Iowa Code Section 533 Changes
The Division’s Legislation, Senate File 409, was signed by the Governor on March 23, 2017, and takes effect July 1, 2017. It is primarily a technical bill intended to make the Code reflect current Division practice.
Additions were made to Code §533.113 regarding exam confidentiality, placing into the statute what has been printed on the examination report for many years. These additions formally allow the Division’s process for delivering examination reports, with the credit union’s consent, to authorized third parties such as auditors, the Federal Home Loan Bank, and potential merger partners via the completion of a confidentiality agreement by all parties. This process assures that the examination results have not been altered, since delivery is direct from the Division, and allows the Division to track where its examination reports are delivered. No sharing of examination reports may occur other than through this process. A penalty provision is included.
Section 533.113, titled Examinations, has both provided for a meeting of the board of directors after the credit union receives the report of examination, and for a meeting of the board whenever the Superintendent deems it necessary and advisable. Recognizing that there may be circumstances where the Superintendent finds it necessary to call a meeting of the credit union board members which may not be directly related to an examination, the Division’s Assistant Attorney General advised the Division to move these provisions from the Examinations section to a new section. Thus, subsections 4 and 7 from former §533.113 are combined in a new §533.113A titled Meetings of the board called by superintendent, and those subsections are deleted from §533.113.
If you have any questions about this year’s legislation, you may contact the Division.