Iowa Code 524.702 – Officers — duties and liability
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Terms Used In Iowa Code 524.702
- Escrow: Money given to a third party to be held for payment until certain conditions are met.
- person: means individual, corporation, limited liability company, government or governmental subdivision or agency, business trust, estate, trust, partnership or association, or any other legal entity. 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
524.702 Officers — duties and liability.
1. All officers of a state bank shall have such authority and perform such duties in the
management of the state bank as may be provided for in the articles of incorporation or the bylaws, or as may be determined by a resolution of the board of directors not inconsistent with the bylaws or the articles of incorporation.
2. If an officer willfully or negligently submits any incorrect information to a director or directors, and action by the board of directors contrary to the provisions of this chapter, or of any restrictions in the articles of incorporation, is taken in reliance thereon, the officer shall be liable to the same extent as if the officer were a director voting for or assenting to such action, as provided in § 524.605. An officer shall also be liable to the extent of any loss sustained by the state bank as a result of the officer’s willful or negligent violation of any provision of this chapter. The superintendent may require an officer or officers whom the superintendent reasonably believes to be liable to a state bank pursuant to this section, to place in an escrow account an amount sufficient to discharge such liability in the manner provided for in § 524.605. No officer shall be deemed to be negligent within the meaning of this section if the officer exercised that diligence, care and skill which an ordinarily prudent person would exercise as an officer under similar circumstances.
[C97, §1886; C24, 27, 31, 35, 39, §9281; C46, 50, 54, 58, 62, 66, §528.83; C71, 73, 75, 77, 79,
81, §524.702]
1. All officers of a state bank shall have such authority and perform such duties in the
management of the state bank as may be provided for in the articles of incorporation or the bylaws, or as may be determined by a resolution of the board of directors not inconsistent with the bylaws or the articles of incorporation.
2. If an officer willfully or negligently submits any incorrect information to a director or directors, and action by the board of directors contrary to the provisions of this chapter, or of any restrictions in the articles of incorporation, is taken in reliance thereon, the officer shall be liable to the same extent as if the officer were a director voting for or assenting to such action, as provided in § 524.605. An officer shall also be liable to the extent of any loss sustained by the state bank as a result of the officer’s willful or negligent violation of any provision of this chapter. The superintendent may require an officer or officers whom the superintendent reasonably believes to be liable to a state bank pursuant to this section, to place in an escrow account an amount sufficient to discharge such liability in the manner provided for in § 524.605. No officer shall be deemed to be negligent within the meaning of this section if the officer exercised that diligence, care and skill which an ordinarily prudent person would exercise as an officer under similar circumstances.
[C97, §1886; C24, 27, 31, 35, 39, §9281; C46, 50, 54, 58, 62, 66, §528.83; C71, 73, 75, 77, 79,
81, §524.702]