RE: Iowa Consumer Credit Code
Notification and Fees Requirement
Mr. Reed, of the Banking Division, forwarded your inquiry to me concerning whether your institution has a statutory exemption from the ICCC notification and fees requirement of Iowa Code § 537.6201.
Out-of-state state chartered financial institutions do not fall within one of the statutory exemptions from the notification and fees requirement of Iowa Code § 537.6201(1):
This part applies to all of the following:
(1) Creditors engaged in consumer credit transactions and acts, practices or conduct involving consumer credit transactions to which this chapter applies pursuant to section 537.1201, but not to those licensed, certificated, or otherwise authorized to engage in business by chapter 524, 533, 534, 536, 536A.
As a financial institution chartered by the State of Virginia, **** is not "licensed, certificated, or otherwise authorized to engage in business by chapter 524 [Iowa-chartered banks], 533 [Iowa chartered credit unions], 534 [Iowa-chartered thrifts], 536 [Iowa licensed regulated lenders], 536A [Iowa-licensed industrial loan companies]."
The 1997 amendment which enables out-of-state state chartered banks, among others, to make "supervised loans" in Iowa without the need for additional licensure was an amendment to the definition of "supervised financial organization," Iowa Code § 537.1301(42). That amendment did not alter the list of entities exempt from the fees and notification requirements of Article 6, nor did it have the effect of granting out-of-state institutions a license, certification, or other authorization under Iowa Code chapters 524, 533, 536, or 536A. Therefore, an out-of-state state-chartered bank is not a entity which falls within the scope of the statutory exemption from the ICCC fees and notification requirement under § 537.6201(1).
Kathleen E. Keest
Assistant Attorney General
Deputy Administrator, Iowa
Consumer Credit Code
CC: Rodney E. Reed
Finance Bureau Chief
Iowa Division of Banking
 Iowa Code § 537.1201 defines the territorial application of the ICCC. That applies broadly to most transactions entered into or modified if the debtor is a resident of Iowa.
 Also, for your information, Iowa opted out of § 521 of the Depository Institutions Deregulation and Monetary Control Act of 1980, pursuant to § 525 of that Act. See Preamble, Iowa Code Chap. 537.