§ 524.802A — Electronic activities of state bank

Iowa § 524.802A

• Jurisdiction: Iowa
• Title XIII: COMMERCE
• Ch. 524: BANKS

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1. Astatebankmayconductinelectronicformanyactivitiesthatareexpresslyauthorized
forstatebanksunderanyprovisionofthischapter,includinginsections524.801,524.802,and
524.804, andactivitiesthatarethefunctionalequivalentofanyactivitiesexpresslyauthorized
for state banks under this chapter. A state bank may perform, provide, or deliver through
electronic means any activity, function, product, or service it is authorized to perform by any
provision of this chapter and must comply with all applicable laws and regulations.
2. Subject to the prior approval of the superintendent, a state bank may, beginning on
July 1, 2021, engage in new or innovative electronic activities that are part of the business
of banking. When determining whether a state bank is authorized to engage in a new or
innovative electronic activity that is not traditionally offered by banks via electronic means,
the superintendent shall consider whether the activity is expressly authorized for state banks
under this chapter, whether the activity is the functional equivalent of any activity authorized
for state banks, whether the activity is a logical extension of any activity authorized for state
banks, whether the state bank has the expertise necessary to understand and manage the
activity, and whether the activity presents risks similar to those state banks already assume.
3. A state bank that engages in any new or innovative electronic activities must conduct
these activities in a safe and sound manner and must maintain adequate systems to identify,
measure, monitor, and control the risks associated with its electronic activities. These
systems must include policies, procedures, internal controls, and management information
systems governing the electronic activities of the state bank and may be tailored to the
specific risks presented by the electronic activities of the state bank. A state bank engaging
in new or innovative electronic activities must also maintain adequate and effective
information security infrastructure and controls.
4. The superintendent may adopt rules pursuant to chapter 17A to implement the
provisions of this section, including but not limited to application procedures, identifying
the systems, processes, and technologies a state bank must maintain in order to engage
in certain new or innovative electronic activities, and determining that additional new or
innovative electronic activities are authorized for state banks without prior approval.