2009 Iowa Code
Title 13 - Commerce
Subtitle 1 - Insurance and Related Regulation
CHAPTER 521A - INSURANCE HOLDING COMPANY SYSTEMS
521A.9 - INJUNCTIONS -- PROHIBITIONS AGAINST VOTING SECURITIES -- SEQUESTRATION OF VOTING SECURITIES.

        521A.9  INJUNCTIONS -- PROHIBITIONS AGAINST VOTING
      SECURITIES -- SEQUESTRATION OF VOTING SECURITIES.
         1.  Injunctions.  Whenever it appears to the commissioner that
      any insurer or any director, officer, employee or agent thereof has
      committed or is about to commit a violation of this chapter or any
      rule, regulation, or order issued by the commissioner hereunder, the
      commissioner may apply to the district court of the county in which
      the principal office of the insurer is located or if such insurer has
      no such office in this state then to the district court of Polk
      county for an order enjoining such insurer or such director, officer,
      employee or agent thereof from violating or continuing to violate
      this chapter or any such rule, regulation or order, and for such
      other equitable relief as the nature of the case and the interests of
      the insurer's policyholders, creditors and shareholders or the public
      may require.
         2.  Voting of securities -- when prohibited.  No security
      which is the subject of any agreement or arrangement regarding
      acquisition, or which is acquired or to be acquired, in contravention
      of the provisions of this chapter or of any rule, regulation or order
      issued by the commissioner hereunder may be voted at any
      shareholders' meeting, or may be counted for quorum purposes, and any
      action of shareholders requiring the affirmative vote of a percentage
      of shares may be taken as though such securities were not issued and
      outstanding; but no action taken at any such meeting shall be
      invalidated by the voting of such securities, unless the action would
      materially affect control of the insurer or unless the district court
      has so ordered.  If any insurer or the commissioner has reason to
      believe that any security of the insurer has been or is about to be
      acquired in contravention of the provisions of this chapter or of any
      rule, regulation or order issued by the commissioner hereunder the
      insurer or the commissioner may apply to the district court of Polk
      county or to the district court for the county in which the insurer
      has its principal place of business to enjoin any offer, request,
      invitation, agreement or acquisition made in contravention of section
      521A.3 or any rule, regulation, or order issued by the commissioner
      thereunder to enjoin the voting of any security so acquired, to void
      any vote of such security already cast at any meeting of
      shareholders, and for such other equitable relief as the nature of
      the case and the interests of the insurer's policyholders, creditors
      and shareholders or the public may require.
         3.  Sequestration of voting securities.  In any case where a
      person has acquired or is proposing to acquire any voting securities
      in violation of this chapter or any rule, regulation or order issued
      by the commissioner hereunder, the district court of Polk county or
      the district court for the county in which the insurer has its
      principal place of business may, on such notice as the court deems
      appropriate, upon the application of the insurer or the commissioner
      seize or sequester any voting securities of the insurer owned
      directly or indirectly by such person, and issue such orders with
      respect thereto as may be appropriate to effectuate the provisions of
      this chapter.  Notwithstanding any other provisions of law, for the
      purposes of this chapter the situs of the ownership of the securities
      of domestic insurers shall be deemed to be in this state.  

         [C71, 73, 75, 77, 79, 81, § 521A.9]