Iowa Code 12.61 – State-sponsored credit card
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1. For purposes of this section, unless the context otherwise requires:
a. “Financial institution” means a state bank as defined in section 524.103, 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, 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.
Terms Used In Iowa Code 12.61
- person: means individual, corporation, limited liability company, government or governmental subdivision or agency, business trust, estate, trust, partnership or association, or any other legal entity. See Iowa Code 4.1
- state: when applied to the different parts of the United States, includes the District of Columbia and the territories, and the words "United States" may include the said district and territories. See Iowa Code 4.1
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.