§ 524.211 — Prohibitions relating to banking division personnel

Iowa § 524.211

• Jurisdiction: Iowa
• Title XIII: COMMERCE
• Ch. 524: BANKS

Text

1. The superintendent, general counsel, examiners, and other employees assigned to
the bank bureau of the banking division are prohibited from obtaining a loan of money or
property from a state bank, or any person or entity affiliated with a state bank, unless they
do not personally participate in the examination, oversight, or official review concerning the
regulation of the state bank.
2. The superintendent, general counsel, examiners, and other employees assigned to the
finance bureau of the banking division are prohibited from obtaining a loan of money or
property from a person or entity licensed pursuant to chapter 533A, 533D, 536, or 536A, or a
person or entity affiliated with such licensee.
3. The superintendent, general counsel, examiners, and other employees of the banking
division, who have credit relations with a person or entity licensed or registered pursuant to
chapter 535B, 535D, or 536C, are prohibited from participating in decisions, oversight, and
official review of matters concerning the regulation of the licensee or registrant.
4. Examiners and other employees assigned to the bank bureau of the banking division
who have credit relations with a person or entity licensed pursuant to chapter 533A, 533D,
536, or 536A, or with a person or entity affiliated with such licensee, are prohibited from
participating in decisions, oversight, and official review of matters concerning the regulation
of the licensee.
5. An employee of the banking division, other than the superintendent or a member of
the state banking council, shall not perform any services for, and shall not be a shareholder,
member, partner, owner, director, officer, or employee of, any enterprise, person, or affiliate
subject to the regulatory purview of the banking division.
6. For the purposes of this section and section 524.212, an affiliate of a person other
than a state bank shall include any corporation, trust, estate, association or other similar
organization:
a. Of which such person, directly or indirectly, owns or controls either a majority of the
voting shares or more than fifty percent of the number of shares voted for the election of
its directors, trustees, or other individuals exercising similar functions at the preceding
election, or controls in any manner the election of a majority of its directors, trustees or
other individuals exercising similar functions.
b. Of which control is held, directly or indirectly, through share ownership or in any other
manner,bytheshareholdersofsuchpersonwhoownorcontroleitheramajorityoftheshares
of such person or more than fifty percent of the number of shares voted for the election
of directors of such person at the preceding election or by trustees for the benefit of the
shareholders of any such person.

c. Of which a majority of its directors, trustees, or other individuals exercising similar
functions are directors of any one such person.
d. Which owns or controls, directly or indirectly, either a majority of the voting shares of
such person or more than fifty percent of the total number of shares voted for the election of
directors of such person at the preceding election, or controls in any manner the election of a
majority of the directors of such person, or for the benefit of whose shareholders or members
all or substantially all of the outstanding voting shares of such person is held by trustees.
7. Thesuperintendent, examiners, orotheremployeeswhoareconvictedofafelonywhile
holding such position shall be immediately discharged from employment and shall be forever
disqualified from holding any position in the banking division.
8. The superintendent shall not participate in the examination, oversight, or official
review concerning the regulation of any state bank or any other enterprise, person, or
affiliate subject to the regulatory purview of the banking division of which the superintendent
is a shareholder, member, partner, owner, director, officer, or employee. The superintendent
shall recuse themselves from participation in any such examination, oversight, or
official review and the state banking council shall designate a member who satisfies the
qualifications identified in section 524.201, subsection 1, and who is not a shareholder,
member, partner, owner, director, officer, or employee of the regulated entity to act in place
of the superintendent.

Legislative History

[C97, §1875, 1876; SS15, §1875; C24, 27, 31, 35, 39, §9146; C46, 50, 54, 58, 62, 66, §524.18; C71, 73, 75, 77, 79, 81, §524.211; 81 Acts, ch 172, §1]