§ 536a-23

536A.23 Powers of industrial loan companies. 1. No industrial loan company licensed under the provisions of this chapter shall have the power and authority to: a. (1) Charge, receive, or collect interest at a rate exceeding ten cents on the hundred by the year, except that the interest may be computed when the note is made on thefull amount of the cash advanced on the loan from the date of the note to the date ofthe final installment thereof, and the interest so computed may be included in the note,notwithstanding any agreement to pay the entire amount in installments; or the interestmay be computed on the amount of the note and discounted or collected in advance whenthe loan is made, notwithstanding any agreement to pay the entire amount in installments.If the note is repayable in other than equal monthly installments, the interest may be anamount computed on the basis of the effective rates permitted as provided above; provided,however, there shall be no compounding of interest and when an interest rate as authorizedherein is advertised, or negotiated for with a prospective borrower, with intent that it becomputed by either of the two methods authorized herein, they being the

d when an interest rate as authorizedherein is advertised, or negotiated for with a prospective borrower, with intent that it becomputed by either of the two methods authorized herein, they being the 'add on' methodor the 'discount' method, in such case such rate shall be further described as to the methodof computation to be used, but interest computed by either method shall be stated to theborrower as provided in section 537.3210. (2) If a borrower elects to repay a loan secured by a mortgage or deed of trust upon real property which is a single-family or two-family dwelling or agricultural land at a date earlierthan is required by the terms of the loan, the licensee shall be governed by section 535.9. (3) The limitation on interest rate which is contained in this paragraph 'a' shall not apply to any loan in which the borrower is a corporation or investment trust or any other personwho is referred to in section 535.2, subsection 2. b. Charge, receive, or collect in advance, a service charge in excess of one dollar for each fifty dollars of the amount of the note, not to exceed a total of one hundred twenty dollars. c.

ection 2. b. Charge, receive, or collect in advance, a service charge in excess of one dollar for each fifty dollars of the amount of the note, not to exceed a total of one hundred twenty dollars. c. Require any borrower to purchase insurance from the lender as a condition for obtaining a loan. However, an industrial loan company may collect from the borrower, atthe option of the borrower, and transmit the premiums charged for insuring real or personalproperty used by the borrower as security for a loan and provided that such insuranceis obtained from a licensed insurance producer for an insurance company authorized todo business in Iowa; and the premiums charged for insuring the life of one party on theloan in an amount not to exceed the total amount of the note or contract, including cashadvance, interest and service charge, provided that no licensee shall require that the contractof life insurance be outstanding for more than the unpaid balance of the indebtednessand provided that such insurance is obtained from a licensed insurance producer for aninsurance company authorized to do business in Iowa; and an industrial loan companymay receive and transmit the premiums charged for

uch insurance is obtained from a licensed insurance producer for aninsurance company authorized to do business in Iowa; and an industrial loan companymay receive and transmit the premiums charged for accident and health insurance on theborrower, provided such insurance bears a reasonable relationship to the existing hazards orrisk of loss, and the aggregate benefits of which shall not exceed the approximate amount ofthe contractual payments on the loan outstanding at the time of loss, and provided that suchinsurance is obtained from a licensed producer for an insurance company authorized to dobusiness in Iowa. However, all life insurance rates in connection with industrial loans shallbe subject to the rules and regulations of the insurance commissioner of the state of Iowa. d. Engage in commercial activities or have an affiliate that engages in commercial activities. This paragraph shall not apply to an industrial loan company with an affiliatethat is engaged in commercial activities prior to January 1, 2006, if control of the industrialloan company is not thereafter transferred to an entity that engages in commercial activitiesdirectly or through an affiliate. e.

cial activities prior to January 1, 2006, if control of the industrialloan company is not thereafter transferred to an entity that engages in commercial activitiesdirectly or through an affiliate. e. Obtain or arrange a residential mortgage loan for a potential borrower from a third person, unless the industrial loan company also has a mortgage broker license and complieswith all provisions of chapter 535B. 2. Industrial loan companies licensed under the provisions of this chapter may purchase notes, contracts, mortgages, accounts, receivables, leases and securities of a type and kindauthorized by the superintendent. Sat Dec 23 01:39:24 2023 Iowa Code 2024, Section 536A.23 (15, 0) §536A.23, INDUSTRIAL LOANS 2 3. In addition to the other charges authorized by this chapter, industrial loan companies licensed under this chapter may collect an appraisal fee on a loan secured by a mortgage ordeed of trust upon real property, if the appraisal fee is bona fide, reasonable in amount, andnot for purposes of circumvention or evasion of this chapter. [C66, 71, 73, 75, 77, 79, S79, C81, §536A.23; 82 Acts, ch 1153, §8, 18(1)]84 Acts, ch 1205, §2; 89 Acts, ch 295, §1; 2001 Acts, ch 16, §34, 37;

r purposes of circumvention or evasion of this chapter. [C66, 71, 73, 75, 77, 79, S79, C81, §536A.23; 82 Acts, ch 1153, §8, 18(1)]84 Acts, ch 1205, §2; 89 Acts, ch 295, §1; 2001 Acts, ch 16, §34, 37; 2006 Acts, ch 1015, §18; 2008 Acts, ch 1160, §35 Sat Dec 23 01:39:24 2023 Iowa Code 2024, Section 536A.23 (15, 0)