Iowa § 524.405 Increase or decrease of capital structure

Iowa Statutes

§ 524.405 — Increase or decrease of capital structure

Iowa § 524.405

Title XIIICOMMERCE

Ch. 524BANKS

This text of Iowa § 524.405 (Increase or decrease of capital structure) is published on Counsel Stack Legal Research, covering Iowa primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

Iowa Code § 524.405 (2026).

Text

1.A state bank incorporated as a stock corporation may increase its capital structure or effect an allocation of amounts within its capital structure by the use of any of the following methods:

a.Sale of authorized but unissued shares.

b.Transfer of surplus or undivided profits to capital for authorized but unissued shares.

c.Transfer of undivided profits to surplus.

d.Authorization and issuance of common shares, preferred shares, or capital notes or debentures.

2.The superintendent, whenever it appears necessary to do so in the interest of the safety ofthedepositsofastatebankincorporatedasastockcorporation,mayrequirethatthecapital structure of the state bank be increased by either of the methods provided for in subsection 1, paragraphs “a” and “d”.

3.Capital or surplus shall not be

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1. A state bank incorporated as a stock corporation may increase its capital structure or
effect an allocation of amounts within its capital structure by the use of any of the following
methods:
a. Sale of authorized but unissued shares.
b. Transfer of surplus or undivided profits to capital for authorized but unissued shares.
c. Transfer of undivided profits to surplus.
d. Authorization and issuance of common shares, preferred shares, or capital notes or
debentures.
2. The superintendent, whenever it appears necessary to do so in the interest of the safety
ofthedepositsofastatebankincorporatedasastockcorporation,mayrequirethatthecapital
structure of the state bank be increased by either of the methods provided for in subsection
1, paragraphs “a” and “d”.
3. Capital or surplus shall not be decreased except with the approval of the
superintendent.
4. A state bank incorporated as a mutual corporation may raise capital by accepting
payments on savings and demand accounts and by any other means authorized by the
superintendent. Whenever it appears necessary to do so in the interest of the safety of
the deposits of a state bank incorporated as a mutual corporation, the superintendent may
require that the capital structure of the state bank be increased by any means authorized by
the superintendent.

Legislative History

[C97, §1856; C24, 27, 31, 35, 39, §9194, 9262, 9264, 9265; C46, 50, 54, 58, 62, 66, §526.38, 528.56, 528.59, 528.60; C71, 73, 75, 77, 79, 81, §524.405]