Text: HF00329 Text: HF00331 Text: HF00300 - HF00399 Text: HF Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 HOUSE FILE 330 1 2 1 3 AN ACT 1 4 RELATING TO THE SUPERVISORY AUTHORITY OF THE STATE 1 5 BANKING DIVISION WITH REGARD TO BANK HOLDING COMPANY 1 6 ACQUISITIONS AND THE ABILITY OF STATE BANKS TO MAKE 1 7 LOANS TO ANY ONE PERSON. 1 8 1 9 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 1 10 1 11 Section 1. Section 524.544, subsection 1, Code 1999, is 1 12 amended to read as follows: 1 13 1. Whenever any person proposes to purchase or otherwise 1 14 acquire directly or indirectly any of the outstanding shares 1 15 of a state bank, and the proposed purchase or acquisition 1 16 would result in control or in a change in control of the bank, 1 17 the person proposing to purchase or acquire the shares shall 1 18 first apply in writing to the superintendent for a certificate 1 19 of approval for the proposed change of control. The 1 20 superintendent shall grant the certificate if the 1 21 superintendent is satisfied that the person who proposes to 1 22 obtain control of the bank is qualified by character, 1 23 experience and financial responsibility to control and operate 1 24 the bank in a sound and legal manner, and that the interests 1 25 of the depositors, creditors and shareholders of the bank, and 1 26 of the public generally, will not be jeopardized by the 1 27 proposed change of control.If the proposed purchaser or1 28acquirer is a bank holding company as defined by section1 29524.1801, it shall comply with section 524.1804 in lieu of1 30seeking a certificate of approval under this subsection.A 1 31 person which will become a bank holding company upon 1 32 completion of an acquisition shall make application to the 1 33 superintendent for a certificate of approval as provided in 1 34 this section. Any other bank holding company shall comply 1 35 with section 524.1804 in lieu of seeking a certificate of 2 1 approval under this section. In any situation where the 2 2 president or cashier of a bank has reason to believe any of 2 3 the foregoing requirements have not been complied with, it 2 4 shall be the duty of the president or cashier to promptly 2 5 report in writing such facts to the superintendent upon 2 6 obtaining knowledge thereof. As used in this section, the 2 7 term control means the power, directly or indirectly, to elect 2 8 the board of directors. If there is any doubt as to whether a 2 9 change in the ownership of the outstanding shares is 2 10 sufficient to result in control thereof, or to effect a change 2 11 in the control thereof, such doubt shall be resolved in favor 2 12 of reporting the facts to the superintendent. 2 13 Sec. 2. Section 524.904, subsections 2, 4, and 5, Code 2 14 1999, are amended to read as follows: 2 15 2. A state bank may grant loans and extensions of credit 2 16 to one borrower in an amount not to exceed fifteen percent of 2 17 the state bank's aggregate capital as defined in section 2 18 524.103, unless the additional lending provisions described in 2 19subsections 3 and 4 applysubsection 3 or 4 applies. 2 20 4. A state bank may grant loans and extensions of credit 2 21 to one borrower not to exceed thirty-five percent of the state 2 22 bank's aggregate capital if any amount that exceeds the 2 23 lending limitations described insubsectionssubsection 2and2 24 or 3 consists of obligations as endorser of negotiable chattel 2 25 paper negotiated by endorsement with recourse, or as 2 26 unconditional guarantor of nonnegotiable chattel paper, or as 2 27 transferor of chattel paper endorsed without recourse subject 2 28 to a repurchase agreement. 2 29 5. A state bank may grant loans and extensions of credit 2 30 to a corporate group in an amount not to exceed twenty-five 2 31 percent of the state bank's aggregate capital if all loans and 2 32 extensions of credit to any one borrower within a corporate 2 33 group conform tosubsectionssubsection 2andor 3, and the 2 34 financial strength, assets, guarantee, or endorsement of any 2 35 one corporate group member is not relied upon as a basis for 3 1 loans and extensions of credit to any other corporate group 3 2 member. A state bank may grant loans and extensions of credit 3 3 to a corporate group in an amount not to exceed thirty-five 3 4 percent of aggregate capital if all loans and extensions of 3 5 credit to any one borrower within a corporate group conform to 3 6subsectionssubsection 2, 3,andor 4, and the financial 3 7 strength, assets, guarantee, or endorsement of any one 3 8 corporate group member is not relied upon as a basis for loans 3 9 and extensions of credit to any other corporate group member. 3 10 A corporate group includes a person and all corporations in 3 11 which the person owns or controls fifty percent or more of the 3 12 shares entitled to vote. 3 13 3 14 3 15 3 16 RON J. CORBETT 3 17 Speaker of the House 3 18 3 19 3 20 3 21 MARY E. KRAMER 3 22 President of the Senate 3 23 3 24 I hereby certify that this bill originated in the House and 3 25 is known as House File 330, Seventy-eighth General Assembly. 3 26 3 27 3 28 3 29 ELIZABETH ISAACSON 3 30 Chief Clerk of the House 3 31 Approved , 1999 3 32 3 33 3 34 3 35 THOMAS J. VILSACK 4 1 Governor
Text: HF00329 Text: HF00331 Text: HF00300 - HF00399 Text: HF Index Bills and Amendments: General Index Bill History: General Index
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