Relating to financial institution acceptance of negotiable instruments, and providing penalties

Where it is now

Done: IntroducedFebruary 19, 2025
Done: SubcommitteeFebruary 20, 2025
Stopped: House committeeDied when the General Assembly ended
Next: Passes the House
Next: Senate committeeFunnel: by March 20, 2026
Next: Passes the Senate
Next: To the Governor
Next: Signed into law

Died when the session ended The General Assembly adjourned on October 2, 2026. Bills that didn’t pass both chambers died. What’s a funnel?

What’s in it

This bill relates to a financial institution’s acceptance of negotiable instruments. The bill defines “financial institution” to mean any bank incorporated under the provisions of any state or federal law, any savings and loan association incorporated under the provisions of federal law, any credit union organized under the provisions of any state or federal law, any corporation licensed as an industrial loan company under chapter 536A, and any affiliate of a bank, savings and loan association, credit union, or industrial loan company.

Read the full explanation

3104. The bill provides that a financial institution in the state shall accept tender of any negotiable instrument in exchange for issuance of a conditional credit to the tendering party, make a good-faith effort to obtain payment from the original issuer of the negotiable instrument, and remit cash to the original issuer from the payment of the negotiable instrument within two days following the receipt of the payment. The bill provides that a financial institution receiving the tender of a negotiable instrument may impose a fee for related services. The fee for the services shall not exceed the greater of $20, or percent of the lesser of the face amount of the tendered negotiable instrument or the amount of proceeds received by the financial institution. The bill provides that a financial institution shall not require the party tendering a negotiable instrument to open an account with the financial institution or present identification. The bill provides that a person who suffers a violation of the provisions of the bill may bring an action to recover damages in an amount up to five times the amount of the negotiable instrument and attorney fees. If a financial institution has denied acceptance of a negotiable instrument three or more times, the financial institution shall pay a civil penalty of between $10,000 and $25,000, as determined by the court.

From the explanation printed with the bill as introduced, written by the Legislative Services Agency. Amendments adopted later aren’t reflected. Full bill text

House subcommittee

Named February 20, 2025. On February 25, 2025 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

Iowa Code it changes

Creates§525.1 §525.2 §525.3

Read from the bill as introduced. Each links to every bill touching that chapter of the Iowa Code. How the Code works

Lobbying

0 for · 2 against · 0 undecided · Who →

Family tree

Where this legislation came from and where it went: earlier tries, the versions it moved through this Assembly, and later bills built on it.

Tried before

HF 2474Cleared committee90th GA

91st General Assembly

HF 475Cleared committee

Earlier and later bills are matched by wording or an identical title; check the text to be sure it’s the same idea.

Tried before

This idea has been filed in an earlier General Assembly. None got through a chamber.

HF 2474 Relating to financial institution acceptance of negotiable instruments, and providing pena…
90th General Assembly · In committee · same title
Cleared committee

Matched by the wording of each bill’s explanation, or an identical title. Companion bills and renumbered versions of this bill aren’t listed; they’re the same bill.