1. Except in the case of a distribution of shares authorized by section 524.517 or shares issued upon exchanges or conversion, common shares of a state bank may be issued only for cash in an amount which shall be at least:
a. In the case of the issuance of additional common shares of an existing state bank, equal to the sum of the capital represented by the common shares and the surplus of the state bank divided by the number of common shares previously issued.
b. In the case of the issuance of common shares of a proposed state bank, the amount required to equal the sum of the capital, to be represented by the common shares, the surplus and the undivided profits, required by the superintendent as a condition precedent to the issuance of an authorization to do business, divided by the number of shares to be issued.
2. Preferred shares of a state bank may be issued only for cash and for an amount not less than that determined by the superintendent.
[C97, § 1853; C24, 27, 31, 35, 39, § 9192; C46, 50, 54, 58, 62, 66, § 526.36; C71, 73, 75, 77, 79, 81, § 524.503]
Referred to in § 524.507
Iowa General Assembly
Search: Iowa Code 1995
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