1. a. An executive officer of a state bank may receive loans or extensions of credit from a state bank of which the person is an executive officer, resulting in obligations as defined in section 524.904, subsection 1, not exceeding, in the aggregate:
(1) An amount secured by a lien on a dwelling which is expected, after the obligation is incurred, to be owned by the executive officer and used as the officer's residence, provided that after the loan is made there is no other loan by the bank to the executive officer, under authority of this subparagraph, outstanding.
(2) An amount to finance the education of a child or children of the executive officer.
(3) Any other loans or extensions of credit which in the aggregate do not at any one time exceed the higher of twenty-five thousand or two point five percent of the bank's capital and surplus, but in no event more than one hundred thousand dollars.
(4) Other amounts which do not, in the aggregate, exceed the principal amounts of time certificates of deposit in the bank which are held in the name of the executive officer, if repayment of the loan or credit amounts is at all times secured by pledge of the certificates. An interest in or portion of a time certificate of deposit does not satisfy the requirements of this subparagraph if that interest or portion is also pledged to secure the payment of a debt or obligation of any person other than the executive officer.
b. A state bank shall not loan money or extend credit to an executive officer of such state bank, nor shall an executive officer of a state bank receive a loan or extension of credit from such state bank, exceeding the limitations imposed by this section or for a purpose other than that authorized by this section. Such loans or extensions of credit shall not exceed an amount totaling more than twenty percent of the capital and surplus of the state bank and any such loan on real property shall comply with section 524.905. A majority of the board of directors, voting in the absence of the applying officer, whether or not the officer is also a director, shall give its prior approval to any obligation of an executive officer to the state bank of which the person is an executive officer. The form of approval shall be specified by the superintendent, and a copy recorded in the minutes of the board of directors.
c. For the purposes of this subsection "executive officer" means an officer of a state bank who participates or has authority to participate, otherwise than in the capacity of a director, in major policymaking functions of the bank, regardless of whether the officer has an official title or whether the officer's title contains a designation of assistant and regardless of whether the officer is serving without salary or other compensation. The chairperson of the board, every president, every vice president, the cashier, secretary, and treasurer of a state bank are assumed to be executive officers, unless, by resolution of the board of directors or by the bank's bylaws, but subject to contrary notice by the superintendent as provided for in section 524.701, any such officer is excluded from participation in major policymaking functions, otherwise than in the capacity of a director of the bank, and the officer does not actually participate.
2. The provisions of section 524.612, subsections 2, 3 and 4, shall apply to officers.
3. If an individual is a director and an officer, the individual shall be subject to the limitations of subsection 1 of this section.
4. Whenever an officer of a state bank borrows from or otherwise becomes obligated to any person or persons other than the state bank of which the person is an officer, in a total amount equal to or exceeding twenty-five thousand dollars excluding such amounts as may be owing by the officer secured by a first lien on a dwelling which is used by the officer as the officer's residence, the officer shall report in writing to the superintendent that the officer is so obligated. Upon the request of the superintendent, an officer of a state bank shall submit to the superintendent, a personal financial statement which shall show the names of all persons to whom the officer is obligated, the dates, terms, and amounts of each loan or other obligation, the security therefor, and the purpose for which the proceeds of such loans or other obligations have been or are to be used.
[C97, § 1869; S13, § 1869; C24, 27, 31, 35, 39, § 9220; C46, 50, 54, 58, 62, 66, § 528.6; C71, 73, 75, 77, 79, 81, § 524.706; 82 Acts, ch 1253, § 1]
83 Acts, ch 101, § 109; 84 Acts, ch 1032, § 3; 91 Acts, ch 7, §2
Referred to in § 524.612, 524.1601, 524.1806
Iowa General Assembly
Search: Iowa Code 1995
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