ARC 0364D

ARC 0364D

BANKING DIVISION[187]

Notice of Intended Action

Proposing rulemaking related to delayed deposit services
and providing an opportunity for public comment

    The Division of Banking hereby proposes to rescind Chapter 17, “Delayed Deposit Services,” Iowa Administrative Code.

Legal Authority for Rulemaking

    This rulemaking is proposed under the authority provided in Iowa Code section 533D.3.

State or Federal Law Implemented

    This rulemaking implements, in whole or in part, Iowa Code chapters 17A and 533D.

Purpose and Summary

    Pursuant to Executive Order 10 (2023), the Division proposes to rescind Chapter 17 and adopt a new chapter in lieu thereof. This proposed rulemaking eliminates language that is duplicative of statutory language, eliminates unnecessary and inconsistent language, removes unnecessarily restrictive terms, and updates outdated language. 

Regulatory Analysis

    A Regulatory Analysis for this rulemaking was published in the Iowa Administrative Bulletin on November 26, 2025. A public hearing was held on the following date(s):

     ?   December 16, 2025

     ?   December 18, 2025

Fiscal Impact

     This rulemaking has no fiscal impact to the State of Iowa.

Jobs Impact

    After analysis and review of this rulemaking, no impact on jobs has been found.

Waivers

    Any person who believes that the application of the discretionary provisions of this rulemaking would result in hardship or injustice to that person may petition the Division for a waiver of the discretionary provisions, if any, pursuant to 187—Chapter 12.

Public Comment

     Any interested person may submit written or oral comments concerning this proposed rulemaking, which must be received by the Division no later than 4:30 p.m. on July 14, 2026. Comments should be directed to:

Public Hearing

    Public hearings at which persons may present their views orally or in writing will be held as follows:

    Persons who wish to make oral comments at a public hearing may be asked to state their names for the record and to confine their remarks to the subject of this proposed rulemaking.

    Any persons who intend to attend a public hearing and have special requirements, such as those related to hearing or mobility impairments, should contact the Division and advise of specific needs.

Review by Administrative Rules Review Committee

    The Administrative Rules Review Committee, a bipartisan legislative committee which oversees rulemaking by executive branch agencies, may, on its own motion or on written request by any individual or group, review this rulemaking at its regular monthly meeting or at a special meeting. The Committee’s meetings are open to the public, and interested persons may be heard as provided in Iowa Code section 17A.8(6).

    The following rulemaking action is proposed:

    ITEM 1.  Rescind 187—Chapter 17 and adopt the following new chapter in lieu thereof:

CHAPTER 17

DELAYED DEPOSIT SERVICES

187—17.1(17A,533D) Definitions. For the purposes of this chapter, the definitions in Iowa Code chapter 533D shall apply. In addition, unless the context otherwise requires:

    “Delayed deposit transactions” means the activities of a “delayed deposit services business” as defined in Iowa Code section 533D.2(2).

    “Maker” means a person who issues a check in order to enter into a delayed deposit transaction.

    “Nationwide multistate licensing system” or “NMLS” means the same as “nationwide mortgage licensing system and registry” as defined in Iowa Code section 535D.3.

187—17.2(17A,533D) Utilization of NMLS.

    17.2(1) All application and licensing information shall be submitted through NMLS, including but not limited to the following: original application information; changes in application information; license renewal information; changes in name, location, and control; and notices of significant events.

    17.2(2) The applicant or licensee shall pay any fees required by NMLS, including but not limited to the following: initial set-up fee and annual processing fees, background check fees, and credit background check fees.

187—17.3(17A,533D) Application for license.

    17.3(1) An application for a license to operate a delayed deposit services business in Iowa shall be submitted to the superintendent, on the form provided and with the information requested, through NMLS. The superintendent may consider an application withdrawn if it does not contain all required information and the missing information is not submitted to the superintendent within 30 days after the superintendent requests the missing information. The applicant may also request that the application be withdrawn at any time before the superintendent has decided to grant or deny the application.

    17.3(2) Each officer, director and individual who has control of an applicant must provide fingerprints, authorize a fingerprint background check through NMLS, and pay the appropriate fees for the purpose of conducting a national criminal history background check through the Federal Bureau of Investigation.

    17.3(3) The applicant must submit the application fee specified in Iowa Code section 533D.3 and an initial license fee of $250. The superintendent shall refund the initial license fee if the application is denied, but the application fee is not subject to refund.

    17.3(4) If any information material to the application changes after the applicant files the initial application, the applicant shall provide updated information to the superintendent within ten days of the change. When such a material change in information has occurred, the superintendent may deny an application if the applicant fails to provide updated information within the prescribed time frame.

    17.3(5) An applicant must file with the superintendent a bond complying with the provisions of Iowa Code section 533D.3(3)“b.”

187—17.4(17A,533D) Grounds for approval or denial.

    17.4(1) The superintendent shall approve or deny a license application in accordance with the provisions of Iowa Code section 533D.3.

    17.4(2) The following may be considered evidence that the business of the applicant may not be operated lawfully and honestly consistent with the purposes of Iowa Code chapter 533D and may therefore be considered grounds for denial of an application:

    a.  An applicant, or an officer, director, or individual who has control of an applicant, has had a mortgage loan originator license or any lending license revoked in any governmental jurisdiction.

    b.  An applicant, or an officer, director, or individual who has control of an applicant, has been convicted of, or pled guilty or no contest to, a felony in a domestic, foreign, or military court if such felony involved an act of fraud, dishonesty, or breach of trust, or money laundering.

187—17.5(17A,533D) Renewal of license.

    17.5(1) A licensee must renew a license before the expiration date of the license to remain authorized to conduct delayed deposit transactions. Licenses expire on the next December 31 after they are issued, but licenses granted on or after November 1 but before January 1 do not expire until December 31 of the following year.

    17.5(2) An application to renew a license shall be submitted to the superintendent, on the form provided and with the information requested, including any material change to information contained in the original application, through the NMLS by December 1 of the year of expiration.

    17.5(3) The superintendent shall grant an application to renew a license if:

    a.  The licensee submits the application and the appropriate renewal fee by December 1, or the licensee submits the application after December 1 but before January 1 and pays the appropriate renewal fee and the appropriate late fee;

    b.  The application is fully completed and includes all necessary information; and

    c.  The application does not reveal grounds to deny a license.

    17.5(4) The superintendent may reject for processing a renewal application submitted after December 31 or treat such an application as an application for a new license.

187—17.6(17A,533D) Changes in the licensee’s name, location, or control.

    17.6(1) A licensee wishing to change the name or location of a delayed deposit services business shall notify the superintendent at least 30 days prior to the requested change and submit the fee specified in Iowa Code sections 533D.7 and 533D.7A. The request shall include proof that the licensee has either obtained a new bond or amended the existing bond to reflect the new name or location. A licensee cannot enter into delayed deposit transactions under a different name without providing such notice and submitting the required fee.

    17.6(2) A licensee wishing to establish a branch office must submit the application to the superintendent, on the form provided and with the information requested, through the NMLS, along with the fee specified in Iowa Code section 533D.7. Licenses issued to branch offices are treated as independent licenses and are subject to the renewal requirements, fees, and procedures specified in rule 187—17.5(17A,533D).

    17.6(3) When change of control of a licensee is proposed, the party that will assume control of the licensee shall give notice to the superintendent at least 60 days before the proposed change will take effect. The party that will assume control of the licensee shall furnish the superintendent with the same information required of initial applicants for a license, along with the fee specified in Iowa Code sections 533D.6. The party that will assume control may be required to provide fingerprints, authorize a fingerprint background check through NMLS, and pay the appropriate fees for the purpose of conducting a national criminal history background check through the Federal Bureau of Investigation. The superintendent shall approve or deny the request in accordance with the provisions of Iowa Code section 533D.3 and rule 187—17.4(17A,533D).

187—17.7Reserved.

187—17.8(17A,533D) Administrative fees.

    17.8(1) Late fees for failing to respond. In the process of administering this chapter, the superintendent may require a person to provide responses to formal orders, examinations, or complaint inquiries. If a person fails to respond within 30 days of the request, the superintendent may assess a penalty of $10 per day after the initial 30 days.

    17.8(2) NMLS system processing fees. The applicant or licensee shall pay any fee required by the NMLS or attributed to the licensee’s record in the NMLS pursuant to rule 187—17.2(17A,533D).

187—17.9(17A,533D) Licensee records.

    17.9(1) General record requirements. A licensee must keep records that allow the superintendent to determine the licensee’s compliance with relevant statutes and regulations.

    a.  The licensee may keep the records as a hard copy or in an electronic equivalent.

    b.  The licensee shall keep records for at least 24 months from the date of the final transaction with the maker.

    c.  The licensee shall maintain all books and records in good order and produce books and records for the superintendent upon request.

    d.  The obligation to maintain records continues even after the licensee ceases business operations in Iowa and turns in or surrenders its license. The owners and directors of the licensee are responsible for ensuring that this requirement is met.

    17.9(2) Required records. A licensee shall keep, at its principal place of business, a transaction register, an account ledger, a transaction file, an index, an application log, a denial file, and a disbursement voucher.

    17.9(3) Transaction register. The transaction register shall be kept chronologically in the order the transactions closed and include the following information for every transaction that is made: the account number, the date of the transaction, the name of the maker, the amount financed, and the amount of the maker’s check. A licensee may combine the transaction register with the application log.

    17.9(4) Account ledger. A licensee shall maintain an account ledger for each maker showing:

    a.  The name and address of the maker, the transaction number, the transaction date, the maturity date, the payment terms, the amount financed, and the total of payments.

    b.  A transaction history that lists all transactions with the maker. Payments shall be posted to the account ledger effective the date payments were received and show the date payment was received, the total amount of the payment, and a description of how the payment was applied to the maker’s account. Other transactions shall be fully described. Corrections to the transaction history shall be made by corrective entry and not by erasure.

    17.9(5) Transaction file. The transaction file consists of the application, the transaction agreement, notice pursuant to Iowa Code section 533D.9(2), and all required truth-in-lending disclosures for each transaction.

    17.9(6) Index. An alphabetical record shall be maintained and show the name of each maker, endorser, comaker, or surety who is currently indebted to the licensee, together with sufficient information to locate the account ledger.

    17.9(7) Application log. The application log is a chronological list of applications received. The application log shall include the name of the applicant, the date the application was received, whether the transaction was made or denied, and the date when the transaction was made or denied if that date differs from the date when the licensee received the application. For approved applications, the application log shall show the date when the transaction closed and the name of the maker. For recordkeeping purposes, an application is a prospective maker’s oral or written request for a licensee to extend credit that is made in accordance with the procedures established by the licensee.

    17.9(8) Disbursement voucher. Licensees shall use, in conjunction with each transaction, a disbursement voucher or equivalent document showing a detailed itemization of the distribution of the transaction proceeds.

    17.9(9) Denial file. For each application the licensee denies, the licensee shall retain a copy of the application and a copy of the adverse action notice. The licensee may maintain this information in one file in either alphabetical or chronological order.

    17.9(10) General business records. A licensee must keep the following general business records for at least 36 months:

    a.  All checkbooks, check registers, bank statements, deposit slips, withdrawal slips, and canceled checks (or copies thereof) relating to the delayed deposit services business of the licensee.

    b.  Complete records (including invoices and supporting documentation) for all expenses and fees paid on behalf of each transaction applicant, including a record of the date and amount of all such payments actually made by each transaction applicant.

    c.  Copies of all federal tax withholding forms, reports of income for federal taxation, and evidence of payments to all employees, independent contractors, and others compensated by a licensee in connection with the conduct of the delayed deposit services business.

    d.  All correspondence and other records relating to the maintenance of any surety bond required by Iowa Code chapter 533D.

    e.  Copies of all reports of audits, examinations, inspections, reviews, investigations, or other similar functions performed by any third party, including but not limited to the superintendent or any other regulatory or supervisory authority.

    f.  Copies of all advertisements and solicitations concerning delayed deposit services directed at Iowa residents, including advertisements and solicitations on the internet or by other electronic means, in the format in which the advertisements and solicitations were published or distributed.

    17.9(11) Disposal of records. If a licensee or former licensee disposes of records at the end of the retention period, the licensee or former licensee shall dispose of the records in a reasonable manner that safeguards any identification information, as defined in Iowa Code section 715A.8(1)“a.” The owners and directors of licensees and former licensees are responsible for ensuring that this requirement is met.

187—17.10(17A,533D) Complaints and investigations.

    17.10(1) The superintendent may, at any time and as often as the superintendent deems necessary, investigate or examine a licensee pursuant to Iowa Code section 533D.11, including investigating complaints about, or alleged violations by, any licensee.

    17.10(2) A complaint or alleged violation means:

    a.  A written complaint received from a consumer, member of the public, employee, business affiliate, or other governmental agency.

    b.  Notice to the superintendent from any source that the licensee has been the subject of disciplinary proceedings in another jurisdiction.

    c.  Notice to the superintendent from any source that an individual with control of the licensee has been convicted of forgery, embezzlement, obtaining money under false pretenses, extortion, conspiracy to defraud, or other similar offense, in a court of competent jurisdiction in this state or in any other state, territory, or district of the United States, or in any foreign jurisdiction.

187—17.11(17A,533D) Disciplinary action.

    17.11(1) Grounds for discipline. The superintendent may impose any of the disciplinary sanctions set out in Iowa Code section 533D.12(2) when the superintendent makes any of the findings in Iowa Code section 533D.12(1) or when the superintendent finds any of the following:

    a.  The licensee is found upon investigation to be insolvent, in which case the license shall be revoked immediately.

    b.  The licensee fails to respond to an inquiry from the superintendent within 30 days of the date the superintendent mails a written communication directed to the licensee’s last-known address on file with the superintendent.

    c.  Another state or jurisdiction has denied, suspended, revoked, or refused to renew the licensee’s license, registration, or authorization to operate a delayed deposit services business or enter into delayed deposit transactions under the other state’s or jurisdiction’s law.

    17.11(2) The superintendent shall not refund a license fee, in whole or in part, of a license that has been suspended, revoked, or surrendered.

187—17.12(17A,533D) Annual report. Licensees must file with the superintendent an annual report, on forms prescribed by the superintendent, on or before April 15. The information contained in the annual report shall be confidential, and the superintendent may publish the information only in composite form. The superintendent may assess a late fee of $10 for each day the annual report is delinquent.

187—17.13(17A,533D) Restrictions on making delayed deposit transactions. A licensee shall not enter into a new delayed deposit transaction with a maker on the same day the maker pays an existing delayed deposit transaction with the licensee unless:

    17.13(1) The aggregate amount of the check(s) the maker is paying and the new check the maker is writing does not exceed the statutory maximum of $500; and

    17.13(2) The licensee does not hold more than two outstanding checks in the maker’s name, including the check(s) being paid and the new check being issued.

These rules are intended to implement Iowa Code chapters 17A and 533D.