IA HF475

Financial institutions (banks, savings and loans, credit unions, industrial loan companies, and their affiliates) in Iowa must accept any negotiable instrument and issue conditional credit to the person presenting it, then make good-faith efforts to obtain payment from the original issuer

Cash must be remitted to the original issuer within two days of receiving payment on the negotiable instrument

Service fees are capped at the greater of $20 or 1% of the lesser of the instrument's face amount or proceeds received by the institution

Financial institutions cannot require the person presenting a negotiable instrument to open an account or show identification

Violations allow affected persons to recover up to five times the instrument amount plus attorney fees; institutions that deny acceptance three or more times face civil penalties between $10,000 and $25,000