§ 524.702 — Officers — duties and liability

Iowa § 524.702

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

Text

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 section 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

providedforinsection524.605. Noofficershallbedeemedtobenegligentwithinthemeaning
ofthissectioniftheofficerexercisedthatdiligence,careandskillwhichanordinarilyprudent
person would exercise as an officer under similar circumstances.

Legislative History

[C97, §1886; C24, 27, 31, 35, 39, §9281; C46, 50, 54, 58, 62, 66, §528.83; C71, 73, 75, 77, 79, 81, §524.702]