1. Upon receipt of an application for approval of a state bank the superintendent shall conduct such investigation as the superintendent deems necessary to ascertain whether:
a. The articles of incorporation and supporting items satisfy the requirements of this chapter.
b. The convenience and needs of the public will be served by the proposed state bank.
c. The population density or other economic characteristics of the area primarily to be served by the proposed state bank afford reasonable promise of adequate support for the state bank.
d. The character and fitness of the incorporators and of the members of the initial board of directors are such as to command the confidence of the community and to warrant the belief that the business of the proposed state bank will be honestly and efficiently conducted.
e. The capital structure of the proposed state bank is adequate in relation to the amount of the anticipated business of the state bank and the safety of prospective depositors.
f. The proposed state bank will have sufficient personnel with adequate knowledge and experience to conduct the business of the state bank, and to administer fiduciary accounts, if the state bank is to be authorized to act in a fiduciary capacity.
2. Within one hundred eighty days after receipt of the application for approval together with the items referred to in section 524.303, subsections 1 and 2, the superintendent shall make a determination whether to approve or disapprove the pending application on the basis of the investigation.
3. Within ninety days after the second publication of the notice referred to in section 524.304 any person opposing the pending application shall file written objections with the superintendent. Following the expiration of the ninety- day period and prior to making a determination on the pending application, the superintendent shall give adequate notice of the pending application, and may afford all interested persons, including the incorporators, an opportunity for a stenographically reported hearing during which such persons shall be allowed to present evidence in support of, or in opposition to, the pending application.
The superintendent shall conduct such hearing if any interested person files an objection to the pending application and requests a hearing.
4. If the superintendent approves the pending application, the superintendent shall deliver the articles of incorporation, with the superintendent's approval indicated thereon, to the secretary of state and notify the incorporators, and such other persons who requested in writing that they be notified, of such approval. If the superintendent disapproves the pending application the superintendent shall notify the incorporators of the action and the reason for the decision.
5. The actions of the superintendent shall be subject to judicial review in accordance with the terms of the Iowa administrative procedure Act. The court may award damages to the incorporators if it finds that review is sought frivolously and in bad faith.
6. Subsection 3 of this section shall not apply if the superintendent finds that one of the purposes of the proposed state bank is the merger or consolidation with, or the purchase of some or all of the assets of and assumption of some or all of the liabilities of, a bank for which a receiver has been appointed or which has been ordered, by authorities of this state or the United States, to cease to carry on its business, or if the superintendent finds for any other reason that immediate action on the pending application is advisable in order to protect the interests of depositors or the assets of any other bank.
7. Before receiving the decision of the superintendent with respect to the pending application the incorporators shall, upon notice, reimburse the superintendent to the extent of the expenses incurred by the superintendent in connection with the application.
[C24, 27, 31, 35, § 9140-c1, 9141, 9142; C39, § 9140.1, 9141, 9142; C46, 50, 54, 58, 62, 66, § 524.11, 524.12, 524.13; C71, 73, 75, 77, 79, 81, § 524.305]
92 Acts, ch 1161, § 2
Referred to in § 524.106, 524.304, 524.307, 524.312, 524.1001, 524.1507, 533.48, 534.214, 534.509, 534.511
Iowa General Assembly
Search: Iowa Code 1995
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