Officers and employees of Division of Financial Institutions prohibited from having interest in certain banks; exceptions; termination of interest.
1. Except as otherwise provided in subsections 3 and 4, an officer or employee of the Division of Financial Institutions shall not be directly or indirectly interested in or act on behalf of any bank chartered by this state, receive, directly or indirectly, any payment from any such bank, be indebted to any state bank, engage in the negotiation of loans for others with any such bank or obtain credit or services from a state bank conditioned upon a fraudulent practice or undue or unfair preference over other customers.
2. An employee of the Division of Financial Institutions in the unclassified service of the State shall not obtain new extensions of credit from a state bank while in office.
3. Any officer or employee of the Division of Financial Institutions may be indebted to a bank on the same terms as are available to the public generally upon:
(a) A mortgage loan upon his own real property.
(b) A secured installment debt.
(c) An unsecured debt.
4. Any officer or employee of the Division of Financial Institutions may establish and maintain deposits with banks to the greatest amount insured, receive interest on those deposits and borrow money secured by a pledge of those deposits.
5. If an officer or employee of the Division of Financial Institutions has a service, a preferred consideration, an interest or a relationship prohibited by this section at the time of his appointment or employment, or obtains it during his employment, he shall terminate it within 120 days after the date of his appointment or employment or the discovery of the prohibited act.
Last modified: February 26, 2006