CHAPTER 2
APPLICATION PROCEDURES
[Prior to 4/22/87, see Banking Department[140] Ch 2]
187—2.1(17A,524) Organization of a state-chartered bank.
	2.1(1) Application. Persons desiring to organize a state-chartered bank should first meet with the superintendent to discuss the proposal. An “Application to Organize a State Bank” and supplementary forms may be obtained for submission to the superintendent.
	2.1(2) Investigation. The superintendent may conduct an investigation as deemed necessary.
	2.1(3) Preliminary approval. The superintendent may grant preliminary approval of an application to organize a state-chartered bank. If preliminary approval is granted, the superintendent may, if it is determined that such action is necessary or desirable for the protection of the public interest, at any time withdraw that approval.
	2.1(4) Decision. The superintendent shall approve or deny the application within 180 days after the application has been accepted for processing. The decision by the superintendent shall be conveyed in writing to the applicant.
	2.1(5) Corporate organization. The proposed state bank does not come into existence until articles of incorporation have been approved by the superintendent and filed and recorded by the secretary of state and a certificate of incorporation has been issued.
	2.1(6) Commencement of business. If the superintendent is satisfied that the proposed state bank has met all requirements and conditions and is ready to commence business, the superintendent shall issue an Authorization To Do Business which provides that the state bank is authorized to commence business as of a specified date.
This rule is intended to implement Iowa Code section 524.303.
187—2.2(17A,524) Conversion of national bank into state bank.
	2.2(1) Application. A national bank desiring to become a state-chartered bank should first meet with the superintendent to discuss the proposal. An application and supplementary forms may be obtained for submission to the superintendent.
	2.2(2) Examination and investigation. The superintendent may conduct an examination or investigation of the national bank as deemed necessary.
	2.2(3) Decision. The superintendent shall approve or deny the application within 90 days after the application has been accepted for processing. The decision by the superintendent shall be conveyed in writing to the applicant.
	2.2(4) Corporate documents. If approval is granted, articles of conversion with a plan of conversion attached shall be delivered to the secretary of state for filing and recording.
	2.2(5) Commencement of business as state-chartered bank. The conversion shall be effective as of the date of filing of articles of conversion in the office of the secretary of state unless a later date is specified in the articles of conversion. The superintendent’s Authorization To Do Business as a state-chartered bank will be issued to be effective on the date of conversion.
	2.2(6) Resulting state-chartered bank. The resulting state bank shall submit the oath of directors, list of shareholders, and certificate of elections and appointments to the superintendent on forms to be provided by the superintendent. The oath of directors is to be signed prior to the first meeting of the board of directors following the effective date of the conversion. The list of shareholders is to be completed as of the effective date of conversion.
This rule is intended to implement Iowa Code sections 524.1410 and 524.1413 to 524.1415.
187—2.3(17A,524) Merger or purchase and assumption.
	2.3(1) Definition. For purposes of this rule, the term “merger” means a merger in which the resulting bank is a state-chartered bank.
	2.3(2) Application. State banks or national and state banks desiring to merge or a state bank desiring to purchase the assets and assume the liabilities of another bank should first meet with the superintendent to discuss the proposal. An application and supplementary forms may be obtained for submission to the superintendent.
	2.3(3) State-chartered bank as seller. In the case of a purchase and assumption, if the bank being acquired is a state bank, appropriate forms and instructions for the voluntary liquidation of the bank may be obtained from the superintendent.
	2.3(4) Examination and investigation. The superintendent may conduct an examination or investigation as deemed necessary.
	2.3(5) Decision. The superintendent shall approve or deny the application within 90 days after the purchase and assumption application has been accepted for processing and within 180 days after the merger application has been accepted for processing. The decision by the superintendent shall be conveyed in writing to the applicant. If the application is approved, the superintendent shall issue the appropriate authorizations.
	2.3(6) Cash out merger. Rescinded IAB 10/10/18, effective 11/14/18.
This rule is intended to implement Iowa Code sections 524.1401 to 524.1405.
[ARC 4055C, IAB 10/10/18, effective 11/14/18]
187—2.4(17A,524) Establishment of a bank office.
	2.4(1) Application. A state-chartered bank desiring to establish and operate a bank office shall submit to the superintendent an “Application to Establish a Bank Office,” which is available upon request.
	2.4(2) Investigation. The superintendent may conduct an investigation as deemed necessary.
	2.4(3) Guidelines. In determining whether to approve or deny a bank office application for other than a mobile office, a bank-owned courier service, or a convenience office, the superintendent will consider the following factors:
	a. 	Whether the convenience and needs of the public and existing customers of the applicant bank will be served by the proposed office.
	b. 	Whether the population density and other economic characteristics of the area primarily to be served by the proposed office afford reasonable promise of adequate support for the office.
	c. 	Whether the capital structure of the applicant bank is adequate in relation to the costs and anticipated increased business, if any, occasioned by the proposed office.
	d. 	The history of operation and management of the applicant bank.
	e. 	Such other factors as the superintendent may determine are relevant.
	2.4(4) Decision. The superintendent shall approve or deny the application within 120 days after the application has been accepted for processing. The decision by the superintendent shall be conveyed in writing to the applicant. If the application is approved, the superintendent shall issue a bank office certificate for the establishment and operation of the bank office to be effective on a specific date and at a designated location.
This rule is intended to implement Iowa Code sections 524.312, 524.1201, 524.1303, and 524.1403.
187—2.5(17A,524) Change of location of principal place of business or bank office.
	2.5(1) Application. A state bank desiring to relocate its principal place of business or a bank office shall submit to the superintendent an “Application to Move Main Office or Bank Office,” which is available upon request.
	2.5(2) Investigation. The superintendent may conduct an investigation as deemed necessary.
	2.5(3) Decision. The superintendent shall approve or deny the application within 180 days after the application has been accepted for processing. The decision by the superintendent shall be conveyed in writing to the applicant. If the application is approved, the superintendent shall issue the appropriate authorizations for the conduct of business at the new location.
This rule is intended to implement Iowa Code section 524.312.
[ARC 4055C, IAB 10/10/18, effective 11/14/18]
187—2.6(17A,524) Change of control.
	2.6(1) Application. An application by any person to purchase or otherwise acquire, directly or indirectly, outstanding shares of a state bank which would result in control or a change in control shall be submitted in the format requested by the superintendent and shall, at a minimum, contain the following information:
	a. 	Copy of the agreement between the purchaser and seller for the sale of stock which results in the buyer acquiring a majority interest in the state bank.
	b. 	Terms of any bank stock loan including the amount to be borrowed, rate of interest, number of years the loan is to run, collateral pledged to secure the indebtedness and any other pertinent information relating to such loan.
	c. 	Financial statement of the purchaser and a résumé related to the purchaser’s past experience and affiliations.
	d. 	Pro forma statement of the purchaser’s income and expenses during the term of the bank stock loan and a statement from the purchaser indicating which assets will be converted to cash or pledged as security to provide the initial equity.
	e. 	Projections of statement of condition of the state bank to be purchased during the term of the bank stock loan.
	f. 	Projections of income and expenses of the state bank to be purchased during the term of the bank stock loan.
	g. 	Any plans which the purchaser may have which would represent major changes in the present staff or policies of the state bank involved.
	h. 	When requested by the superintendent, an affidavit signed by the purchaser stating that the majority interest in the state bank is not being acquired for the benefit of another person or company.
	2.6(2) Investigation. The superintendent may conduct an investigation as deemed necessary.
	2.6(3) Decision. The superintendent shall approve or deny the application within 90 days after the application has been accepted for processing. The decision by the superintendent shall be conveyed in writing to the applicant. If the application is approved, a certificate of approval, in letter form, will be delivered to the applicant. Upon receipt of such certificate, the applicant may proceed to conclude the purchase transaction, subject to such terms and conditions as the superintendent may impose.
This rule is intended to implement Iowa Code section 524.544.
187—2.7(17A,524) Renewal, amendment or restatement of articles of incorporation.
	2.7(1) Application. Sample forms and instructions for making application to the superintendent to renew, amend or restate existing articles of incorporation of a state bank will be furnished upon request to the superintendent. State banks desiring to effect a reverse stock split or similar change in capital structure by such renewal, amendment, or restatement should contact the superintendent to discuss the proposal prior to its adoption.
	2.7(2) Investigation. The superintendent may conduct an investigation as deemed necessary.
	2.7(3) Reverse stock split. Rescinded IAB 10/10/18, effective 11/14/18.
	2.7(4) Decision. Rescinded IAB 10/10/18, effective 11/14/18.
This rule is intended to implement Iowa Code sections 524.314, 524.1505, 524.1508, and 524.1509.
[ARC 4055C, IAB 10/10/18, effective 11/14/18]
187—2.8(17A,524) Acquisition by regional bank holding company. Rescinded IAB 10/9/96, effective 11/13/96.
187—2.9(17A) Licensing of a debt management company. Rescinded ARC 4055C, IAB 10/10/18, effective 11/14/18.
187—2.10  Reserved.
187—2.11(17A) Securing permission from the superintendent to engage in the business of selling certain instruments for the payment of money. Rescinded ARC 0210C, IAB 7/11/12, effective 8/29/12.
187—2.12(17A,524) Supplemental application procedures.
	2.12(1) Scope. This rule contains procedures by which the superintendent may reach informed decisions with respect to those applications for which the superintendent shall deem a public hearing necessary. These procedures provide a method by which all persons interested in the subject matter of such applications or other cases in which a public hearing is deemed necessary may present their views. Nothing contained herein shall be construed to prevent interested persons from presenting their views in a more informal manner when deemed appropriate by the superintendent or to prevent the superintendent from conducting such other investigation as may be deemed appropriate.
	2.12(2) Public file. The public file in each case shall consist of the application with supporting data and supplementary information with the exception of material deemed by the superintendent to be confidential. In addition, the public file shall contain all data and information submitted by interested persons in favor of or in opposition to such application, excluding any material deemed by the superintendent to be confidential. The superintendent or the superintendent’s designee shall not deem information confidential for purposes of the two immediately preceding sentences unless the person submitting the information requests that such information be deemed confidential. All factual information contained in any internal investigation report made by a bank examiner shall also be made a part of the public file, unless deemed confidential by the superintendent. The person submitting the application may not request that the entire application be deemed confidential.
	a. 	The public file shall be available for inspection in the office of the superintendent upon request from a protesting person and to such other persons as the superintendent shall deem to have a direct interest therein during such periods of time as the superintendent shall prescribe.
	b. 	No documentation in the public file may be removed from the superintendent’s office by persons other than members of the superintendent’s staff. Photocopies may be made available, on request, to protesting and other interested parties. The charge for such copies shall be made in accordance with a written schedule maintained by the superintendent.
	2.12(3) Place of hearing. Hearings granted by the superintendent shall be heard in the office of the superintendent. The superintendent, in any matter, reserves the right to conduct hearings at any location deemed to be appropriate.
	2.12(4) Date of hearing. An opportunity to be heard shall be given as soon as practicable after ordered.
	2.12(5) Notice of hearing. The notice given by the superintendent concerning the hearing shall set forth the subject matter of the application, the legal authority for such hearing, and the date, time, and place of the hearing. The notice shall be sent to the person or persons requesting the hearing, to the applicant and to other interested persons who have sent written comments to the superintendent.
	2.12(6) Attendance at hearing. Each person who wishes to be heard shall notify the superintendent within five days after the date of the notice described in subrule 2.12(5) of the person’s intention to attend and shall submit the number and names of witnesses to be presented.
	2.12(7) Presiding officer. The presiding officer at the hearing shall be the superintendent or such other person as may be designated by the superintendent.
	2.12(8) Hearing rules. The applicant and each participant may make opening statements of a length within the discretion of the presiding officer. Such opening statements should concisely state what the participant intends to show. The applicant shall have the opportunity to present a statement first. Following the opening statements, the applicant shall present data and materials, oral or documentary. Following the applicant’s presentation, the persons protesting the application shall present their data and materials, oral or documentary. The protesters may agree, with the approval of the presiding officer, to have one of their number make their presentation. Following the evidence of the applicant and the protester, the presiding officer may recognize other interested persons who may present their views with respect to the application under consideration. After all the above presentations have been concluded, the participants before the panel may make short and concise summary statements reviewing their positions. The applicant shall present a concluding summary statement.
	a. 	The obtaining and use of witnesses is the responsibility of the parties. All witnesses will be present on their own volition, but any person appearing as a witness may be subject to questioning by any participant. The refusal of a witness to answer questions may be considered by the superintendent in determining the weight to be accorded the testimony of that witness. Witnesses shall be sworn.
	b. 	The presiding officer shall have the authority to exclude data or materials deemed to be improper or irrelevant. Formal rules of evidence shall not be applicable to these hearings. Documentary material must be of a size consistent with ease of handling, transportation and filing, and copies must be provided for each participant. While large exhibits may be used during the hearing, copies of such exhibits must be provided by the party in reduced size for submission as evidence. Two copies of all such documentary evidence shall be furnished to the superintendent, and one copy shall be furnished to each other person represented at the proceeding.
	c. 	The superintendent or the superintendent’s designee shall determine all procedural questions not governed by these rules. The superintendent or the superintendent’s designee shall have the authority to limit the number of witnesses to be used by any party, and to impose such time limitations as shall be deemed reasonable.
	d. 	A transcript of each proceeding shall be arranged for by the person or persons requesting the opportunity to be heard, with all expenses of such service, including the furnishing of one copy of the transcript to the superintendent, being borne by the person or persons requesting the opportunity to be heard, except for hearings ordered by the superintendent’s office on its own volition, in which case the applicant will bear the expense of furnishing transcripts of the record.
	e. 	The public file described in subrule 2.12(2) shall automatically be deemed a part of the record of these proceedings, as well as all evidence submitted and the transcript described in paragraph 2.12(8)“d.”
	2.12(9) Closing of the public file. If requested by any participant, the public file shall remain open for five days following receipt of the transcript by the superintendent, during which time the applicant and protesters may submit additional written statements. A copy of any statement so submitted during this period of time shall also be sent simultaneously to the other persons represented at the hearing.
	2.12(10) Decision. The applicant and all persons so requesting in writing shall be notified of the final disposition of the application by the superintendent.
	2.12(11) Computation of time. In computing any period of days provided for in this rule, the day of the event from which the period begins to run shall not be included. The last day of the period so computed shall be included, unless it is a Saturday, a Sunday, or a legal holiday, in which event the period runs until the end of the next day which is not a Saturday, a Sunday, or a legal holiday. As used in this subrule, “legal holiday” means a day on which the office of the superintendent remains closed.
This rule is intended to implement Iowa Code sections 17A.3, 524.305, 524.312, 524.1201, 524.1303, and 524.1403.
[ARC 4055C, IAB 10/10/18, effective 11/14/18]
187—2.13(524) Integral facility determination. Rescinded IAB 3/2/05, effective 4/6/05.
187—2.14(524) Investment in a bank service corporation or other subsidiary.
	2.14(1) Application. An application by a state bank to invest in a bank service corporation or other subsidiary for purposes of engaging in an authorized activity shall be in letter form and shall, at a minimum, contain the following information.
	a. 	A detailed description of the proposed authorized activity of the bank service corporation or other subsidiary.
	b. 	A detailed description of the location(s) where the bank service corporation or other subsidiary proposes to conduct its authorized activity.
	c. 	Evidence that the bank service corporation or other subsidiary:
	(1)	Will be adequately capitalized in relation to the risks associated with the proposed authorized activity;
	(2)	Will have sufficient managerial resources to perform the proposed authorized activity;
	(3)	Will obtain all licenses and approvals from other regulatory agencies necessary to perform the proposed authorized activity;
	(4)	Will maintain a separate and adequate accounting system and other corporate records; and
	(5)	Will conduct its authorized activity pursuant to independent policies and procedures designed to inform customers and prospective customers of the bank service corporation or other subsidiary that it is a separate organization from the state bank.
	d. 	A legal opinion that the proposed authorized activity of the bank service corporation or other subsidiary is permissible under state and federal laws and regulations, if requested by the superintendent.
	e. 	The amount which the state bank proposes to initially invest in the bank service corporation or other subsidiary.
	f. 	A copy of the resolution adopted by the state bank’s board of directors authorizing the investment in the bank service corporation or other subsidiary.
	2.14(2) Investment limitation. Unless state or federal statutes impose specific limitations relating to investments in the shares of a corporation by a state bank, a state bank’s investment in a bank service corporation or other subsidiary shall not exceed 15 percent of its aggregate capital as defined in Iowa Code section 524.103, nor shall more than 5 percent of its total assets be invested in all bank service corporations or subsidiaries. At the superintendent’s discretion, a higher investment limitation may be established for an investment by a state bank in an operations subsidiary, as defined in section 524.103. For purposes of this rule, the terms “invest” or “investment” shall include any advance of funds to a bank service corporation or other subsidiary, whether by the purchase of stock, the making of a loan or otherwise.
	2.14(3) Investigation. The superintendent may conduct an investigation as deemed necessary.
	2.14(4) Decision. The superintendent shall approve or deny the application within 60 days after the application is accepted for processing. The decision by the superintendent shall be conveyed in writing to the applicant.
	2.14(5) Revocation. The superintendent may revoke a previously granted approval to invest in a bank service corporation or another subsidiary and order divestiture of the shares, pursuant to the contested case provisions of Iowa Code chapter 17A, if any of the following occur.
	a. 	The financial condition of the state bank has significantly deteriorated.
	b. 	The superintendent determines the authorized activity is being conducted unlawfully or in an unsafe or unsound manner.
	c. 	Other relevant factors occur which the superintendent may determine are grounds for a revocation of the authorized activity.
This rule is intended to implement Iowa Code chapter 524.
187—2.15(524) Securities activities.
	2.15(1) Scope. Iowa law authorizes state-chartered banks to engage in any aspect of the securities business. The evolution of this authority by state banks has been confined primarily to recommending and selling interests in mutual funds, annuities, and other nondeposit investment products on bank premises. The sale of these nondeposit investment products on bank premises may be conducted directly by a state bank, through a subsidiary or an affiliate of a state bank, or through an arrangement with a third-party vendor. The sale of these retail products on the premises of a state bank, where traditionally only federally insured deposits are taken, has led to some confusion among retail customers about what is being purchased and whether or not it is insured. The purpose of this rule is to place greater emphasis on board of director involvement in any proposed securities activities on the premises of the state bank and, if retail product sales are part of that proposed activity, enhance customer protections through proper disclosures.
	2.15(2) Board responsibilities. The board of directors of a state bank shall evaluate the risks associated with the securities activities proposed and the method by which the securities activities will be conducted on its premises. The board of directors shall be responsible for ensuring that any securities activities conducted on its premises will comply with all applicable state and federal laws and regulations as well as any policy statements issued which relate to securities activities. Specifically, if a state bank develops and implements a particular program where nondeposit investment products are recommended and sold to retail customers, that program shall ensure that customers are clearly and fully informed of the nature of and risks associated with those types of products. If an affiliate, a subsidiary, or a third-party vendor is used to recommend and sell nondeposit investment products, all signs, advertisements and other promotional material should clearly identify the affiliate, subsidiary, or third-party vendor as the seller and should not suggest by use of a trade name that the state bank is the seller. The board of directors shall be responsible for complying with the joint federal Interagency Statement on Retail Sales of Nondeposit Investment Products or any substitution therefor or revision thereof.
	2.15(3) Application. An application by a state bank to engage in any securities activities shall be in letter form and shall, at a minimum, contain the following information.
	a. 	A commitment that the proposed securities activities will be conducted either directly by the state bank, through a subsidiary or an affiliate of the state bank, or through an arrangement with a third-party vendor. In specific cases, it may be necessary for the applicant to provide a legal opinion stating that the proposed activities are authorized.
	b. 	A commitment that the state bank’s board of directors has evaluated the risks associated with the proposed securities activities and has adopted a written statement that addresses these risks and the procedures to be used to ensure compliance with all applicable laws, regulations and policy statements. The scope and level of detail of the written statement should reflect the state bank’s level of involvement in the securities activities. If securities activities are to be conducted on bank premises by an affiliate, a subsidiary, or a third-party vendor, the written statement should also address the scope of those activities, as well as the procedures for monitoring compliance by the affiliate, subsidiary, or third-party vendor with all applicable laws, regulations and policy statements.
	c. 	A commitment that, if securities activities are to be conducted through an affiliate, a subsidiary, or a third-party vendor, the board of directors has performed an appropriate review of the affiliate, subsidiary, or third-party vendor. A copy of the written agreement between the parties shall accompany the application.
	d. 	A commitment that the location(s) on bank premises where the proposed securities activities will be conducted will be physically distinct and separate from the area where deposits are taken. Proper signs or other means must be used to distinguish the area where the sale of retail nondeposit investments products will be conducted from the area where insured deposits are normally taken. If securities activities are to be conducted on bank premises by an affiliate, a subsidiary, or a third-party vendor, all signs or other means used to identify this area shall provide to the retail customer a clear and accurate representation of the entity conducting the securities activities.
	e. 	A commitment that clear and concise oral and written disclosures will be provided to retail customers. A copy of the proposed written disclosures shall accompany the application.
	f. 	A commitment that the state bank, its subsidiary or affiliate, or a third-party vendor will complete background checks on all personnel authorized to recommend and sell nondeposit investment products and that all such personnel will be properly trained and appropriately licensed prior to commencing any securities activities and thereafter while conducting securities activities on the premises of the state bank.
Notwithstanding the application requirements set forth herein, if the securities activity being conducted is limited to discount brokerage or referral services, then the state bank only needs to notify the superintendent that it intends to engage in the limited securities activity.
	2.15(4) Investigation. The superintendent may conduct an investigation as deemed necessary.
	2.15(5) Decision. The superintendent shall approve or deny the application within 60 days after the application is accepted for processing. The decision by the superintendent shall be conveyed in writing to the applicant.
	2.15(6) Revocation. The superintendent may revoke a previously granted approval to conduct securities activities on the premises of the state bank, pursuant to the contested case provisions of Iowa Code chapter 17A, if any of the following occur.
	a. 	The financial condition of the state bank has significantly deteriorated.
	b. 	The superintendent determines the securities activities are being conducted unlawfully or in a unsafe or unsound manner.
	c. 	Other relevant factors occur which the superintendent may determine are grounds for a revocation of the securities activities.
This rule is intended to implement Iowa Code section 524.825.
187—2.16(524) Contracts.
	2.16(1) Scope. Futures contracts shall be defined as standardized contracts traded on and guaranteed by organized exchanges to purchase or sell a specified security or a bank certificate of deposit on a future date at a specified price. Forward contracts shall be defined as over-the-counter contracts for forward placement or delayed delivery of securities in which one party agrees to purchase and another to sell a specified security at a specified price for future delivery. Contracts specifying settlement in excess of 30 days following the trade date shall be deemed to be forward contracts. Standby contracts shall be defined as optional forward contracts. For an example, the buyer of a standby contract (put option) pays a fee for the right or option to sell securities to the other party at a stated price at a future time. The seller of a standby contract receives the fee and must stand ready to buy the securities at the other party’s option.
Futures contracts, forward contracts and standby contracts may be used by the state banks to reduce their existing interest rate risk exposure resulting from their overall investment activities and as a general hedge against interest rate exposure associated with undesired mismatches in interest-sensitive assets and liabilities. At no time shall futures, forward and standby contracts be used to speculate on future interest rate movements.
State banks may, without the prior approval of the superintendent, purchase shares in permissible investment companies, up to a maximum of 15 percent of aggregate capital, which use futures contracts, forward contracts and standby contracts, as well as repurchase agreements and securities lending arrangements as a part of their portfolio management strategies. However, it remains the responsibility of the board of directors making these purchases to ensure that a particular investment company is a proper holding for the bank’s investment portfolio.
	2.16(2) Application. An application by a state bank to engage in futures contracts, forward contracts and standby contracts shall be in letter form and shall, at a minimum, contain the following information.
	a. 	A description of the type(s) of contracts the state bank proposes to purchase and sell.
	b. 	A copy of the board of directors’ resolution authorizing the specific type(s) of contracts proposed to be purchased and sold.
	c. 	A copy of the policy adopted by the state bank’s board of directors which shall include specific policy objectives that outline permissible contract strategies and their relationship to overall investment activities and asset-liability management; the names, responsibilities, and authority limits of the personnel authorized to engage in futures, forward and standby contracts; limitations applicable to futures, forward and standby contract positions; the personnel to be used to review at least monthly the bank’s contract positions to ascertain compliance with such limits; the exchanges and firms through which authorized personnel may conduct futures, forward and standby contracts; and the dollar limit on transactions with each firm.
	d. 	A representation that the state bank has sufficient managerial resources to engage in futures, forward and standby contracts.
	2.16(3) Investigation. The superintendent may conduct an investigation as deemed necessary.
	2.16(4) Decision. The superintendent shall approve or deny the application within 60 days after the application is accepted for processing. The decision by the superintendent shall be conveyed in writing to the applicant.
	2.16(5) Revocation. The superintendent may revoke the approval of the state bank to engage in futures, forward and standby contracts, pursuant to the contested case provisions of Iowa Code chapter 17A, if any of the following occur.
	a. 	The financial condition of the state bank has significantly deteriorated.
	b. 	The superintendent determines the futures, forward or standby contract activities are being conducted unlawfully or in an unsafe or unsound manner.
	c. 	Other relevant factors occur which the superintendent may determine are grounds for a revocation of the activities.
This rule is intended to implement Iowa Code section 524.901.
[ARC 4055C, IAB 10/10/18, effective 11/14/18]
187—2.17(17A,524) Mobile offices, courier services, and convenience offices.
	2.17(1) Definitions.
“Bank-owned courier service” means a service that has the sole purpose of serving specific customers with pick-up or delivery services for banking activities such as deposits, withdrawals, and loan transactions.
“Convenience office” means a bank office at a fixed site that is open only at certain times or dates, such as at a nursing home, college orientation, or fair. The sole purpose of a convenience office is to serve the convenience of the bank’s customers at specified special events or who may have limited mobility.
“Mobile office” means a bank office that does not have a permanent site and functions out of a mobile banking unit that stops at predetermined locations to conduct banking activities.
	2.17(2) Policy. The board of directors of a state bank that operates a mobile office, bank-owned courier service, or convenience office shall adopt a policy governing operation of the mobile office, bank-owned courier service or convenience office. The policy shall be appropriate for the nature and scope of the state bank’s use of the mobile office, bank-owned courier service, or convenience office and shall, at a minimum, include the following:
	a. 	The policy shall address the steps the bank will take to protect the security of the office, its customers, employees, its customers’ financial information and deposits. The security plan may include implementation of customer and employee security systems such as security cameras, external lighting, and internal or attached protection zones.
	b. 	The policy shall require the bank to maintain deposit insurance coverage for the mobile office, bank-owned courier service, or convenience office.
	c. 	The policy shall require the bank to main adequate insurance coverage covering the bank in case of robbery, accident, other loss of items, delay in the delivery of items to other destinations, and other liabilities associated with operating the office.
	d. 	The policy shall address types of activities the bank will conduct from the mobile office, bank-owned courier service, or convenience office.
	e. 	The policy shall require a bank office manager or officer of the bank to be physically present at the mobile office, bank-owned courier service, or convenience office during a majority of its business hours as required by Iowa Code section 524.1201.
	f. 	The policy shall require the bank to maintain a daily log of operations including descriptions of the time and locations of each stop made by the mobile office or bank-owned courier service, the locations and the hours a convenience office was operated and the names of the bank personnel working at the mobile office, bank-owned courier service, or convenience office during those times.
	g. 	The policy shall address what, if any, signage the bank will place on the mobile office, bank-owned courier service, or convenience office.
	h. 	For mobile offices and bank-owned courier services, the policy shall address how the bank will determine the locations at which it will provide services and the times it will be at those locations. The policy shall address how the bank will ensure that the mobile office, bank-owned courier service, or convenience office is located in a safe location and that it has the necessary permission of the owner of the property where the mobile office, bank-owned courier service, or convenience office is located to operate at that location.
	2.17(3) Publication requirements. Rescinded IAB 10/10/18, effective 11/14/18.
	2.17(4) Necessary federal approval. If the bank must receive approval from any federal agency, such as the Federal Deposit Insurance Corporation (FDIC), prior to operating a mobile office, bank-owned courier service, or convenience office, such federal approval will be a condition of approval by the superintendent of banking of the application to operate a mobile office, bank-owned courier service, or convenience office.
	2.17(5) Interstate banking. A mobile office or bank-owned courier service shall not operate in another state unless it has obtained any required permissions from the other state and the appropriate federal regulator.
This rule is intended to implement Iowa Code section 524.1201.
[ARC 4055C, IAB 10/10/18, effective 11/14/18]
[Filed July 1, 1975]
[Filed emergency 6/10/77—published 6/29/77, effective 6/10/77]
[Filed 9/1/77, Notice 6/29/77—published 9/21/77, effective 10/26/77 and 11/1/77]
[Filed 3/16/79, Notice 2/7/79—published 4/4/79, effective 5/9/79]
[Filed 4/1/87, Notice 2/25/87—published 4/22/87, effective 5/28/87]
[Filed 1/21/88, Notice 11/18/87—published 2/10/88, effective 3/16/88]
[Filed 10/10/90, Notice 9/5/90—published 10/31/90, effective 1/1/91]
[Filed 5/24/91, Notice 4/3/91—published 6/12/91, effective 7/17/91]
[Filed 12/17/91, Notice 11/13/91—published 1/8/92, effective 2/12/92]
[Filed 8/14/92, Notice 5/27/92—published 9/2/92, effective 10/7/92]
[Filed 1/29/93, Notice 12/23/92—published 2/17/93, effective 3/24/93]
[Filed 4/8/93, Notice 3/3/93—published 4/28/93, effective 6/2/93]
[Filed 9/17/96, Notice 7/17/96—published 10/9/96, 11/13/96]
[Filed 2/10/05, Notice 1/5/05—published 3/2/05, effective 4/6/05]
[Filed 3/10/06, Notice 2/1/06—published 3/29/06, effective 5/3/06]
[Filed ARC 0210C (Notice ARC 9953B, IAB 1/11/12), IAB 7/11/12, effective 8/29/12]
[Filed ARC 4055C (Notice ARC 3949C, IAB 8/15/18), IAB 10/10/18, effective 11/14/18]