. 3, July 24, 2024
(1) At
			 least monthly, a credit union must prepare a written report setting forth, for
			 each security held, the fair value and dollar change since the prior month end,
			 with summary information for the entire portfolio.
(2) At least quarterly, a credit union must
			 prepare a written report setting forth the sum of the fair values of all fixed
			 and variable rate securities held that have one or more of the following
			 features:
a. Embedded options;
b. Remaining maturities greater than three
			 years; or
c. Coupon formulas that
			 are related to more than one index or are inversely related to, or are
			 multiples of, an index.
Iowa Administrative Code › Agency 189 - Credit Union Division › Chapter 17 - Investment and Deposit Activities for Credit Unions › Rule 189-17.13 - Permissible Investment Activities

Current through Register Vol. 47, No. 3, July 24, 2024
(1)
Regular way settlement and
			 delivery versus payment basis. A
credit union may only contract for
			 the purchase or sale of a security as long as the delivery of the security is
			 by regular way settlement and the transaction is accomplished on a delivery
			 versus payment basis.
(2)
Federal funds.
A credit union may sell federal funds to a
			 national bank; or to a state bank, trust company or mutual savings bank
			 operating in accordance with Iowa law or the laws of any state where it
			 operates a credit union office; or in banks and institutions, the accounts of
			 which are insured by the Federal Deposit Insurance Corporation; or to credit
			 unions, the accounts of which are insured by the National Credit Union
			 Administration; and as long as the interest or other consideration received
			 from the financial institution is at the market rate for federal funds
			 transactions.
(3)
Investment repurchase transaction. A
credit union may enter
			 into an investment repurchase transaction so long as:
a. Any securities the credit union receives
			 are permissible investments for federal and Iowa credit unions; the credit
			 union, or its agent, either takes physical possession or control of the
			 repurchase securities or is recorded as owner of them through the Federal
			 Reserve Book Entry Securities Transfer System; the credit union, or its agent,
			 receives a daily assessment of the securities' market value, including accrued
			 interest; and the credit union maintains adequate margins that reflect a risk
			 assessment of the securities and the term of the transaction; and
b. The credit union has entered into signed
			 contracts with all approved counterparties.
Iowa Administrative Code › Agency 189 - Credit Union Division › Chapter 17 - Investment and Deposit Activities for Credit Unions › Rule 189-17.14 - Permissible Investments

Current through Register Vol. 47, No. 3, July 24, 2024
(1)
Variable rate investment.
A credit union may invest in a
			 variable rate investment, as long as the index is tied to domestic interest
			 rates. Except in the case of U.S. Treasury inflation-protected securities, the
			 variable rate investment cannot, for example, be tied to foreign currencies,
			 foreign interest rates, domestic or foreign commodity prices, equity prices, or
			 inflation rates. For purposes of this subrule, the U.S. dollar-denominated
			 London Interbank Offered Rate (LIBOR) is a domestic interest rate.
(2)
Corporate credit union shares or
			 deposits.
A credit union may purchase shares or deposits in a
			 corporate credit union, except when the superintendent or the NCUA has notified
			 it that the corporate credit union is not operating in compliance with NCUA
			 rules and regulations, 12 CFR Part 704. A credit union's aggregate amount of
			 paid-in capital and membership capital, as defined in NCUA rules and
			 regulations, 12 CFR Part 704, in one corporate credit union is limited to 2
			 percent of its assets measured at the time of investment or adjustment. A
			 credit union's aggregate amount of paid-in capital and membership capital in
			 all corporate credit unions is limited to 4 percent of its assets measured at
			 the time of investment or adjustment.
(3)
Registered investment
			 company.
A credit union may invest in a registered investment company
			 or collective investment fund, as long as the prospectus of the company or fund
			 restricts the investment portfolio to investments and investment transactions
			 that are permissible for federal credit unions.
(4)
Collateralized mortgage
			 obligation/real estate mortgage investment conduit.
A credit union may
			 invest in a fixed or variable rate collateralized mortgage obligation/real
			 estate mortgage investment conduit.
(5)
Municipal security.
A
			 credit union may purchase and hold a municipal security, as defined in the
			 Federal Credit Union Act,  12 U.S.C. Section 1757(7)(K), only if the credit
			 union conducts and documents an analysis that reasonably concludes the security
			 is at least investment grade. The credit union must also limit its aggregate
			 municipal securities holdings to no more than 75 percent of the credit union's
			 net worth and limit its holdings of municipal securities issued by any single
			 issuer to no more than 25 percent of the credit union's net worth.
(6)
Instruments issued by
			 institutions described in the Federal Credit Union Act,  12 U.S.C. Section 1757(8).
A credit union may invest in the following instruments issued
			 by an institution described in Section 1757(8) of the Federal Credit Union Act:
a. Yankee dollar deposits;
b. Eurodollar deposits;
c. Banker's acceptances;
d. Deposit notes; and
e. Bank notes with weighted average
			 maturities of less than five years.
Iowa Administrative Code › Agency 189 - Credit Union Division › Chapter 17 - Investment and Deposit Activities for Credit Unions › Rule 189-17.16 - Prohibited Investments

Current through Register Vol. 47, No. 3, July 24, 2024
(1) Derivatives. A
			 credit union may not purchase or sell financial derivatives, such as futures,
			 options, interest rate swaps, or forward rate swaps. This prohibition does not
			 apply to:
a. Any derivatives permitted under
			 NCUA rules and regulations,  12 CFR 701.21(i)  and  189  -subrule
			 17.14(7);
b. Embedded options not
			 required under GAAP to be accounted for separately from the host contract;
			 and
c. Interest rate lock commitments
			 or forward sales commitments made in connection with a loan originated by the
			 credit union.
Iowa Administrative Code › Agency 189 - Credit Union Division › Chapter 17 - Investment and Deposit Activities for Credit Unions › Rule 189-17.17 - Conflicts of Interest

Current through Register Vol. 47, No. 3, July 24, 2024
(1) A credit
			 union's officials and senior management employees, and their immediate family
			 members, may not receive anything of value in connection with their investment
			 transactions. This prohibition also applies to any other employee, such as an
			 investment officer, if the employee is directly involved in investments, unless
			 the credit union's board of directors determines that the employee's
			 involvement does not present a conflict of interest. This prohibition does not
			 include compensation for employees.
(2) A credit union's officials and employees
			 must conduct all transactions with business associates or family members that
			 are not specifically prohibited by 17.17(1) at arm's length and in the credit
			 union's best interest.
Iowa Administrative Code › Agency 189 - Credit Union Division › Chapter 17 - Investment and Deposit Activities for Credit Unions › Rule 189-17.19 - Investment Pilot Program

Current through Register Vol. 47, No. 3, July 24, 2024
(1)
			 Under an investment pilot program, the credit union division will permit a
			 limited number of credit unions to engage in investment activities prohibited
			 by this rule but otherwise permitted by the Federal Credit Union Act,
			 12 U.S.C. Section 1757.
(2) Except as provided in 17.19(4), before a
			 credit union may engage in an additional activity it must obtain written
			 approval from the superintendent. To obtain approval, a credit union must
			 submit its written request to the superintendent that addresses the following
			 items:
a. Certification that the credit union
			 is "well-capitalized" under NCUA rules and regulations,
			 12 CFR Part 702;
b. Board policies approving the activities
			 and establishing limits on them;
c.
			 A complete description of the activities, with specific examples of how they
			 will benefit the credit union and how they will be conducted;
d. A demonstration of how the activities will
			 affect the credit union's financial performance, risk profile, and
			 asset-liability management strategies;
e. Examples of reports the credit union will
			 generate to monitor the activities;
f. Projections of the associated costs of the
			 activities, including personnel, computer, and audit;
g. Descriptions of the internal systems that
			 will measure, monitor, and report the activities;
h. Qualifications of the staff and officials
			 responsible for implementing and overseeing the activities; and
i. Internal control procedures that will be
			 implemented, including audit requirements.
Iowa Administrative Code › Agency 189 - Credit Union Division › Chapter 17 - Investment and Deposit Activities for Credit Unions › Rule 189-17.20 - Responsibility Placed Upon the Credit Union to Show Cause

Current through Register Vol. 47, No. 3, July 24, 2024
(1) A state-chartered credit union that
			 engages in an investment activity that it believes to be permissible for
			 federal credit unions, whether or not addressed by these rules, must provide
			 the superintendent, when requested, satisfactory documentation that the
			 activity is not prohibited by the Iowa Code or by the NCUA, or both.
(2) If a credit union engages in an
			 investment activity, whether expressly permitted by these rules or an
			 investment activity that the credit union believes, in good faith, is
			 permitted, and which at the time of engagement is not or thought not to be
			 prohibited by the Iowa Code or the NCUA, or both, but subsequently becomes or
			 is found to have been prohibited, the credit union must develop a plan to
			 become compliant within a reasonable period of time.
(3) Although automatic authority is granted
			 to Iowa credit unions by Iowa Code sections
			 533.301(5)  7"
			 arid 533.301(25) and these rules, such authority may be withheld or withdrawn
			 by the superintendent for safety and soundness concerns or for blatant
			 disregard for these rules, in whole or in part, by a credit union.
Iowa Administrative Code › Agency 189 - Credit Union Division › Chapter 17 - Investment and Deposit Activities for Credit Unions › Rule 189-17.21 - Director, Officer, or Employee Overdraft

Current through Register Vol. 47, No. 3, July 24, 2024
A state credit union may pay an overdraft of a director,
				officer, or employee of the state credit union on an account at the state
				credit union when the payment of funds is made in accordance with any of the
				following:
1. A written,
			 preauthorized, interest-bearing extension of credit plan that specifies a
			 method of repayment.
2. A written,
			 preauthorized transfer of collected funds from another account of the account
			 holder at the state credit union.
3. The overdraft is paid pursuant to an
			 overdraft protection plan or courtesy pay program. Such payment is limited to
			 one time per quarter, and the overdraft shall last no longer than ten days.
			 Each credit union board of directors shall enact a policy regarding failure to
			 comply with the provisions of this rule.
This rule is intended to implement Iowa Code section
				533.205(7).
Iowa Administrative Code › Agency 189 - Credit Union Division › Chapter 18 - Maintenance of Allowance for Loan and Lease Losses Account › Rule 189-18.1 - Definitions

Current through Register Vol. 47, No. 3, July 24, 2024
The following words and terms, when used in these rules, shall
				have the meaning shown below:
"Allowance for loan and lease losses"
means an
				estimate of loan and lease losses in the entire loan portfolio, including
				estimated inherent losses. Credit unions with assets of $10 million or greater
				must conform with generally accepted accounting principles and meet regulatory
				requirements for full and fair disclosure of the financial statements. Credit
				unions with less than $10 million in assets must conform with these rules and
				meet regulatory requirements for full and fair disclosure or generally accepted
				accounting principles.
"Legal reserve"
means the statutory reserve
				account of the credit union set aside from gross earnings as a regular reserve
				against losses on loans and other contingencies, in accordance with Iowa Code
				chapter 533.
"Provision for loan and lease losses"
means an
				expense account of the general ledger to which debit or credit adjustments to
				the allowance for loan and lease losses are charged.
"Special reserve"
means an additional regular
				reserve account of the credit union, established and required by the
				superintendent, to be set aside against losses from loans or other
				contingencies, in accordance with Iowa Code chapter 533.
Iowa Administrative Code › Agency 189 - Credit Union Division › Chapter 18 - Maintenance of Allowance for Loan and Lease Losses Account › Rule 189-18.2 - Legal Reserve Required

Current through Register Vol. 47, No. 3, July 24, 2024
(1) Each credit
			 union shall establish and maintain a legal reserve for contingencies as
			 provided by Iowa Code chapter 533. The totals of the legal reserve and the
			 allowance for loan losses account shall be combined for determining the
			 applicable percentage of gross income to be transferred to the legal
			 reserve.
(2) Nothing in this rule
			 shall preclude the requirements of Iowa Code chapter 533 relating to the
			 maintenance of the legal reserve or to the authority of the superintendent to
			 approve a plan for distribution of the reserve or to the requiring of
			 additional amounts to be set aside as a special reserve.
Iowa Administrative Code › Agency 189 - Credit Union Division › Chapter 18 - Maintenance of Allowance for Loan and Lease Losses Account › Rule 189-18.3 - Generally Accepted Accounting Principles

Current through Register Vol. 47, No. 3, July 24, 2024
(1) Credit unions
			 with assets of $10 million or greater must prepare financial statements in
			 accordance with generally accepted accounting principles (GAAP). Credit unions
			 with assets of less than $10 million may prepare financial statements in
			 accordance with authorized intentional regulatory accounting principles (RAP).
			 All credit union financial statements shall provide for the complete and
			 accurate disclosure of all assets, liabilities, and equity, including any
			 valuation allowance accounts as may be necessary to correctly present the
			 financial position; and all income and expenses necessary to correctly present
			 the results of operations for the period concerned.
(2) The financial statement shall be prepared
			 and made available within 15 days after the end of each month and shall show
			 the condition of the credit union as of the close of business on the last
			 business day of the month.
(3)
			 Complete and accurate disclosure shall be required of a credit union so as to
			 provide for a level of disclosure to any person or entity in order to clearly
			 and objectively inform them of the financial condition and the results of
			 operations of the credit union.