Proyectos de ley › 89.ª Asamblea General
Relating to financial institutions, including the assets, liabilities, and merger of state banks and state credit unions
Presentado por el comité Commerce del Senado
Temas:Business & economy
La misma legislación: SSB 1224
Dónde está ahora
- Hecho: Presentado23 de febrero de 2021
- Hecho: Subcomité24 de febrero de 2021
- Hecho: Comité del Senado3 de marzo de 2021
- Se detuvo: Lo aprueba el SenadoMurió al terminar la Asamblea General
- Sigue: Comité de la Cámara
- Sigue: Lo aprueba la Cámara
- Sigue: A gobernador(a)
- Sigue: Firmado como ley
Murió al terminar la sesión La sesión de 2022 terminó el 24 de mayo de 2022, la última sesión ordinaria de la Asamblea General. Los proyectos que no pasaron por ambas cámaras murieron. ¿Qué es el embudo (funnel)?
Qué contiene
Resumen con IA State banks and credit unions would face new rules regarding how they merge or sell their assets and debts. Under these changes, credit unions are generally prohibited from taking over a bank's assets or liabilities through a merger or dissolution. However, the bill allows banks to sell certain parts of their business to other entities and sets specific rules for when they work with credit unions. (Todavía no está traducido al español.)1
Lea la explicación oficial (en inglés)
This bill relates to financial institutions, including the assets, liabilities, and merger of state banks and state credit unions. Current law provides that a state bank that has commenced business may propose to voluntarily dissolve upon the adoption of a plan of dissolution that includes provisions for the acquisition of its assets and assumption of its liabilities and for the continuance of its business if acquisition is not effected. The bill provides that no such plan shall provide for the acquisition of a state bank’s assets or the assumption of its liabilities by a credit union chartered under state or federal law. 1309 to strike references to a state bank continuing as a limited liability company after ceasing to carry on the business of banking. Current law provides that a state bank that has commenced business may propose to cease carrying on the business of banking and become a corporation subject to Code chapter 490 upon the adoption of a plan that includes provisions for the acquisition of its assets and assumption of its liabilities and for the continuance of its business if acquisition is not effected. The bill provides that no such plan shall provide for the acquisition of a state bank’s assets or the assumption of its liabilities by a credit union chartered under state or federal law. The bill authorizes one or more state banks, out-of-state banks, national banks, federal savings associations, and corporations, pursuant to a plan of merger and with the approval of the superintendent, to merge into a state bank.1423, which authorizes a state bank to sell a portion of its assets, liabilities, or any combination thereof to a bank or any other entity. The bill establishes exceptions and notice requirements for a state bank’s sales or transfers of loan participations or real property to a credit union chartered under state or federal law. The bill provides that the sale by a state bank of all or substantially all of its assets and liabilities is a voluntary dissolution or a merger.1423.
Senate subcommittee
Named February 24, 2021 (as SSB 1224). On March 1, 2021 it recommended passage.
Three legislators hear a bill first and recommend what the committee should do; it’s the best time to weigh in. How to take part
Nota fiscal
Less revenue: up to $280,000 Compare con otros proyectos
Resumen con IA This bill limits how state banks and credit unions can merge or sell assets to one another. The full fiscal impact to the Commerce Revolving Fund cannot be determined, but the revenue decrease to that fund is estimated to be at least $280,000 due to one identified credit union converting to a federal charter. The decrease to the General Fund, cities, and counties from lost tax payments cannot be determined. (en inglés)3
Lea la nota fiscal (en inglés)
Description
Senate File 530 relates to financial institutions, including the assets, liabilities, and merger of State banks and State credit unions. The Bill makes the following changes:
- Prohibits a State bank from selling assets or liabilities to a State-chartered or federally chartered credit union as part of a plan for voluntary dissolution or transition to an Iowa Code chapter 490 corporation.
- Prohibits a bank from merging with a State-chartered or federally chartered credit union.
- Prohibits a State bank from selling assets and liabilities to a State-chartered or federally chartered credit union, or an associated organization, except for loan participations and real property.
- Authorizes a State bank to sell a portion of its assets and liabilities to a bank or other entity.
- Limits the authority of a State bank to sell loan participations or real property equal to or exceeding 25.0% of the value of the categorical assets to a State-chartered or federally chartered credit union. If the sale constitutes 25.0% of the value of the bank’s loan participations or any of the bank’s real property, and the sale is to a State-chartered or federally chartered credit union, the bank is required to submit an application to the Superintendent of Banking no less than 30 days prior to the sale.
- Limits the ability of a State-chartered credit union to merge with or purchase any assets or liabilities of a federally chartered, State-chartered, or out-of-state bank, except where authorized.
- Establishes a new prohibition on any sales other than loan participations and real property to State-chartered or federally chartered credit unions.
Background
At the end of FY 2020, one State-chartered credit union converted to a federally chartered credit union. In FY 2020, this credit union paid $127,000 in assessments to the Iowa Credit Union Division (5.7% of all Credit Union Division fees collected in FY 2020). These fees were deposited into the Commerce Revolving Fund. State-chartered credit unions converting to federally chartered credit unions are not required to pay assessments to the Iowa Credit Union Division or to remit moneys and credits tax payments to the State of Iowa. The moneys and credits tax on State credit unions is assessed at a rate of 0.5% on each dollar of the legal and special reserves that credit unions are required to maintain under Iowa Code section 533.303. Each State credit union receives an exemption in the amount of $40,000. The State share of moneys and credits tax payments remitted by credit unions is collected by the Iowa Department of Revenue and is deposited into the General Fund. Cities and counties also receive a percentage (30.0% and 20.0%, respectively) of the moneys and credits tax payments collected.
The table below shows the State share of moneys and credits tax payments remitted by credit unions for the past five fiscal years.
Moneys and Credits Tax Payments
Deposited into General Fund
FY 2016 – FY 2020
Assumptions
- At least one State-chartered credit union has been identified that will convert to a federally chartered credit union. This credit union paid $282,000 in assessments to the Iowa Credit Union Division (12.7% of all Credit Union Division fees collected in FY 2020).
- A State-chartered credit union can convert to a federally chartered credit union in one fiscal year. If a credit union does not convert until the end of a fiscal year, the Credit Union Division can collect the full assessment owed to the Division.
Fiscal Impact
The full fiscal impact to the Commerce Revolving Fund cannot be determined as it is not possible to estimate how many State-chartered credit unions will convert to federally chartered credit unions as a result of the Bill. The revenue decrease to the Fund is estimated to be at least $280,000 due to the one identified State-chartered credit union that will convert to a federally chartered credit union. Additionally, the decrease to the General Fund, cities, and counties due to the loss in moneys and credits tax payments cannot be determined as legal and special reserves required to be maintained by State credit unions vary by credit union.
Sources
- I/3 State Accounting System
- LSA Fee Project
- Iowa Credit Union Division, Department of Commerce
- Credit Union Acquisition of Bank Assets · 22 de marzo de 2021 · $280,000
Lo que cambia del Código de Iowa (Iowa Code)
Crea§524.1423
Cabildeo
3 a favor · 4 en contra · 3 indecisos · Quiénes →
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Study bill
89th General Assembly