COMPILED CODE - Iowa Legislature - State of Iowa

388
! 5794. STATE BANKS. Tit. XIX, Ch. 3.
23 vided that said investments by savings banks shall in no event exceed
24 in the aggregate twenty per cent of the capital stock and surplus of
25 said bank.
26 6. It may discount, purchase, sell and make loans upon commer-
27 cial paper, notes, bills of exchange, drafts, or any other personal or
28 public security, but shall not purchase, hold or make loans upon the
29 shares of its capital stock.
30 7. In all cases of loans upon real estate, all the expenses of
31 searches, examination and certificates of title, or the inspection of
32 property, appraisals of value, and of drawing, perfecting and record-
33 ing papers, shall be paid by such borrowers ; if buildings are included
34 in the valuation of real estate upon which a loan shall be made, they
35 shall be insured by the mortgagor for at least two-thirds of their
36 value, in some solvent company, and the loss, if any, under the policy
37 of insurance shall be made payable to the bank or its assigns, as its
38 interests may appear. When the mortgagor neglects to procure the
39 insurance as above provided, the mortgagee may procure the same in
40 the mortgagor's name for its benefit, and the premium so paid therefor
41 shall be added to the mortgage debt.
[C, '97, § 1850; S., '13, § 1850; 37 G. A., ch. 364, § 1 ; 39
G. A., ch. 161, § 1.]
CHAPTER 3.
STATE BANKS.
SECTION 5794. Directors.
1 The business and property of each state bank shall be managed
2 by a board of directors of not less than five, all of whom shall be share-
3 holders.
4 The articles of incorporation shall designate the maximum num-
5 ber of directors, and the stockholders by a majority of all of the votes
6 of the stockholders of such bank may change at any annual meeting
7 by resolution, the number of its directors, as said stockholders may
8 decide, to any number not less than five nor more than the maximum
9 designated in the articles of incorporation or certificate of authoriza-
10 tion, provided that said resolution of the stockholders shall after being
11 duly adopted as aforesaid be filed in the office of the superintendent
12 of banking within thirty days after such adoption. The maximum
13 number of directors as fixed by the articles of incorporation may be
14 changed in the manner prescribed by law for changing the said articles
15 of incorporation.
16 No person shall be eligible as director of any state bank, nor shall
17 he qualify or serve as such, unless he owns in his own right shares
18 of stock in such bank, as follows: In those having a capital of
19 twenty-five thousand dollars or over, but less than thirty thousand
20 dollars, two shares ; in those having a capital of thirty thousand dol-
21 lars or over, but less than forty thousand dollars, three shares; in
22 those having a capital of forty thousand dollars or over, but less than
23 fifty thousand dollars, four shares ; in those having a capital of fifty
24 thousand dollars or over five shares.