Iowa Code § 536A.1
Title
This chapter may be referred to as the “Iowa Industrial Loan Law”.
Iowa Code Chapter 536A — Industrial Loans
Iowa · statute · Iowa Code ch. 536A · 33 active provisions
Iowa Code § 536A.2
Definitions
The following words and terms when used in this chapter shall have the following meanings unless the context clearly requires a different meaning: 1. “Administrator” means the person designated in section 537.6103. 2. “Affiliate” means the same as defined in 12 U.S.C. §1841(k). 3. “Commercial activities” means activiti…
Iowa Code § 536A.3
License
With respect to a loan other than a consumer loan, a person shall not engage in the business of operating an industrial loan company in this state without first having obtained a license from the superintendent. With respect to a consumer loan, a person required by section 537.2301 to have a license is not authorized t…
Iowa Code § 536A.4
Limitations
A license shall not be issued to any individual, partnership, nonprofit organization, or unincorporated association. A license shall not be issued to an applicant that engages in commercial activities directly or through an affiliate. Not more than one place of business where loans are made shall be maintained under th…
Iowa Code § 536A.5
Exemptions
This chapter does not apply to any of the following: 1. Businesses organized or operating as permitted under the authority of a law of this state or the United States relating to banks, trust companies, building and loan associations, savings and loan associations, insurance companies, regulated loan companies organize…
Iowa Code § 536A.6
Administration by superintendent
The superintendent shall supervise the operation of industrial loan companies in this state in accordance with this chapter.
Iowa Code § 536A.7
Application for license
1. The application for a license to engage in the business of operating an industrial loan company shall be in the form as may be prescribed by the superintendent. The application shall give all of the following information: a. The name of the corporation. b. The location where the business is to be conducted, includin…
Iowa Code § 536A.7A
Bonds
1. An applicant for a license shall file with the superintendent a bond furnished by a surety company authorized to do business in this state. Until such time as the superintendent pursuant to administrative rule determines a bond amount that reflects the dollar value of the loans originated, the bond shall be in the a…
Iowa Code § 536A.8
Capital stock requirement
The paid-in capital stock of any corporation engaged in the business of operating an industrial loan company shall not be less than twenty-five thousand dollars when the corporation is transacting business in any city having less than twenty-five thousand inhabitants according to the last preceding decennial census. Th…
Iowa Code § 536A.9
Investigation of application
Upon the filing of an application for a license to engage in the business of operating an industrial loan company, and upon payment of the investigation fee and license fee as required by section 536A.7, the superintendent shall cause an investigation to be made of the facts set forth in the application. If as the resu…
Iowa Code § 536A.10
Issuance of license
1. The superintendent shall approve the application and issue to the applicant a license to engage in the industrial loan business in accordance with the provisions of this chapter, if the superintendent shall find: a. That the financial responsibility, experience, character and general fitness of the applicant and of…
Iowa Code § 536A.11
Denial of license
1. If the superintendent shall not approve the application, the superintendent shall prepare a written denial of the application with a written finding of facts which shall be sent by certified mail to the applicant. Within fifteen days after mailing of notice of the denial of its application, the applicant may file wi…
Iowa Code § 536A.12
Continuing license — annual fee — change of name or location — change of control
1. Each license remains in full force and effect until surrendered, revoked, or suspended, or until there is a change of control. 2. A licensee, on or before December 1, shall pay to the superintendent the sum of two hundred fifty dollars as an annual license fee for the succeeding calendar year. The licensee shall sub…
Iowa Code § 536A.13
Books and records
Each industrial loan company shall keep such books, accounts and records as will enable the superintendent to determine whether or not the licensee is complying with the provisions of this chapter. Industrial loan companies shall not be required to preserve or keep their records or files for a longer period than eleven…
Iowa Code § 536A.14
Reports
1. a. Each licensee shall annually on or before the fifteenth day of April file with the superintendent a report in writing showing the results of the operation of its industrial loan business for the previous calendar year, which reports shall contain: 1. A balance sheet showing all assets and liabilities as of the th…
Iowa Code § 536A.15
Examination of licensees
1. The superintendent or the superintendent’s designee shall, at least once each year without previous notice, examine the books, accounts, and records of each licensee engaged in the industrial loan business as defined by this chapter. A licensee issuing senior debt to the general public shall be audited at the expens…
Iowa Code § 536A.16
Cease and desist orders
If the superintendent has reasonable cause to believe that a licensee is violating this chapter or rules adopted pursuant to this chapter, the superintendent may, after ten days’ advance written notice, in addition to all actions provided for in this chapter, and without prejudice, enter an order requiring the licensee…
Iowa Code § 536A.17
Injunctions
The superintendent by counsel of the attorney general may commence an action in the district court, in the name of the state of Iowa as plaintiff on the relation of the superintendent to restrain and enjoin any licensee from violating this chapter or rules adopted pursuant to this chapter, or to restrain and enjoin any…
Iowa Code § 536A.18
Disciplinary action
1. The superintendent may, after notice and hearing pursuant to chapter 17A, take disciplinary action against a licensee if the superintendent finds any of the following: a. That the licensee has failed to pay the annual license fee required by this chapter or to maintain in effect the bond or bonds required under this…
Iowa Code § 536A.19
Receivership — liquidation
1. If the superintendent revokes the license of any industrial loan company, the superintendent shall promptly report the revocation to the attorney general, who may apply to the district court of the county in which the licensee had conducted its business for the appointment of a receiver to take possession of the ass…
Iowa Code § 536A.20
Real estate loans
1. A licensed industrial loan company may make permanent loans, construction loans, or combined construction and permanent loans, secured by liens on real property, as authorized by rules adopted by the superintendent under chapter 17A. These rules shall contain provisions as necessary to insure the safety and soundnes…
Iowa Code § 536A.21
Other business in same office
A licensee engaged in the business of operating an industrial loan company under the provisions of this chapter may not conduct its business within any office, room, suite, place of business, or premises in which commercial activities are conducted, unless the place where its business is conducted by the industrial loa…
Iowa Code § 536A.22
Thrift certificates
1. Licensed industrial loan companies shall not sell senior debt to the general public in the form of thrift certificates, installment thrift certificates, certificates of indebtedness, promissory notes, or similar evidences of indebtedness. 2. a. Licensees selling debt instruments on January 1, 1996, may continue to d…
Iowa Code § 536A.23
Powers of industrial loan companies
1. No industrial loan company licensed under the provisions of this chapter shall have the power and authority to: a. 1. Charge, receive, or collect interest at a rate exceeding ten cents on the hundred by the year, except that the interest may be computed when the note is made on the full amount of the cash advanced o…
Iowa Code § 536A.24
Electronic transactions
A licensee may engage in any transaction otherwise permitted by this chapter and applicable law, by means of either the direct transmission of electronic impulses or other indicia of a transaction for delayed transmission to the licensee. Subject to the provisions of chapter 527, a licensee may utilize, establish or op…
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