Section 541B.5 - Financial institution protectionsNothing 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purpose of a withdrawal of funds from a first-time homebuyer savings account, or track the destination or use of the withdrawn funds.3.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 Determine or ensure that funds withdrawn from a first-time homebuyer savings account are used for the payment or reimbursement of a designated beneficiary's eligible home costs in connection with a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.Added by 2017 Iowa, ch 116, s 7, eff. 7/1/2017.