Iowa Code 533.305 – Investment in banks or savings banks — required findings
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1.
Investment in banks.
A state credit union may, with the prior approval of the superintendent, invest in the capital stock, obligations, or other securities of a bank.
Terms Used In Iowa Code 533.305
- credit union: is a lso a "supervised financial organization" as that term is defined and used in chapter 537, the Iowa consumer credit code. See Iowa Code 533.102
- Evidence: Information presented in testimony or in documents that is used to persuade the fact finder (judge or jury) to decide the case for one side or the other.
- 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
- 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 credit union: means a credit union organized pursuant to section 533. See Iowa Code 533.102
- Superintendent: means the superintendent of credit unions appointed pursuant to section 533. See Iowa Code 533.102
2.
Investment in savings banks.
A state credit union may, with the prior approval of the superintendent, invest in the capital stock, obligations, or other securities of a savings bank.
3.
Findings required.
The superintendent shall not grant an approval under subsection 1 or 2, unless the superintendent makes one of the following findings:
a. Based upon a preponderance of the evidence presented, the proposed investment will not have the immediate effect of significantly reducing competition between depository financial institutions located in the same community as the institution whose shares would be acquired.
b. Based upon a preponderance of the evidence presented, the proposed investment would have an anticompetitive effect as described in paragraph “a”, but other factors, specifically cited, outweigh the anticompetitive effect so that there would be a net public benefit as a result of the investment.
4.
Competition preserved.
a. The subsequent liquidation of a bank or savings bank whose shares are acquired under this section shall not prevent the subsequent incorporation of another bank or savings bank in the same community.
b. The superintendent of banking shall not find the liquidation of a bank whose shares are acquired under this section to be grounds for disapproving the incorporation of another bank in the same community under section 524.305.