House
File
136
-
Enrolled
House
File
136
AN
ACT
RELATING
TO
MATTERS
UNDER
THE
PURVIEW
OF
THE
BANKING
DIVISION
OF
THE
DEPARTMENT
OF
COMMERCE,
INCLUDING
PERMISSIBLE
INVESTMENTS,
NOTICE
REQUIREMENTS,
AND
REQUIREMENTS
FOR
A
PERSON
OBTAINING
CONTROL
OF
A
STATE
BANK.
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
Section
1.
Section
524.533,
subsection
1,
Code
2023,
is
amended
to
read
as
follows:
1.
Written
notice
stating
the
place,
day,
and
hour
of
a
meeting
of
the
shareholders
and,
in
case
of
a
special
meeting,
the
purpose
or
purposes
for
which
the
meeting
is
called,
shall
be
delivered
not
less
than
ten
nor
more
than
sixty
days
before
the
date
of
the
meeting,
either
personally
or
by
mail,
by
or
at
the
direction
of
the
president,
the
cashier,
or
the
officer
or
persons
calling
the
meeting,
to
each
shareholder
of
record
entitled
to
vote
at
the
meeting.
If
mailed,
the
notice
is
deemed
to
be
delivered
when
deposited
in
the
United
States
mail
addressed
to
the
shareholder
at
the
shareholder’s
address
as
it
appears
on
the
stock
transfer
books
of
the
state
bank
with
postage
prepaid.
As
used
in
this
section
,
the
term
“notice”
means
as
defined
in
section
490.141
.
The
written
notice
required
by
this
section
may
be
given
by
any
method
of
delivery
that
is
permitted
in
section
490.141,
and
the
notice
shall
be
deemed
to
be
delivered
when
the
notice
becomes
effective
pursuant
to
section
490.141,
subsection
9.
House
File
136,
p.
2
Sec.
2.
Section
524.544,
subsection
1,
Code
2023,
is
amended
to
read
as
follows:
1.
Whenever
any
person
proposes
to
purchase
or
otherwise
acquire
directly
or
indirectly
any
of
the
outstanding
shares
of
a
state
bank,
and
the
proposed
purchase
or
acquisition
would
result
in
control
or
in
a
change
in
control
of
the
state
bank,
the
person
proposing
to
purchase
or
acquire
the
shares
shall
first
apply
in
writing
to
the
superintendent
for
a
certificate
of
approval
for
the
proposed
change
of
control.
The
superintendent
shall
grant
the
certificate
if
the
superintendent
is
satisfied
that
the
person
who
proposes
to
obtain
control
of
the
state
bank
is
qualified
by
character,
experience,
and
financial
responsibility
to
control
and
operate
the
state
bank
in
a
sound
and
legal
manner,
and
that
the
interests
of
the
depositors,
creditors,
and
shareholders
of
the
state
bank,
and
of
the
public
generally
,
particularly
the
state
bank’s
plans
to
accept
deposits
from,
lend
money
in,
and
process
payments
in
the
area
the
state
bank
primarily
serves
,
will
not
be
jeopardized
by
the
proposed
change
of
control.
A
person
which
will
become
a
bank
holding
company
upon
completion
of
an
acquisition
shall
make
application
to
the
superintendent
for
a
certificate
of
approval
as
provided
in
this
section
.
Any
other
bank
holding
company
shall
comply
with
section
524.1804
in
lieu
of
seeking
a
certificate
of
approval
under
this
section
.
In
any
situation
where
the
president
or
cashier
of
a
state
bank
has
reason
to
believe
any
of
the
foregoing
requirements
have
not
been
complied
with,
it
shall
be
the
duty
of
the
president
or
cashier
to
promptly
report
in
writing
such
facts
to
the
superintendent
upon
obtaining
knowledge
thereof.
Sec.
3.
Section
524.607,
subsection
2,
Code
2023,
is
amended
to
read
as
follows:
2.
A
special
meeting
may
be
called
by
any
executive
officer
or
a
director.
Notice
of
a
meeting
shall
be
given
to
each
director
,
either
personally
or
by
mail,
at
least
two
days
in
advance
of
the
meeting.
Notice
of
a
regular
meeting
shall
not
be
required
if
the
articles
of
incorporation,
bylaws,
or
a
resolution
of
the
board
of
directors
provide
for
a
regular
monthly
meeting
date.
As
used
in
this
section
,
the
term
“notice”
means
as
defined
in
section
490.141
.
The
written
House
File
136,
p.
3
notice
required
by
this
section
may
be
given
by
any
method
of
delivery
that
is
permitted
in
section
490.141,
and
the
notice
is
deemed
to
be
delivered
when
the
notice
becomes
effective
pursuant
to
section
490.141,
subsection
9.
Sec.
4.
Section
524.901,
subsection
7,
paragraph
a,
Code
2023,
is
amended
by
adding
the
following
new
subparagraph:
NEW
SUBPARAGRAPH
.
(6)
Tax
equity
financing
transactions
in
which
a
state
bank
provides
equity
financing
to
fund
a
project
or
projects
that
generate
tax
credits
or
other
tax
benefits
and
the
equity-based
structure
of
the
transaction
permits
the
transfer
of
such
tax
credits
or
other
tax
benefits
to
the
state
bank.
A
state
bank
may
take
a
majority
financial
position
in
a
project,
but
shall
be
a
passive
investor
and
shall
not
take
a
management
position.
The
investment
of
state
bank
funds
in
a
tax
credit-generating
project
are
subject
to
the
following
restrictions:
(a)
The
state
bank
shall
not
participate
in
the
operation
of
any
project
or
facility
resulting
from
such
a
transaction
or
the
sale
of
energy,
if
any,
derived
from
the
project.
(b)
The
state
bank
shall
obtain
a
legal
opinion
or
otherwise
demonstrate
a
good-faith
determination
that
the
tax
credits
or
other
tax
benefits
are
available
before
engaging
in
a
tax
equity
financing
transaction.
(c)
The
tax
credits,
tax
benefits,
or
other
payments
the
state
bank
receives
from
the
transaction
shall
repay
the
state
bank’s
investment
and
provide
the
expected
rate
of
return
at
the
time
of
the
investment.
(d)
Except
as
provided
under
subparagraph
division
(c),
the
state
bank
shall
not
share
in
any
appreciation
in
value
of
its
interests
in
the
project
or
in
any
of
the
real
or
personal
assets
associated
with
the
project.
Sec.
5.
Section
524.901,
subsection
7,
paragraph
b,
Code
2023,
is
amended
to
read
as
follows:
b.
A
state
bank’s
total
investment
in
any
combination
of
the
shares
or
equity
interests
of
the
entities
identified
in
paragraph
“a”
,
subparagraphs
(1)
through
(5)
(6)
shall
be
limited
to
fifteen
twenty
percent
of
its
aggregate
capital.
Sec.
6.
Section
524.901,
subsection
12,
Code
2023,
is
amended
by
striking
the
subsection.
House
File
136,
p.
4
Sec.
7.
Section
524.1308A,
subsection
5,
Code
2023,
is
amended
to
read
as
follows:
5.
As
used
in
this
section
,
the
term
“notice”
means
as
defined
in
section
490.141
.
The
written
notice
required
by
subsection
2
may
be
given
by
any
method
of
delivery
that
is
permitted
in
section
490.141,
and
the
notice
is
deemed
to
be
delivered
when
the
notice
becomes
effective
pursuant
to
section
490.141,
subsection
9.
______________________________
PAT
GRASSLEY
Speaker
of
the
House
______________________________
AMY
SINCLAIR
President
of
the
Senate
I
hereby
certify
that
this
bill
originated
in
the
House
and
is
known
as
House
File
136,
Ninetieth
General
Assembly.
______________________________
MEGHAN
NELSON
Chief
Clerk
of
the
House
Approved
_______________,
2023
______________________________
KIM
REYNOLDS
Governor