Text: HF00537 Text: HF00539 Text: HF00500 - HF00599 Text: HF Index Bills and Amendments: General Index Bill History: General Index
PAG LIN
1 1 Section 1. Section 533.48, subsection 1, Code 2003, is
1 2 amended to read as follows:
1 3 1. INVESTMENTS IN BANKS. A credit union may, with the
1 4 prior approval of the superintendent, invest in the capital
1 5 stock, obligations, or other securities of a bank, provided
1 6 that the credit union owns less than one hundred percent of
1 7 all outstanding shares of a single bank. A credit union shall
1 8 not purchase or otherwise acquire a bank as defined in section
1 9 524.103, in whole or in part. The fact that the bank has
1 10 begun or completed a process of dissolution in order to permit
1 11 the acquisition to occur shall not be used by the credit union
1 12 or the bank to suggest that the bank does not formally satisfy
1 13 the definition of a bank and avoid the prohibition on
1 14 acquisition.
1 15 EXPLANATION
1 16 This bill amends Code section 533.48, regarding the ability
1 17 of a credit union to make investments in banks and savings and
1 18 loans. The bill expressly limits the ownership interest of a
1 19 credit union in a bank to less than 100 percent of all
1 20 outstanding shares in a single bank, and further prohibits a
1 21 credit union from purchasing or otherwise acquiring a bank.
1 22 The fact that a bank must change its business form and go
1 23 through a process of dissolution in order to further the
1 24 acquisition process cannot be used to avoid the prohibition on
1 25 acquisition.
1 26 The remainder of Code section 533.48 addresses investment
1 27 by credit unions in savings and loans, as well as the
1 28 requisite findings the superintendent must make regarding the
1 29 state of competition if the investment is allowed, in order to
1 30 grant approval to an investment in either a bank or savings
1 31 and loan. The Code section also addresses subsequent
1 32 incorporation of additional banks or savings and loans in the
1 33 same community and the preservation of competition.
1 34 LSB 2506YH 80
1 35 jj/sh/8
Text: HF00537 Text: HF00539 Text: HF00500 - HF00599 Text: HF Index Bills and Amendments: General Index Bill History: General Index
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