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PAG LIN
1 1 SENATE FILE 2158
1 2
1 3 AN ACT
1 4 RELATING TO THE LIMITATION ON DEPOSITS WHICH MAY BE HELD BY A
1 5 DEPOSITORY INSTITUTION OR HOLDING COMPANY AND ESTABLISHMENT
1 6 OF A PROCEDURE FOR DETERMINING COMPLIANCE WITH SUCH
1 7 LIMITATION, PROVIDING FOR THE ACT'S APPLICABILITY, AND
1 8 PROVIDING AN EFFECTIVE DATE.
1 9
1 10 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 11
1 12 Section 1. Section 524.1802, Code 1999, is amended by
1 13 striking the section and inserting in lieu thereof the
1 14 following:
1 15 524.1802 LIMITATION.
1 16 1. For purposes of this section, unless the context
1 17 otherwise requires:
1 18 a. "Acquisition" means any of the following:
1 19 (1) Obtaining direct or indirect ownership or control of
1 20 more than twenty-five percent of any class of the voting
1 21 shares of a depository institution.
1 22 (2) Obtaining the power to directly or indirectly control
1 23 in any manner the election of a majority of the directors,
1 24 trustees, or other persons exercising similar functions of a
1 25 depository institution.
1 26 (3) Obtaining direct or indirect ownership or control of,
1 27 or acquisition or assumption of, the deposits of a depository
1 28 institution or the deposits of any branch, office, or other
1 29 facility of a depository institution.
1 30 b. "Affiliate" of a depository institution or holding
1 31 company includes a corporation, limited liability company,
1 32 trust, estate, association, or other similar organization
1 33 which satisfies any of the following:
1 34 (1) The depository institution or holding company directly
1 35 or indirectly owns or controls either twenty-five percent of
2 1 the voting shares or more than twenty-five percent of the
2 2 number of shares voted for the election of such entity's
2 3 directors, trustees, or other individuals exercising similar
2 4 functions, or controls in any manner the election of a
2 5 majority of its directors, trustees, or other individuals
2 6 exercising similar functions.
2 7 (2) Control is held directly or indirectly in such entity
2 8 through share ownership, or in any other manner, by the
2 9 shareholders of the depository institution or holding company
2 10 who own or control either twenty-five percent of the shares of
2 11 such depository institution or holding company or more than
2 12 twenty-five percent of the number of shares voted for the
2 13 election of directors, trustees, or other individuals
2 14 exercising similar functions of such depository institution or
2 15 holding company, or by trustees for the benefit of the
2 16 shareholders of any such depository institution or holding
2 17 company.
2 18 (3) A majority of such entity's directors, trustees, or
2 19 other individuals exercising similar functions are directors
2 20 of the depository institution or holding company.
2 21 (4) Directly or indirectly owns or controls either twenty-
2 22 five percent of the voting shares of the depository
2 23 institution or holding company or more than twenty-five
2 24 percent of the number of shares voted for the election of
2 25 directors, trustees, or other individuals exercising similar
2 26 functions of the depository institution or holding company, or
2 27 controls in any manner the election of a majority of the
2 28 directors, trustees, or other individuals exercising similar
2 29 functions of the depository institution or holding company, or
2 30 for the benefit of whose shareholders or members all or
2 31 substantially all of the outstanding voting shares of the
2 32 depository institution or holding company is held by trustees.
2 33 c. "Deposit" means deposit as defined in 12 U.S.C. } 1813.
2 34 d. "Deposit in this state" means a deposit properly shown
2 35 in a deposit report or in a statement under subsection 4,
3 1 paragraph "c", "d", "h", or "i", as a deposit at a depository
3 2 institution in this state or at a branch, office, or other
3 3 facility of the depository institution in this state, without
3 4 regard to the location of the depositor.
3 5 e. "Deposit report" means the annual report that
3 6 identifies deposits by branch, office, or other facility and
3 7 that is filed by a depository institution with the federal
3 8 deposit insurance corporation or the office of thrift
3 9 supervision. For a depository institution not required to
3 10 file an annual report that identifies deposits by branch,
3 11 office, or other facility, "deposit report" means the
3 12 quarterly report of condition filed by the depository
3 13 institution for the quarter that ends on or nearest to the
3 14 date as of which deposits are stated in a deposit report that
3 15 identifies deposits by branch, office, or other facility and
3 16 that is required to be filed by other depository institutions
3 17 having the same type of charter. The date of a deposit report
3 18 means the date as of which deposits are stated in the deposit
3 19 report.
3 20 f. "Depository institution" means a depository institution
3 21 as defined in 12 U.S.C. } 1813.
3 22 g. "Holding company" means a bank holding company as
3 23 defined in section 524.1801 and a savings and loan holding
3 24 company as defined in 12 U.S.C. } 1467a.
3 25 h. "Series of acquisitions" means both of the following:
3 26 (1) All acquisitions made at any time after the date of
3 27 the most recent available deposit report and prior to the date
3 28 of a statement under subsection 4, and all acquisitions made
3 29 during such time by any depository institution or holding
3 30 company that is acquired by the depository institution or
3 31 holding company making the statement, and all acquisitions
3 32 made during such time by any such depository institution or
3 33 holding company so acquired.
3 34 (2) All acquisitions made at any time between the dates of
3 35 the two most recent available deposit reports, that are not
4 1 shown on the most recent available deposit report, by a
4 2 depository institution or holding company making a statement
4 3 under subsection 4, and all acquisitions made during such time
4 4 by any depository institution or holding company that is
4 5 acquired by the depository institution or holding company
4 6 making the statement, and all acquisitions made during such
4 7 time by any such depository institution or holding company so
4 8 acquired.
4 9 2. A depository institution or holding company shall not
4 10 directly or indirectly acquire a depository institution or the
4 11 deposits of a depository institution if any of the following
4 12 apply:
4 13 a. The acquirer is a depository institution and, upon the
4 14 acquisition, the total deposits in this state directly or
4 15 indirectly controlled by the depository institution would
4 16 exceed fifteen percent of the total deposits in this state, as
4 17 determined under this section.
4 18 b. The acquirer is a holding company and, upon the
4 19 acquisition, the total deposits in this state directly or
4 20 indirectly controlled by the holding company would exceed
4 21 fifteen percent of the total deposits in this state, as
4 22 determined under this section.
4 23 c. The acquirer is a depository institution or a holding
4 24 company which is directly or indirectly owned or controlled by
4 25 a holding company and, upon the acquisition, the total
4 26 deposits in this state directly or indirectly controlled by
4 27 the holding company which owns or controls the acquiring
4 28 depository institution or holding company would exceed fifteen
4 29 percent of the total deposits in this state, as determined
4 30 under this section.
4 31 3. On or after January 1, 2000, a depository institution
4 32 shall not directly or indirectly cause or permit the transfer,
4 33 assignment, or other disposition of deposits, or the
4 34 conversion of deposits to nondeposit investments or other
4 35 nondeposit products, whether by written agreement or
5 1 otherwise, for the purpose of achieving compliance with the
5 2 deposit limitation set forth in subsection 2. The following
5 3 transfers or conversions by a depository institution shall not
5 4 be deemed to be made for the purpose of achieving such
5 5 compliance:
5 6 a. A transfer or conversion in the ordinary course of
5 7 business, such as compliance with a contract to transfer funds
5 8 from deposit accounts into repurchase agreements, mutual
5 9 funds, or other nondeposit investments.
5 10 b. A transfer or conversion of deposits held in the name
5 11 of an affiliate as a depositor of the depository institution.
5 12 c. A transfer of deposits, which are not subject to
5 13 reacquisition, in an acquisition by an entity that is not an
5 14 affiliate of the depository institution.
5 15 4. If the superintendent determines that an acquisition
5 16 may involve a question of compliance with the deposit
5 17 limitation set forth in subsection 2, the superintendent shall
5 18 require that each depository institution and holding company
5 19 involved in the acquisition submit to the superintendent a
5 20 statement certified by its president, chief executive officer,
5 21 or chief financial officer, which states that a transfer,
5 22 assignment, or other disposition of deposits prohibited by
5 23 subsection 3 has not been made. The statement, in sufficient
5 24 detail to permit the superintendent to make the determinations
5 25 required under subsections 5 and 6, shall also set forth the
5 26 following:
5 27 a. The total amount of deposits in this state directly or
5 28 indirectly held or controlled by the depository institution
5 29 making the statement, or the deposits in this state directly
5 30 or indirectly held or controlled by all depository
5 31 institutions that are directly or indirectly owned or
5 32 controlled by the holding company, on the date of the most
5 33 recent available deposit reports of the depository
5 34 institutions.
5 35 b. If all of the deposits of a depository institution
6 1 making a deposit report were directly or indirectly acquired
6 2 since the date of the most recent available deposit report in
6 3 an acquisition or as a result of a series of acquisitions, the
6 4 statement shall set forth the amount of the deposits in this
6 5 state acquired from each such other depository institution
6 6 measured as of the date of the most recent available deposit
6 7 report of each such depository institution made prior to the
6 8 acquisition.
6 9 c. If less than all of the deposits of a depository
6 10 institution were directly or indirectly acquired since the
6 11 date of the most recent available deposit report in an
6 12 acquisition or as a result of a series of acquisitions, the
6 13 statement shall set forth the total amount of deposits in this
6 14 state directly or indirectly acquired in such acquisitions.
6 15 d. The total amount of deposits in this state directly or
6 16 indirectly owned or controlled by the depository institution
6 17 or holding company making the statement that have been
6 18 directly or indirectly transferred or assigned in a
6 19 transaction since the date of the most recent available
6 20 deposit report to an entity that is not an affiliate of the
6 21 depository institution or holding company making the
6 22 statement, and that are not subject to reacquisition.
6 23 e. The total amount of deposits in this state set forth in
6 24 paragraph "a" plus the deposits described in paragraphs "b"
6 25 and "c", and less the deposits described in paragraph "d".
6 26 f. The total amount of deposits in this state directly or
6 27 indirectly held or controlled by the depository institution
6 28 making the statement, or in the case of a statement by a
6 29 holding company, the total amount of deposits in this state
6 30 directly or indirectly held or controlled by all depository
6 31 institutions that are directly or indirectly owned or
6 32 controlled by the holding company, on the date of the earlier
6 33 of the two most recent available deposit reports of the
6 34 depository institutions.
6 35 g. If all of the deposits of any other depository
7 1 institution making a deposit report were acquired between the
7 2 dates of the two most recent available deposit reports in an
7 3 acquisition or as a result of a series of acquisitions, the
7 4 statement shall set forth the amount of the deposits in this
7 5 state acquired from each such other depository institution
7 6 measured as of the date of the earlier of the two most recent
7 7 available deposit reports of each such depository institution
7 8 made prior to the acquisition.
7 9 h. If less than all of the deposits of any depository
7 10 institution were directly or indirectly acquired between the
7 11 dates of the two most recent available deposit reports in an
7 12 acquisition or as a result of a series of acquisitions, the
7 13 statement shall set forth the total amount of deposits in this
7 14 state directly or indirectly acquired in such acquisitions.
7 15 i. The total amount of deposits in this state directly or
7 16 indirectly owned or controlled by the depository institution
7 17 or holding company making the statement that have been
7 18 directly or indirectly transferred or assigned in a
7 19 transaction between the dates of the two most recent available
7 20 deposit reports to an entity that is not an affiliate of the
7 21 depository institution or holding company making the
7 22 statement, and that are not subject to reacquisition.
7 23 j. The total amount of deposits in this state set forth in
7 24 paragraph "f" plus the deposits described in paragraphs "g"
7 25 and "h", and less the deposits described in paragraph "i".
7 26 5. The superintendent may conduct such review as the
7 27 superintendent considers necessary to verify the statements
7 28 submitted under subsection 4, paragraphs "a", "b", "c", and
7 29 "d". The superintendent shall calculate the following
7 30 fraction:
7 31 a. The numerator is the sum of the deposits in this state
7 32 directly or indirectly owned or controlled by the depository
7 33 institutions involved in the acquisition and the deposits in
7 34 this state directly or indirectly owned or controlled by all
7 35 other depository institutions directly or indirectly owned or
8 1 controlled by a holding company involved in the acquisition,
8 2 as stated in subsection 4, paragraph "e".
8 3 b. The denominator is the deposits in this state of all
8 4 depository institutions as stated in the most recent available
8 5 deposit reports.
8 6 6. The superintendent may conduct such review as the
8 7 superintendent considers necessary to verify the statements
8 8 submitted under subsection 4, paragraphs "f", "g", "h", and
8 9 "i". The superintendent shall calculate the following
8 10 fraction:
8 11 a. The numerator is the average of the sum of the deposits
8 12 in this state directly or indirectly owned or controlled by
8 13 the depository institutions involved in the acquisition and
8 14 the deposits in this state directly or indirectly owned or
8 15 controlled by all other depository institutions directly or
8 16 indirectly owned or controlled by a holding company involved
8 17 in the acquisition, as stated in subsection 4, paragraphs "e"
8 18 and "j".
8 19 b. The denominator is the average of the deposits in this
8 20 state of all depository institutions as stated in the two most
8 21 recent available deposit reports.
8 22 7. If the quotient determined by the calculation in either
8 23 subsection 5 or 6 exceeds fifteen percent, the proposed
8 24 acquisition does not comply with the limitation of subsection
8 25 2.
8 26 Sec. 2. EFFECTIVE DATE AND RETROACTIVE APPLICABILITY.
8 27 This Act, being deemed of immediate importance, takes effect
8 28 upon enactment and is retroactively applicable to January 1,
8 29 2000.
8 30
8 31
8 32
8 33 MARY E. KRAMER
8 34 President of the Senate
8 35
9 1
9 2
9 3 BRENT SIEGRIST
9 4 Speaker of the House
9 5
9 6 I hereby certify that this bill originated in the Senate and
9 7 is known as Senate File 2158, Seventy-eighth General Assembly.
9 8
9 9
9 10
9 11 MICHAEL E. MARSHALL
9 12 Secretary of the Senate
9 13 Approved , 2000
9 14
9 15
9 16
9 17 THOMAS J. VILSACK
9 18 Governor
Text: SF02157 Text: SF02159 Text: SF02100 - SF02199 Text: SF Index Bills and Amendments: General Index Bill History: General Index
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