§ 527.5

527.5 Satellite terminal requirements. A satellite terminal may be utilized by a financial institution to the extent permitted in this chapter only if the satellite terminal is utilized and maintained in compliance with theprovisions of this chapter and only if all of the following are complied with: 1. A satellite terminal in this state may be established by one or more financial institutions. The establishing financial institutions shall designate a single controlling financial institution which shall maintain the location, use, and operation of the satelliteterminal, wherever located, in compliance with this chapter. The use and operation of asatellite terminal shall be governed by a written agreement between the controlling financialinstitution and the person controlling the physical location at which the satellite terminalis placed. The written agreement shall specify all of the terms and conditions, includingany fees and charges, under which the satellite terminal is placed at that location. If thesatellite terminal is a multiple use terminal, the written agreement shall specify, and maylimit, the specific types of transactions incidental to the conduct of the business of a

hat location. If thesatellite terminal is a multiple use terminal, the written agreement shall specify, and maylimit, the specific types of transactions incidental to the conduct of the business of a financialinstitution which may be engaged in through that terminal. 2. a. A satellite terminal shall be available for use on a nondiscriminatory basis by any other financial institution which has its principal place of business within this state, and byall customers who have been designated by a financial institution using the satellite terminaland who have been provided with an access device, approved by the administrator, by whichto engage in electronic transactions by means of the satellite terminal. b. For the purposes of complying with paragraph 'a', an on-line point-of-sale terminal is not required to be available for use by customers of a financial institution by means of anaccess device by which an off-line point-of-sale terminal can be used to engage in electronictransactions. c. All off-line point-of-sale terminals located at the retail location or retail locations within this state of a single retailer are exempt from paragraph 'a' if electronic transactions can beinitiated

All off-line point-of-sale terminals located at the retail location or retail locations within this state of a single retailer are exempt from paragraph 'a' if electronic transactions can beinitiated at each of such terminals only by an access device unique to the retailer. d. Paragraph 'a' applies to a financial institution whose licensed or principal place of business is located in a state other than Iowa, whether or not the financial institution hasa business location in this state, if all satellite terminals or other similar type terminalsowned, controlled, operated, or maintained by the financial institution, wherever located,are available on a reciprocal basis to each financial institution with a principal place ofbusiness in this state and to each financial institution with a business location in this statewhich complies with this paragraph, and to all customers who have been designated by anysuch financial institution using the satellite terminal and who have been provided with anaccess device. 3. a. An informational statement shall be filed and shall be maintained on a current basis with the administrator by the financial institution controlling a satellite terminal in

ith anaccess device. 3. a. An informational statement shall be filed and shall be maintained on a current basis with the administrator by the financial institution controlling a satellite terminal in this state,which sets forth all of the following: (1) The name and business address of the controlling financial institution.(2) The location of the satellite terminal.(3) A schedule of the charges which will be required to be paid by a financial institution utilizing the satellite terminal. (4) An agreement with the administrator that the financial institution controlling the satellite terminal will maintain that satellite terminal in compliance with this chapter. b. The informational statement shall be accompanied by a copy of the written agreement required by subsection 1. The informational statement also shall be accompanied by astatement or copy of any agreement, whether oral or in writing, between the controllingfinancial institution and a data processing center or a central routing unit, unless operated byor solely on behalf of the controlling financial institution, by which transactions originatingat that terminal will be received. 4.

ata processing center or a central routing unit, unless operated byor solely on behalf of the controlling financial institution, by which transactions originatingat that terminal will be received. 4. A satellite terminal in this state shall not be attended or operated at any time by an employee of a financial institution or an affiliate of a financial institution, except for thepurpose of instructing customers, on a temporary basis, in the use of the satellite terminal, Sat Dec 23 01:30:43 2023 Iowa Code 2024, Section 527.5 (20, 0) §527.5, ELECTRONIC TRANSFER OF FUNDS 2 for the purpose of testing the terminal, or for the purpose of transacting business on theemployee’s own behalf. 5. A satellite terminal shall bear a sign or label no larger than three inches by two inches identifying the name, address, and telephone number of the owner of the satelliteterminal. The administrator may authorize methods of identification the administrator deems necessary to enable the general public to determine the accessibility of a satelliteterminal. 6. The charges required to be paid by any financial institution which utilizes the satellite terminal for transactions involving an access device

o determine the accessibility of a satelliteterminal. 6. The charges required to be paid by any financial institution which utilizes the satellite terminal for transactions involving an access device shall not exceed a pro rata portionof the costs, determined in accordance with generally accepted accounting principles, ofestablishing, operating and maintaining the satellite terminal, plus a reasonable return onthese costs to the owner of the satellite terminal. 7. If the administrator deems the informational statement or any amendment to that statement or amendment to be complete and finds no grounds for denying establishmentof a satellite terminal, the administrator may notify the person filing the informationalstatement that the administrator has expressly approved the establishment and operationof the satellite terminal as described in the informational statement or amendment andaccording to the agreements attached to the statement or amendment. Operation of the satellite terminal may commence immediately upon a person receiving such expressapproval from the administrator. If the administrator finds grounds, under any applicablelaw or rule, for denying establishment of a

minal may commence immediately upon a person receiving such expressapproval from the administrator. If the administrator finds grounds, under any applicablelaw or rule, for denying establishment of a satellite terminal the administrator shall notifythe person filing the informational statement or an amendment thereto, within thirty daysof the filing thereof, of the existence of such grounds. If such notification is not given bythe administrator, the administrator shall be considered to have expressly approved theestablishment and operation of the satellite terminal as described in the informationalstatement or amendment and according to the agreements attached thereto, and operationof the satellite terminal in accordance therewith may commence on or after the thirtiethday following such filing. However, this subsection shall not be construed to prohibit theadministrator from enforcing the provisions of this chapter, nor shall it be construed toconstitute a waiver of any prohibition, limitation, or obligation imposed by this chapter. 8. a. Satellite terminals located in this state shall be directly connected to either of the following: (1) A central routing unit approved pursuant

limitation, or obligation imposed by this chapter. 8. a. Satellite terminals located in this state shall be directly connected to either of the following: (1) A central routing unit approved pursuant to this chapter.(2) A data processing center which is directly connected to a central routing unit approved pursuant to this chapter. b. If a data processing center which is directly connected to a satellite terminal located in this state does not authorize or reject a transaction originated at that terminal, thetransaction shall be immediately transmitted by the data processing center to a centralrouting unit approved pursuant to this chapter, unless one of the following applies: (1) The transaction is not authorized because of a mechanical failure of the data processing center or satellite terminal. (2) The transaction does not affect a customer asset account held by a financial institution.c. This subsection does not limit the authority of a data processing center to authorize or reject transactions requested by customers of a financial institution pursuant to an agreementwhereby the data processing center authorizes or rejects requested transactions on behalf ofthe financial

reject transactions requested by customers of a financial institution pursuant to an agreementwhereby the data processing center authorizes or rejects requested transactions on behalf ofthe financial institution and provides to the financial institution, on a batch basis and noton an on-line real time basis, information concerning authorized or rejected transactions ofcustomers of the financial institution. 9. A personal terminal may be utilized by a financial institution to the extent permitted by this chapter if the use and operation of the personal terminal is governed by a writtenagreement between the controlling financial institution and its customer and if the personalterminal is utilized and maintained in compliance with subsection 8 and all other applicablesections of this chapter. A telephone located at other than a personal residence and usedprimarily as a personal terminal must be utilized and maintained in compliance with thissection. 10. Any person, as defined in section 4.1, subsection 20, establishing a limited-function Sat Dec 23 01:30:43 2023 Iowa Code 2024, Section 527.5 (20, 0) terminal within this state, except for a multiple use terminal, which is utilized to

4.1, subsection 20, establishing a limited-function Sat Dec 23 01:30:43 2023 Iowa Code 2024, Section 527.5 (20, 0) terminal within this state, except for a multiple use terminal, which is utilized to initiatetransactions affecting a customer asset account shall file with the administrator andshall maintain on a current basis a registration statement on a form prescribed by theadministrator containing the name and address of the registrant, the location of thelimited-function terminal, and any other information the administrator deems relevant. Alllimited-function terminals established in this state prior to July 1, 1991, shall be registeredin a similar manner by the establishing person no later than July 1, 1992. 11. a. If at any time, a limited-function terminal at a location in this state off the premises of the financial institution is replaced by a device constituting either an on-line or an off-linepoint-of-sale terminal which may be utilized to initiate transactions which affect customerasset accounts through the use of an electronic personal identifier, or is upgraded, altered, ormodified to be operated in a manner which allows the use of an electronic personal identifierto

customerasset accounts through the use of an electronic personal identifier, or is upgraded, altered, ormodified to be operated in a manner which allows the use of an electronic personal identifierto initiate transactions which affect customer asset accounts, or an on-line or an off-linepoint-of-sale terminal which may be utilized to initiate transactions which affect customerasset accounts through the use of an electronic personal identifier is newly established at alocation in this state off the premises of the financial institution, then such upgraded, altered,or modified limited-function terminal or replacement point-of-sale terminal or such newlyestablished point-of-sale terminal is deemed to be a full-function point-of-sale terminal forpurposes of this subsection and all requirements of a satellite terminal in this chapter applyto the full-function point-of-sale terminal with regard to all transactions affecting customerasset accounts which are initiated through the use of an electronic personal identifier, exceptfor section 527.4, subsection 3, and subsections 1, 3, and 7 of this section. b.

tions affecting customerasset accounts which are initiated through the use of an electronic personal identifier, exceptfor section 527.4, subsection 3, and subsections 1, 3, and 7 of this section. b. A full-function point-of-sale terminal, as identified in paragraph 'a', which is operated in a manner which permits all access devices to be utilized to initiate transactions whichaffect customer asset accounts, and where all such transactions can be directly routed forauthorization purposes as established in this subsection, is also exempt from the provisionsof subsection 8. However, if a data processing center directly connected to such full-functionpoint-of-sale terminal does not authorize or reject a transaction affecting a customer assetaccount initiated at the terminal through the use of an electronic personal identifier, thetransaction shall be immediately transmitted by the data processing center to either of thefollowing: (1) A central routing unit approved pursuant to this chapter.(2) An electronic funds transfer processing facility maintained or operated by a national card association and utilized for the processing of transactions initiated through the use ofelectronic

apter.(2) An electronic funds transfer processing facility maintained or operated by a national card association and utilized for the processing of transactions initiated through the use ofelectronic funds transfer transaction cards or access devices depicting a service mark, logo,or trademark associated with the national card association. However, if the national cardassociation’s processing facility is unable to immediately authorize or reject a transactionaffecting a customer asset account initiated at that terminal through the use of an accessdevice which bears a service mark, logo, or trademark associated with a central routingunit approved pursuant to this chapter but does not bear a service mark, logo, or trademarkassociated with a national card association, or which bears a service mark, logo, ortrademark other than that associated with either a central routing unit approved pursuant tothis chapter or a national card association, the transaction shall be immediately transmittedto a central routing unit approved pursuant to this chapter, whether the transaction initiatedthrough the use of such access device was transmitted to the national card association’sprocessing

smittedto a central routing unit approved pursuant to this chapter, whether the transaction initiatedthrough the use of such access device was transmitted to the national card association’sprocessing facility by a data processing center directly connected to the full-functionpoint-of-sale terminal, or the national card association’s processing facility received thetransmission of transaction data directly from the full-function point-of-sale terminal. c. If the national card association’s electronic funds transfer processing facility directly or indirectly receives a transaction affecting a customer asset account initiated at a full-functionpoint-of-sale terminal through the use of an electronic personal identifier and an accessdevice bearing a service mark, logo, or trademark associated with a national card association,whether or not the access device also bears the service mark, logo, or trademark of anapproved central routing unit, and the national card association’s processing facility cannotimmediately authorize or reject the transaction, such transaction shall be immediatelytransmitted to a central routing unit approved pursuant to this chapter, or to a financial Sat Dec 23

ility cannotimmediately authorize or reject the transaction, such transaction shall be immediatelytransmitted to a central routing unit approved pursuant to this chapter, or to a financial Sat Dec 23 01:30:43 2023 Iowa Code 2024, Section 527.5 (20, 0) §527.5, ELECTRONIC TRANSFER OF FUNDS 4 institution, or its data processing center, which is capable of immediately authorizing orrejecting the transaction. d. For purposes of this subsection, a national card association must be a membership corporation or organization, wherever incorporated and maintaining a principal placeof business, which is engaged in the business of administering for the benefit of theassociation’s members a program involving electronic funds transfer transaction cards oraccess devices depicting a service mark, logo, or trademark associated with the national cardassociation and which may be utilized to perform transactions at point-of-sale terminals. Anational card association must have a membership solely comprised of insured depositoryfinancial institutions, organizations directly or indirectly owned or controlled solely byinsured depository financial institutions, entities wholly owned by one or more

omprised of insured depositoryfinancial institutions, organizations directly or indirectly owned or controlled solely byinsured depository financial institutions, entities wholly owned by one or more insureddepository financial institutions, holding companies having at least two-thirds of their assetsconsisting of the voting stock of insured depository financial institutions, organizationswholly owned by one or more holding companies having at least two-thirds of their assetsconsisting of the voting stock of insured depository financial institutions and which are solelyengaged in activities related to the programs sponsored by the national card association, orsuch other entities or organizations which are authorized by the national card association’sbylaws to participate in the electronic funds transfer transaction card or access deviceprograms or other services and programs sponsored by the national card association.For purposes of this subsection, a national card association shall not include a financialinstitution, bank holding company as defined in section 524.1801, or in the federal BankHolding Company Act of 1956, 12 U.S.C.

his subsection, a national card association shall not include a financialinstitution, bank holding company as defined in section 524.1801, or in the federal BankHolding Company Act of 1956, 12 U.S.C. §1842(d), as amended to July 1, 1994, or any otherfinancial institution holding company organized under federal or state law, or a subsidiaryor affiliate corporation owned or controlled by a financial institution or financial institutionholding company, which has authorized a customer or member to engage in satelliteterminal transactions. For purposes of this subsection, a national card association shall alsonot include a membership corporation or organization which is conducting business as aregional or nationwide network of shared electronic funds transfer terminals which do notconstitute point-of-sale terminals, and is engaged in satellite terminal transaction servicesutilizing a common service mark, logo, or trademark to identify such terminal services. e. This subsection does not apply to satellite terminals located in this state, other than on-line and off-line full-function point-of-sale terminals as identified in this subsection, ormultiple use terminals located in this state

ly to satellite terminals located in this state, other than on-line and off-line full-function point-of-sale terminals as identified in this subsection, ormultiple use terminals located in this state which are capable of being operated in a mannerto initiate transactions affecting customer asset accounts through the use of an electronicpersonal identifier. 12. Effective July 1, 1994, any transaction engaged in with a retailer through a satellite terminal at a location in this state off the premises of the financial institution by meansof an access device which results in a debit to a customer asset account shall be clearedand paid at par during the settlement of such transaction. Notwithstanding the terms ofany contractual agreement between a retailer or financial institution and a national cardassociation as described in subsection 11, an electronic funds transfer processing facility ofa national card association, a central routing unit approved pursuant to this chapter, or adata processing center, the processing fees and charges for such transactions to the retailershall be as contractually agreed upon between the retailer and the financial institution whichestablishes, owns,

rocessing center, the processing fees and charges for such transactions to the retailershall be as contractually agreed upon between the retailer and the financial institution whichestablishes, owns, operates, controls, or processes transactions initiated at the satelliteterminal. All accounting documents reflecting such fees and charges imposed on the retailershall separately identify transactions which have resulted in a debit to a customer assetaccount and the charges imposed. The provisions of this subsection shall apply to all satellite terminals, including limited-function terminals, full-function point-of-sale terminalsas identified in subsection 11, paragraph 'a', and multiple use terminals. [C77, 79, 81, §527.5; 82 Acts, ch 1094, §2]87 Acts, ch 158, §5 – 11; 89 Acts, ch 86, §12 – 14; 91 Acts, ch 216, §7 – 11; 93 Acts, ch 36, §1; 93 Acts, ch 37, §1; 95 Acts, ch 66, §3, 4; 96 Acts, ch 1094, §1, 2; 2000 Acts, ch 1232, §104 –107; 2012 Acts, ch 1017, §123; 2012 Acts, ch 1023, §157 Referred to in §527.2, 527.3, 527.9, 715A.10 Sat Dec 23 01:30:43 2023 Iowa Code 2024, Section 527.5 (20, 0)