Iowa § 536A.25 Restrictions

Iowa Statutes

§ 536A.25 — Restrictions

Iowa § 536A.25

Title XIIICOMMERCE

Ch. 536AINDUSTRIAL LOANS

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Bluebook

Iowa Code § 536A.25 (2026).

Text

1.

a.An industrial loan company licensed under this chapter that sells debt instruments tothegeneralpublicintheformofthriftcertificates, installmentthriftcertificates, certificates ofindebtedness, promissorynotes, orsimilarevidencesofindebtednessshallnotmakealoan of money or property to or guarantee the obligations of its directors or officers; or loan to any borrower, other than a subsidiary or affiliated corporation, more than twenty percent of its total capital, surplus, and undivided profits.

b.A licensee shall not make a loan under any other name or at any other place of business than that named in the license.

2.

a.An industrial loan company licensed under this chapter that sells debt instruments tothegeneralpublicintheformofthriftcertificates, installmentthriftcertificates, certi

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1. a. An industrial loan company licensed under this chapter that sells debt instruments
tothegeneralpublicintheformofthriftcertificates, installmentthriftcertificates, certificates
ofindebtedness, promissorynotes, orsimilarevidencesofindebtednessshallnotmakealoan
of money or property to or guarantee the obligations of its directors or officers; or loan to any
borrower, other than a subsidiary or affiliated corporation, more than twenty percent of its
total capital, surplus, and undivided profits.
b. A licensee shall not make a loan under any other name or at any other place of business
than that named in the license.
2. a. An industrial loan company licensed under this chapter that sells debt instruments
tothegeneralpublicintheformofthriftcertificates, installmentthriftcertificates, certificates
of indebtedness, promissory notes, or similar evidences of indebtedness, shall not loan to a
borrower, including a subsidiary or an affiliated corporation, more than twenty percent of the
industrial loan company’s total of capital, surplus, and undivided profits. The aggregate of
all loans to subsidiaries and affiliated corporations of the industrial loan company shall not
exceed ten percent of the industrial loan company’s total assets.
b. A debt instrument sold by an industrial loan company which is not insured by the
federal deposit insurance corporation, shall contain on its face a notice in bold print that the
debt instrument is not insured or guaranteed by the federal deposit insurance corporation.
3. Investments by an industrial loan company licensed under this chapter that sells
debt instruments to the general public in the form of thrift certificates, installment
thrift certificates, certificates of indebtedness, promissory notes, or similar evidences of
indebtedness are subject to the provisions of section 524.901 as applied to state banks.