§ 524.305

524.305 Approval by superintendent. 1. Upon receipt of an application for approval of a state bank, the superintendent shall conduct an investigation as the superintendent deems necessary to ascertain whether: a. The articles of incorporation and supporting items satisfy the requirements of this chapter. b. The convenience and needs of the public will be served by the proposed state bank, including by accepting deposits from, lending money in, and processing payments in the areathe proposed state bank will primarily serve. c. The population density or other economic characteristics of the area primarily to be served by the proposed state bank afford reasonable promise of adequate support for thestate bank. d. The character and fitness of the incorporators or organizers and of the members of the initial board of directors are such as to command the confidence of the community and towarrant the belief that the business of the proposed state bank will be honestly and efficientlyconducted. e. The capital structure of the proposed state bank is adequate in relation to the amount of the anticipated business of the state bank and the safety of prospective depositors. f.

icientlyconducted. e. The capital structure of the proposed state bank is adequate in relation to the amount of the anticipated business of the state bank and the safety of prospective depositors. f. The proposed state bank will have sufficient personnel with adequate knowledge and experience to conduct the business of the state bank, and to administer fiduciary accounts, ifthe state bank is to be authorized to act in a fiduciary capacity. 2. Within one hundred eighty days after the application is accepted for processing, the superintendent shall approve or disapprove the application on the basis of the investigation. 3. Within thirty days after the date of the publication of the notice required under section 524.304, any interested person may submit written comments and informationto the superintendent concerning the application. Comments challenging the legality ofan application must be submitted separately in writing. The superintendent may extendthe thirty-day comment period, if, in the judgment of the superintendent, extenuatingcircumstances which justify the extension exist. 4. Within thirty days after the date of the publication of the notice required by section 524.304,

, in the judgment of the superintendent, extenuatingcircumstances which justify the extension exist. 4. Within thirty days after the date of the publication of the notice required by section 524.304, any interested person may submit a written request of the superintendent fora hearing on the application. The request shall state the nature of the issues or facts tobe presented and the reasons why written submissions would be insufficient to make anadequate presentation to the superintendent. If the reasons are related to factual disputes,the disputes shall be described. A written request for a hearing shall be evaluated by the superintendent, who may grant or deny the request in whole or in part. A hearingrequest shall generally be granted only if it is determined that written submissions would beinadequate or that a hearing would otherwise be beneficial to the decision-making process.A hearing may be limited to issues considered material by the superintendent. 5. If a request for a hearing is denied, the superintendent shall notify the applicant and all interested persons and shall state the reasons for the denial.

onsidered material by the superintendent. 5. If a request for a hearing is denied, the superintendent shall notify the applicant and all interested persons and shall state the reasons for the denial. An interested person maysubmit additional written comments or information on the application to the superintendent,with copies to the applicant at the time of submission to the superintendent, within fourteendays after the date of the notice of denial. The applicant shall be provided an additional sevendays, after the fourteen-day deadline has expired, within which to respond to any commentssubmitted within the fourteen-day period after the notice of denial. The superintendent maywaive this seven-day period if requested by the applicant. A copy of any response submittedby the applicant shall also be mailed by the applicant to the interested persons at the time theresponse is submitted to the superintendent. 6. If the superintendent approves the application, the superintendent shall notify the incorporators or organizers, and such other persons who requested in writing thatthey be notified, of the approval.

If the superintendent approves the application, the superintendent shall notify the incorporators or organizers, and such other persons who requested in writing thatthey be notified, of the approval. If the superintendent disapproves the application, thesuperintendent shall notify the incorporators or organizers of the action and the reason forthe decision. 7. The actions of the superintendent shall be subject to judicial review in accordance with Sat Dec 23 01:12:14 2023 Iowa Code 2024, Section 524.305 (25, 0) §524.305, BANKS 2 chapter 17A. The court may award damages to the incorporators or organizers if it finds thatreview is sought frivolously or in bad faith. 8. Subsections 3, 4, and 5 shall not apply if the superintendent finds that one of the purposes of the proposed state bank is the merger with, or the purchase of some or all of theassets of and assumption of some or all of the liabilities of, a bank for which a receiver hasbeen appointed or which has been ordered, by authorities of this state or the United States,to cease to carry on its business, or if the superintendent finds for any other reason thatimmediate action on the pending application is advisable in order to

ties of this state or the United States,to cease to carry on its business, or if the superintendent finds for any other reason thatimmediate action on the pending application is advisable in order to protect the interests ofdepositors or the assets of any other bank. 9. As a condition of receiving the decision of the superintendent with respect to the application, the incorporators or organizers shall reimburse the superintendent for allexpenses incurred by the superintendent in connection with the application. [C24, 27, 31, 35, §9140-c1, 9141, 9142; C39, §9140.1, 9141, 9142; C46, 50, 54, 58, 62, 66, §524.11, 524.12, 524.13; C71, 73, 75, 77, 79, 81, §524.305] 92 Acts, ch 1161, §2; 95 Acts, ch 148, §24; 2004 Acts, ch 1141, §53, 54; 2022 Acts, ch 1062, §31, 32 Referred to in §524.304, 524.312, 524.1001, 533.305 Sat Dec 23 01:12:14 2023 Iowa Code 2024, Section 524.305 (25, 0)