Iowa Code 541B.5 – Financial institution protections
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Terms Used In Iowa Code 541B.5
- Beneficiary: A person who is entitled to receive the benefits or proceeds of a will, trust, insurance policy, retirement plan, annuity, or other contract. Source: OCC
- following: when used by way of reference to a chapter or other part of a statute mean the next preceding or next following chapter or other part. See Iowa Code 4.1
541B.5 Financial institution protections.
Nothing in this chapter shall be construed to require a financial institution to do any of the following, or to be responsible or liable for any of the following:
1. Designate or label within the financial institution’s account contracts, systems, or in any other manner, an account as a first-time homebuyer savings account.
2. Ascertain or verify the purpose of a withdrawal of funds from a first-time homebuyer savings account, or track the destination or use of the withdrawn funds.
3. Allocate funds in a first-time homebuyer savings account to a designated beneficiary or among joint account holders.
4. Report any information to the department or any other governmental agency.
5. Determine or ensure that an account satisfies the requirements to be a first-time homebuyer savings account.
6. Determine or ensure that funds withdrawn from a first-time homebuyer savings account are used for the payment or reimbursement of a designated beneficiary’s eligible home costs in connection with a qualified home purchase.
7. Report or remit taxes or penalties related to the ownership or use of a first-time homebuyer savings account.
8. Include the name of a beneficiary in the title of a first-time homebuyer savings account, or document the change of any beneficiary to a first-time homebuyer savings account.
2017 Acts, ch 116, §7
Nothing in this chapter shall be construed to require a financial institution to do any of the following, or to be responsible or liable for any of the following:
1. Designate or label within the financial institution’s account contracts, systems, or in any other manner, an account as a first-time homebuyer savings account.
2. Ascertain or verify the purpose of a withdrawal of funds from a first-time homebuyer savings account, or track the destination or use of the withdrawn funds.
3. Allocate funds in a first-time homebuyer savings account to a designated beneficiary or among joint account holders.
4. Report any information to the department or any other governmental agency.
5. Determine or ensure that an account satisfies the requirements to be a first-time homebuyer savings account.
6. Determine or ensure that funds withdrawn from a first-time homebuyer savings account are used for the payment or reimbursement of a designated beneficiary’s eligible home costs in connection with a qualified home purchase.
7. Report or remit taxes or penalties related to the ownership or use of a first-time homebuyer savings account.
8. Include the name of a beneficiary in the title of a first-time homebuyer savings account, or document the change of any beneficiary to a first-time homebuyer savings account.
2017 Acts, ch 116, §7