Text: HSB00049 Text: HSB00051 Text: HSB00000 - HSB00099 Text: HSB Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 Section 1. Section 524.544, subsection 1, Code 1999, is 1 2 amended to read as follows: 1 3 1. Whenever any person proposes to purchase or otherwise 1 4 acquire directly or indirectly any of the outstanding shares 1 5 of a state bank, and the proposed purchase or acquisition 1 6 would result in control or in a change in control of the bank, 1 7 the person proposing to purchase or acquire the shares shall 1 8 first apply in writing to the superintendent for a certificate 1 9 of approval for the proposed change of control. The 1 10 superintendent shall grant the certificate if the 1 11 superintendent is satisfied that the person who proposes to 1 12 obtain control of the bank is qualified by character, 1 13 experience and financial responsibility to control and operate 1 14 the bank in a sound and legal manner, and that the interests 1 15 of the depositors, creditors and shareholders of the bank, and 1 16 of the public generally, will not be jeopardized by the 1 17 proposed change of control.If the proposed purchaser or1 18acquirer is a bank holding company as defined by section1 19524.1801, it shall comply with section 524.1804 in lieu of1 20seeking a certificate of approval under this subsection.A 1 21 person which will become a bank holding company upon 1 22 completion of an acquisition shall make application to the 1 23 superintendent for a certificate of approval as provided in 1 24 this section. Any other bank holding company shall comply 1 25 with section 524.1804 in lieu of seeking a certificate of 1 26 approval under this section. In any situation where the 1 27 president or cashier of a bank has reason to believe any of 1 28 the foregoing requirements have not been complied with, it 1 29 shall be the duty of the president or cashier to promptly 1 30 report in writing such facts to the superintendent upon 1 31 obtaining knowledge thereof. As used in this section, the 1 32 term control means the power, directly or indirectly, to elect 1 33 the board of directors. If there is any doubt as to whether a 1 34 change in the ownership of the outstanding shares is 1 35 sufficient to result in control thereof, or to effect a change 2 1 in the control thereof, such doubt shall be resolved in favor 2 2 of reporting the facts to the superintendent. 2 3 Sec. 2. Section 524.904, subsections 2, 4, and 5, Code 2 4 1999, are amended to read as follows: 2 5 2. A state bank may grant loans and extensions of credit 2 6 to one borrower in an amount not to exceed fifteen percent of 2 7 the state bank's aggregate capital as defined in section 2 8 524.103, unless the additional lending provisions described in 2 9subsections 3 and 4 applysubsection 3 or 4 applies. 2 10 4. A state bank may grant loans and extensions of credit 2 11 to one borrower not to exceed thirty-five percent of the state 2 12 bank's aggregate capital if any amount that exceeds the 2 13 lending limitations described insubsectionssubsection 2and2 14 or 3 consists of obligations as endorser of negotiable chattel 2 15 paper negotiated by endorsement with recourse, or as 2 16 unconditional guarantor of nonnegotiable chattel paper, or as 2 17 transferor of chattel paper endorsed without recourse subject 2 18 to a repurchase agreement. 2 19 5. A state bank may grant loans and extensions of credit 2 20 to a corporate group in an amount not to exceed twenty-five 2 21 percent of the state bank's aggregate capital if all loans and 2 22 extensions of credit to any one borrower within a corporate 2 23 group conform tosubsectionssubsection 2andor 3, and the 2 24 financial strength, assets, guarantee, or endorsement of any 2 25 one corporate group member is not relied upon as a basis for 2 26 loans and extensions of credit to any other corporate group 2 27 member. A state bank may grant loans and extensions of credit 2 28 to a corporate group in an amount not to exceed thirty-five 2 29 percent of aggregate capital if all loans and extensions of 2 30 credit to any one borrower within a corporate group conform to 2 31subsectionssubsection 2, 3,andor 4, and the financial 2 32 strength, assets, guarantee, or endorsement of any one 2 33 corporate group member is not relied upon as a basis for loans 2 34 and extensions of credit to any other corporate group member. 2 35 A corporate group includes a person and all corporations in 3 1 which the person owns or controls fifty percent or more of the 3 2 shares entitled to vote. 3 3 EXPLANATION 3 4 This bill amends provisions relating to the regulation and 3 5 operation of banks in this state. Code section 524.544 is 3 6 amended to require a person which would become a bank holding 3 7 company upon the acquisition of a state bank to make written 3 8 application to the superintendent for a certificate of 3 9 approval for the proposed acquisition. Currently, such person 3 10 would not have to make such application to the superintendent 3 11 in the same manner as any other person proposing to make an 3 12 acquisition. 3 13 Code section 524.904 is amended to permit additional 3 14 amounts of a loan or extension of credit to one borrower to be 3 15 secured by existing permissible methods. 3 16 LSB 1268DP 78 3 17 mj/gg/8
Text: HSB00049 Text: HSB00051 Text: HSB00000 - HSB00099 Text: HSB Index Bills and Amendments: General Index Bill History: General Index
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