Iowa Admin. Code r. 61-37.1

Current through Register Vol. 47, No. 10, November 13, 2024

Rule 61-37.1 - Required disclosures by covered institutions relating to certain philanthropic contributions

(1) Definitions. The terms "covered institution," "educational loan," "gift," "lender," "lending institution," "preferred lender arrangement," and "preferred lender list" have the same meaning as those terms are defined in Iowa Code section 261F.1.

a. The term "de minimis" means a monetary amount or fair market value of $100 or less, as applicable. For the purposes of this chapter, a gift from a lending institution is not de minimis if the cumulative sum of all such monetary and other gifts from the lending institution to the covered institution exceeds $100 in the same calendar year.

b. The term "monetary value" relating to a nonmonetary philanthropic contribution means the fair market value of the contribution. All the facts and circumstances connected with the contribution must be considered in the determination of fair market value, including but not limited to the use, desirability to the recipient, scarcity of the contributed product or service and the average price the recipient would pay to purchase the contributed product or service.

c. The term "philanthropic contribution" means a charitable contribution that is unrelated to educational loans from a lending institution to a covered institution and is not de minimis.

(2) A covered institution with a preferred lender list that has received a philanthropic contribution from a preferred lender during the current calendar year or either of the two prior calendar years shall do each of the following:

a. Include one of the following on all preferred lender lists:

(1) A clear and conspicuous statement of all philanthropic contributions received from preferred lenders during the current calendar year and the two prior calendar years, including the monetary value and nature of each contribution.

(2) A clear and conspicuous hyperlink to the covered institution's primary public Web site related to private educational loans to the statement required pursuant to paragraph 37.1(2)"b."

b. Post for public viewing on the covered institution's primary public Web site related to private educational loans a clear and conspicuous statement of all philanthropic contributions received from preferred lenders during the current calendar year and the two prior calendar years, including the monetary value and nature of each contribution, or maintain a clear and conspicuous hyperlink displayed on that Web site that links the reader to the required statement.

(3) A charitable contribution unrelated to educational loans that is made by an employee or member of the board of directors of a lending institution to a covered institution is not a philanthropic contribution pursuant to Iowa Code chapter 261F and this rule so long as the lending institution does not represent the donor as being the lending institution or as an employee or member of the board of directors of the lending institution, as applicable, unless required by law.

(4) Nothing in this rule shall affect the Attorney General's civil subpoena or other investigative authority pursuant to Iowa Code section 714.16 regarding a covered institution or a lending institution.

This rule is intended to implement Iowa Code section 261F.4(6).

Iowa Admin. Code r. 61-37.1

ARC 0328C, IAB 9/5/12, effective 10/10/12