2009 Iowa Code
Title 13 - Commerce
Subtitle 2 - Financial Institutions
CHAPTER 527 - ELECTRONIC TRANSFER OF FUNDS
527.9 - CENTRAL ROUTING UNITS.

        527.9  CENTRAL ROUTING UNITS.
         1.  A central routing unit shall not be operated in this state
      unless written approval for that operation has been obtained from the
      administrator.
         2.  A person desiring to operate a central routing unit shall
      submit to the administrator an application which shall contain all of
      the following information:
         a.  The name and business address of the owner of the proposed
      unit.
         b.  The name and business address of each data processing
      center and other central routing unit with which the proposed central
      routing unit will have direct electronic communication.
         c.  The location of the proposed central routing unit.
         d.  A schedule of the charges which will be required to be
      paid to that applicant by each financial institution which utilizes
      the proposed central routing unit.
         The application shall be accompanied by all agreements between the
      proposed central routing unit and all data processing centers and
      other central routing units respecting the transmission of
      transaction data; and a copy of any agreement between the proposed
      central routing unit and any financial institution establishing a
      satellite terminal unless that agreement theretofore has been filed
      with the administrator pursuant to section 527.5.
         e.  An agreement by the applicant that the proposed central
      routing unit will be capable of accepting and routing, and will be
      operated to accept and route, transmissions of data originating at
      any satellite terminal located in this state, except limited-function
      terminals, whether receiving from that terminal or from a data
      processing center or other central routing unit.
         f.  A representation and undertaking that the proposed central
      routing unit is directly connected to every data processing center
      that is directly connected to a satellite terminal located in this
      state, and that the proposed central routing unit will provide for
      direct connection in the future with any data processing center that
      becomes directly connected to a satellite terminal located in this
      state.  This representation and undertaking is not required of a
      central routing unit with respect to limited-function terminals.
         3.  The administrator shall approve or disapprove an application
      for operation of a central routing unit within sixty days after
      receipt.
         4.  A central routing unit operating under the approval of the
      administrator shall be subject to examination by the administrator
      for the purpose of determining compliance with this chapter.
         5. a.  Effective July 1, 1987, a person owning or operating a
      central routing unit authorized under this section shall include
      public representation on any board setting policy for the central
      routing unit.  Four or five public members shall be appointed to the
      board in the following manner:
         (1)  Two members shall be appointed by the superintendent of
      banking.
         (2)  One member shall be appointed by the superintendent of credit
      unions.
         (3)  One member shall be appointed by the superintendent of
      savings and loan associations.
         (4)  If an industrial loan company is connected to the central
      routing unit, one member shall be appointed by the superintendent of
      banking.
         b.  The superintendent of banking, superintendent of credit
      unions, and superintendent of savings and loan associations shall
      form a committee to set, in conjunction with the entity owning or
      operating the central routing unit, the term of office, the rate of
      compensation, and the rate of reimbursement for each public member.
      However, the public members shall be entitled to reasonable
      compensation and reimbursement from the board.
         c.  Each public member is entitled to all the rights of
      participation and voting as any other member of the board.  The
      public members are to represent the interest of consumers and the
      business and agricultural communities in establishing policies for
      the central routing unit.
         d.  It is the intention of the general assembly that the ratio
      of public members to the overall membership of the board shall not be
      less than one public member for each seven members of the board.  If
      the number of members on the board is increased, then the number of
      members appointed pursuant to paragraph "a" shall be increased to
      maintain the minimum ratio.  In this event, a committee composed of
      the superintendent of banking, the superintendent of credit unions,
      and the superintendent of savings and loan associations shall appoint
      additional public members in order to maintain the minimum ratio.
         e.  An individual shall not be appointed as a public member
      pursuant to this subsection if the individual is a director of a
      financial institution or is directly employed by a financial
      institution doing business in this state.  

         Section History: Early Form

         [C77, 79, 81, § 527.9] 

         Section History: Recent Form

         87 Acts, ch 158, §13, 14; 89 Acts, ch 86, §16; 91 Acts, ch 216,
      §14