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December 1, 2015

ICCC Notification and Fees Requirement - Out of State Banks

RE: Iowa Consumer Credit Code

Notification and Fees Requirement

Dear ****:

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,[1] 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).[2]


Kathleen E. Keest

Assistant Attorney General

Deputy Administrator, Iowa

Consumer Credit Code


CC: Rodney E. Reed

Finance Bureau Chief

Iowa Division of Banking

[1] 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.

[2] 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.

ICCC Informal Advisory 106 (PDF)



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