Text: HF02447 Text: HF02449 Text: HF02400 - HF02499 Text: HF Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 Section 1. Section 524.912, Code 1997, is amended to read 1 2 as follows: 1 3 524.912 CUSTOMER SHALL BE FREE TO OBTAIN OWN INSURANCE AND 1 4 LOAN. 1 5 In any case in which any kind of insurance is required by 1 6 the state bank as a condition for lending money or in 1 7 connection with any other transaction, the customer shall be 1 8 free to obtain such insurance from a source of the customer's 1 9 selection. In the case of a sale of shares of stock, bonds, 1 10 or other securities, or real property by an officer or 1 11 employee, which is authorized by the board of directors of a 1 12 state bank in the manner provided for insubsection 3 of1 13 section 524.710, subsection 1, paragraph "b", the purchaser 1 14 shall be free to obtainanya loan for the purchasethereofof 1 15 such stock, bonds, or other securities, or real property from 1 16 a lender of the purchaser's selection. 1 17 Sec. 2. Section 524.1002, subsection 5, Code 1997, is 1 18 amended to read as follows: 1 19 5. Unless otherwise authorized by the instrument creating 1 20 the relationship, court order, or the laws of this state, a 1 21 state bank, as fiduciary, shall not, directly or indirectly, 1 22 sell any asset to the state bank for its own account, or to an 1 23 officer, director, or employee, nor purchase from the state 1 24 bank, or an officer, director, or employee, any asset or any 1 25 security issued by the state bank except, in the case of a 1 26 state bank, any of the following: 1 27 a. Investments in which a state bank may invest without 1 28 limitation pursuant to section 524.901, subsection1,3. 1 29 b. Assets purchased by the state bank pursuant to an 1 30 agreement whereby the state bank is bound to sell, and the 1 31 state bank as fiduciary is bound to buy, at a date not more 1 32 than one year from the date of acquisition by the state bank, 1 33 such assets at a price agreed upon at the time of acquisition 1 34 by the state bank, or. 1 35 c. Any asset sold to the state bank for its own account or 2 1 purchased in a fiduciary capacity from the state bank with the 2 2 prior approval of the superintendent. 2 3 Sec. 3. NEW SECTION. 524.1206 IDENTIFICATION OF LEGALLY 2 4 CHARTERED NAME OF BANK – REQUIRED USE OF NAME. 2 5 A state or national bank, at its locations in this state, 2 6 shall identify its principal place of business, any bank 2 7 office, or any bank branch in a manner which includes its 2 8 legally chartered name or a reasonable variation of such name. 2 9 The legally chartered name of the state or national bank shall 2 10 be used in all legal documents of such bank. 2 11 Sec. 4. Section 524.1405, subsection 2, paragraph f, Code 2 12 1997, is amended to read as follows: 2 13 f. The shares of each party to the merger that are to be 2 14 converted into shares, obligations, or other securities of the 2 15 surviving party or any other corporation or into cash or other 2 16 property are converted, and the former holders of the shares 2 17 are entitled only to the rights provided in the articles of 2 18 merger or to their rights underdivision XIII of this chapter2 19 section 524.1406. 2 20 Sec. 5. Section 524.1409, Code 1997, is amended to read as 2 21 follows: 2 22 524.1409AUTHORITY FORCONVERSION OF NATIONAL BANK OR 2 23 FEDERAL SAVINGS ASSOCIATION INTO STATE BANK. 2 24 A national bankmayor federal savings association, subject 2 25 to the provisions of this chapter, may convert into a state 2 26 bank upon authorization by and compliance with the laws of the 2 27 United States, adoption of a plan of conversion by the 2 28 affirmative vote of at least a majority of its directors and 2 29 the holders of two-thirds of each class of its shares at a 2 30 meeting held upon not less than ten days' notice to all 2 31 shareholders, and upon approval of the superintendent. 2 32 Sec. 6. Section 524.1410, unnumbered paragraph 1, Code 2 33 1997, is amended to read as follows: 2 34 A national bank or federal savings association shall make 2 35 an application to the superintendent for approval of the 3 1 conversion in a manner prescribed by the superintendent and 3 2 shall deliver to the superintendent, when available: 3 3 Sec. 7. Section 524.1411, unnumbered paragraph 1, Code 3 4 1997, is amended to read as follows: 3 5 The articles of conversion shall be signed by two duly 3 6 authorized officers of the national bank or federal savings 3 7 association and shall contain all of the following: 3 8 Sec. 8. Section 524.1411, subsection 1, Code 1997, is 3 9 amended to read as follows: 3 10 1. The name of the national bank or federal savings 3 11 association and the name of the resulting state bank. 3 12 Sec. 9. Section 524.1412, unnumbered paragraph 1, Code 3 13 1997, is amended to read as follows: 3 14 Within thirty days after the application for conversion has 3 15 been accepted for processing, the national bank or federal 3 16 savings association shall publish a notice of the delivery of 3 17 the articles of conversion to the superintendent once each 3 18 week for two successive weeks in a newspaper of general 3 19 circulation published in the municipal corporation or 3 20 unincorporated area in which the national bank or federal 3 21 savings association has its principal place of business, or if 3 22 there is none, a newspaper of general circulation published in 3 23 the county, or in a county adjoining the county, in which the 3 24 national bank or federal savings association has its principal 3 25 place of business. The notice shall set forth all of the 3 26 following: 3 27 Sec. 10. Section 524.1412, subsection 1, Code 1997, is 3 28 amended to read as follows: 3 29 1. The name of the national bank or federal savings 3 30 association and the name of the resulting state bank. 3 31 Sec. 11. Section 524.1413, Code 1997, is amended to read 3 32 as follows: 3 33 524.1413 APPROVAL OF CONVERSION BY SUPERINTENDENT. 3 34 1. Upon acceptance for processing of an application for 3 35 approval of a conversion, the superintendent shall conduct 4 1 such investigation as the superintendent deems necessary to 4 2 ascertain the following: 4 31.a. The articles of conversion and supporting items 4 4 satisfy the requirements of this chapter. 4 52.b. The plan adequately protects the interests of 4 6 depositors. 4 73.c. The requirements for a conversion under all 4 8 applicable laws have been satisfied and the resulting state 4 9 bank would satisfy the requirements of this chapter applicable 4 10 to it. 4 114.d. The resulting state bank will possess an adequate 4 12 capital structure. 4 13 2. Within ninety days after the application has been 4 14 accepted for processing, the superintendent shall approve or 4 15 disapprove the application on the basis of the investigation. 4 16 As a condition of receiving the decision of the superintendent 4 17 with respect to the application, the national bank or federal 4 18 savings association shall reimburse the superintendent for all 4 19 expenses incurred in connection with the application. The 4 20 superintendent shall give the national bank or federal savings 4 21 association written notice of the decision and, in the event 4 22 of disapproval, a statement of the reasons for the decision. 4 23 If the superintendent approves the application, the 4 24 superintendent shall deliver the articles of conversion, with 4 25 the superintendent's approval indicated on the articles of 4 26 conversion, to the secretary of state. The decision of the 4 27 superintendent shall be subject to judicial review pursuant to 4 28 chapter 17A. Notwithstanding the terms of the Iowa 4 29 administrative procedure Act, chapter 17A, a petition for 4 30 judicial review must be filed within thirty days after the 4 31 superintendent notifies the national bank or federal savings 4 32 association of the superintendent's decision. 4 33 Sec. 12. Section 524.1415, Code 1997, is amended to read 4 34 as follows: 4 35 524.1415 EFFECT OF FILING OF ARTICLES OF CONVERSION WITH 5 1 SECRETARY OF STATE. 5 2 1. The conversion is effective upon the filing of the 5 3 articles of conversion with the secretary of state, or at any 5 4 later date and time as specified in the articles of 5 5 conversion. The acknowledgment of filing is conclusive 5 6 evidence of the performance of all conditions required by this 5 7 chapter for conversion of a national bank or federal savings 5 8 association into a state bank, except as against the state. 5 9 2. When a conversion becomes effective, the existence of 5 10 the national bank or federal savings association shall 5 11 continue in the resulting state bank which shall have all the 5 12 property, rights, powers, and duties of the national bank or 5 13 federal savings association, except that the resulting state 5 14 bank shall have only the authority to engage in such business 5 15 and exercise such powers as it would have, and shall be 5 16 subject to the same prohibitions and limitations to which it 5 17 would be subject, upon original incorporation under this 5 18 chapter. The articles of incorporation of the resulting state 5 19 bank shall be the provisions stated in the articles of 5 20 conversion. 5 21 3. No liability of the national bank or federal savings 5 22 association, or ofitsthe national bank's or federal savings 5 23 association's shareholders, directors, or officersshall be, 5 24 is affected, nor shall anyby the conversion. A lien on any 5 25 property of the national bankbeor federal savings 5 26 association is not impaired by the conversion.AnyA claim 5 27 existing or action pending by or against the national bank or 5 28 federal savings association may be prosecuted to judgment as 5 29 if the conversion had not taken place, or the resulting state 5 30 bank may be substituted in its place. 5 31 4. The title to all real estate and other property owned 5 32 by the converting national bank or federal savings association 5 33 is vested in the resulting state bank without reversion or 5 34 impairment. 5 35 Sec. 13. Section 524.1416, Code 1997, is amended to read 6 1 as follows: 6 2 524.1416 AUTHORITY FOR CONVERSION OF STATE BANK INTO 6 3 NATIONAL BANK OR FEDERAL SAVINGS ASSOCIATION. 6 4 1. A state bank may convert into a national bank or 6 5 federal savings association upon authorization by and 6 6 compliance with the laws of the United States, and adoption of 6 7 a plan of conversion by the affirmative vote of at least a 6 8 majority of its directors and the holders of two-thirds of 6 9 each class of its shares at a meeting held upon not less than 6 10 ten days' notice to all shareholders. The authority of a 6 11 state bank to convert into a national bank or federal savings 6 12 association shall be subject to the condition that at the time 6 13 of the transaction, the laws of the United States shall 6 14 authorize a national bank or federal savings association 6 15 located in this state, without approval by the comptroller of 6 16 the currency of the United States or director of the office of 6 17 thrift supervision, as applicable, to convert into a state 6 18 bank under limitations and conditions no more restrictive than 6 19 those contained in this section and section 524.1417 with 6 20 respect to conversion of a state bank into a national bank or 6 21 federal savings association. 6 22 2. A state bank which converts into a national bank or 6 23 federal savings association shall notify the superintendent of 6 24 the proposed conversion, provide such evidence of the adoption 6 25 of the plan as the superintendent may request, notify the 6 26 superintendent of any abandonment or disapproval of the plan, 6 27 file with the superintendent and with the secretary of state a 6 28 certificate of the approval of the conversion by the 6 29 comptroller of the currency of the United States or director 6 30 of the office of thrift supervision, as applicable, and the 6 31 date upon which such conversion is to become effective. 6 32 Sec. 14. Section 524.1417, Code 1997, is amended to read 6 33 as follows: 6 34 524.1417 RIGHTS OF DISSENTING SHAREHOLDER OF CONVERTING 6 35 STATE OR NATIONAL BANK OR FEDERAL SAVINGS ASSOCIATION. 7 1 1. A shareholder of a state bank which converts into a 7 2 national bank or federal savings association who objects to 7 3 the plan of conversion is entitled to the rights and remedies 7 4 of a dissenting shareholder as provided in chapter 490, 7 5 division XIII. 7 6 2. If a shareholder of a national bank or federal savings 7 7 association, which converts into a state bank, objects to the 7 8 plan of conversion and complies with the requirements of 7 9 applicable laws of the United States, the resulting state bank 7 10 is liable for the value of the shareholder's shares as 7 11 determined in accordance with such laws of the United States. 7 12 Sec. 15. Section 524.1418, Code 1997, is amended to read 7 13 as follows: 7 14 524.1418 SUCCESSION TO FIDUCIARY ACCOUNTS AND APPOINTMENTS 7 15 – APPLICATION FOR APPOINTMENT OF NEW FIDUCIARY. 7 16 The provisions of section 524.1009 apply to a resulting 7 17 state or national bank or federal savings association after a 7 18 conversion with the same effect as though the state or 7 19 national bank or federal savings association were a party to a 7 20 plan of merger, and the conversion were a merger, within the 7 21 provisions of that section. 7 22 Sec. 16. Section 524.1601, subsection 1, paragraph d, Code 7 23 1997, is amended to read as follows: 7 24 d. The amount of profit, fees or other compensation 7 25 received, upon conviction of a violation ofsubsection 3 of7 26 section 524.710, subsection 1, paragraph "b". 7 27 EXPLANATION 7 28 This bill amends provisions relating to the operation and 7 29 regulation of banks in this state. 7 30 Code section 524.912 is amended by correcting an internal 7 31 Code reference and making stylistic changes. 7 32 Code section 524.1002 is amended by correcting an internal 7 33 Code reference and making stylistic changes. 7 34 New Code section 524.1206 is created and requires a state 7 35 or national bank to identify its principal place of business, 8 1 any bank office, or any bank branch in a manner which includes 8 2 its legally chartered name or a reasonable variation of such 8 3 name at its Iowa locations. The section also requires the 8 4 state or national bank to use its legally chartered name in 8 5 all legal documents of such bank. 8 6 Code section 524.1405 is amended by correcting an internal 8 7 Code reference with respect to dissenting shareholder rights 8 8 when a merger takes place. 8 9 Code sections 524.1409 through 524.1413 and 524.1415 8 10 through 524.1418 are amended to allow for the conversion of a 8 11 federal savings association into a state bank and for the 8 12 conversion of a state bank into a federal savings association. 8 13 Code section 524.1601 is amended by correcting an internal 8 14 Code reference. 8 15 LSB 3305HV 77 8 16 mj/sc/14
Text: HF02447 Text: HF02449 Text: HF02400 - HF02499 Text: HF Index Bills and Amendments: General Index Bill History: General Index
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