Iowa Code 524.525 – Subscription for shares before incorporation or organization
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Terms Used In Iowa Code 524.525
- following: when used by way of reference to a chapter or other part of a statute mean the next preceding or next following chapter or other part. See Iowa Code 4.1
- property: includes personal and real property. See Iowa Code 4.1
- state: when applied to the different parts of the United States, includes the District of Columbia and the territories, and the words "United States" may include the said district and territories. See Iowa Code 4.1
524.525 Subscription for shares before incorporation or organization.
1. A subscription for shares entered into before incorporation or organization of the state
bank is irrevocable for six months unless the subscription agreement provides a longer or shorter period, or all subscribers agree to revocation.
2. The board of directors may determine the payment terms of subscriptions for shares that were entered into before incorporation or organization of the state bank unless the subscription agreement specifies the terms. A call for payment by the board of directors must be uniform so far as practicable as to all shares of the same class or series, unless the subscription agreement specifies otherwise.
3. Shares issued pursuant to subscriptions entered into before incorporation or organization of the state bank are fully paid and nonassessable when the state bank receives the consideration specified in the subscription agreement.
4. If a subscriber defaults in payment of money or property under a subscription agreement entered into before incorporation or organization of the state bank, the state bank may do either of the following:
a. Collect the amount owed as any other debt.
b. Unless the subscription agreement provides otherwise, the state bank may rescind the agreement and may sell the shares if the debt remains unpaid more than twenty days after the state bank delivers a written demand for payment to the subscriber.
[C71, 73, 75, 77, 79, 81, §524.504]
95 Acts, ch 148, §42
CS95, §524.525
2004 Acts, ch 1141, §63; 2022 Acts, ch 1062, §44
Referred to in §524.527
1. A subscription for shares entered into before incorporation or organization of the state
bank is irrevocable for six months unless the subscription agreement provides a longer or shorter period, or all subscribers agree to revocation.
2. The board of directors may determine the payment terms of subscriptions for shares that were entered into before incorporation or organization of the state bank unless the subscription agreement specifies the terms. A call for payment by the board of directors must be uniform so far as practicable as to all shares of the same class or series, unless the subscription agreement specifies otherwise.
3. Shares issued pursuant to subscriptions entered into before incorporation or organization of the state bank are fully paid and nonassessable when the state bank receives the consideration specified in the subscription agreement.
4. If a subscriber defaults in payment of money or property under a subscription agreement entered into before incorporation or organization of the state bank, the state bank may do either of the following:
a. Collect the amount owed as any other debt.
b. Unless the subscription agreement provides otherwise, the state bank may rescind the agreement and may sell the shares if the debt remains unpaid more than twenty days after the state bank delivers a written demand for payment to the subscriber.
[C71, 73, 75, 77, 79, 81, §524.504]
95 Acts, ch 148, §42
CS95, §524.525
2004 Acts, ch 1141, §63; 2022 Acts, ch 1062, §44
Referred to in §524.527