Nothing in this chapter shall be construed to require a financial institution to do any of the following, or to be responsible or liable for any of the following:
 1. Designate or label within the financial institution’s account contracts, systems, or in any other manner, an account as a first-time homebuyer savings account.

Terms Used In Iowa Code 541B.5

  • Account: means the same as defined in section 554. See Iowa Code 554E.1
  • Beneficiary: A person who is entitled to receive the benefits or proceeds of a will, trust, insurance policy, retirement plan, annuity, or other contract. Source: OCC
  • Department: means the department of revenue. See Iowa Code 541B.2
  • Designated beneficiary: means an individual meeting the requirements of section 541B. See Iowa Code 541B.2
  • Eligible home costs: includes any United States veterans administration funding fee incurred by, or charged or assigned to, a designated beneficiary in connection with a veterans administration home loan guaranty program. See Iowa Code 541B.2
  • Financial institution: means a state or federally chartered bank, savings and loan association, credit union, or trust company in this state. See Iowa Code 541B.2
  • First-time homebuyer: means an individual who is a resident of Iowa and who does not own, either individually or jointly, a single-family or multifamily residence, and who has not owned or purchased, either individually or jointly, a single-family or multifamily residence for a period of three years prior to all of the following:
     a. See Iowa Code 541B.2
  • First-time homebuyer savings account: means an account that meets the requirements of sections 541B. See Iowa Code 541B.2
  • following: when used by way of reference to a chapter or other part of a statute mean the next preceding or next following chapter or other part. See Iowa Code 4.1
  • Qualified home purchase: means , with respect to a first-time homebuyer savings account, the purchase of a single-family residence in Iowa by the account's designated beneficiary ninety or more days after the date the account holder first opened a first-time homebuyer savings account. See Iowa Code 541B.2
 2. Ascertain or verify the purpose of a withdrawal of funds from a first-time homebuyer savings account, or track the destination or use of the withdrawn funds.
 3. Allocate funds in a first-time homebuyer savings account to a designated beneficiary or among joint account holders.
 4. Report any information to the department or any other governmental agency.
 5. Determine or ensure that an account satisfies the requirements to be a first-time homebuyer savings account.
 6. Determine or ensure that funds withdrawn from a first-time homebuyer savings account are used for the payment or reimbursement of a designated beneficiary‘s eligible home costs in connection with a qualified home purchase.
 7. Report or remit taxes or penalties related to the ownership or use of a first-time homebuyer savings account.
 8. Include the name of a beneficiary in the title of a first-time homebuyer savings account, or document the change of any beneficiary to a first-time homebuyer savings account.
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