524.814 - LOAN OR PLEDGE OF ASSETS. - Iowa Statutes

524.814 LOAN OR PLEDGE OF ASSETS. 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, 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 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. 3. To secure participations sold to the federal agricultural mortgage corporation.          Section History: Early Form [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]          Section History: Recent Form 89 Acts, ch 257, §9; 2002 Acts, ch 1175, §92, 103 Referred to in § 524.1601