2009 Iowa Code
Title 13 - Commerce
Subtitle 2 - Financial Institutions
CHAPTER 527 - ELECTRONIC TRANSFER OF FUNDS
527.2 - DEFINITIONS.

        527.2  DEFINITIONS.
         As used in this chapter, the following definitions shall apply
      unless the context otherwise requires:
         1.  "Access device" means a card, code, or other mechanism, or
      any combination thereof, that may be used by a customer for the
      purpose of initiating a transaction by means of a satellite terminal
      which will affect a customer asset account.
         2.  "Administrator" means and includes the superintendent of
      banking, the superintendent of savings and loan associations, and the
      superintendent of credit unions within the department of commerce and
      the supervisor of industrial loan companies within the office of the
      superintendent of banking.  However, the powers of administration and
      enforcement of this chapter shall be exercised only as provided in
      sections 527.3, 527.5, subsection 7, sections 527.11, 527.12, and any
      other pertinent provision of this chapter.
         3.  "Batch basis" means the delivery of an accumulation of
      messages representing multiple transactions after completion of the
      transactions.
         4.  "Central routing unit" means any facility where electronic
      impulses or other indicia of a transaction originating at a satellite
      terminal are received and are routed and transmitted to a financial
      institution, or to a data processing center, or to another central
      routing unit, wherever located.
         5.  "Completion of the transaction" means when the presence of
      the customer at a satellite terminal is no longer needed to
      consummate the sale of goods or services, to grant to the seller the
      right to receive payment for the goods or services, and to issue a
      receipt to the customer.
         6.  "Customer asset account" or "account" means a demand
      deposit, share, checking, savings, or other customer account, other
      than an occasional or incidental credit balance in a credit plan,
      which represents a liability of the financial institution which
      maintains such account at a business location or office located in
      this state, either directly or indirectly for the benefit of a
      customer.
         7.  "Data processing center" means a facility, wherever
      located, at which electronic impulses or other indicia of a
      transaction originating at a satellite terminal are received and are
      processed in order to enable the satellite terminal to perform any
      function for which it is designed.  However, "data processing
      center" does not include a facility which is directly connected to
      a satellite terminal and which performs only the functions of direct
      transmission of all requested transactions from that terminal to a
      data processing facility without performing any review of the
      requested transactions for the purpose of categorizing, separating,
      or routing.  "Categorizing" means the process of reviewing and
      grouping of requested electronic funds transfer transactions
      according to the source or nature of the requested transaction.
      "Separating" means the process of interpreting and segregating
      requested electronic funds transfer transactions, or portions of such
      transactions, to provide for processing of information relating to
      such requested transactions or portions of such transactions.
      "Routing" means the process of interpreting and transmitting
      requested electronic funds transfer transactions to a destination
      selected at the time of interpretation and transmission from two or
      more alternative destinations.
         8.  "Electronic personal identifier" means a personal and
      confidential code or other security mechanism which has been
      designated by a financial institution issuing an access device to a
      customer to serve as a supplemental means of access to a customer's
      account that may be used by the customer in conjunction with an
      access device for the purpose of initiating a transaction by means of
      a satellite terminal.
         9.  "Financial institution" means and includes any bank
      incorporated under the provisions of any state or federal law, any
      savings and loan association incorporated under the provisions of any
      state or federal law, any credit union organized under the provisions
      of any state or federal law, any corporation licensed as an
      industrial loan company under chapter 536A, and any affiliate of a
      bank, savings and loan association, credit union, or industrial loan
      company.
         10.  "Limited-function terminal" means an on-line
      point-of-sale terminal, an off-line point-of-sale terminal, or a
      multiple use terminal, which is not operated in a manner to accept an
      electronic personal identifier.  Except as otherwise provided, a
      limited-function terminal shall not be subject to the requirements
      imposed upon other satellite terminals pursuant to sections 527.4 and
      527.5, subsections 1, 2, 3, 7, and 8.
         11.  "Multiple use terminal" means any machine or device to
      which all of the following are applicable:
         a.  The machine or device is established and owned or operated
      by a person who primarily engages in a service, business or
      enterprise, including but not limited to the retail sale of goods or
      services, but who is not organized under the laws of this state or
      under federal law as a bank, savings and loan association, or credit
      union;
         b.  The machine or device is used by the person by whom it is
      owned or operated in some capacity other than as a satellite
      terminal; and
         c.  A financial institution proposes to contract or has
      contracted to utilize that machine or device as a satellite terminal.

         12.  "Municipal corporation" means an incorporated city.
         13.  "Office" means and includes any business location in this
      state of a financial institution at which is offered the services of
      accepting deposits, originating loans, and dispensing cash, by
      financial institution personnel in the office.
         14.  "Off-line point-of-sale terminal" means a satellite
      terminal at any location in this state off the premises of the
      financial institution, other than an on-line point-of-sale terminal,
      that satisfies all of the following:
         a.  The satellite terminal is not operated to accept deposits
      or to dispense scrip or other negotiable instruments.
         b.  The satellite terminal is not operated to dispense cash
      except when operated by a person other than the customer initiating
      the transaction.
         c.  The satellite terminal is utilized for the purpose of
      making payment to the provider of goods or services purchased or
      provided at the location of the satellite terminal.
         15.  "On-line point-of-sale terminal" means a satellite
      terminal at any location in this state off the premises of the
      financial institution operated on an on-line real time basis, that
      satisfies all of the following:
         a.  The satellite terminal is not operated to accept deposits
      or to dispense scrip or other negotiable instruments.
         b.  The satellite terminal is not operated to dispense cash
      except when operated by a person other than the customer initiating
      the transaction.
         c.  The satellite terminal is utilized for the purpose of
      making payment to the provider of goods or services purchased or
      provided at the location of the satellite terminal.
         16.  "On-line real time basis" means the delivery or return of
      a message initiated at a satellite terminal through transmission of
      electronic impulses to or from a location remote from the location of
      the satellite terminal prior to completion of the transaction.
         17.  "Personal terminal" means and includes a satellite
      terminal located in a personal residence and a telephone, wherever
      located, operated by a customer of a financial institution for the
      purpose of initiating a transaction affecting a noncommercial account
      of the customer.
         18.  "Premises" means and includes only those locations where,
      by applicable law, financial institutions are authorized to maintain
      a principal place of business and other offices for the conduct of
      their respective businesses; provided that with respect to an
      industrial loan company, "premises" means only a location where
      business may be conducted under a single license issued to the
      industrial loan company.
         19.  "Reciprocal basis" means that a financial institution
      whose licensed or principal place of business is located in this
      state has the express authority under the laws of a state other than
      Iowa to conduct business under qualifications and conditions which
      are no more restrictive than those imposed by the laws of the other
      state on financial institutions whose licensed or principal place of
      business is located in the other state, as determined by the
      administrator, and the laws of Iowa are no more restrictive of
      financial institutions whose licensed or principal place of business
      is located in such other state than they are of financial
      institutions whose licensed or principal place of business is located
      in this state.
         20.  "Satellite terminal" means and includes any machine or
      device located off the premises of a financial institution, and any
      machine or device located on the premises of a financial institution
      only if the machine or device is available for use by customers of
      other financial institutions, whether attended or unattended, by
      means of which the financial institution and its customers utilizing
      an access device may engage through either the immediate transmission
      of electronic impulses to or from the financial institution or the
      recording of electronic impulses or other indicia of a transaction
      for delayed transmission to the financial institution, in
      transactions which affect a customer asset account and which
      otherwise are specifically permitted by applicable law.  However, the
      term "satellite terminal" does not include any such machine or
      device, wherever located, if that machine or device is not generally
      accessible to persons other than employees of a financial institution
      or an affiliate of a financial institution.  

         Section History: Early Form

         [C77, 79, 81, § 527.2] 

         Section History: Recent Form

         87 Acts, ch 158, §1, 2; 89 Acts, ch 86, §1--7; 91 Acts, ch 216, §
      1--3; 95 Acts, ch 66, §1; 2000 Acts, ch 1232, §99, 107
         Referred to in § 99D.9, 99F.7, 234.12A, 423.3, 524.1212, 527.3,
      547A.1, 714.16B, 715A.1, 715A.8