Iowa Code Title I. State Sovereignty and Management [Chs. 1-38D] § 12.61. State-sponsored credit card

a. “Financial institution” means a state bank as defined in section 524.103, a federally chartered state bank having its principal office within this state, a federally chartered credit union having its principal office within this state, a federally chartered savings and loan association having its principal office within the state, a credit union organized under chapter 533, or a trust company organized or incorporated under the laws of this state.

b. “Financial institution credit card” means a credit card that entitles the holder to make open-account purchases up to an approved amount and is issued through the agency of a financial institution.

c. “Sponsoring entity” means an entity that allows its name or logo to be used on a particular financial institution credit card in exchange for a fee from the credit card issuer.

a. The financial institution or its Iowa holding company or Iowa affiliate currently administers a credit card program.

b. The credit card program provides a fee or commission on retail sales to the sponsoring entity for the issuance and use of the credit card.

c. The credit card program would accept the state as a sponsoring entity.

a. The state shall not offer a more favorable rate to any other credit card issuer.

b. The rate must be expressed as a percentage of the gross sales from the use of the credit card.

c. The proceeds of the fee shall be deposited in the Iowa resources enhancement and protection fund created under section 455A.18.

d. The treasurer shall recommend a logo or design for the state-sponsored credit card indicating the use for which the revenues will be used.