Current through Register Vol. 46, No. 19, March 20, 2024
(1)
General records 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 borrower.
c. The licensee shall
maintain all books and records in good order and shall produce books and
records for the superintendent upon request. The superintendent or the
superintendent's duly appointed representative shall have the right to examine
and investigate the books, accounts, and records wherever situated of all
businesses authorized or conducted by a licensee licensed pursuant to Iowa Code
chapter 536A. All books, accounts and records pertaining to businesses
conducted pursuant to such licenses shall be made readily available to the
examiners who may investigate without prior notice. Failure to produce such
books and records within 30 days of the superintendent's request may be grounds
for disciplinary action against the licensee.
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.
(2)
Required records. A
licensee shall keep, at its principal place of business, a loan register,
account ledgers, an account ledger control, a loan file, an index, and a
disbursement voucher.
(3)
Loan register.
a. The loan
register shall contain the original entry and shall show for every loan the
loan number, date of loan, name of borrower, nature of security, and amount of
note.
b. The loan register shall be
kept chronologically in the order the loans are made.
(4)
Account ledger.
a. An individual account ledger shall be kept
for each account and shall show at least the loan number, name and address of
the borrower, date of loan, date of first payment, date of final payment, terms
of repayment including maturity date, amount financed, total of payments, face
amount of note if different from amount financed or total of payments, cash
advanced to borrower, cash advanced to pay balance of previous industrial loan,
interest or discount charge, service charge, attorney fee, fee paid or to be
paid to a public official for recording or filing a mortgage or for satisfying
a judgment or lien on any real or personal property securing the loan, nature
of security, type and cost of each credit insurance policy, and type and cost
of any other insurance policy.
b.
All payments shall be credited upon the account ledger as of the date they are
received. No erasures whatsoever may be made in the payment section of any
account ledger. In case of error, corrections to the transaction history in the
account ledger shall be made by corrective entry and not by erasure. The
entries on the account ledger shall correspond with the receipts given to the
borrower.
c. If payment is made in
any way other than in the ordinary course of business, the method of payment
shall be so designated on the account ledger; for example, if payment is made
through the proceeds of an insurance claim or the sale of security, it shall be
so designated. When a death claim is filed, the exact date of death is to be
recorded on the account ledger.
d.
The account ledger for an interest-bearing loan shall show the amount of the
loan if different from the amount financed, the amount and date of each payment
received, the allocation of the payment to principal and interest, and the
remaining principal balance. If a portion of the interest earned is not paid at
the time payment is made, the account ledger for an interest-bearing loan must
show either the date to which interest is paid or the amount of interest then
due but unpaid.
e. The account
ledger for a precomputed loan shall show the actual amount of the loan
excluding the precomputed interest, the amount of the precomputed interest and
the face amount of the note including interest, the amount and date of each
payment applied to the note, the unpaid balance of the note after application
of such payment and the type and amount of any additional charges collected or
assessed. If a deferment charge is collected in whole or in part, the account
ledger shall indicate any uncollected portion of the deferment charge, the
particular installment deferred, the number of times deferred, plus the date of
the final installment.
f. When any
loan is prepaid in full, either by cash or renewal, the account ledger must
show the date of prepayment, the amount paid to discharge the loan, the amount
of the interest rebate, and any deduction from the rebate for previously earned
but uncollected charges, and refunds of the unearned premiums of each credit
insurance policy or other insurance policy. Each insurance refund shall be
separately recorded on the account ledger.
g. Account ledgers relating to each type of
business operation must be filed in separate groups. Paid-in-full or renewed
account ledgers must also be filed in a similar manner and must be retained as
a separate group from one banking division examination to the next. After the
examination, these account ledgers may be filed in a permanent file.
(5)
Account ledger
control. A record showing the total number of accounts and amount
receivable for each type of business conducted shall be maintained in the
licensed office. This record shall be posted either daily or weekly.
(6)
Loan file. A separate
file shall be maintained for each borrower or loan account. Such file shall
contain the promissory note, security agreement, wage assignment, and all other
evidence of indebtedness or security pertaining to the loan except when the
promissory note is kept in a separate promissory note file. Copies of the note
and security agreement shall be substituted for the original documents if the
loan has been sold, pledged or assigned as collateral security or if the
original papers are in the custody of a court or agent for collection. If the
promissory notes are not kept in the file of original papers and have not been
sold, pledged or assigned as collateral security or placed in the custody of a
court or agent for collection, then they must be kept in a promissory note
file. When a borrower is also a comaker, guarantor, or endorser on another
loan, the file of such borrower shall be cross-referenced to the other, unless
such cross-referencing is included on the alphabetical record required by
subrule 16.9(7) or the individual account ledger required by subrule 16.9(4).
All instruments taken in connection with a loan and signed by a borrower must
bear the loan number. No instrument or part thereof shall be left blank for
completion after the borrower(s) has signed the instrument.
(7)
Index. An alphabetical
index shall be maintained for each borrower, endorser, comaker, surety or other
party currently indebted to the licensee or to any other business operated
within the same office, room, suite or place of business. The index shall show
the following information: the name of the obligor, the account number assigned
to the obligor's indebtedness, the type of indebtedness (regulated loan,
industrial loan, insurance, or any receivable), information showing whether the
obligor is other than a borrower and sufficient information to locate all
account ledgers.
(8)
Disbursement voucher. Licensees shall use, in conjunction with
each loan, a disbursement voucher or equivalent document showing a detailed
itemization of the distribution of the loan proceeds.
(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.
(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 industrial loan
business of the licensee.
b.
Complete records (including invoices and supporting documentation) for all
expenses and fees paid on behalf of each loan applicant, including a record of
the date and amount of all such payments actually made by each loan
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 industrial loan
business.
d. All correspondence and
other records relating to the maintenance of any surety bond required by Iowa
Code chapter 53 6A.
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 industrial loan services directed at Iowa
residents, including advertisements and solicitations on the Internet or by
other electronic means, in the format (e.g., recorded sound, video, print) in
which the advertisements and solicitations were published or
distributed.
(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.
