Iowa Code § 524.1305 - Voluntary dissolution proceedings — winding up

1. The board of directors shall have full power to wind up and settle the affairs of a state bank in voluntary dissolution proceedings, including the power to do all of the following: a. Collecting the assets of the state bank. b. Disposing of its properties that will not be distributed in kind to its shareholders. c. Discharging or making provision for discharging its liabilities. d. Making distributions of its remaining assets among its shareholders according to their interests. e. Doing every other act necessary to wind up and liquidate its business and affairs. 2. Dissolution of a state bank does not result in any of the following: a. Transferring title to the state bank’s property. b. Preventing transfer of its shares or securities, although the authorization to dissolve may provide for closing the state bank’s share transfer records. c. Subjecting its directors or officers to standards of conduct different from those prescribed by this chapter prior to dissolution. d. Changing any of the following: (1) Quorum or voting requirements for its board of directors or shareholders. (2) Provisions for selection, resignation, or removal of its directors or officers or both. (3) Provisions for amending its bylaws. e. Preventing commencement of a proceeding by or against the state bank in its name. f. Abating or suspending a proceeding pending by or against the state bank on the effective date of dissolution. 3. Within thirty days after filing of the articles of dissolution with the secretary of state, the state bank shall give notice of its dissolution: a. By mail to each depositor and creditor, except those as to whom the liability of the state bank has been assumed by another financial institution insured by the federal deposit insurance corporation pursuant to the plan of dissolution, at their last address of record as shown upon the books of the state bank, including a statement of the amount shown by the books of the state bank to be due to such depositor or creditor and a demand that any claim for a greater amount be filed with the state bank any time before a specified date at least ninety days after the date of the notice. b. By mail to each lessee of a safe deposit box and each customer for whom property is held in safekeeping, except those as to whom the liability of the state bank has been assumed by another financial institution insured by the federal deposit insurance corporation pursuant to the plan of dissolution, at their last address of record as shown upon the books of the state bank, including a demand that all property held in a safe deposit box or held in safekeeping by the state bank be withdrawn by the person entitled to the property before a specified date which is at least ninety days after the date of the notice. c. By mail to each person, at the person’s last known address as shown upon the books of the state bank, interested in funds held in a fiduciary account or other representative capacity. d. By a conspicuous posting at each office of the state bank and by posting on the state bank’s internet site for at least thirty days following the filing of the articles of dissolution. e. By such publication as the superintendent may prescribe. 4. As soon after the approval of the plan of dissolution and the filing of the articles of dissolution as feasible, the state bank shall resign all fiduciary appointments and take such action as may be necessary to settle its fiduciary accounts. 5. All known depositors and creditors shall be paid promptly after the date specified in the notice given under paragraph “a” of subsection 3 of this section. Unearned portions of rentals for safe deposit boxes shall be rebated to the lessees thereof. 6. Safe deposit boxes, the contents of which have not been removed by the owners after the date specified in the notice given under paragraph “b” of subsection 3 of this section, shall be opened under the supervision of the superintendent and the contents placed in sealed packages which, together with unclaimed property held by the state bank in safekeeping, shall be transmitted to the treasurer of state. Amounts due to depositors who are unknown, or who are under a disability and there is no person legally competent to receive the amount, or who cannot be found after the exercise of reasonable diligence, shall be transmitted to the treasurer of state, together with a statement giving the name of the person, if known, entitled to the amount, the person’s last known address, the amount due the person, and other information about the person as the treasurer of state may reasonably require. All property transmitted to the treasurer of state pursuant to this subsection shall be treated as abandoned, retained by the treasurer of state, and subject to claim, in the manner provided for in sections 556.14 through 556.21. All amounts due creditors described in section 490.1440 shall be deposited with the treasurer of state in accordance with that section. Such amounts shall be retained by the treasurer of state and are subject to claim in the manner provided for in section 490.1440. 7. Upon approval by the superintendent, assets remaining after the performance of all obligations of the state bank under subsections 4, 5, and 6 of this section shall be distributed to its shareholders according to their respective rights and preferences. Partial distributions to shareholders may be made prior to such time only if, and to the extent, approved by the superintendent. All amounts due shareholders described in section 490.1440 shall be deposited with the treasurer of state in accordance with that section. Such amounts shall be retained by the treasurer of state and are subject to claim in the manner provided for in said section 490.1440. 8. During the course of dissolution proceedings the state bank shall make such reports as the superintendent may require, and shall continue to be subject to the provisions of this chapter, including those relating to examination of state banks, until completion of the dissolution of the state bank. 9. If at any time during the course of dissolution proceedings the superintendent finds that the assets of the state bank will not be sufficient to discharge its obligations, the superintendent shall tender to the federal deposit insurance corporation the receivership in the manner required by section 524.1310, and the dissolution shall thereafter be treated as an involuntary dissolution in accordance with the terms of that section and sections 524.1311 and 524.1312. [C71, 73, 75, 77, 79, 81, §524.1305] 90 Acts, ch 1205, §41; 95 Acts, ch 148, §100; 2012 Acts, ch 1017, §22, 28; 2021 Acts, ch 80, §337; 2022 Acts, ch 1062, §106 – 108 Referred to in §524.1309, 524.1310