reglab/statecodes huggingface dataset:
Iowa Administrative Code › Agency 189 - Credit Union Division › Chapter 3 - Conversion of an Iowa-chartered Credit Union to Another Charter Type › Rule 189-3.3 - Board of Directors and Membership Approval

Current through Register Vol. 47, No. 3, July 24, 2024
(1) Any conversion proposal may be approved
			 by the board of directors only upon the affirmative vote of a majority of the
			 board. The board shall then set a date for a vote on the proposal by the
			 members of the credit union and select the method of voting by a favorable vote
			 of a majority of the board, according to the provisions of Iowa Code section
			 533.203.
(2) The membership shall approve the proposal
			 to convert by the affirmative vote of a majority of those members who vote on
			 such proposal. Each eligible member shall have one vote regarding the
			 conversion proposal.
(3) The vote
			 of the members to convert shall be in the manner prescribed in this
			 chapter.
(4) The board of directors
			 shall notify the superintendent of any proposed conversion within three days of
			 an affirmative vote by the board on a conversion proposal. The board shall also
			 notify the superintendent of any abandonment or disapproval of the conversion
			 by the members or by the recipient chartering authority, the National Credit
			 Union Administration, or applicable federal deposit insurer within seven days
			 of a membership vote to abandon or disapprove the conversion, receipt of
			 disapproval by a chartering authority, or other decision to abandon the
			 conversion.
(5) Prior to completion
			 of any conversion, the board shall supply the superintendent a certified
			 affidavit of compliance with these rules.
Iowa Administrative Code › Agency 189 - Credit Union Division › Chapter 3 - Conversion of an Iowa-chartered Credit Union to Another Charter Type › Rule 189-3.5 - Notice to the Superintendent

Current through Register Vol. 47, No. 3, July 24, 2024
(1) The
			 credit union shall provide the superintendent with notice of its intent to
			 convert and a plan of conversion no less than 30 calendar days prior to the
			 90-calendar-day period preceding the close of balloting under
			 189-3.4 (533).
(2) The credit union shall give notice to the
			 superintendent and provide a plan of conversion describing the material
			 features of the conversion, along with a copy of the filing the credit union
			 has made with the federal regulatory agency by which the credit union seeks
			 that agency's approval of the conversion. The credit union shall include with
			 the notice to the superintendent a copy of the notice the credit union proposes
			 to provide to members under
			 189-3.4 (533), as well as the
			 proposed ballot and related instructions and envelopes, all written materials
			 the credit union has distributed or intends to distribute to its members, and
			 the procedures the election committee will follow in its receipt and counting
			 of the ballots.
(3)
			 Superintendent's preliminary determination.
a.
			 The superintendent shall make a preliminary determination regarding the methods
			 and procedures applicable to the membership vote.
b. The superintendent shall notify the credit
			 union within 30 calendar days of receipt of the credit union's notice of intent
			 to convert if the superintendent disapproves of the proposed methods and
			 procedures applicable to the membership vote.
c. The credit union's submission of the
			 notice of intent and plan of conversion does not relieve the credit union of
			 its obligation to certify the results of the membership vote required by
			 189-3.6 (533) or certify
			 compliance with these rules as required by
			 189-3.3 (533) or eliminate the
			 right of the superintendent to disapprove the actual methods and procedures
			 applicable to the membership vote if the credit union fails to conduct the
			 membership vote in a fair and legal manner.
Iowa Administrative Code › Agency 189 - Credit Union Division › Chapter 3 - Conversion of an Iowa-chartered Credit Union to Another Charter Type › Rule 189-3.6 - Certification of Vote on Conversion Proposal

Current through Register Vol. 47, No. 3, July 24, 2024
(1) The board of directors of the converting
			 credit union shall certify the results of the membership vote to the
			 superintendent within ten calendar days after the vote is taken.
(2) The board of directors shall also certify
			 at the same time that the notice, ballot and other written materials provided
			 to members were identical to those submitted pursuant to
			 189-3.5 (533) or provide copies
			 of any new or revised materials and an explanation of the reasons for the
			 changes.
Iowa Administrative Code › Agency 189 - Credit Union Division › Chapter 3 - Conversion of an Iowa-chartered Credit Union to Another Charter Type › Rule 189-3.7 - Superintendent Oversight of Methods and Procedures of Membership Vote

Current through Register Vol. 47, No. 3, July 24, 2024
(1) The
			 superintendent shall issue a determination that the methods and procedures
			 applicable to the membership vote are approved or disapproved within ten
			 calendar days of receipt from the credit union of the certification of the
			 result of the membership vote required under
			 189-3.6 (533).
(2) If the superintendent disapproves of the
			 methods by which the membership vote was taken or the procedures applicable to
			 the membership vote, the superintendent may direct that a new vote be taken at
			 a time and place acceptable to the board of directors and the
			 superintendent.
(3) The
			 superintendent's review of the methods by which the membership vote was taken
			 and the procedures applicable to the membership vote includes determining that
			 the notice to members is accurate and not misleading, that all notices required
			 by these rules were timely, and that the membership vote was conducted in a
			 fair and legal manner.
Iowa Administrative Code › Agency 189 - Credit Union Division › Chapter 3 - Conversion of an Iowa-chartered Credit Union to Another Charter Type › Rule 189-3.8 - Other Regulatory Oversight of Methods and Procedures of Membership Vote

Current through Register Vol. 47, No. 3, July 24, 2024
The federal agency that will have jurisdiction over the financial institution after conversion may subject the membership vote to verification and may direct that a new vote be taken if it disapproves of the methods by which the membership vote was taken or of the procedures applicable to the membership vote.
Iowa Administrative Code › Agency 189 - Credit Union Division › Chapter 3 - Conversion of an Iowa-chartered Credit Union to Another Charter Type › Rule 189-3.9 - Completion of Conversion

Current through Register Vol. 47, No. 3, July 24, 2024
(1) Upon
			 receipt of approvals under
			 189-3.7 (533) and
			 189-3.8 (533), the credit union
			 may complete the conversion transaction.
(2) Submission of evidence of approval and
			 effective date.
a. The board of directors of
			 the credit union shall file with the superintendent appropriate evidence of
			 approval of the conversion by the appropriate federal agency having
			 jurisdiction over the financial institution after conversion and from the
			 federal agency providing deposit insurance to the converted financial
			 institution, and, if applicable, a copy of the notice from the National Credit
			 Union Administration canceling the credit union insurance
			 certificate.
b. The board of
			 directors of the credit union shall also notify the superintendent of the
			 actual date on which the conversion is to be effective.
Iowa Administrative Code › Agency 189 - Credit Union Division › Chapter 3 - Conversion of an Iowa-chartered Credit Union to Another Charter Type › Rule 189-3.10 - Limit on Compensation of Officials

Current through Register Vol. 47, No. 3, July 24, 2024
(1) No director or senior management official
			 of an Iowa credit union shall receive any economic benefit in connection with a
			 plan of conversion or the actual conversion of the credit union, other than
			 regular compensation and other usual benefits paid to directors or senior
			 management officials in the ordinary course of business.
(2) In connection with the notices to members
			 required by this chapter, the converting credit union shall disclose to the
			 members the cost of the conversion, including any change or increase in
			 compensation or economic benefit to directors or senior management officials of
			 the credit union in the event the conversion process is accomplished.
Iowa Administrative Code › Agency 189 - Credit Union Division › Chapter 4 - Procedure for Adoption of Rules › Rule 189-4.1 - Applicability

Current through Register Vol. 47, No. 3, July 24, 2024
Except to the extent otherwise expressly provided by statute, all rules adopted by the credit union division are subject to the provisions of Iowa Code chapter 17A, the Iowa administrative procedure Act, and the provisions of this chapter.
Iowa Administrative Code › Agency 189 - Credit Union Division › Chapter 4 - Procedure for Adoption of Rules › Rule 189-4.2 - Advice on Possible Rules Before Notice of Proposed Rule Adoption

Current through Register Vol. 47, No. 3, July 24, 2024
In addition to seeking information by other methods, the credit union division may, before publication of a Notice of Intended Action under Iowa Code section 17A.4(1)
"a, "
solicit comments from the public on a subject matter of possible rule making by causing notice to be published in the Iowa Administrative Bulletin of the subject matter and indicating where, when, and how persons may comment.
Iowa Administrative Code › Agency 189 - Credit Union Division › Chapter 4 - Procedure for Adoption of Rules › Rule 189-4.3 - Public Rule-making Docket

Current through Register Vol. 47, No. 3, July 24, 2024
(1)
Docket maintained.
The agency shall maintain a current public
			 rule-making docket.
(2)
Anticipated rule making.
The rule-making docket shall list
			 each anticipated rule-making proceeding. A rule-making proceeding is deemed
			 "anticipated" from the time a draft of proposed rules is distributed for
			 internal discussion within the agency. For each anticipated rule-making
			 proceeding, the docket shall contain a listing of the precise subject matter
			 which may be submitted for consideration by the board for subsequent proposal
			 under the provisions of Iowa Code section
			 17A.4(1)
"a, "
the name and address of agency personnel with whom
			 persons may communicate with respect to the matter, and an indication of the
			 present status within the agency of that possible rule. The agency may also
			 include in the docket other subjects upon which public comment is
			 desired.
(3)
Pending
			 rule-making proceedings.
The rule-making docket shall list each
			 pending rule-making proceeding. A rule-making proceeding is pending from the
			 time it is commenced by publication in the Iowa Administrative Bulletin to the
			 time it is terminated or the rule becomes effective. For each rule-making
			 proceeding, the docket shall indicate:
a. The
			 subject matter of the proposed rule;
b. A citation to all published notices
			 relating to the proceeding;
c.
			 Where written submissions on the proposed rule may be inspected;
d. The time during which written submissions
			 may be made;
e. The names of
			 persons who have made written requests for an opportunity to make oral
			 presentations on the proposed rule, where those requests may be inspected and
			 where and when oral presentations may be made;
Iowa Administrative Code › Agency 189 - Credit Union Division › Chapter 4 - Procedure for Adoption of Rules › Rule 189-4.4 - Notice of Proposed Rule Making

Current through Register Vol. 47, No. 3, July 24, 2024
(1)
Contents.
At least 35 days before adoption of a rule the
			 credit union division shall publish Notice of Intended Action in the Iowa
			 Administrative Bulletin. The Notice of Intended Action shall include:
a. A brief explanation of the purpose of the
			 proposed rule;
b. The specific
			 legal authority for the proposed rule;
c. Except to the extent impracticable, the
			 text of the proposed rule;
d.
			 Where, when, and how persons may present their views on the proposed rule;
			 and
e. Where, when, and how persons
			 may request an oral proceeding on the proposed rule if the notice does not
			 already provide for one.
Where inclusion of the complete text of a proposed rule in the
				Notice of Intended Action is impracticable, the credit union division shall
				include in the notice a statement fully describing the specific subject matter
				of the omitted portion of the text of the proposed rule, the specific issues to
				be addressed by that omitted text of the proposed rule, and the range of
				possible choices being considered by the division for the resolution of each of
				those issues.
Iowa Administrative Code › Agency 189 - Credit Union Division › Chapter 4 - Procedure for Adoption of Rules › Rule 189-4.5 - Public Participation

Current through Register Vol. 47, No. 3, July 24, 2024
(1)
Written comments.
For at least 20 days after publication of
			 the Notice of Intended Action, persons may submit argument, data and views, in
			 writing, on the proposed rule. Such written submissions should identify the
			 proposed rule to which they relate and should be submitted to the credit union
			 division or the person designated in the Notice of Intended Action, at the
			 address disclosed in 189-subrule 1.3(1).
(2)
Oral proceedings.
The
			 credit union division may, at any time, schedule an oral proceeding on a
			 proposed rule. The division shall schedule an oral proceeding on a proposed
			 rule if, within 20 days after the published Notice of Intended Action, a
			 written request for an opportunity to make oral presentations is submitted to
			 the division by the administrative rules review committee, a governmental
			 subdivision, an agency, an association having not less than 25 members, or at
			 least 25 persons. That request must also contain the following:
a. A request by one or more individual
			 persons must be signed by each person and include the address and telephone
			 number of each person;
b. A request
			 by an association must be signed by an officer or designee of the association
			 and must contain a statement that the association has at least 25 members and
			 the address and telephone number of the person signing that request;
			 and
c. A request by an agency or
			 governmental subdivision must be signed by an official having authority to act
			 on behalf of the entity and must contain the address and telephone number of
			 the person signing that request.
Iowa Administrative Code › Agency 189 - Credit Union Division › Chapter 4 - Procedure for Adoption of Rules › Rule 189-4.6 - Regulatory Analysis

Current through Register Vol. 47, No. 3, July 24, 2024
(1)
Definition of small business. A
"small business" is defined in
			 Iowa Code section 17A.4A(7).
(2)
Mailing list.
Small
			 businesses or organizations of small businesses may be registered on the credit
			 union division's small business impact list by making a written application to
			 the division at the address disclosed in 189-subrule 1.3(1). The application
			 for registration shall state:
a. The name of
			 the small business or organization of small businesses;
b. Its address;
c. The name of the person authorized to
			 transact business for the applicant;
d. A description of the applicant's business
			 or organization; an organization representing 25 or more persons who each
			 qualify as a small business shall indicate that fact; and
e. Whether the applicant desires copies of
			 Notices of Intended Action, for a reasonable cost, or desires advance notice of
			 the subject of all or some specific category of proposed rule making affecting
			 small business.
The credit union division may at any time request additional
				information from the applicant to determine whether the applicant is qualified
				as a small business or as an organization of 25 or more small businesses. The
				division may periodically send a letter to each registered small business or
				organization, or organization of small businesses, asking whether that business
				or organization wishes to remain on the registration list. The name of a small
				business or organization of small businesses will be removed from the list if a
				negative response is received, or if no response is received within 30 days
				after the letter is sent.
Iowa Administrative Code › Agency 189 - Credit Union Division › Chapter 4 - Procedure for Adoption of Rules › Rule 189-4.7 - Fiscal Impact Statement

Current through Register Vol. 47, No. 3, July 24, 2024
(1) A
			 proposed rule that mandates additional combined expenditures exceeding $100,000
			 by all affected political subdivisions or agencies and entities which contract
			 with political subdivisions to provide services must be accompanied by a fiscal
			 impact statement outlining the costs associated with the rule. A fiscal impact
			 statement must satisfy the requirements of Iowa Code section
			 25B.6.
(2) If the credit union division determines
			 at the time it adopts a rule that the fiscal impact statement upon which the
			 rule is based contains errors, the division shall, at the same time, issue a
			 corrected fiscal impact statement and publish the corrected fiscal impact
			 statement in the Iowa Administrative Bulletin.
Iowa Administrative Code › Agency 189 - Credit Union Division › Chapter 4 - Procedure for Adoption of Rules › Rule 189-4.8 - Time and Manner of Rule Adoption

Current through Register Vol. 47, No. 3, July 24, 2024
(1)
Time of adoption.
The
			 credit union division shall not adopt a rule until the period for making
			 written submissions and oral presentations has expired. Within 180 days after
			 the later of the publication of the Notice of Intended Action, or the end of
			 oral proceedings thereon, the credit union division shall adopt a rule pursuant
			 to the rule-making proceeding or terminate the proceeding by publication of a
			 notice to that effect in the Iowa Administrative Bulletin.
(2)
Consideration of public
			 comment.
Before the adoption of a rule, the credit union division
			 shall fully consider all of the written and oral submissions received in that
			 rule-making proceeding and any regulatory analysis or fiscal impact statement
			 issued in that rule-making proceeding.
(3)
Reliance on agency
			 expertise.
Except as otherwise provided by law, the credit union
			 division may use its own experience, technical competence, specialized
			 knowledge and judgment in the adoption of a rule.
Iowa Administrative Code › Agency 189 - Credit Union Division › Chapter 4 - Procedure for Adoption of Rules › Rule 189-4.9 - Variance Between Adopted Rule and Rule Proposed in Notice of Intended Action

Current through Register Vol. 47, No. 3, July 24, 2024
The credit union division shall not adopt a rule that differs from the rule proposed in the Notice of Intended Action upon which the rule is based unless:
1. The differences are
			 within the scope of the subject matter announced in the Notice of Intended
			 Action and are in character with the issues raised in that notice;
			 and
2. The differences are a
			 logical outgrowth of the contents of that Notice of Intended Action and the
			 comments submitted in response thereto; and
3. The Notice of Intended Action provided
			 fair warning that the outcome of that rule-making proceeding could be the rule
			 in question.
Iowa Administrative Code › Agency 189 - Credit Union Division › Chapter 4 - Procedure for Adoption of Rules › Rule 189-4.10 - Exemptions From Public Rule-making Procedures

Current through Register Vol. 47, No. 3, July 24, 2024
(1)
Omission of notice and
			 comment.
To the extent the credit union division for good cause finds
			 that public notice and participation are unnecessary, impracticable or contrary
			 to the public interest in the process of adopting a particular rule, the
			 division may adopt that rule without publishing advance Notice of Intended
			 Action in the Iowa Administrative Bulletin and without providing for written or
			 oral public submissions prior to its adoption. The division shall incorporate
			 the required finding and a brief statement of its supporting reasons in each
			 rule adopted in reliance upon this subrule.
(2)
Categories exempt.
The
			 credit union division may, at any time, commence a standard rule-making
			 proceeding for the adoption of a rule that is identical or similar to a rule it
			 adopts in reliance upon subrule 4.10(1).
Iowa Administrative Code › Agency 189 - Credit Union Division › Chapter 4 - Procedure for Adoption of Rules › Rule 189-4.11 - Concise Statement of Reasons

Current through Register Vol. 47, No. 3, July 24, 2024
(1)
General.
When requested by a person, either prior to the
			 adoption of a rule or within 30 days after its publication in the Iowa
			 Administrative Bulletin as an adopted rule, the credit union division shall
			 issue a concise statement of reasons for the rule. Requests for such a
			 statement shall be in writing and shall be delivered to the division at the
			 address disclosed in 189-subrule 1.3(1). The request should indicate whether
			 the statement is sought for all or only a specified part of the rule. Requests
			 will be considered made on the date received.
(2)
Contents.
The concise
			 statement of reasons shall contain:
a. The
			 reasons for adopting the rule;
b.
			 An indication of any changes between the text of the proposed rule contained in
			 the published Notice of Intended Action and the text of the rule as finally
			 adopted, with the reasons for any such change; and
c. The principal reasons urged in the
			 rule-making proceeding for and against the rule, and the credit union
			 division's reasons for overruling the arguments made against the
			 rule.
Iowa Administrative Code › Agency 189 - Credit Union Division › Chapter 4 - Procedure for Adoption of Rules › Rule 189-4.12 - Contents, Style, and Form of Rule

Current through Register Vol. 47, No. 3, July 24, 2024
(1)
Contents.
Each rule adopted by the credit union division shall
			 contain the text of the rule and, in addition:
a. The date the division adopted the
			 rule;
b. A brief explanation of the
			 principal reasons for the rule-making action if such reasons are required by
			 Iowa Code section 17A.4(1), or
			 the credit union division in its discretion decides to include such
			 reasons;
c. A reference to all
			 rules repealed, amended, or suspended by the rule;
d. A reference to the specific statutory or
			 other authority authorizing adoption of the rule;
e. Any findings required by any provision of
			 law as a prerequisite to adoption or effectiveness of the rule;
f.A brief explanation of the principal
			 reasons for the failure to provide for waivers to the rule if no waiver
			 provision is included and a brief explanation of any waiver or special
			 exceptions provided in the rule if such reasons are required by Iowa Code
			 section 17A.4(1), or
			 the credit union division in its discretion decides to include such reasons;
			 and
g. The effective date of the
			 rule.
Iowa Administrative Code › Agency 189 - Credit Union Division › Chapter 4 - Procedure for Adoption of Rules › Rule 189-4.13 - Agency Rule-making Record

Current through Register Vol. 47, No. 3, July 24, 2024
(1)
Requirement.
The credit union division shall maintain an
			 official rule-making record for each rule it proposes by publication in the
			 Iowa Administrative Bulletin of a Notice of Intended Action, or adopts. The
			 rule-making record and materials incorporated by reference must be available
			 for public inspection.
(2)
Contents.
The agency rule-making record shall contain:
a. Copies of all publications in the Iowa
			 Administrative Bulletin with respect to the rule or the proceeding upon which
			 the rule is based and any file-stamped copies of division submissions to the
			 administrative rules coordinator concerning that rule or the proceeding upon
			 which it is based;
b. Copies of any
			 portions of the division's public rule-making docket containing entries
			 relating to the rule or the proceeding upon which the rule is based;
c. All written petitions, requests, and
			 submissions received by the division, and all other written materials of a
			 factual nature as distinguished from opinion that are relevant to the merits of
			 the rule and that were created or compiled by the agency and considered by the
			 division, in connection with the formulation, proposal, or adoption of the rule
			 or the proceeding upon which the rule is based, except to the extent the
			 division is authorized by law to keep them confidential; provided, however,
			 that when any such materials are deleted because they are authorized by law to
			 be kept confidential, the division shall identify in the record the particular
			 materials deleted and state the reasons for that deletion;
d. Any official transcript of oral
			 presentations made in the proceeding upon which the rule is based or, if not
			 transcribed, the stenographic record or electronic recording of those
			 presentations, and any memorandum prepared by a presiding officer summarizing
			 the contents of those presentations;
e. A copy of any regulatory analysis or
			 fiscal impact statement prepared for the proceeding upon which the rule is
			 based;
f. A copy of the rule and
			 any concise statement of reasons prepared for that rule;
g. All petitions for amendment or repeal or
			 suspension of the rule;
h. A copy
			 of any objection to the issuance of that rule without public notice and
			 participation that was filed pursuant to Iowa Code section
			 17A.4(2)  by
			 the administrative rules review committee, the governor, or the attorney
			 general;
i. A copy of any objection
			 to the rule filed by the administrative rules review committee, the governor,
			 or the attorney general;
j. A copy
			 of any significant written criticism of the rule, including a summary of any
			 petition for waiver of the rule; and
k. A copy of any executive order concerning
			 the rule.
Iowa Administrative Code › Agency 189 - Credit Union Division › Chapter 4 - Procedure for Adoption of Rules › Rule 189-4.14 - Filing of Rules

Current through Register Vol. 47, No. 3, July 24, 2024
The credit union division shall file each rule it adopts with the administrative rules coordinator. The filing must be executed as soon after adopting the rule as is practicable. At the time of filing, each rule must have attached to it any fiscal impact statement and any concise statement of reasons that was issued for that rule. If a fiscal impact statement or statement of reasons for that rule was not issued until after the filing of that rule, the note or statement must be attached to the filed rule within five working days after the note or statement is issued. In filing a rule, the division shall use the standard form prescribed by the administrative rules coordinator.
Iowa Administrative Code › Agency 189 - Credit Union Division › Chapter 4 - Procedure for Adoption of Rules › Rule 189-4.15 - Effectiveness of Rules Prior to Publication

Current through Register Vol. 47, No. 3, July 24, 2024
(1)
Grounds.
The credit
			 union division may make a rule effective after its filing at any stated time
			 prior to 35 days after its indexing and publication in the Iowa Administrative
			 Bulletin if the division finds that a statute so provides, the rule confers a
			 benefit or removes a restriction on some segment of the public, or that the
			 effective date of the rule is necessary to avoid imminent peril to the public
			 health, safety, or welfare. The division shall incorporate the required finding
			 and a brief statement of its supporting reasons in each rule adopted in
			 reliance upon this subrule.
(2)
Special notice.
When the credit union division makes a rule
			 effective prior to its indexing and publication in reliance upon the provisions
			 of Iowa Code section 17A.5(2)
"b
"(3), the division shall employ all reasonable efforts to
			 make its contents known to the persons who may be affected by that rule prior
			 to the rule's indexing and publication. The term "all reasonable efforts"
			 requires the division to employ the most effective and prompt means of notice
			 rationally calculated to inform potentially affected parties of the
			 effectiveness of the rule that is justified and practical under the
			 circumstances considering the various alternatives available for this purpose,
			 the comparative costs to the division of utilizing each of those alternatives,
			 and the harm suffered by affected persons from any lack of notice. The means
			 that may be used for providing notice of such rules prior to their indexing and
			 publication include, but are not limited to, any of the following means: radio,
			 newspaper, television, signs, mail, telephone, personal notice or electronic
			 means.
A rule made effective prior to its indexing and publication in
				reliance upon the provisions of Iowa Code section
				17A.5(2)
"b
"(3) shall include in that rule a statement describing the
				reasonable efforts that will be used to comply with the requirements of this
				subrule.
Iowa Administrative Code › Agency 189 - Credit Union Division › Chapter 4 - Procedure for Adoption of Rules › Rule 189-4.16 - General Statements of Policy

Current through Register Vol. 47, No. 3, July 24, 2024
(1)
Compilation, indexing, public inspection.
The credit union
			 division shall maintain an official, current, and dated compilation that is
			 indexed by subject, containing all of its general statements of policy within
			 the scope of Iowa Code section
			 17A.2(10)
"a, " "c, " "f ," "g," "h,"
and
"k. "
Each
			 addition to, change in, or deletion from the official compilation must also be
			 dated, indexed, and a record thereof kept. Except for those portions containing
			 rules governed by Iowa Code section
			 17A.2(10)
'f"
or otherwise authorized by law to be kept confidential,
			 the compilation must be made available for public inspection and
			 copying.
(2)
Enforcement of
			 requirements. A
general statement of policy subject to the
			 requirements of this subsection shall not be relied on by the credit union
			 division to the detriment of any person who does not have actual, timely
			 knowledge of the contents of the statement until the requirements of subrule
			 4.16(1) are satisfied. This provision is inapplicable to the extent necessary
			 to avoid imminent peril to the public health, safety, or welfare.
Iowa Administrative Code › Agency 189 - Credit Union Division › Chapter 4 - Procedure for Adoption of Rules › Rule 189-4.17 - Review of Rules by Division

Current through Register Vol. 47, No. 3, July 24, 2024
(1) Any
			 interested person, association, agency, or political subdivision may submit a
			 written request to the administrative rules coordinator requesting the credit
			 union division to conduct a formal review of an existing rule. Upon approval of
			 that request by the administrative rules coordinator, the division shall
			 conduct a formal review of a specified rule to determine whether a new rule
			 should be adopted or whether the rule should be amended or repealed. The
			 division may refuse to conduct a review if it has conducted such a review of
			 the specified rule within five years prior to the filing of the written
			 request.
(2) In conducting the
			 formal review, the credit union division shall prepare within a reasonable time
			 a written report summarizing its findings, its supporting reasons, and any
			 proposed course of action. The report shall comply with Iowa Code section
			 17A.7(2). A
			 copy of the division's report shall be sent to the administrative rules review
			 committee and the administrative rules coordinator. The report shall also be
			 available for public inspection at the division at the address disclosed in
			 189-subrule 1.3(1).
Iowa Administrative Code › Agency 189 - Credit Union Division › Chapter 5 - Debt Cancellation Products › Rule 189-5.1 - Authority and Purpose

Current through Register Vol. 47, No. 3, July 24, 2024
(1)
Authority.
This chapter implements the authority of credit
			 unions organized in accordance with Iowa Code chapter 533 to engage in the
			 activity of offering debt cancellation products in accordance with Iowa Code
			 Supplement section 533.315(9)
"b. "
These rules are promulgated under the authority of Iowa
			 Code Supplement section
			 533.107.
(2)
Purpose.
These rules set
			 forth the standards that apply to voluntary debt cancellation contracts and
			 agreements entered into by credit unions. The purpose of these standards is to
			 ensure that credit unions offer and implement such contracts and agreements
			 consistent with safe and sound practices, and subject to appropriate consumer
			 protections.
Iowa Administrative Code › Agency 189 - Credit Union Division › Chapter 5 - Debt Cancellation Products › Rule 189-5.2 - Definitions

Current through Register Vol. 47, No. 3, July 24, 2024
The definitions of terms included in rule 189-1.1 (533) apply to such terms used in this chapter unless otherwise provided in this rule. In addition, the following definitions apply as used in these rules:
"Actuarial method"
means the formula used in calculating refunds which produces a refund equal to the original fee multiplied by the ratio of the sum of the remaining scheduled monthly loan balances divided by the sum of the original scheduled monthly loan balances as of the due date next following the date of refund.
"Bona fide "
means authentic and genuine in nature and made in a sincere and honest fashion without any intention to deceive.
"Borrower"
means an individual who is a credit union member and who obtains an extension of credit from a credit union primarily for personal, family or household purposes.
"Business day"
means every day except Saturday, Sunday and federal holidays unless on any such day an office of the credit union is open to conduct substantially all of its business.
"Contract"
means a debt cancellation contract or a debt suspension agreement.
"Debt cancellation product"
means a written contractual arrangement between a credit union and a borrower modifying loan terms under which the credit union agrees to suspend or cancel all or part of the borrower's obligation to repay an extension of credit from that credit union upon the occurrence of a specified event. The contractual arrangement may be in the form of a debt cancellation contract, a debt suspension agreement or other accord and may be separate from or a part of other loan documents. A debt cancellation product does not include a loan payment deferral arrangement which is the borrower's unilateral election to defer repayment or the credit union's unilateral decision to allow a deferral of repayment.
"Reasonable fee structure "
means a fee structure which allows a moderate return on investment and is suited to or within the means of an ordinary person, and is not formulated in a manner that an ordinary person would consider the fee structure excessive, outrageous, overreaching or unconscionable.
"Residential mortgage loan "
means a real property loan secured by a one to four family dwelling that is the borrower's primary or secondary residence.
Iowa Administrative Code › Agency 189 - Credit Union Division › Chapter 5 - Debt Cancellation Products › Rule 189-5.3 - Debt Cancellation Products

Current through Register Vol. 47, No. 3, July 24, 2024
(1)
General.
A credit union
			 may offer any debt cancellation product so long as the credit union complies
			 with this chapter. The product may be offered for a fee or as an additional
			 charge under a lease, loan or other extension of credit, and participation by a
			 borrower must be voluntary.
(2)
Policies required.
A credit union, before offering any debt
			 cancellation product, must adopt written policies approved by its board of
			 directors which establish and maintain effective risk management and control
			 processes over the offering of the product. In addition, the policies must
			 establish:
a. A reasonable fee structure, if
			 any fee will be charged for the product;
b. Appropriate disclosures, which shall be
			 given to the borrower in accordance with this chapter; and
c. Claims-processing procedures, which shall
			 be utilized to process debt cancellation claims.
Iowa Administrative Code › Agency 189 - Credit Union Division › Chapter 5 - Debt Cancellation Products › Rule 189-5.4 - Prohibited Practices

Current through Register Vol. 47, No. 3, July 24, 2024
(1)
Anti-tying.
A credit union may not extend credit or alter the
			 terms or conditions of an extension of credit conditioned upon the borrower's
			 entering into a debt cancellation contract or debt suspension agreement with
			 the credit union.
(2)
Misrepresentations generally.
A credit union may not engage in
			 any practice or use any advertisement that could mislead or otherwise cause a
			 reasonable person to reach an erroneous belief with respect to a debt
			 cancellation agreement.
(3)
Prohibited contractual arrangement terms. A
credit union may
			 not offer debt cancellation agreements that contain terms:
a. Giving the credit union the right to
			 unilaterally modify the arrangement unless:
(1) The modification is favorable to the
			 borrower and is made without additional charge to the borrower; or
(2) The borrower is notified of any proposed
			 change and is provided a reasonable opportunity to cancel the arrangement
			 without penalty before the change goes into effect; or
Iowa Administrative Code › Agency 189 - Credit Union Division › Chapter 5 - Debt Cancellation Products › Rule 189-5.5 - Refunds of Fees in the Event of Termination or Prepayment of the Covered Loan

Current through Register Vol. 47, No. 3, July 24, 2024
(1)
Refund.
If a debt cancellation contract or debt suspension
			 agreement is terminated (including, for example, when the borrower prepays the
			 covered loan), a credit union shall refund to the borrower any unearned fees
			 paid for the contract unless the contract provides otherwise. A credit union
			 may offer a borrower a debt cancellation product that does not provide for a
			 refund only if the credit union also offers that borrower a bona-fide option to
			 purchase a comparable contractual arrangement that provides for a
			 refund.
(2)
Method of
			 calculation.
A credit union shall calculate the amount of a refund
			 using a method at least as favorable to the borrower as the actuarial method.
			 However, if the refund calculation produces a result of less than $5, the
			 unearned fees may be considered to be zero and no refund will be owed to the
			 borrower.
Iowa Administrative Code › Agency 189 - Credit Union Division › Chapter 5 - Debt Cancellation Products › Rule 189-5.6 - Method of Payment of Fees

Current through Register Vol. 47, No. 3, July 24, 2024
Except as provided in paragraph 5.4(3)
"b, "
a credit union may offer a borrower the option of paying the fee for a debt cancellation product in a single payment or on a weekly, monthly or other periodic payment schedule. If a credit union offers the borrower the option to finance the single payment by adding the single payment to the amount financed, the credit union must also disclose to the borrower, in accordance with rule 189-5.7 (533), whether, and, if so, the time period during which, the borrower may cancel the arrangement and receive a refund.
Iowa Administrative Code › Agency 189 - Credit Union Division › Chapter 5 - Debt Cancellation Products › Rule 189-5.7 - Disclosures

Current through Register Vol. 47, No. 3, July 24, 2024
In connection with offering debt cancellation products, a credit union must make the short- and long-form disclosures described in this rule. In order to satisfy the requirements of this rule, the short-form disclosure must be substantially in the form described in rule 189-5.9 (533), and the long-form disclosure must be substantially in the form described in rule 189-5.10 (533).
(1)
Short-form disclosure.
The credit union must make the short-form disclosure orally at the time the
			 credit union first solicits the purchase of the contract or agreement with the
			 borrower.
(2)
Long-form
			 disclosure.
The credit union must make the long-form disclosure in
			 writing before the borrower completes the purchase of the contract or
			 agreement. If the initial solicitation occurs in person, then the credit union
			 shall provide the long-form disclosure in writing either at that time or at the
			 time of the loan closing, but in no case later than three business days
			 following the credit approval decision.
(3)
Exceptions for non-in-person
			 transactions.
a. If the debt
			 cancellation product is solicited by telephone, the credit union must make the
			 short-form disclosure orally as required in subrule 5.7(1) and must mail the
			 long-form disclosure required in subrule 5.7(2) and, if appropriate, a copy of
			 the contract or agreement to the borrower within three business days, beginning
			 with the first business day after the telephone solicitation or at the time of
			 the loan closing, whichever is later.
b. If the debt cancellation product is
			 solicited using the mail or "take-one" applications, the credit union may make
			 only the short-form disclosure in writing as part of the written materials. If
			 it is not included in the application materials, the long-form disclosure must
			 be mailed to the borrower within three business days after the borrower
			 contacts the credit union in response to the solicitation, beginning with the
			 first business day, or at the time of the loan closing, whichever is
			 later.
c. If the debt cancellation
			 product is solicited using electronic media, the credit union may provide the
			 disclosures required by this rule electronically, consistent with the
			 requirements of this rule and the requirements of the Electronic Signatures in
			 Global and National Commerce Act,
			  15 U.S.C. 7001  et seq. The short-form disclosure shall
			 be provided with the initial electronic solicitation, and the long-form
			 disclosure no later than at the time of the loan closing or three business days
			 following credit approval.
Iowa Administrative Code › Agency 189 - Credit Union Division › Chapter 5 - Debt Cancellation Products › Rule 189-5.8 - Affirmative Election to Purchase and Acknowledgment of Receipt of Disclosure

Current through Register Vol. 47, No. 3, July 24, 2024
(1) Before
			 entering into a debt cancellation contract or agreement, the credit union must
			 obtain from the borrower a written affirmative election to purchase the product
			 and written acknowledgment of receipt of the disclosures required in rule
			 189-5.7 (533). The election and
			 acknowledgment information must meet the intent and purpose of the standards
			 established in rule 189-5.7 (533).
(2) The credit union must maintain sufficient
			 documentation to demonstrate that it provided to the borrower the disclosures
			 required by rule 189-5.7 (533) and obtained from
			 the borrower the documents required by this rule.
(3) The credit union must permit the borrower
			 to cancel the purchase of the debt cancellation product without penalty within
			 30 days after the credit union has mailed or otherwise provided the long-form
			 disclosure to the borrower or has provided it to the borrower according to
			 paragraph 5.7(4)
"c "
for an electronic media
			 solicitation.
Iowa Administrative Code › Agency 189 - Credit Union Division › Chapter 5 - Debt Cancellation Products › Rule 189-5.9 - Short-form Disclosure

Current through Register Vol. 47, No. 3, July 24, 2024
The short-form disclosure must state:
(1)
The product is optional.
Your purchase of [debt cancellation product name] is optional. Whether or not
			 you purchase [debt cancellation product name] will not affect your application
			 for credit or the terms of any credit agreement you have with the credit
			 union."
(2)
Financing the
			 payment of the fee.
"Adding the fee to the amount you borrow will
			 increase the cost of [product name]."
Note: This provision is applicable if the credit union offers
				to the borrower the option to pay the fee in a single payment. This provision
				is prohibited where the debt subject to the contract or agreement is a
				residential mortgage loan.
(3)
Refund of fee.
"You may
			 choose [product name] with a refund provision or without a refund provision.
			 Prices of refund and no-refund products are likely to differ." And either: "If
			 you pay the fee in a single payment, you may cancel [product name] within 30
			 days and receive a full refund." or "If you finance the payment of the fee as
			 part of your loan and you pay off your loan early, you will receive a refund of
			 any unearned fee calculated by the actuarial method." or "If you cancel
			 [product name] after the first 30 days of your loan, you will not receive a
			 refund."
Note: This provision is prohibited where the debt subject to
				the contract or agreement is a residential mortgage loan.
(4)
Additional disclosures.
"We will give you additional information before you are required to pay for
			 [product name]." And, if applicable: "This information will include a copy of
			 the contract containing the terms of [product name]."
(5)
Eligibility requirements,
			 conditions, and exclusions.
"There are certain eligibility
			 requirements, conditions, and exclusions that could prevent you from receiving
			 benefits under [product name]." And either: "You should carefully read our
			 additional information for a full explanation of the terms of [product name]."
			 or "You should carefully read the contract for a full explanation of the terms
			 of [product name]."
Iowa Administrative Code › Agency 189 - Credit Union Division › Chapter 5 - Debt Cancellation Products › Rule 189-5.11 - Safe and Sound Practices

Current through Register Vol. 47, No. 3, July 24, 2024
(1)
			 A credit union must ensure that risks associated with debt cancellation
			 contracts and debt suspension agreements are managed in accordance with safe
			 and sound principles and practices. Consequently, a credit union must implement
			 and maintain effective risk management and control processes in conjunction
			 with its debt cancellation contracts and debt suspension agreements, including,
			 but not limited to, appropriate recognition and reporting of income, expenses,
			 assets and liabilities. Additionally, the processes must provide for the
			 recognition and financial reporting of the appropriate treatment of all
			 expected and unexpected losses associated with these products.
(2) A credit union must assess the adequacy
			 of its internal controls and risk mitigation activities in view of the
			 characteristics and extent of its debt cancellation contracts and debt
			 suspension agreements. Accordingly, a credit union must evaluate its existing
			 risk tolerances and management systems to assess, evaluate and monitor
			 third-party relationships in connection with the development, offering and
			 servicing of the credit union's debt cancellation contracts and debt suspension
			 agreements, including compliance and reputation risks, and the potential
			 adverse impact nonperformance by the third party may have on the financial
			 performance of the credit union.
(3) Debt cancellation agreements may only be
			 offered by a credit union in connection with an extension of credit primarily
			 for personal, family or household purposes.