Iowa Code 524.604 – Duties and responsibilities
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1. The duties and responsibilities of a director or of the board of directors shall include, but are not limited to, the following:
a. Attendance at no less than seventy-five percent of the regular board meetings held during the calendar year.
b. Employment of officer personnel, and determination of their compensation.
c. Periodic review of the original records of the state bank, or comprehensive summaries thereof prepared by the officers of the state bank, pertaining to loans, discounts, security interests, and investments in bonds and securities.
d. Review of the adequacy of the state bank’s internal controls and determination of the most appropriate method to satisfy the state bank’s audit needs pursuant to section 524.608.
e. Periodic review of the utilization of security measures for the protection of the state bank and the maintenance of reasonable insurance coverage.
Terms Used In Iowa Code 524.604
- Bank: means a corporation organized under this chapter, a national bank, a federal savings association, or an out-of-state bank. See Iowa Code 524.103
- Board: means the engineering and land surveying examining board provided by this chapter. See Iowa Code 542B.2
- Director: means a member of the board of directors of a state bank. See Iowa Code 524.103
- following: when used by way of reference to a chapter or other part of a statute mean the next preceding or next following chapter or other part. See Iowa Code 4.1
- Officer: means chief executive officer, executive officer, or any other administrative official of a state bank elected by the state bank's board of directors to carry out any of the state bank's operating rules and policies. See Iowa Code 524.103
- state: when applied to the different parts of the United States, includes the District of Columbia and the territories, and the words "United States" may include the said district and territories. See Iowa Code 4.1
- State bank: means any bank incorporated pursuant to the provisions of this chapter after January 1, 1970, and any "state bank" incorporated pursuant to the laws of this state and doing business as such on January 1, 1970, or a bank organized as a mutual corporation under this chapter. See Iowa Code 524.103
- year: means twelve consecutive months. See Iowa Code 4.1
2. Directors of a state bank shall discharge the duties of their position in good faith and with that diligence, care, and skill which ordinarily prudent persons would exercise under similar circumstances in like positions. The directors shall have a continuing responsibility to assure themselves that the state bank is being managed according to law and that the practices and policies adopted by the board are being implemented.