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Can you summarize 187 IAAC Chapter 9?
Banking Division > INVESTMENT AND LENDING POWERS
Short Summary
The provided legal document content consists of two separate documents governing different aspects of state banks in Iowa. The first document governs real estate lending by state banks and requires them to formulate and maintain a comprehensive written real estate lending policy. The policy should include standards and limits, loan origination and approval procedures, underwriting standards, loan administration procedures, appraisal and evaluation programs, and compliance with secondary market investor requirements. The board of directors must review and approve the policy annually. The rule also requires state banks to establish their own internal loan-to-value limits for real estate loans. Real estate loans made for sale into the secondary market are considered in transit for 90 days and are not considered risk assets during this period. The state bank must obtain evidence of title when lending for acquisition or refinance purposes. There are exemptions for certain real estate transactions, including loans guaranteed or insured by the U.S. government or the state of Iowa, acceptance of real estate as collateral, and securities collateralized by real estate. State banks may also originate or purchase real estate loans that do not meet the requirements of this rule, subject to certain limitations and approval from the superintendent. Examiners will review these exempted loans for documentation and overall safety and soundness considerations. This rule implements Iowa Code section 524.905. The second document governs leasing activities conducted by state banks in Iowa. It provides definitions for key terms and outlines general guidelines for direct and purchased leases. These guidelines include the formulation of a comprehensive lease policy, credit analysis of lessees, documentation requirements, lease terms and conditions, and appraisal and evaluation programs. The document also specifies guidelines for specific types of leases, such as consumer leases and leases to governmental units. It sets limits on unguaranteed residual values and requires ongoing review of estimated residual values. Additionally, it addresses accounting for investment tax credits and provides provisions for exempted transactions. The document applies to state banks and aims to ensure safe and sound leasing practices in accordance with Iowa Code. Penalties for non-compliance are not specified.
Whom does it apply to?
State banks in Iowa
What does it govern?
Real estate lending and leasing activities conducted by state banks in Iowa
What are exemptions?
Loans guaranteed or insured by the U.S. government or the state of Iowa, acceptance of real estate as collateral, and securities collateralized by real estate
What are the Penalties?
Penalties for non-compliance are not specified.
Jurisdiction
Iowa