1. The total obligations, as defined in subsection 1 of section 524.904, of a director to a state bank of which the person is a director shall not exceed twenty percent of the capital and surplus of the state bank except that the total obligations of a director to a state bank of which the person is a director shall not exceed forty percent of the capital and surplus of the state bank if the amount by which such obligations exceed twenty percent of the capital and surplus of the state bank shall consist of obligations described in paragraph "a" of subsection 2 of section 524.904. A majority of the board of directors, voting in the absence of the applying director, shall give its prior approval to any obligation, as defined in subsection 1 of section 524.904, of a director to the state bank of which the person is a director. The form of such approval shall be specified by the superintendent, and a copy recorded in the minutes of the board of directors.
2. A director shall not be permitted to receive any loan or extension of credit or use any property of a state bank of which the person is a director at a lower rate of interest or charge than the rate charged to other customers under similar circumstances.
3. A director shall not be paid a higher rate of interest on deposits by a state bank of which the person is a director than the rate paid to any other customer under similar circumstances.
4. A director shall not purchase or lease any assets from or sell or lease any assets to a state bank of which the person is a director except upon terms not less favorable to the state bank than those offered to or by other persons. All purchases or leases from and sales or leases to a director shall receive the prior approval of a majority of the board of directors voting in the absence of the interested director.
5. For the purpose of this section and section 524.706, any obligation, as defined in section 524.904, subsection 1, of the spouse, other than a spouse who is separated from the director or officer under a decree of divorce or separate maintenance, or minor children of a director or officer to the state bank in which the person is a director or officer is considered an obligation of such director or officer. However, an obligation of a spouse is not considered an obligation of the director or officer if the officer or director and the spouse of the director or officer maintain separate deposit accounts, for either personal or business purposes, and the funds obtained pursuant to the obligation of the spouse are not commingled with funds of, or used to directly benefit, the officer or director, and the obligation is not guaranteed by the director or officer.
[C97, § 1869; S13, § 1869; C24, 27, 31, 35, 39, § 9220; C46, 50, 54, 58, 62, 66, § 528.6; C71, 73, 75, 77, 79, 81, § 524.612]
91 Acts, ch 14, §1
Referred to in § 524.706, 524.1601, 524.1806
Iowa General Assembly
Search: Iowa Code 1995
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