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PAG LIN
1 1 Section 1. NEW SECTION. 524.1205 PERMISSIBLE BANK
1 2 OFFICES ESTABLISHED BY OUT-OF-STATE BANKS &endash; POWERS &endash;
1 3 REQUIREMENTS.
1 4 1. Subject to the provisions of this section, an out-of-
1 5 state bank may establish a bank office in a county in this
1 6 state which has a population of less than twenty thousand at
1 7 the time of application and is contiguous to or cornering upon
1 8 the county in the state in which the out-of-state bank has its
1 9 principal place of business and in which state it is
1 10 incorporated.
1 11 2. An out-of-state bank shall make application to
1 12 establish the bank office to the superintendent in the manner
1 13 prescribed by the superintendent and with a fee as established
1 14 by the superintendent sufficient to cover the costs of
1 15 processing the application. The superintendent shall conduct
1 16 an investigation as provided in section 524.305 prior to
1 17 approving an application. In order to approve the
1 18 application, the application must include all of the
1 19 following:
1 20 a. Information demonstrating that the out-of-state bank
1 21 intends to adequately meet the convenience and needs of the
1 22 communities served by the bank office in accordance with Iowa
1 23 and federal community reinvestment requirements including,
1 24 where applicable, information relating to the following:
1 25 (1) Procedures proposed to be carried out by the bank
1 26 office to ascertain the credit needs of the communities served
1 27 by the bank office, including the extent of proposed efforts
1 28 to communicate to such communities the credit services
1 29 proposed to be provided by the bank office.
1 30 (2) The extent of the proposed marketing and special
1 31 credit-related programs to be conducted by the bank office to
1 32 make the communities served by the bank office aware of the
1 33 credit services proposed to be offered to them.
1 34 (3) The extent of proposed participation by the board of
1 35 directors of the out-of-state bank in formulating the policies
2 1 and reviewing the performance of the bank office in meeting
2 2 the purposes of the Iowa and federal community reinvestment
2 3 requirements.
2 4 (4) The expected geographic distribution of credit
2 5 extensions, credit applications, and credit denials of the
2 6 bank office.
2 7 (5) The proposed participation, including investments by
2 8 the bank office in local community development and
2 9 redevelopment projects or programs.
2 10 (6) The expected ability of the bank office to meet
2 11 various credit needs of the communities served by the bank
2 12 office.
2 13 b. Capital investment, loan, and dividend policies
2 14 proposed by the out-of-state bank for the bank office,
2 15 including a discussion of the range of consumer and business
2 16 services which are proposed to be offered and proposals to
2 17 meet the credit needs of individuals, small businesses, and
2 18 agricultural borrowers in the communities served by the bank
2 19 office.
2 20 c. Information on net new benefits to Iowa or the
2 21 communities to be served by the bank office resulting from the
2 22 establishment of the bank office.
2 23 d. Evidence that at least ten percent of the out-of-state
2 24 bank's existing account holders reside in the county in this
2 25 state in which the out-of-state bank intends to establish the
2 26 bank office.
2 27 e. Evidence of compliance by the out-of-state bank with
2 28 the federal Community Reinvestment Act and any applicable
2 29 state community reinvestment statutes or rules.
2 30 f. Information demonstrating that the out-of-state bank
2 31 intends to provide net new agricultural financing in this
2 32 state through the bank office. "Agricultural financing"
2 33 includes credit to agricultural producers, agricultural
2 34 suppliers, agricultural processors, and agricultural lenders.
2 35 4. a. A bank office established by an out-of-state bank
3 1 pursuant to this section is authorized to engage in the
3 2 business of banking as provided in this chapter except as
3 3 provided in paragraph "b".
3 4 b. A bank office established by an out-of-state bank
3 5 pursuant to this section is not authorized to do any of the
3 6 following:
3 7 (1) Engage in securities activities pursuant to section
3 8 524.825.
3 9 (2) Merge or consolidate with one or more state banks or
3 10 national banks pursuant to division XIV of this chapter.
3 11 (3) Otherwise acquire any interest in any other bank
3 12 located in this state unless the out-of-state bank which
3 13 establishes the bank office would be permitted to acquire such
3 14 interest absent the presence of the bank office in this state.
3 15 5. Except as otherwise provided, a bank office established
3 16 by an out-of-state bank pursuant to this section is subject to
3 17 the provisions of this chapter and all its limitations.
3 18 EXPLANATION
3 19 This bill provides that an out-of-state bank may establish
3 20 a bank office in this state under particular circumstances and
3 21 with the approval of the superintendent of banking. A bank
3 22 may only be established by an out-of-state bank in a county in
3 23 this state which is contiguous to or cornering upon the county
3 24 where the out-of-state bank has its principal place of
3 25 business in the state where the bank is incorporated. The
3 26 county in which the bank office is to be located must have a
3 27 population of less than 20,000. The bank office established
3 28 is subject to the provisions of chapter 524, and granted the
3 29 authority to engage in the business of banking as provided in
3 30 chapter 524, except that the bank office is not authorized to
3 31 engage in securities activities, merge or consolidate with a
3 32 state or national bank, or otherwise acquire an interest in
3 33 any other bank which the out-of-state bank could not have
3 34 acquired absent the presence of the bank office.
3 35 The application to be filed by the out-of-state bank must
4 1 contain information concerning the credit and investment
4 2 opportunities which the bank office will offer the area the
4 3 bank office will serve, and information demonstrating that the
4 4 out-of-state bank intends to meet the convenience and needs of
4 5 the communities to be served by the bank office.
4 6 LSB 1768XC 76
4 7 mj/cf/24
Text: SSB00076 Text: SSB00078 Text: SSB00000 - SSB00099 Text: SSB Index Bills and Amendments: General Index Bill History: General Index
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