536A.25 Restrictions.
1. a. An industrial loan company licensed under this chapter that sells debt instruments to the general public in the form of thrift certificates, installment thrift certificates, certificates of indebtedness, promissory notes, or similar evidences of indebtedness shall not make a loan of money or property to or guarantee the obligations of its directors or officers; or loan to any borrower, other than a subsidiary or affiliated corporation, more than twenty percent of its total capital, surplus, and undivided profits.
b. A licensee shall not make a loan under any other name or at any other place of business than that named in the license.
2. a. An industrial loan company licensed under this chapter that sells debt instruments to the general public in the form of thrift certificates, installment thrift certificates, certificates of indebtedness, promissory notes, or similar evidences of indebtedness, shall not loan to a borrower, including a subsidiary or an affiliated corporation, more than twenty percent of the industrial loan company’s total of capital, surplus, and undivided profits. The aggregate of all loans to subsidiaries and affiliated corporations of the industrial loan company shall not exceed ten percent of the industrial loan company’s total assets.
b. A debt instrument sold by an industrial loan company which is not insured by the federal deposit insurance corporation, shall contain on its face a notice in bold print that the debt instrument is not insured or guaranteed by the federal deposit insurance corporation.
3. Investments by an industrial loan company licensed under this chapter that sells debt instruments to the general public in the form of thrift certificates, installment thrift certificates, certificates of indebtedness, promissory notes, or similar evidences of indebtedness are subject to the provisions of section 524.901 as applied to state banks.
[C66, 71, 73, 75, 77, 79, 81, §536A.25]
91 Acts, ch 63, §4; 2006 Acts, ch 1042, §46; 2012 Acts, ch 1023, §157
Structure Iowa Code
Chapter 536A - INDUSTRIAL LOANS
Section 536A.6 - Administration by superintendent.
Section 536A.7 - Application for license.
Section 536A.8 - Capital stock requirement.
Section 536A.9 - Investigation of application.
Section 536A.10 - Issuance of license.
Section 536A.11 - Denial of license.
Section 536A.12 - Continuing license — annual fee — change of name or location — change of control.
Section 536A.13 - Books and records.
Section 536A.15 - Examination of licensees.
Section 536A.16 - Cease and desist orders.
Section 536A.17 - Injunctions.
Section 536A.18 - Disciplinary action.
Section 536A.19 - Receivership — liquidation.
Section 536A.20 - Real estate loans.
Section 536A.21 - Other business in same office.
Section 536A.22 - Thrift certificates.
Section 536A.23 - Powers of industrial loan companies.
Section 536A.24 - Electronic transactions.
Section 536A.25 - Restrictions.
Section 536A.29 - Enforcement of Iowa consumer credit code.
Section 536A.30 - Nonresident licensees — face-to-face solicitation.
Section 536A.31 - Applicability of Iowa consumer credit code.
Section 536A.32 - Powers and duties of the superintendent — nationwide system.