§ 524.404

524.404 Capital notes and debentures. 1. A state bank, with the prior approval of the superintendent and the affirmative vote of the holders of a majority of the shares entitled to vote, may issue capital notes or debentures.The amounts, maturities, rate of interest, relative rights with other creditors, and otherterms and conditions shall be set forth on the face of the capital notes or debentures or in anattendant agreement, and all terms and conditions are subject to the prior approval of thesuperintendent provided that all such capital notes and debentures shall be subordinatedto the rights of other persons to the extent provided for in section 524.1312. The aggregateamount of all capital notes and debentures issued and outstanding pursuant to this sectionshall not exceed, at any one time, twenty-five percent of the aggregate capital of the statebank. 2. A state bank shall not make any payment of principal on any capital notes or debentures without the prior approval of the superintendent nor shall any payment of principal andinterest be made on any such capital or debentures by a state bank when its capital is impairedor which would cause its capital to become impaired.

uperintendent nor shall any payment of principal andinterest be made on any such capital or debentures by a state bank when its capital is impairedor which would cause its capital to become impaired. Subject to the provisions of this sectiona state bank may issue capital notes or debentures with provision for installment or serialpayment of capital notes or debentures according to an established schedule which shall beapproved by the superintendent prior to issuance. 3. A state bank shall not issue capital notes or debentures within five years after it is originally authorized to do business. [C71, 73, 75, 77, 79, 81, §524.404]95 Acts, ch 148, §36Referred to in §524.103, 524.814, 524.818 Sat Dec 23 01:13:08 2023 Iowa Code 2024, Section 524.404 (22, 0)