Text: HF02218 Text: HF02220 Text: HF02200 - HF02299 Text: HF Index Bills and Amendments: General Index Bill History: General Index
PAG LIN
1 1 Section 1. Section 524.1802, Code 1999, is amended by
1 2 striking the section and inserting in lieu thereof the
1 3 following:
1 4 524.1802 LIMITATION.
1 5 1. For purposes of this section, unless the context
1 6 otherwise requires:
1 7 a. "Acquisition" means any of the following:
1 8 (1) Obtaining direct or indirect ownership or control of
1 9 more than twenty-five percent of any class of the voting
1 10 shares of a depository institution.
1 11 (2) Obtaining the power to directly or indirectly control
1 12 in any manner the election of a majority of the directors,
1 13 trustees, or other persons exercising similar functions of a
1 14 depository institution.
1 15 (3) Obtaining direct or indirect ownership or control of,
1 16 or acquisition or assumption of, the deposits of a depository
1 17 institution or the deposits of any branch, office, or other
1 18 facility of a depository institution.
1 19 b. "Affiliate" of a depository institution or holding
1 20 company includes a corporation, limited liability company,
1 21 trust, estate, association, or other similar organization
1 22 which satisfies any of the following:
1 23 (1) The depository institution or holding company directly
1 24 or indirectly owns or controls either twenty-five percent of
1 25 the voting shares or more than twenty-five percent of the
1 26 number of shares voted for the election of such entity's
1 27 directors, trustees, or other individuals exercising similar
1 28 functions, or controls in any manner the election of a
1 29 majority of its directors, trustees, or other individuals
1 30 exercising similar functions.
1 31 (2) Control is held directly or indirectly in such entity
1 32 through share ownership, or in any other manner, by the
1 33 shareholders of the depository institution or holding company
1 34 who own or control either twenty-five percent of the shares of
1 35 such depository institution or holding company or more than
2 1 twenty-five percent of the number of shares voted for the
2 2 election of directors, trustees, or other individuals
2 3 exercising similar functions of such depository institution or
2 4 holding company, or by trustees for the benefit of the
2 5 shareholders of any such depository institution or holding
2 6 company.
2 7 (3) A majority of such entity's directors, trustees, or
2 8 other individuals exercising similar functions are directors
2 9 of the depository institution or holding company.
2 10 (4) Directly or indirectly owns or controls either twenty-
2 11 five percent of the voting shares of the depository
2 12 institution or holding company or more than twenty-five
2 13 percent of the number of shares voted for the election of
2 14 directors, trustees, or other individuals exercising similar
2 15 functions of the depository institution or holding company, or
2 16 controls in any manner the election of a majority of the
2 17 directors, trustees, or other individuals exercising similar
2 18 functions of the depository institution or holding company, or
2 19 for the benefit of whose shareholders or members all or
2 20 substantially all of the outstanding voting shares of the
2 21 depository institution or holding company is held by trustees.
2 22 c. "Deposit" means deposit as defined in 12 U.S.C. } 1813.
2 23 d. "Deposit in this state" means a deposit properly shown
2 24 in a deposit report or in a statement under subsection 4,
2 25 paragraph "c", "d", "h", or "i", as a deposit at a depository
2 26 institution in this state or at a branch, office, or other
2 27 facility of the depository institution in this state, without
2 28 regard to the location of the depositor.
2 29 e. "Deposit report" means the annual report that
2 30 identifies deposits by branch, office, or other facility and
2 31 that is filed by a depository institution with the federal
2 32 deposit insurance corporation or the office of thrift
2 33 supervision. For a depository institution not required to
2 34 file an annual report that identifies deposits by branch,
2 35 office, or other facility, "deposit report" means the
3 1 quarterly report of condition filed by the depository
3 2 institution for the quarter that ends on or nearest to the
3 3 date as of which deposits are stated in a deposit report that
3 4 identifies deposits by branch, office, or other facility and
3 5 that is required to be filed by other depository institutions
3 6 having the same type of charter. The date of a deposit report
3 7 means the date as of which deposits are stated in the deposit
3 8 report.
3 9 f. "Depository institution" means a depository institution
3 10 as defined in 12 U.S.C. } 1813.
3 11 g. "Holding company" means a bank holding company as
3 12 defined in section 524.1801 and a savings and loan holding
3 13 company as defined in 12 U.S.C. } 1467a.
3 14 h. "Series of acquisitions" means both of the following:
3 15 (1) All acquisitions made at any time after the date of
3 16 the most recent available deposit report and prior to the date
3 17 of a statement under subsection 4, and all acquisitions made
3 18 during such time by any depository institution or holding
3 19 company that is acquired by the depository institution or
3 20 holding company making the statement, and all acquisitions
3 21 made during such time by any such depository institution or
3 22 holding company so acquired.
3 23 (2) All acquisitions made at any time between the dates of
3 24 the two most recent available deposit reports, that are not
3 25 shown on the most recent available deposit report, by a
3 26 depository institution or holding company making a statement
3 27 under subsection 4, and all acquisitions made during such time
3 28 by any depository institution or holding company that is
3 29 acquired by the depository institution or holding company
3 30 making the statement, and all acquisitions made during such
3 31 time by any such depository institution or holding company so
3 32 acquired.
3 33 2. A depository institution or holding company shall not
3 34 directly or indirectly acquire a depository institution or the
3 35 deposits of a depository institution if any of the following
4 1 apply:
4 2 a. The acquirer is a depository institution and, upon the
4 3 acquisition, the total deposits in this state directly or
4 4 indirectly controlled by the depository institution would
4 5 exceed fifteen percent of the total deposits in this state, as
4 6 determined under this section.
4 7 b. The acquirer is a holding company and, upon the
4 8 acquisition, the total deposits in this state directly or
4 9 indirectly controlled by the holding company would exceed
4 10 fifteen percent of the total deposits in this state, as
4 11 determined under this section.
4 12 c. The acquirer is a depository institution or a holding
4 13 company which is directly or indirectly owned or controlled by
4 14 a holding company and, upon the acquisition, the total
4 15 deposits in this state directly or indirectly controlled by
4 16 the holding company which owns or controls the acquiring
4 17 depository institution or holding company would exceed fifteen
4 18 percent of the total deposits in this state, as determined
4 19 under this section.
4 20 3. On or after January 1, 2000, a depository institution
4 21 shall not directly or indirectly cause or permit the transfer,
4 22 assignment, or other disposition of deposits, or the
4 23 conversion of deposits to nondeposit investments or other
4 24 nondeposit products, whether by written agreement or
4 25 otherwise, for the purpose of achieving compliance with the
4 26 deposit limitation set forth in subsection 2. The following
4 27 transfers or conversions by a depository institution shall not
4 28 be deemed to be made for the purpose of achieving such
4 29 compliance:
4 30 a. A transfer or conversion in the ordinary course of
4 31 business, such as compliance with a contract to transfer funds
4 32 from deposit accounts into repurchase agreements, mutual
4 33 funds, or other nondeposit investments.
4 34 b. A transfer or conversion of deposits held in the name
4 35 of an affiliate as a depositor of the depository institution.
5 1 c. A transfer of deposits, which are not subject to
5 2 reacquisition, in an acquisition by an entity that is not an
5 3 affiliate of the depository institution.
5 4 4. If the superintendent determines that an acquisition
5 5 may involve a question of compliance with the deposit
5 6 limitation set forth in subsection 2, the superintendent shall
5 7 require that each depository institution and holding company
5 8 involved in the acquisition submit to the superintendent a
5 9 statement certified by its president, chief executive officer,
5 10 or chief financial officer, which states that a transfer,
5 11 assignment, or other disposition of deposits prohibited by
5 12 subsection 3 has not been made. The statement, in sufficient
5 13 detail to permit the superintendent to make the determinations
5 14 required under subsections 5 and 6, shall also set forth the
5 15 following:
5 16 a. The total amount of deposits in this state directly or
5 17 indirectly held or controlled by the depository institution
5 18 making the statement, or the deposits in this state directly
5 19 or indirectly held or controlled by all depository
5 20 institutions that are directly or indirectly owned or
5 21 controlled by the holding company, on the date of the most
5 22 recent available deposit reports of the depository
5 23 institutions.
5 24 b. If all of the deposits of a depository institution
5 25 making a deposit report were directly or indirectly acquired
5 26 since the date of the most recent available deposit report in
5 27 an acquisition or as a result of a series of acquisitions, the
5 28 statement shall set forth the amount of the deposits in this
5 29 state acquired from each such other depository institution
5 30 measured as of the date of the most recent available deposit
5 31 report of each such depository institution made prior to the
5 32 acquisition.
5 33 c. If less than all of the deposits of a depository
5 34 institution were directly or indirectly acquired since the
5 35 date of the most recent available deposit report in an
6 1 acquisition or as a result of a series of acquisitions, the
6 2 statement shall set forth the total amount of deposits in this
6 3 state directly or indirectly acquired in such acquisitions.
6 4 d. The total amount of deposits in this state directly or
6 5 indirectly owned or controlled by the depository institution
6 6 or holding company making the statement that have been
6 7 directly or indirectly transferred or assigned in a
6 8 transaction since the date of the most recent available
6 9 deposit report to an entity that is not an affiliate of the
6 10 depository institution or holding company making the
6 11 statement, and that are not subject to reacquisition.
6 12 e. The total amount of deposits in this state set forth in
6 13 paragraph "a" plus the deposits described in paragraphs "b"
6 14 and "c", and less the deposits described in paragraph "d".
6 15 f. The total amount of deposits in this state directly or
6 16 indirectly held or controlled by the depository institution
6 17 making the statement, or in the case of a statement by a
6 18 holding company, the total amount of deposits in this state
6 19 directly or indirectly held or controlled by all depository
6 20 institutions that are directly or indirectly owned or
6 21 controlled by the holding company, on the date of the earlier
6 22 of the two most recent available deposit reports of the
6 23 depository institutions.
6 24 g. If all of the deposits of any other depository
6 25 institution making a deposit report were acquired between the
6 26 dates of the two most recent available deposit reports in an
6 27 acquisition or as a result of a series of acquisitions, the
6 28 statement shall set forth the amount of the deposits in this
6 29 state acquired from each such other depository institution
6 30 measured as of the date of the earlier of the two most recent
6 31 available deposit reports of each such depository institution
6 32 made prior to the acquisition.
6 33 h. If less than all of the deposits of any depository
6 34 institution were directly or indirectly acquired between the
6 35 dates of the two most recent available deposit reports in an
7 1 acquisition or as a result of a series of acquisitions, the
7 2 statement shall set forth the total amount of deposits in this
7 3 state directly or indirectly acquired in such acquisitions.
7 4 i. The total amount of deposits in this state directly or
7 5 indirectly owned or controlled by the depository institution
7 6 or holding company making the statement that have been
7 7 directly or indirectly transferred or assigned in a
7 8 transaction between the dates of the two most recent available
7 9 deposit reports to an entity that is not an affiliate of the
7 10 depository institution or holding company making the
7 11 statement, and that are not subject to reacquisition.
7 12 j. The total amount of deposits in this state set forth in
7 13 paragraph "f" plus the deposits described in paragraphs "g"
7 14 and "h", and less the deposits described in paragraph "i".
7 15 5. The superintendent may conduct such review as the
7 16 superintendent considers necessary to verify the statements
7 17 submitted under subsection 4, paragraphs "a", "b", "c", and
7 18 "d". The superintendent shall calculate the following
7 19 fraction:
7 20 a. The numerator is the sum of the deposits in this state
7 21 directly or indirectly owned or controlled by the depository
7 22 institutions involved in the acquisition and the deposits in
7 23 this state directly or indirectly owned or controlled by all
7 24 other depository institutions directly or indirectly owned or
7 25 controlled by a holding company involved in the acquisition,
7 26 as stated in subsection 4, paragraph "e".
7 27 b. The denominator is the deposits in this state of all
7 28 depository institutions as stated in the most recent available
7 29 deposit reports.
7 30 6. The superintendent may conduct such review as the
7 31 superintendent considers necessary to verify the statements
7 32 submitted under subsection 4, paragraphs "f", "g", "h", and
7 33 "i". The superintendent shall calculate the following
7 34 fraction:
7 35 a. The numerator is the average of the sum of the deposits
8 1 in this state directly or indirectly owned or controlled by
8 2 the depository institutions involved in the acquisition and
8 3 the deposits in this state directly or indirectly owned or
8 4 controlled by all other depository institutions directly or
8 5 indirectly owned or controlled by a holding company involved
8 6 in the acquisition, as stated in subsection 4, paragraphs "e"
8 7 and "j".
8 8 b. The denominator is the average of the deposits in this
8 9 state of all depository institutions as stated in the two most
8 10 recent available deposit reports.
8 11 7. If the quotient determined by the calculation in either
8 12 subsection 5 or 6 exceeds fifteen percent, the proposed
8 13 acquisition does not comply with the limitation of subsection
8 14 2.
8 15 EXPLANATION
8 16 This bill amends Code section 524.1802, which establishes a
8 17 limitation on deposits in Iowa which may be held by a
8 18 depository institution (a bank or savings association) or a
8 19 bank or savings and loan holding company, together with all of
8 20 its affiliates, by establishing the manner for the
8 21 superintendent of banking to determine compliance with the
8 22 limitation in the event of a proposed acquisition of a
8 23 depository institution or the deposits of any branch, office,
8 24 or other facility of a depository institution. The bill
8 25 increases the limitation on deposits in Iowa which may be held
8 26 by a depository institution or holding company, together with
8 27 all of its affiliates, from 10 percent to 15 percent of the
8 28 total deposits in Iowa.
8 29 The bill provides that if the superintendent determines
8 30 that an acquisition may involve a question of compliance with
8 31 the deposit limitation, each depository institution and
8 32 holding company involved in the acquisition must submit to the
8 33 superintendent a statement, certified by its president, chief
8 34 executive officer, or chief financial officer, that no
8 35 transfer, assignment, or other disposition of deposits has
9 1 been made for the purpose of achieving compliance with the
9 2 deposit limitation. Certain transfers of deposits are not
9 3 deemed to be made for the purpose of achieving compliance with
9 4 the deposit limitation.
9 5 The bill provides that the statement must also include
9 6 deposit information sufficient to permit the superintendent to
9 7 determine compliance with the deposit limitation, including
9 8 all of the deposits in Iowa held by the acquiring entity,
9 9 together with all of the deposits in Iowa held by all of its
9 10 affiliates, as stated in the two most recent available annual
9 11 deposit reports filed with each institution's regulator, and
9 12 all of the deposits directly or indirectly acquired by the
9 13 acquiring entity, together with all of the deposits directly
9 14 or indirectly acquired by all of its affiliates, in an
9 15 acquisition or series of acquisitions occurring after the date
9 16 of the most recent report or occurring between the dates of
9 17 the two most recent reports.
9 18 LSB 6463HV 78
9 19 mj/cls/14.1
Text: HF02218 Text: HF02220 Text: HF02200 - HF02299 Text: HF Index Bills and Amendments: General Index Bill History: General Index
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