§ 524.1102

524.1102 Loans and other transactions with affiliates. 1. A state bank shall not make any loan or any extension of credit to, or purchase securities under repurchase agreement from, any of its affiliates, or invest any of its funds inthe shares, bonds, capital securities, or other obligations of an affiliate, or accept the shares,bonds, capital securities, or other obligations of an affiliate as collateral security for advancesmade to any customer, if the aggregate amount of the loans, extensions of credit, repurchaseagreements, investments and advances against such collateral security will exceed: a. In the case of any one affiliate, ten percent of the aggregate capital of the state bank.b. In the case of all such affiliates, twenty percent of the aggregate capital of the state bank. 2. Within the foregoing limitations, each loan or extension of credit of any kind or character to an affiliate shall be secured by collateral in the form of shares of stock, bonds,capital securities or other such obligations having a market value at the time of making theloan or extension of credit of at least twenty percent more than the amount of the loan orextension of credit, or of at least ten

other such obligations having a market value at the time of making theloan or extension of credit of at least twenty percent more than the amount of the loan orextension of credit, or of at least ten percent more than the amount of the loan or extensionof credit if it is secured by obligations of any state, or of any political subdivision or agencyof the state, or of at least one hundred percent of the amount of the loan or extension ofcredit if it is secured by a segregated deposit account which the state bank may set off. 3. A loan or extension of credit to a director, officer, clerk, or other employee or any representative of any affiliate is deemed to be a loan to the affiliate to the extent that theproceeds of such loan are used for the benefit of, or transferred to, the affiliate. 4. The provisions of this section shall not apply to loans or extensions of credit fully secured by obligations of the United States, or the farm credit banks, or the federal homeloan banks, or obligations fully guaranteed by the United States as to principal and interest.The provisions of this section shall not apply to indebtedness of any affiliate for unpaidbalances due a state bank on assets

ations fully guaranteed by the United States as to principal and interest.The provisions of this section shall not apply to indebtedness of any affiliate for unpaidbalances due a state bank on assets purchased from the state bank. 5. For purposes of this section, the terms 'extension of credit' and 'extensions of credit' are deemed to include any purchase of securities under a repurchase agreement, other assetsor obligations under a repurchase agreement, and the discount of promissory notes, bills ofexchange, conditional sales contracts, or similar paper, whether with or without recourse. [C71, 73, 75, 77, 79, 81, §524.1102]89 Acts, ch 257, §19, 20; 91 Acts, ch 20, §1; 95 Acts, ch 148, §93; 2012 Acts, ch 1023, §157Referred to in §524.1103, 524.1104, 524.1602 Sat Dec 23 01:20:25 2023 Iowa Code 2024, Section 524.1102 (23, 0)