Iowa § 524.814 Loan or pledge of assets

Iowa Statutes

§ 524.814 — Loan or pledge of assets

Iowa § 524.814

Title XIIICOMMERCE

Ch. 524BANKS

This text of Iowa § 524.814 (Loan or pledge of assets) 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 § 524.814 (2026).

Text

Pursuant to a resolution of its board of directors, a state bank may lend or pledge its assets for the following purposes, and for no other purposes:

1.To secure deposits of the state bank or a bank that is an affiliate of the state bank when a customer is required to obtain such security, or a bank is required to provide security, by the laws of the United States, by any agency or instrumentality of the United States, by the laws of the state of Iowa or another state, by the state board of regents, by a resolution or ordinance relating to the issuance of bonds, by the terms of any interstate compact, or by order of any court of competent jurisdiction. The lending of securities to a bank that is an affiliate, or the pledging of securities for the account of a bank that is an affiliate, s

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Pursuant to a resolution of its board of directors, a state bank may lend or pledge its assets
for the following purposes, and for no other purposes:
1. To secure deposits of the state bank or a bank that is an affiliate of the state bank when
a customer is required to obtain such security, or a bank is required to provide security, by
the laws of the United States, by any agency or instrumentality of the United States, by the
laws of the state of Iowa or another state, by the state board of regents, by a resolution or
ordinance relating to the issuance of bonds, by the terms of any interstate compact, or by
order of any court of competent jurisdiction. The lending of securities to a bank that is an

affiliate, or the pledging of securities for the account of a bank that is an affiliate, shall be on
terms and conditions that are consistent with safe and sound banking practices.
2. To secure transactions to hedge risks associated with interest rate exposure, subject to
the approval of the superintendent.
3. To secure money borrowed by the state bank, provided that capital notes or debentures
issued pursuant to section 524.404 shall not in any event be secured by a pledge of assets or
otherwise.
4. To secure participations sold to the federal agricultural mortgage corporation.

Legislative History

[S13, §1889-c; C24, 27, §9268; C31, 35, §9222-c2, 9222-c3, 9268; C39, §9222.2, 9222.3, 9268; C46, 50, 54, 58, 62, 66, §528.12, 528.13, 528.66; C71, 73, 75, 77, 79, 81, §524.814]