§ 524.803 — Business property of state bank

Iowa § 524.803

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

Text

1. A state bank shall have power to do all of the following:
a. Acquire and hold, or lease as lessee, such personal property as is used, or is to be used,
in its operations.
b. Subjecttothepriorapprovalofthesuperintendent, acquireandhold, orleaseaslessee,
only such real property as is used, or is to be used, wholly or substantially, in its operations
or acquired for future use.
c. Subject to the prior approval of the superintendent, acquire and hold shares in a
corporation engaged solely in holding or operating real property used wholly or substantially
by a state bank in its operations or acquired for its future use.
d. Subject to the prior approval of the superintendent, acquire and hold shares in a
corporation organized solely for the purpose of providing data processing services, as such
services are defined in section 524.804.
e. Subject to the prior approval of the superintendent, acquire and hold shares in
a corporation engaged in providing and operating facilities through which banks and
customers may engage, by means of either the direct transmission of electronic impulses to
and from a bank or the recording of electronic impulses or other indicia of a transaction for
delayed transmission to a bank, in transactions in which such banks are otherwise permitted
to engage pursuant to applicable law.
2. The book value of all real and personal property acquired and held pursuant to this
section, of all alterations to buildings on real property owned or leased by a state bank, of
all shares in corporations acquired pursuant to paragraphs “c”, “d”, and “e” of subsection 1,
and of any and all obligations of such corporations to the state bank, shall not exceed forty
percent of the aggregate capital of the state bank or such larger amount as may be approved
by the superintendent.

3. Any real property which is held by a state bank pursuant to this section and which it
ceases to use for banking purposes, or is acquired for future use but not used within five
years after title is vested in the state bank, shall be sold or disposed of by the state bank as
directed by the superintendent. This deadline may be extended up to an additional five years
with prior approval of the superintendent, but in no event may a state bank hold the property
for more than ten years.

Legislative History

[C97, §1851; C24, 27, 31, 35, 39, §9190; C46, 50, 54, 58, §526.34; C62, 66, §524.31, 526.34; C71, 73, 75, 77, 79, 81, §524.803]