524.1003 Removal of fiduciary powers. 1. a. If the superintendent at any time concludes that a state bank authorized to act in a fiduciary capacity is managing its accounts in an unsafe or unsound manner, or in a mannerin conflict with the provisions of this chapter, and such state bank refuses to correct suchpractices following notice to do so, the superintendent may direct that the state bank ceaseto act as a fiduciary. b. After directing the state bank to cease to act as a fiduciary, the superintendent shall file a petition in the district court of Polk county setting forth in general terms that the state bankis acting as fiduciary with respect to certain property and that it is necessary and desirablethat successor fiduciaries be appointed for such property. c. Following the filing of a petition pursuant to paragraph 'b' by the superintendent, the district court shall issue an order requiring all persons interested in the state bank’sfiduciary accounts to appoint a successor fiduciary by a specific date, acknowledge thefiduciary succession as described in the will, trust instrument, or other governing instrumentof the fiduciary account, or show cause why the district court duciary by a specific date, acknowledge thefiduciary succession as described in the will, trust instrument, or other governing instrumentof the fiduciary account, or show cause why the district court should not appoint a successorfiduciary. Such order may also appoint a temporary fiduciary for the fiduciary accounts heldby the state bank who shall be obligated to take possession of the fiduciary accounts andperform necessary tax, investment, distribution, asset protection, and reporting obligationsrequired of the fiduciary accounts and perform necessary tax, investment, distribution, assetprotection, and reporting obligations required of the fiduciary until a permanent successoris appointed. Neither the temporary nor permanent successor fiduciary shall be liable forthe actions of the state bank and shall not be responsible for reviewing the action or inactionof the preceding fiduciary. The state bank’s liability for any action or inaction in its formerfiduciary positions shall not be impacted by the transfer of fiduciary duties pursuant to thissection. The district court may assess the fees and costs of the temporary fiduciary againstthe state bank. d. iary positions shall not be impacted by the transfer of fiduciary duties pursuant to thissection. The district court may assess the fees and costs of the temporary fiduciary againstthe state bank. d. Following the appointment of a temporary fiduciary, the district court shall enter an order directing the temporary fiduciary to provide notice of the petition and the orderdescribed in this section, through a means approved by the district court, to all personsshown in the records of the state bank to have a beneficial interest in the fiduciary accountsor entitled to notice or an accounting under the terms of the will, trust instrument, or othergoverning instrument of the fiduciary account, chapter 633, 633A, 633B, or other applicablestatute under which the state bank has been operating as a fiduciary. The district court mayalso order publication of the notice for two consecutive weeks in newspapers of generalcirculation in one or more counties as prescribed by the district court, and publication onthe temporary fiduciary’s internet site for at least twenty days, to the extent the districtcourt deems such published notice necessary to protect the interests of absent or court, and publication onthe temporary fiduciary’s internet site for at least twenty days, to the extent the districtcourt deems such published notice necessary to protect the interests of absent or remotebeneficiaries. 2. At least twenty days after providing notice of a petition and order appointing the temporary fiduciary as described in this section, the district court shall appoint a permanentsuccessor fiduciary for any fiduciary account where appropriate parties have failed to cause asuccessor fiduciary to be appointed. A successor fiduciary appointed in accordance with theterms of this section shall succeed to all the rights, powers, titles, duties, and responsibilitiesof the state bank except that the successor fiduciary shall not exercise the powers given inthe instrument creating the powers that by its express terms are personal to the state bankpreviously designated and except claims or liabilities arising out of the management of thefiduciary account prior to the date of the transfer. [C39, §9283.38; C46, 50, 54, 58, 62, 66, §528.123; C71, 73, 75, 77, 79, 81, §524.1003]2015 Acts, ch 29, §82; 2022 Acts, ch 1062, §91 – 94 Sat Dec 23 01:19:02 2023 Iowa Code 2024, Section he transfer. [C39, §9283.38; C46, 50, 54, 58, 62, 66, §528.123; C71, 73, 75, 77, 79, 81, §524.1003]2015 Acts, ch 29, §82; 2022 Acts, ch 1062, §91 – 94 Sat Dec 23 01:19:02 2023 Iowa Code 2024, Section 524.1003 (25, 0)
Iowa Legal Code