§ 524.404 — Capital notes and debentures

Iowa § 524.404

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

Text

1. A state bank, with the prior approval of the superintendent and the affirmative vote of
the holders of a majority of the shares entitled to vote, may issue capital notes or debentures.
The amounts, maturities, rate of interest, relative rights with other creditors, and other
terms and conditions shall be set forth on the face of the capital notes or debentures or in an
attendant agreement, and all terms and conditions are subject to the prior approval of the
superintendent provided that all such capital notes and debentures shall be subordinated
to the rights of other persons to the extent provided for in section 524.1312. The aggregate
amount of all capital notes and debentures issued and outstanding pursuant to this section
shall not exceed, at any one time, twenty-five percent of the aggregate capital of the state
bank.
2. Astatebankshallnotmakeanypaymentofprincipalonanycapitalnotesordebentures
without the prior approval of the superintendent nor shall any payment of principal and
interestbemadeonanysuchcapitalordebenturesbyastatebankwhenitscapitalisimpaired
or which would cause its capital to become impaired. Subject to the provisions of this section
a state bank may issue capital notes or debentures with provision for installment or serial
payment of capital notes or debentures according to an established schedule which shall be
approved by the superintendent prior to issuance.

3. A state bank shall not issue capital notes or debentures within five years after it is
originally authorized to do business.

Legislative History

[C71, 73, 75, 77, 79, 81, §524.404]