Can we (state bank) now calculate interest on a actual/360 day basis on commercial loans? If so, could you also provide a code quote for me! Thanks,

Ok...just to let you guys know, I was able to answer my own question! (Well, actually with a little help with the guys at IDOB!) Iowa Code 537.2301(1) is where it allows Iowa Banks to compute interest on an actual/360 day basis.

I'm missing something here, Sheryl. You asked about actual/360 on commercial loans, but cited an Iowa Consumer Credit Code section as the answer. So per 537.2301(1) as state-chartered banks, we are authorized to make supervised loans, but how does that translate to the actual/360 basis? Who did you talk to at IDOB? Did they explain this any further?

Yes, I did talk to IDOB. They faxed me a letter issued 6-24-03. The code section that it refers to (537.2601(1)) states, "With respect to a credit transaction other than a consumer credit transaction, the parties may contract for the payment by the debtor of any finance or other charge as permitted by law." I can fax you a copy of the letter if you'd like.

No Thanks! Your second post cited 537.2301(1) rather than 537.2601(1). If I had only read further down in the regs, I would have found it! THANKS!

Oops, sorry for the confusion!

authorized signers on a joint account