Text: HSB00723 Text: HSB00725 Text: HSB00700 - HSB00799 Text: HSB Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 Section 1. Section 536A.12, Code 1995, is amended to read 1 2 as follows: 1 3 536A.12 CONTINUING LICENSE – ANNUAL FEE – CHANGE OF 1 4 LOCATION – CHANGE OF CONTROL. 1 5 1. Each such license remains in full force and effect 1 6 until surrendered, revoked, or suspended, or until there is a 1 7 change of control on or after January 1, 1996, pursuant to 1 8 subsection 2. A licenseeshall, on or before the second day 1 9 of January, shall pay to the superintendent the sum of fifty 1 10 dollars as an annual license fee for the succeeding calendar 1 11 year. When a licensee changes its place of business from one 1 12 location to another in the same city, it shall at once give 1 13 written notice to the superintendent who shall attach to the 1 14 license in writing the superintendent's record of the change 1 15 and the date of the change, which is authority for the 1 16 operation of the business under that license at the new place 1 17 of business. 1 18 2. A person who proposes to purchase or otherwise acquire, 1 19 directly or indirectly, any of the outstanding shares of an 1 20 industrial loan company which would result in a change of 1 21 control of the industrial loan company, shall first apply in 1 22 writing to the superintendent for a certificate of approval 1 23 for the proposed change of control. The superintendent shall 1 24 grant the certificate if the superintendent is satisfied that 1 25 the person who proposes to obtain control of the industrial 1 26 loan company is qualified by character, experience, and 1 27 financial responsibility to control and operate the industrial 1 28 loan company in a sound and legal manner, and that the 1 29 interests of the thrift certificate holders, creditors, and 1 30 shareholders of the industrial loan company, and of the public 1 31 generally, shall not be jeopardized by the proposed change of 1 32 control. If a board member of the industrial loan company has 1 33 reason to believe any of the requirements of this subsection 1 34 have not been complied with, the board member shall promptly 1 35 report in writing such facts to the superintendent. As used 2 1 in this section, "control" means the power, directly or 2 2 indirectly, to elect a majority of the board of directors of 2 3 an industrial loan company. If there is any doubt as to 2 4 whether a change in the ownership of the outstanding shares is 2 5 sufficient to result in control of the industrial loan 2 6 company, or to effect a change in the control of the 2 7 industrial loan company, such doubt shall be resolved in favor 2 8 of reporting the facts to the superintendent. 2 9 Sec. 2. Section 536A.19, Code 1995, is amended to read as 2 10 follows: 2 11 536A.19 RECEIVERSHIP – LIQUIDATION. 2 12 1. If the superintendentshall revokerevokes the license 2 13 of any industrial loan company the superintendent shall 2 14 promptly report the revocation to the attorney generalof Iowa2 15 who may apply to the district court of the county in which the 2 16 licensee had conducted its business for the appointment of a 2 17 receiver to take possession of the assets of the corporation 2 18 for the purpose of liquidating its affairs. The court shall 2 19 appoint the superintendent as receiver unless the 2 20 superintendent has tendered the appointment to the federal 2 21 deposit insurance corporation, in which case the court shall 2 22 appoint the federal deposit insurance corporation as receiver. 2 23 The affairs of the industrial loan company, after such 2 24 appointment, shall be under the direction of the court. The 2 25 attorney general shall represent the superintendent in all 2 26 proceedings connected with the receivership. 2 27 2. When an insured industrial loan company has ceased to 2 28 carry on its business, the superintendent may tender the 2 29 appointment as receiver of the insured industrial loan company 2 30 to the federal deposit insurance corporation. If the federal 2 31 deposit insurance corporation accepts the appointment as 2 32 receiver, the rights of depositors and other creditors of the 2 33 insured industrial company shall be determined in accordance 2 34 with the laws of this state. 2 35 3. The federal deposit insurance corporation as receiver 3 1 shall possess all of the powers, rights, and privileges of the 3 2 superintendent in connection with the liquidation. 3 3 4. If the federal deposit insurance corporation pays or 3 4 makes available for payment the insured deposit liabilities of 3 5 an insured industrial loan company, the federal deposit 3 6 insurance corporation, whether or not it has become receiver, 3 7 shall be subrogated to all rights of the owners of such 3 8 deposits against the insured industrial loan company in the 3 9 same manner and to the same extent as subrogation of the 3 10 federal deposit insurance corporation is provided for in 3 11 applicable federal law with respect to a national bank. 3 12 Sec. 3. Section 536A.22, Code 1995, is amended to read as 3 13 follows: 3 14 536A.22 THRIFT CERTIFICATES. 3 15 Licensed industrial loan companies may sell senior debt to 3 16 the general public in the form of thrift certificates, 3 17 installment thrift certificates, certificates of indebtedness, 3 18 promissory notes, or similar evidences of indebtedness if such 3 19 debt instruments are insured by a federal deposit insurance 3 20 agency. Licensees selling debt instruments on January 1, 3 21 1996, may continue to do so without obtaining federal deposit 3 22 insurance until there is a change of control of the licensee 3 23 pursuant to section 536A.12, subsection 2, which occurs on or 3 24 after January 1, 1996. The total amount of such thrift 3 25 certificates, installment thrift certificates, certificates of 3 26 indebtedness, promissory notes, or similar evidences of 3 27 indebtedness outstanding and in the hands of the general 3 28 public shall not at any time exceed ten times the total amount 3 29 of capital, surplus, undivided profits, and subordinated debt 3 30 that gives priority to such securities of the issuing 3 31 industrial loan company. The sale of such securities is 3 32 subject to the provisions of chapter 502 and rules adopted by 3 33 the superintendent of banking pursuant to chapter 17A, and 3 34 shall not be construed to be exempt by reason of the 3 35 provisions of section 502.202, subsection 10, except that the 4 1 sale of thrift certificates or installment thrift certificates 4 2 which are redeemable by the holder either upon demand or 4 3 within a period not in excess of five years are exempt from 4 4 sections 502.201 and 502.602. 4 5 EXPLANATION 4 6 This bill amends provisions relating to industrial loan 4 7 companies. The bill provides that a person who proposes to 4 8 purchase or otherwise acquire, directly or indirectly, any of 4 9 the outstanding shares of an industrial loan company which 4 10 would result in a change of control, must first apply to the 4 11 superintendent of banking for a certificate of approval. 4 12 The bill provides for the appointment of the superintendent 4 13 or the federal deposit insurance corporation as receiver of an 4 14 industrial loan company for purposes of liquidating the assets 4 15 of the industrial loan company. If the federal deposit 4 16 insurance corporation pays or makes available for payment the 4 17 insured deposit liabilities of such company, the federal 4 18 deposit insurance corporation is subrogated to the rights of 4 19 the owners of such deposits. 4 20 The bill also requires that an industrial loan company 4 21 which sells senior debt to the general public in the form of 4 22 thrift certificates, installment thrift certificates, 4 23 certificates of indebtedness, promissory notes, or similar 4 24 evidences of indebtedness shall insure the debt instruments by 4 25 a federal deposit insurance agency. An industrial loan 4 26 company selling such debt instruments on January 1, 1996, may 4 27 continue to do so without obtaining such insurance until there 4 28 is a change in control of the industrial loan company which 4 29 occurs on or after that date. 4 30 A person who violates a provision of this Act would also be 4 31 guilty of a serious misdemeanor as provided in section 4 32 536A.27. 4 33 LSB 4323HC 76 4 34 mj/jj/8
Text: HSB00723 Text: HSB00725 Text: HSB00700 - HSB00799 Text: HSB Index Bills and Amendments: General Index Bill History: General Index
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