Iowa Code 524.814 – Loan or pledge of assets
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Terms Used In Iowa Code 524.814
- Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
- 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
- Jurisdiction: (1) The legal authority of a court to hear and decide a case. Concurrent jurisdiction exists when two courts have simultaneous responsibility for the same case. (2) The geographic area over which the court has authority to decide cases.
- Mortgage: The written agreement pledging property to a creditor as collateral for a loan.
- 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
524.814 Loan or pledge of assets.
Pursuant to a resolution of its board of directors, a state bank may lend or pledge its assets
for the following purposes, and for no other purposes:
1. To secure deposits of the state bank or a bank that is an affiliate of the state bank when a customer is required to obtain such security, or a bank is required to provide security, by the laws of the United States, by any agency or instrumentality of the United States, by the laws of the state of Iowa or another state, by the state board of regents, by a resolution or ordinance relating to the issuance of bonds, by the terms of any interstate compact, or by order of any court of competent jurisdiction. The lending of securities to a bank that is an affiliate, or the pledging of securities for the account of a bank that is an affiliate, shall be on terms and conditions that are consistent with safe and sound banking practices.
2. To secure transactions to hedge risks associated with interest rate exposure, subject to the approval of the superintendent.
3. To secure money borrowed by the state bank, provided that capital notes or debentures issued pursuant to § 524.404 shall not in any event be secured by a pledge of assets or otherwise.
4. To secure participations sold to the federal agricultural mortgage corporation.
[S13, §1889-c; C24, 27, §9268; C31, 35, §9222-c2, 9222-c3, 9268; C39, §9222.2, 9222.3, 9268;
C46, 50, 54, 58, 62, 66, §528.12, 528.13, 528.66; C71, 73, 75, 77, 79, 81, §524.814]
89 Acts, ch 257, §9; 2002 Acts, ch 1175, §92, 103; 2010 Acts, ch 1028, §10; 2010 Acts, ch
1189, §41
Referred to in §524.1601
Pursuant to a resolution of its board of directors, a state bank may lend or pledge its assets
for the following purposes, and for no other purposes:
1. To secure deposits of the state bank or a bank that is an affiliate of the state bank when a customer is required to obtain such security, or a bank is required to provide security, by the laws of the United States, by any agency or instrumentality of the United States, by the laws of the state of Iowa or another state, by the state board of regents, by a resolution or ordinance relating to the issuance of bonds, by the terms of any interstate compact, or by order of any court of competent jurisdiction. The lending of securities to a bank that is an affiliate, or the pledging of securities for the account of a bank that is an affiliate, shall be on terms and conditions that are consistent with safe and sound banking practices.
2. To secure transactions to hedge risks associated with interest rate exposure, subject to the approval of the superintendent.
3. To secure money borrowed by the state bank, provided that capital notes or debentures issued pursuant to § 524.404 shall not in any event be secured by a pledge of assets or otherwise.
4. To secure participations sold to the federal agricultural mortgage corporation.
[S13, §1889-c; C24, 27, §9268; C31, 35, §9222-c2, 9222-c3, 9268; C39, §9222.2, 9222.3, 9268;
C46, 50, 54, 58, 62, 66, §528.12, 528.13, 528.66; C71, 73, 75, 77, 79, 81, §524.814]
89 Acts, ch 257, §9; 2002 Acts, ch 1175, §92, 103; 2010 Acts, ch 1028, §10; 2010 Acts, ch
1189, §41
Referred to in §524.1601