No state bank shall make any loan or extension of credit on the security of the shares of its own capital, or, except as provided in sections 524.1406 and 524.1417, be the purchaser or holder of any such shares, unless such security or purchase shall be necessary to prevent loss upon a debt previously contracted in good faith, and shares so purchased or acquired shall be sold at public or private sale within one year from the time of their purchase or acquisition, unless the time is extended by the superintendent. Any common shares of a state bank purchased or acquired by the state bank pursuant to this chapter, and sold as directed by this chapter, shall be subject to the minimum consideration requirements of subsection 1 of section 524.503 unless a lesser consideration is approved by the superintendent. Any preferred shares of a state bank purchased or acquired by the state bank pursuant to this chapter, and sold as directed by this chapter, shall be subject to the consideration requirements of subsection 2 of section 524.503.
[C97, § 1850; S13, § 1850; C24, 27, § 9184; C31, 35, § 9221-c2; C39, § 9221.2; C46, 50, 54, 58, 62, 66, § 528.9; C71, 73, 75, 77, 79, 81, § 524.507]
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