SF 413 (LSB 2233SV (3) 91)

SENATE FILE 413

BY  COMMITTEE ON COMMERCE

(SUCCESSOR TO SSB 1070)

(COMPANION TO HF 311 BY COMMITTEE ON COMMERCE)

A BILL FOR

An Act relating to requirements for, and regular meetings of, the board of directors of a state bank.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 524.601, subsection 1, Code 2025, is amended to read as follows:
   1.  The business and affairs of a state bank shall be managed by a board of five or more directors eighteen years of age or older, a majority of whom shall be residents of the state of Iowa and citizens of the United States, and at least three of whom shall be residents of the state of Iowa.
    Sec. 2.  Section 524.607, subsection 1, Code 2025, is amended to read as follows:
   1.  The board of directors shall hold at least nine regular meetings each calendar year. No more than one regular meeting shall be held in any one calendar month At a minimum, one regular meeting shall be held in each quarter of a calendar year. Unless the articles of incorporation or bylaws provide otherwise, any director may participate in any meeting of the board of directors through the use of any means of communication by which all directors participating may simultaneously hear each other during the meeting. A director participating in a meeting by this means is deemed to be present at the meeting.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   This bill relates to the requirements to serve on the board of directors (board) of a state bank, and the regular meetings of a board.
   Under current law, a board consists of five or more directors 18 years of age or older, a majority of whom are residents of the state of Iowa and citizens of the United States. Under the bill, a board consists of five or more directors 18 years of age or older, a majority of whom are citizens of the United States and at least three of whom are residents of the state of Iowa.
   Under current law, a board shall hold at least nine regular meetings each calendar year, and no more than one regular meeting shall be held in any one calendar month. Under the bill, a board shall hold at least nine regular meetings each calendar year, and at least one regular meeting shall occur in each quarter of a calendar year.