1. The board of directors of a state bank may, subject to the provisions of section 524.405, distribute pro rata to holders of common shares authorized but unissued common shares of the state bank.
2. No distribution may be made in authorized but unissued shares of the state bank unless:
a. There shall be transferred to capital an amount equal to the total par value of the shares distributed, and
b. Immediately after the distribution, the surplus of the state bank would be at least equal to fifty percent of its capital.
[C71, 73, 75, 77, 79, 81, § 524.517]
Referred to in § 524.503
Iowa General Assembly
Search: Iowa Code 1995
© 1996 Cornell College and League of Women Voters of Iowa
Comments? webmaster@legis.iowa.gov.
Last update: Thu Feb 8 18:14:51 CST 1996
URL: /IACODE/1995/524/517.html
jhf