About the Iowa Division of Credit Unions

History of Iowa Division of Credit Unions

The Iowa Credit Union Act was passed by the Iowa Legislature in 1925. The Act provided that state credit unions were to be regulated by the Iowa Superintendent of Banking and that a “credit union shall be deemed an institution for savings and shall be subject to taxation only as to its real estate, moneys and credits. The shares shall not be taxed.” The supervision and regulation of credit unions remained under the Superintendent of Banking until January 1, 1979.

The Department of Credit Unions was established January 1, 1979, by the 67th General Assembly, and was reorganized as the Division of Credit Unions within the Department of Commerce by the 71st General Assembly, July 1, 1986. It was during this time that the responsibility for the supervision and regulation of credit unions was transferred to the Superintendent of Credit Unions.

The Superintendent of Credit Unions is appointed by and serves at the pleasure of the Governor subject to confirmation by the Iowa Senate. The Governor appoints a seven-member Review Board for staggered three-year terms, also subject to confirmation of the Senate. Two of the Board members may be public members; however, at no time shall more than five of the members be directors or employees of a credit union. A list of nominees may be submitted to the Governor by any credit union located in the state. The Board may adopt, amend and repeal rules pursuant to Chapter 17A or take such action as it deems necessary or suitable to affect the provisions of Chapter 533, Code of Iowa.

The Superintendent of Credit Unions is charged with the supervision, control and enforcement of the laws, bylaws, rules and regulations pertaining to the organization and operation of credit unions operating under a state charter. It is the intent and responsibility of the Superintendent and Credit Union Division staff to protect the interests and corporate rights of the more than 1,000,000 members of Iowa credit unions. This is done through regular examination and analysis of the operation of each credit union, with such remedial action taken as deemed necessary.

In addition, the Division provides an orderly process for the chartering, merger, conversion, and liquidation of state credit unions. It advises governmental bodies and agencies and individuals in the matters of credit union affairs; provides fundamental and technical assistance to credit unions; provides state liaison with authorized member account insurers; and maintains an equitable fee structure and offset of division expenditures.

By law, credit unions operating in Iowa must acquire and maintain account insurance to protect each shareholder and depositor against loss of funds held on account by the credit union. The insurance must be obtained from the National Credit Union Administration, an agency of the Federal government.

Katie Averill
Superintendent of Credit Unions
200 East Grand
Des Moines, IA 50309-1827
(515) 725-0505