Iowa Admin. Code r. 781-4.4 - Qualifications on the certificate of deposit
(1) The minimum rate for the certificate of
deposit shall be 1 percent. The term shall not exceed one year but may be
renewed at the option of the treasurer .
(2) Interest must be calculated for the
actual number of days on a 3 65-day basis, except during leap year, when it
must be calculated for the actual number of days on a 366-day basis. Interest
must be paid to the treasurer upon maturity of the certificate of
deposit.
(3) The certificate of
deposit and accrued interest must be secured either by federal deposit
insurance or must be collateralized pursuant to Iowa Code chapter
12C.
(4) If the borrower pays the
loan in full prior to the maturity date of the certificate of deposit, the
lender shall, within ten days of the payment in full, remit the principal
balance of the certificate of deposit and the accrued interest thereon to the
treasurer .
(5) Funds shall be
transferred according to instructions from the treasurer .
(6) When a certificate of deposit is issued
or renewed, it shall be held in safekeeping by the lender The lender shall
provide the treasurer a safekeeping receipt or a photocopy of the certificate
of deposit upon issuance and at the time of renewal of the certificate of
deposit. The safekeeping receipt or photocopy must include:
a. Certificate of deposit number
b. Certificate of deposit rate.
c. Certificate of deposit amount.
d. Term of the certificate of
deposit.
e. Maturity date of the
certificate of deposit.
(7) The maximum period of eligibility for any
borrower or business is five years from the issue date of the first certificate
of deposit.
(8) If the certificate
of deposit is not renewed within ten days of the maturity date, the funds must
be remitted to the treasurer During the ten-day period, the funds shall
continue to earn interest.
(9) At
renewal of the certificate of deposit, the lender shall certify that the
certificate of deposit balance does not exceed the loan balance.
(10) A certificate of deposit for the
purposes of the LIFT program shall not be subject to a penalty for early
withdrawal or to any other terms and conditions that a financial institution
may otherwise place upon a certificate of deposit.
Notes
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