2009 Iowa Code
Title 13 - Commerce
Subtitle 2 - Financial Institutions
CHAPTER 534 - SAVINGS AND LOAN ASSOCIATIONS
534.214 - INVESTMENT IN AND BY BANKS.

        534.214  INVESTMENT IN AND BY BANKS.
         1.  Investment in banks.  A holding company, association, or
      service corporation may invest in the capital stock, obligations, or
      other securities of a bank with the prior approval of the
      superintendent of savings and loan associations.
         2.  Investment by banks.  Notwithstanding sections 524.802 and
      524.901, subsection 3, a bank holding company, bank, or bank service
      corporation may, with the prior approval of the superintendent of
      banking, invest in the capital stock, obligations or other securities
      of a state association.
         3.  Contingencies.  An association or service corporation may
      make an investment under subsection 1 only if at the time of the
      investment either an insured bank or a bank service corporation owned
      by one or more insured banks would be permitted to make an investment
      under substantially the same circumstances in an insured state
      association under all applicable laws and regulations of the United
      States.  A bank or bank service corporation may make an investment
      under subsection 2 only if at the time of the investment either an
      insured state association or a service corporation owned by one or
      more insured associations would be permitted to make an investment
      under substantially the same circumstances in an insured bank under
      all applicable laws and regulations of the United States.  The
      ability of an organization to merge with another organization is not
      relevant in determining whether an organization is permitted to
      invest in another organization.
         4.  Bank as holding company.  No bank shall directly or
      indirectly acquire ownership or control of more than twenty-five
      percent of the voting shares of any savings and loan association, or
      the power to control in any manner the election of a majority of the
      directors of any savings and loan association, if upon such
      acquisition the associations so owned or controlled by the bank would
      have, in the aggregate, more than eight percent of the total
      deposits, both time and demand, of all associations in this state, as
      determined by the superintendent of banking on the basis of the most
      recent reports of the associations in the state to their supervisory
      authorities which are available at the time of the acquisition.
         5.  Definitions.  For purposes of this section an "insured
      bank" is a bank whose deposits are insured in part by the bank
      insurance fund of the federal deposit insurance corporation; a
      "bank service corporation" is as defined by, and in accordance
      with, the laws of the United States, and the "superintendent of
      banking" is the person appointed pursuant to section 524.201.
         6.  Findings required.  The superintendent of savings and loan
      associations shall not grant an approval under subsection 1, and the
      superintendent of banking shall not grant an approval under
      subsection 2 except after making one of the two following findings:
         a.  Based upon a preponderance of the evidence presented, the
      proposed investment will not have the immediate effect of
      significantly reducing competition between depository financial
      institutions located in the same community as the institution whose
      shares would be acquired.
         b.  Based upon a preponderance of the evidence presented, the
      proposed investment would have the anticompetitive effect specified
      in paragraph "a" of this subsection, but that other factors, to
      be specifically cited, outweigh the anticompetitive effect so that
      there would be a net public benefit as a result of the investment.
         7.  Competition preserved.  The subsequent liquidation of a
      bank or state association whose shares are acquired under this
      section shall not prevent the subsequent incorporation of another
      bank in the same community, and the superintendent of banking shall
      not find the liquidation to be grounds for disapproving the
      incorporation of another bank in the same community under section
      524.305, and shall not prevent the subsequent incorporation of
      another association in the same community, and the superintendent of
      savings and loan associations shall not find the liquidation to be
      grounds for disapproving the incorporation of another association in
      the same community under this chapter.  

         Section History: Early Form

         [82 Acts, ch 1253, § 27] 

         Section History: Recent Form

         C83, § 534.83
         83 Acts, ch 101, § 111
         C85, § 534.214
         91 Acts, ch 92, §10; 2001 Acts, ch 4, §9, 11