12.61 STATE-SPONSORED CREDIT CARD.
1. For purposes of this section, unless the context otherwise
requires:
a. "Financial institution" means a state bank as defined in
section 524.103, subsection 39, a federally chartered state bank
having its principal office within this state, a federally chartered
credit union having its principal office within this state, a
federally chartered savings and loan association having its principal
office within the state, a credit union organized under chapter 533,
an association incorporated or authorized to do business under
chapter 534, or a trust company organized or incorporated under the
laws of this state.
b. "Financial institution credit card" means a credit card
that entitles the holder to make open-account purchases up to an
approved amount and is issued through the agency of a financial
institution.
c. "Sponsoring entity" means an entity that allows its name
or logo to be used on a particular financial institution credit card
in exchange for a fee from the credit card issuer.
2. The treasurer is authorized to participate in a financial
institution credit card program for the benefit of the state. Within
six months of May 27, 1989, the treasurer shall contact each
financial institution to determine if:
a. The financial institution or its Iowa holding company or
Iowa affiliate currently administers a credit card program.
b. The credit card program provides a fee or commission on
retail sales to the sponsoring entity for the issuance and use of the
credit card.
c. The credit card program would accept the state as a
sponsoring entity.
3. If the treasurer determines that the state may be a sponsoring
entity for a financial institution credit card, the treasurer shall
negotiate the most favorable rate for the state's fee by a credit
card issuer.
a. The state shall not offer a more favorable rate to any
other credit card issuer.
b. The rate must be expressed as a percentage of the gross
sales from the use of the credit card.
c. The proceeds of the fee shall be deposited in the Iowa
resources enhancement and protection fund created under section
455A.18.
d. The treasurer shall recommend a logo or design for the
state-sponsored credit card indicating the use for which the revenues
will be used.
4. In selecting a credit card issuer, the treasurer shall
consider the issuer's record of investments in the state, shall take
into consideration credit card features which will enhance the
promotion of the state-sponsored credit card including, but not
limited to, favorable interest rates, annual fees, and other fees for
using the card, and shall require that the card be available to any
person who qualifies for a credit card.
5. Upon entering into an agreement with the financial
institution, the treasurer shall notify all state agencies then
possessing a credit card to obtain the new state-sponsored credit
card.
12.61 STATE-SPONSORED CREDIT CARD.
1. For purposes of this section, unless the context otherwise
requires:
a. "Financial institution" means a state bank as defined in
section 524.103, subsection 39, a federally chartered state bank
having its principal office within this state, a federally chartered
credit union having its principal office within this state, a
federally chartered savings and loan association having its principal
office within the state, a credit union organized under chapter 533,
an association incorporated or authorized to do business under
chapter 534, or a trust company organized or incorporated under the
laws of this state.
b. "Financial institution credit card" means a credit card
that entitles the holder to make open-account purchases up to an
approved amount and is issued through the agency of a financial
institution.
c. "Sponsoring entity" means an entity that allows its name
or logo to be used on a particular financial institution credit card
in exchange for a fee from the credit card issuer.
2. The treasurer is authorized to participate in a financial
institution credit card program for the benefit of the state. Within
six months of May 27, 1989, the treasurer shall contact each
financial institution to determine if:
a. The financial institution or its Iowa holding company or
Iowa affiliate currently administers a credit card program.
b. The credit card program provides a fee or commission on
retail sales to the sponsoring entity for the issuance and use of the
credit card.
c. The credit card program would accept the state as a
sponsoring entity.
3. If the treasurer determines that the state may be a sponsoring
entity for a financial institution credit card, the treasurer shall
negotiate the most favorable rate for the state's fee by a credit
card issuer.
a. The state shall not offer a more favorable rate to any
other credit card issuer.
b. The rate must be expressed as a percentage of the gross
sales from the use of the credit card.
c. The proceeds of the fee shall be deposited in the Iowa
resources enhancement and protection fund created under section
455A.18.
d. The treasurer shall recommend a logo or design for the
state-sponsored credit card indicating the use for which the revenues
will be used.
4. In selecting a credit card issuer, the treasurer shall
consider the issuer's record of investments in the state, shall take
into consideration credit card features which will enhance the
promotion of the state-sponsored credit card including, but not
limited to, favorable interest rates, annual fees, and other fees for
using the card, and shall require that the card be available to any
person who qualifies for a credit card.
5. Upon entering into an agreement with the financial
institution, the treasurer shall notify all state agencies then
possessing a credit card to obtain the new state-sponsored credit
card.
12.61 STATE-SPONSORED CREDIT CARD.
1. For purposes of this section, unless the context otherwise
requires:
a. "Financial institution" means a state bank as defined in
section 524.103, subsection 39, a federally chartered state bank
having its principal office within this state, a federally chartered
credit union having its principal office within this state, a
federally chartered savings and loan association having its principal
office within the state, a credit union organized under chapter 533,
an association incorporated or authorized to do business under
chapter 534, or a trust company organized or incorporated under the
laws of this state.
b. "Financial institution credit card" means a credit card
that entitles the holder to make open-account purchases up to an
approved amount and is issued through the agency of a financial
institution.
c. "Sponsoring entity" means an entity that allows its name
or logo to be used on a particular financial institution credit card
in exchange for a fee from the credit card issuer.
2. The treasurer is authorized to participate in a financial
institution credit card program for the benefit of the state. Within
six months of May 27, 1989, the treasurer shall contact each
financial institution to determine if:
a. The financial institution or its Iowa holding company or
Iowa affiliate currently administers a credit card program.
b. The credit card program provides a fee or commission on
retail sales to the sponsoring entity for the issuance and use of the
credit card.
c. The credit card program would accept the state as a
sponsoring entity.
3. If the treasurer determines that the state may be a sponsoring
entity for a financial institution credit card, the treasurer shall
negotiate the most favorable rate for the state's fee by a credit
card issuer.
a. The state shall not offer a more favorable rate to any
other credit card issuer.
b. The rate must be expressed as a percentage of the gross
sales from the use of the credit card.
c. The proceeds of the fee shall be deposited in the Iowa
resources enhancement and protection fund created under section
455A.18.
d. The treasurer shall recommend a logo or design for the
state-sponsored credit card indicating the use for which the revenues
will be used.
4. In selecting a credit card issuer, the treasurer shall
consider the issuer's record of investments in the state, shall take
into consideration credit card features which will enhance the
promotion of the state-sponsored credit card including, but not
limited to, favorable interest rates, annual fees, and other fees for
using the card, and shall require that the card be available to any
person who qualifies for a credit card.
5. Upon entering into an agreement with the financial
institution, the treasurer shall notify all state agencies then
possessing a credit card to obtain the new state-sponsored credit
card.
