524.710 - PROHIBITIONS APPLICABLE TO CERTAIN FINANCIAL TRANSACTIONS INVOLVING OFFICERS AND EMPLOYEES.
524.710 PROHIBITIONS APPLICABLE TO CERTAIN FINANCIAL TRANSACTIONS INVOLVING OFFICERS AND EMPLOYEES. 1. An officer or employee of a state bank shall not do any of the following: a. Receive anything of value, other than compensation as authorized by section 524.703, for procuring, or attempting to procure, any loan or extension of credit, as defined in section 524.904, for the state bank or for procuring, or attempting to procure, an investment by the state bank. b. Engage, directly or indirectly, in the sale of any kind of insurance, shares of stock, bonds or other securities, or real property, or procure or attempt to procure for a fee or other compensation, a loan or extension of credit for any person from a person other than the state bank of which the person is an officer or employee, or act in any fiduciary capacity, unless authorized to do so by the board of directors of the state bank which shall also determine the manner in which the profits, fees, or other compensation derived therefrom shall be distributed. 2. A state bank shall not pay an overdraft of an officer or employee of the state bank on an account at the state bank, unless the payment of funds is made in accordance with either of the following: a. A written, preauthorized, interest-bearing extension of credit plan that specifies a method of repayment. b. A written, preauthorized transfer of collected funds from another account of the account holder at the state bank.
Section History: Early Form [C31, 35, § 9221-c3, 9222-c2, 9283-c1; C39, § 9221.3, 9222.2, 9283.01; C46, 50, 54, 58, 62, 66, § 528.10, 528.12, 528.86; C71, 73, 75, 77, 79, 81, § 524.710]
Section History: Recent Form 95 Acts, ch 148, §77 Referred to in § 524.912, 524.1601