§ 524.821 — Electronic transmission of funds — restrictions

Iowa § 524.821

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

Text

1. A state bank may engage in any transaction incidental to the conduct of the business
of banking and otherwise permitted by applicable law, by means of either the direct
transmission of electronic impulses to or from customers and banks or the recording of
electronic impulses or other indicia of a transaction for delayed transmission to a bank.
Subject to the provisions of chapter 527, except as preempted by other applicable law, a
state bank may utilize, establish, or operate, alone or with one or more other banks, federal
savings associations, credit unions incorporated under the provisions of chapter 533 or
federal law, or third parties, the satellite terminals permitted under chapter 527, by means
of which customers and banks may transmit and receive electronic impulses constituting
transactions pursuant to this section. However, except as preempted by other applicable
law, such utilization, establishment, or operation shall be lawful only when in compliance
with chapter 527. Nothing in this section shall be construed as authority for any person to
engage in transactions not otherwise permitted by applicable law, nor shall anything in this
section be deemed to repeal, replace or in any other way affect any applicable law or rule
regarding the maintenance of or access to financial information maintained by any bank.
2. A state bank which offers its customers, or any of them, the opportunity to engage in
transactions with or through the state bank in the manner authorized by subsection 1 shall
not require a customer to deal with or through the state bank in that manner in lieu of writing
checks in the usual manner upon a conventional checking account, and shall not impose any
extraordinary charge upon customers who choose to write checks in the usual manner upon
a conventional checking account maintained at that state bank. The term “extraordinary
charge”,asusedinthissubsection,isachargeinexcessofafairandreasonablecharge,based
upon the costs to the state bank of providing and maintaining checking account services.

Legislative History

[C77, 79, 81, §524.821; 82 Acts, ch 1094, §1]