§ 527.2 — Definitions

Iowa § 527.2

• Jurisdiction: Iowa
• Title XIII: COMMERCE
• Ch. 527: ELECTRONIC TRANSFER OF FUNDS

Text

As used in this chapter, the following definitions shall apply unless the context otherwise
requires:
1. “Access device” means a card, code, or other mechanism, or any combination thereof,
that may be used by a customer for the purpose of initiating a transaction by means of a
satellite terminal which will affect a customer asset account.
2. “Administrator” means and includes the superintendent of banking and the
superintendent of credit unions within the department of insurance and financial services
and the supervisor of industrial loan companies within the office of the superintendent of
banking. However, the powers of administration and enforcement of this chapter shall be
exercised only as provided in sections 527.3, 527.5, subsection 7, sections 527.11, 527.12,
and any other pertinent provision of this chapter.
3. “Batchbasis”meansthedeliveryofanaccumulationofmessagesrepresentingmultiple
transactions after completion of the transactions.
4. “Central routing unit” means any facility where electronic impulses or other indicia of
a transaction originating at a satellite terminal are received and are routed and transmitted
to a financial institution, or to a data processing center, or to another central routing unit,
wherever located.
5. “Completion of the transaction” means when the presence of the customer at a satellite
terminalisnolongerneededtoconsummatethesaleofgoodsorservices,togranttotheseller
the right to receive payment for the goods or services, and to issue a receipt to the customer.
6. “Customer asset account” or “account” means a demand deposit, share, checking,
savings, or other customer account, other than an occasional or incidental credit balance in
a credit plan, which represents a liability of the financial institution which maintains such
account at a business location or office located in this state, either directly or indirectly for
the benefit of a customer.
7. “Data processing center” means a facility, wherever located, at which electronic
impulses or other indicia of a transaction originating at a satellite terminal are received
and are processed in order to enable the satellite terminal to perform any function for
which it is designed. However, “data processing center” does not include a facility which is
directly connected to a satellite terminal and which performs only the functions of direct
transmission of all requested transactions from that terminal to a data processing facility

without performing any review of the requested transactions for the purpose of categorizing,
separating, or routing. “Categorizing” means the process of reviewing and grouping of
requested electronic funds transfer transactions according to the source or nature of the
requested transaction. “Separating” means the process of interpreting and segregating
requested electronic funds transfer transactions, or portions of such transactions, to provide
for processing of information relating to such requested transactions or portions of such
transactions. “Routing” means the process of interpreting and transmitting requested
electronic funds transfer transactions to a destination selected at the time of interpretation
and transmission from two or more alternative destinations.
8. “Electronicpersonalidentifier”meansapersonalandconfidentialcodeorothersecurity
mechanism which has been designated by a financial institution issuing an access device to
a customer to serve as a supplemental means of access to a customer’s account that may
be used by the customer in conjunction with an access device for the purpose of initiating a
transaction by means of a satellite terminal.
9. “Financial institution” means and includes any bank incorporated under the provisions
ofanystateorfederallaw,anysavingsandloanassociationincorporatedundertheprovisions
of federal law, any credit union organized under the provisions of any state or federal law,
any corporation licensed as an industrial loan company under chapter 536A, and any affiliate
of a bank, savings and loan association, credit union, or industrial loan company.
10. “Limited-function terminal” means an on-line point-of-sale terminal, an off-line
point-of-sale terminal, or a multiple use terminal, which is not operated in a manner to
accept an electronic personal identifier. Except as otherwise provided, a limited-function
terminal shall not be subject to the requirements imposed upon other satellite terminals
pursuant to sections 527.4 and 527.5, subsections 1, 2, 3, 7, and 8.
11. “Multiple use terminal” means any machine or device to which all of the following are
applicable:
a. The machine or device is established and owned or operated by a person who primarily
engages in a service, business or enterprise, including but not limited to the retail sale of
goods or services, but who is not organized under the laws of this state or under federal law
as a bank, savings and loan association, or credit union;
b. The machine or device is used by the person by whom it is owned or operated in some
capacity other than as a satellite terminal; and
c. A financial institution proposes to contract or has contracted to utilize that machine or
device as a satellite terminal.
12. “Municipal corporation” means an incorporated city.
13. “Office”meansandincludesanybusinesslocationinthisstateofafinancialinstitution
at which is offered the services of accepting deposits, originating loans, and dispensing cash,
by financial institution personnel in the office.
14. “Off-line point-of-sale terminal” means a satellite terminal at any location in this state
off the premises of the financial institution, other than an on-line point-of-sale terminal, that
satisfies all of the following:
a. The satellite terminal is not operated to accept deposits or to dispense scrip or other
negotiable instruments.
b. The satellite terminal is not operated to dispense cash except when operated by a
person other than the customer initiating the transaction.
c. The satellite terminal is utilized for the purpose of making payment to the provider of
goods or services purchased or provided at the location of the satellite terminal.
15. “On-line point-of-sale terminal” means a satellite terminal at any location in this state
offthepremisesofthefinancialinstitutionoperatedonanon-linerealtimebasis,thatsatisfies
all of the following:
a. The satellite terminal is not operated to accept deposits or to dispense scrip or other
negotiable instruments.
b. The satellite terminal is not operated to dispense cash except when operated by a
person other than the customer initiating the transaction.
c. The satellite terminal is utilized for the purpose of making payment to the provider of
goods or services purchased or provided at the location of the satellite terminal.

16. “On-line real time basis” means the delivery or return of a message initiated at a
satellite terminal through transmission of electronic impulses to or from a location remote
from the location of the satellite terminal prior to completion of the transaction.
17. “Personal terminal” means and includes a satellite terminal located in a personal
residenceandatelephone, whereverlocated, operatedbyacustomerofafinancialinstitution
for the purpose of initiating a transaction affecting a noncommercial account of the customer.
18. “Premises”meansandincludesonlythoselocationswhere,byapplicablelaw,financial
institutions are authorized to maintain a principal place of business and other offices for
the conduct of their respective businesses; provided that with respect to an industrial loan
company, “premises” means only a location where business may be conducted under a single
license issued to the industrial loan company.
19. “Reciprocal basis” means that a financial institution whose licensed or principal
place of business is located in this state has the express authority under the laws of a state
other than Iowa to conduct business under qualifications and conditions which are no more
restrictive than those imposed by the laws of the other state on financial institutions whose
licensed or principal place of business is located in the other state, as determined by the
administrator, and the laws of Iowa are no more restrictive of financial institutions whose
licensed or principal place of business is located in such other state than they are of financial
institutions whose licensed or principal place of business is located in this state.
20. “Satellite terminal” means and includes any machine or device located off the
premises of a financial institution, and any machine or device located on the premises of a
financial institution only if the machine or device is available for use by customers of other
financial institutions, whether attended or unattended, by means of which the financial
institution and its customers utilizing an access device may engage through either the
immediate transmission of electronic impulses to or from the financial institution or the
recording of electronic impulses or other indicia of a transaction for delayed transmission to
the financial institution, in transactions which affect a customer asset account and which
otherwise are specifically permitted by applicable law. However, the term “satellite terminal”
does not include any such machine or device, wherever located, if that machine or device
is not generally accessible to persons other than employees of a financial institution or an
affiliate of a financial institution.

Legislative History

[C77, 79, 81, §527.2]