Text: SSB02058 Text: SSB02060 Text: SSB02000 - SSB02099 Text: SSB Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 Section 1. Section 524.220, subsection 3, Code 1997, is 1 2 amended by striking the subsection. 1 3 Sec. 2. Section 524.912, Code 1997, is amended to read as 1 4 follows: 1 5 524.912 CUSTOMER SHALL BE FREE TO OBTAIN OWN INSURANCE AND 1 6 LOAN. 1 7 In any case in which any kind of insurance is required by 1 8 the state bank as a condition for lending money or in 1 9 connection with any other transaction, the customer shall be 1 10 free to obtain such insurance from a source of the customer's 1 11 selection. In the case of a sale of shares of stock, bonds, 1 12 or other securities, or real property by an officer or 1 13 employee, which is authorized by the board of directors of a 1 14 state bank in the manner provided for insubsection 3 of1 15 section 524.710, subsection 1, paragraph "b", the purchaser 1 16 shall be free to obtainanya loan for the purchasethereofof 1 17 such stock, bonds, or other securities, or real property from 1 18 a lender of the purchaser's selection. 1 19 Sec. 3. Section 524.1002, subsection 5, Code 1997, is 1 20 amended to read as follows: 1 21 5. Unless otherwise authorized by the instrument creating 1 22 the relationship, court order, or the laws of this state, a 1 23 state bank, as fiduciary, shall not, directly or indirectly, 1 24 sell any asset to the state bank for its own account, or to an 1 25 officer, director, or employee, nor purchase from the state 1 26 bank, or an officer, director, or employee, any asset or any 1 27 security issued by the state bank except, in the case of a 1 28 state bank, any of the following: 1 29 a. Investments in which a state bank may invest without 1 30 limitation pursuant to section 524.901, subsection1,3. 1 31 b. Assets purchased by the state bank pursuant to an 1 32 agreement whereby the state bank is bound to sell, and the 1 33 state bank as fiduciary is bound to buy, at a date not more 1 34 than one year from the date of acquisition by the state bank, 1 35 such assets at a price agreed upon at the time of acquisition 2 1 by the state bank, or. 2 2 c. Any asset sold to the state bank for its own account or 2 3 purchased in a fiduciary capacity from the state bank with the 2 4 prior approval of the superintendent. 2 5 Sec. 4. NEW SECTION. 524.1206 IDENTIFICATION OF LEGALLY 2 6 CHARTERED NAME OF BANK – REQUIRED USE OF NAME. 2 7 A state or national bank, at its locations in this state, 2 8 shall identify its principal place of business, any bank 2 9 office, or any bank branch in a manner which includes its 2 10 legally chartered name or a reasonable variation of such name. 2 11 The legally chartered name of the state or national bank shall 2 12 be used in all legal documents of such bank. 2 13 Sec. 5. Section 524.1405, subsection 2, paragraph f, Code 2 14 1997, is amended to read as follows: 2 15 f. The shares of each party to the merger that are to be 2 16 converted into shares, obligations, or other securities of the 2 17 surviving party or any other corporation or into cash or other 2 18 property are converted, and the former holders of the shares 2 19 are entitled only to the rights provided in the articles of 2 20 merger or to their rights underdivision XIII of this chapter2 21 section 524.1406. 2 22 Sec. 6. Section 524.1409, Code 1997, is amended to read as 2 23 follows: 2 24 524.1409AUTHORITY FORCONVERSION OF NATIONAL BANK OR 2 25 FEDERAL SAVINGS ASSOCIATION INTO STATE BANK. 2 26 A national bankmayor federal savings association, subject 2 27 to the provisions of this chapter, may convert into a state 2 28 bank upon authorization by and compliance with the laws of the 2 29 United States, adoption of a plan of conversion by the 2 30 affirmative vote of at least a majority of its directors and 2 31 the holders of two-thirds of each class of its shares at a 2 32 meeting held upon not less than ten days' notice to all 2 33 shareholders, and upon approval of the superintendent. 2 34 Sec. 7. Section 524.1410, unnumbered paragraph 1, Code 2 35 1997, is amended to read as follows: 3 1 A national bank or federal savings association shall make 3 2 an application to the superintendent for approval of the 3 3 conversion in a manner prescribed by the superintendent and 3 4 shall deliver to the superintendent, when available: 3 5 Sec. 8. Section 524.1411, unnumbered paragraph 1, Code 3 6 1997, is amended to read as follows: 3 7 The articles of conversion shall be signed by two duly 3 8 authorized officers of the national bank or federal savings 3 9 association and shall contain all of the following: 3 10 Sec. 9. Section 524.1411, subsection 1, Code 1997, is 3 11 amended to read as follows: 3 12 1. The name of the national bank or federal savings 3 13 association and the name of the resulting state bank. 3 14 Sec. 10. Section 524.1412, unnumbered paragraph 1, Code 3 15 1997, is amended to read as follows: 3 16 Within thirty days after the application for conversion has 3 17 been accepted for processing, the national bank or federal 3 18 savings association shall publish a notice of the delivery of 3 19 the articles of conversion to the superintendent once each 3 20 week for two successive weeks in a newspaper of general 3 21 circulation published in the municipal corporation or 3 22 unincorporated area in which the national bank or federal 3 23 savings association has its principal place of business, or if 3 24 there is none, a newspaper of general circulation published in 3 25 the county, or in a county adjoining the county, in which the 3 26 national bank or federal savings association has its principal 3 27 place of business. The notice shall set forth all of the 3 28 following: 3 29 Sec. 11. Section 524.1412, subsection 1, Code 1997, is 3 30 amended to read as follows: 3 31 1. The name of the national bank or federal savings 3 32 association and the name of the resulting state bank. 3 33 Sec. 12. Section 524.1413, Code 1997, is amended to read 3 34 as follows: 3 35 524.1413 APPROVAL OF CONVERSION BY SUPERINTENDENT. 4 1 1. Upon acceptance for processing of an application for 4 2 approval of a conversion, the superintendent shall conduct 4 3 such investigation as the superintendent deems necessary to 4 4 ascertain the following: 4 51.a. The articles of conversion and supporting items 4 6 satisfy the requirements of this chapter. 4 72.b. The plan adequately protects the interests of 4 8 depositors. 4 93.c. The requirements for a conversion under all 4 10 applicable laws have been satisfied and the resulting state 4 11 bank would satisfy the requirements of this chapter applicable 4 12 to it. 4 134.d. The resulting state bank will possess an adequate 4 14 capital structure. 4 15 2. Within ninety days after the application has been 4 16 accepted for processing, the superintendent shall approve or 4 17 disapprove the application on the basis of the investigation. 4 18 As a condition of receiving the decision of the superintendent 4 19 with respect to the application, the national bank or federal 4 20 savings association shall reimburse the superintendent for all 4 21 expenses incurred in connection with the application. The 4 22 superintendent shall give the national bank or federal savings 4 23 association written notice of the decision and, in the event 4 24 of disapproval, a statement of the reasons for the decision. 4 25 If the superintendent approves the application, the 4 26 superintendent shall deliver the articles of conversion, with 4 27 the superintendent's approval indicated on the articles of 4 28 conversion, to the secretary of state. The decision of the 4 29 superintendent shall be subject to judicial review pursuant to 4 30 chapter 17A. Notwithstanding the terms of the Iowa 4 31 administrative procedure Act, chapter 17A, a petition for 4 32 judicial review must be filed within thirty days after the 4 33 superintendent notifies the national bank or federal savings 4 34 association of the superintendent's decision. 4 35 Sec. 13. Section 524.1415, Code 1997, is amended to read 5 1 as follows: 5 2 524.1415 EFFECT OF FILING OF ARTICLES OF CONVERSION WITH 5 3 SECRETARY OF STATE. 5 4 1. The conversion is effective upon the filing of the 5 5 articles of conversion with the secretary of state, or at any 5 6 later date and time as specified in the articles of 5 7 conversion. The acknowledgment of filing is conclusive 5 8 evidence of the performance of all conditions required by this 5 9 chapter for conversion of a national bank or federal savings 5 10 association into a state bank, except as against the state. 5 11 2. When a conversion becomes effective, the existence of 5 12 the national bank or federal savings association shall 5 13 continue in the resulting state bank which shall have all the 5 14 property, rights, powers, and duties of the national bank or 5 15 federal savings association, except that the resulting state 5 16 bank shall have only the authority to engage in such business 5 17 and exercise such powers as it would have, and shall be 5 18 subject to the same prohibitions and limitations to which it 5 19 would be subject, upon original incorporation under this 5 20 chapter. The articles of incorporation of the resulting state 5 21 bank shall be the provisions stated in the articles of 5 22 conversion. 5 23 3. No liability of the national bank or federal savings 5 24 association, or ofitsthe national bank's or federal savings 5 25 association's shareholders, directors, or officersshall be, 5 26 is affected, nor shall anyby the conversion. A lien on any 5 27 property of the national bankbeor federal savings 5 28 association is not impaired by the conversion.AnyA claim 5 29 existing or action pending by or against the national bank or 5 30 federal savings association may be prosecuted to judgment as 5 31 if the conversion had not taken place, or the resulting state 5 32 bank may be substituted in its place. 5 33 4. The title to all real estate and other property owned 5 34 by the converting national bank or federal savings association 5 35 is vested in the resulting state bank without reversion or 6 1 impairment. 6 2 Sec. 14. Section 524.1416, Code 1997, is amended to read 6 3 as follows: 6 4 524.1416 AUTHORITY FOR CONVERSION OF STATE BANK INTO 6 5 NATIONAL BANK OR FEDERAL SAVINGS ASSOCIATION. 6 6 1. A state bank may convert into a national bank or 6 7 federal savings association upon authorization by and 6 8 compliance with the laws of the United States, and adoption of 6 9 a plan of conversion by the affirmative vote of at least a 6 10 majority of its directors and the holders of two-thirds of 6 11 each class of its shares at a meeting held upon not less than 6 12 ten days' notice to all shareholders. The authority of a 6 13 state bank to convert into a national bank or federal savings 6 14 association shall be subject to the condition that at the time 6 15 of the transaction, the laws of the United States shall 6 16 authorize a national bank or federal savings association 6 17 located in this state, without approval by the comptroller of 6 18 the currency of the United States or director of the office of 6 19 thrift supervision, as applicable, to convert into a state 6 20 bank under limitations and conditions no more restrictive than 6 21 those contained in this section and section 524.1417 with 6 22 respect to conversion of a state bank into a national bank or 6 23 federal savings association. 6 24 2. A state bank which converts into a national bank or 6 25 federal savings association shall notify the superintendent of 6 26 the proposed conversion, provide such evidence of the adoption 6 27 of the plan as the superintendent may request, notify the 6 28 superintendent of any abandonment or disapproval of the plan, 6 29 file with the superintendent and with the secretary of state a 6 30 certificate of the approval of the conversion by the 6 31 comptroller of the currency of the United States or director 6 32 of the office of thrift supervision, as applicable, and the 6 33 date upon which such conversion is to become effective. 6 34 Sec. 15. Section 524.1417, Code 1997, is amended to read 6 35 as follows: 7 1 524.1417 RIGHTS OF DISSENTING SHAREHOLDER OF CONVERTING 7 2 STATE OR NATIONAL BANK OR FEDERAL SAVINGS ASSOCIATION. 7 3 1. A shareholder of a state bank which converts into a 7 4 national bank or federal savings association who objects to 7 5 the plan of conversion is entitled to the rights and remedies 7 6 of a dissenting shareholder as provided in chapter 490, 7 7 division XIII. 7 8 2. If a shareholder of a national bank or federal savings 7 9 association, which converts into a state bank, objects to the 7 10 plan of conversion and complies with the requirements of 7 11 applicable laws of the United States, the resulting state bank 7 12 is liable for the value of the shareholder's shares as 7 13 determined in accordance with such laws of the United States. 7 14 Sec. 16. Section 524.1418, Code 1997, is amended to read 7 15 as follows: 7 16 524.1418 SUCCESSION TO FIDUCIARY ACCOUNTS AND APPOINTMENTS 7 17 – APPLICATION FOR APPOINTMENT OF NEW FIDUCIARY. 7 18 The provisions of section 524.1009 apply to a resulting 7 19 state or national bank or federal savings association after a 7 20 conversion with the same effect as though the state or 7 21 national bank or federal savings association were a party to a 7 22 plan of merger, and the conversion were a merger, within the 7 23 provisions of that section. 7 24 Sec. 17. Section 524.1601, subsection 1, paragraph d, Code 7 25 1997, is amended to read as follows: 7 26 d. The amount of profit, fees or other compensation 7 27 received, upon conviction of a violation ofsubsection 3 of7 28 section 524.710, subsection 1, paragraph "b". 7 29 EXPLANATION 7 30 This bill amends provisions relating to the operation and 7 31 regulation of banks in this state. 7 32 Code section 524.220 is amended by striking the requirement 7 33 that a state-chartered bank publish its statement of condition 7 34 for the calendar quarters ending June 30 and December 31 in a 7 35 local newspaper. 8 1 Code section 524.912 is amended by correcting an internal 8 2 Code reference and making stylistic changes. 8 3 Code section 524.1002 is amended by correcting an internal 8 4 Code reference and making stylistic changes. 8 5 New Code section 524.1206 is created and requires a state 8 6 or national bank to identify its principal place of business, 8 7 any bank office, or any bank branch in a manner which includes 8 8 its legally chartered name or a reasonable variation of such 8 9 name at its Iowa locations. The section also requires the 8 10 state or national bank to use its legally chartered name in 8 11 all legal documents of such bank. 8 12 Code section 524.1405 is amended by correcting an internal 8 13 Code reference with respect to dissenting shareholder rights 8 14 when a merger takes place. 8 15 Code sections 524.1409 through 524.1413 and 524.1415 8 16 through 524.1418 are amended to allow for the conversion of a 8 17 federal savings association into a state bank and for the 8 18 conversion of a state bank into a federal savings association. 8 19 Code section 524.1601 is amended by correcting an internal 8 20 Code reference. 8 21 LSB 3305DP 77 8 22 mj/sc/14.1
Text: SSB02058 Text: SSB02060 Text: SSB02000 - SSB02099 Text: SSB Index Bills and Amendments: General Index Bill History: General Index
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