Iowa Code

Iowa Code § 524.224 (2026)

Grounds for order to cease business — appointment of receiver

✓ current as of July 2026

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1. The superintendent may, without prior notice or hearings, order a state bank to cease to carry on its business whenever the superintendent determines that:

a. The state bank has violated its articles of incorporation or any law of this state.

b. The capital of the state bank is impaired.\n\nTue Dec 09 22:03:55 2025 Iowa Code 2026, Chapter 524 (74, 6) 21 BANKS, §524.227\n\n c. The state bank is conducting its business in an unsafe or unsound manner.

d. The state bank is insolvent or is otherwise in such condition that it is unsound, unsafe, or inexpedient for it to transact business.

e. The state bank has suspended or refused payment of its deposits or other liabilities contrary to the terms thereof, or the superintendent determines the state bank is unlikely to be able to pay its deposits or other liabilities in the near future.

f. The state bank refuses to make its records available to the superintendent for examination or otherwise refuses to make available, through an officer or employee having knowledge thereof, information required by the superintendent for the proper discharge of the duties of the superintendent’s office.

g. The state bank neglects or refuses to observe any order of the superintendent made pursuant to the provisions of this chapter, unless the enforcement of such order is stayed in a proceeding brought by the state bank.

h. The state bank has not transacted any business or performed any of the duties, contemplated by its authorization to do business, for a period of thirty days.

2. Upon ordering a state bank to cease to carry on its business, the superintendent shall immediately appoint the federal deposit insurance corporation as receiver pursuant to section 524.1310. [C73, §1572; C97, §1877; C24, 27, 31, 35, §9283-e1, -e2, -e3, -e4; C39, §9235, 9285.05 – 9285.08; C46, 50, 54, 58, 62, 66, §528.29, 528.90 – 528.93; C71, 73, 75, 77, 79, 81, §524.224] 95 Acts, ch 148, §19; 2012 Acts, ch 1023, §157; 2022 Acts, ch 1062, §22 Referred to in §524.225, 524.230, 524.1310 \n

Notes of Decisions

Cited in 3 cases, 1988–1995 · leading case: Receivership of Farmers State Bank v. Bernau, 433 N.W.2d 734 (Iowa 1988).

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Receivership of Farmers State Bank v. Bernau, 433 N.W.2d 734 (Iowa 1988). · cites it 38× “See Iowa Code §§ 524.224 , .226. By July 27 the bank was able to recover $68,000 in outstanding loans but could not raise the necessary $1 million capital.”

Fed. Deposit Ins. Corp. v. Mount Pleasant Prof'l Bldg., 426 N.W.2d 126 (Iowa 1988). · cites it 2× “See Iowa Code §§ 524.224 , 524.-226 (1981). The FDIC was subsequently appointed to be the receiver, see id.”

In Re the Receivership of the Mt. Pleasant Bank & Trust Co., 526 N.W.2d 549 (Iowa 1995). · cites it 2× “See Iowa Code § 524.224 (1981). Upon making these determinations, the superintendent closed MPB pursuant to Iowa Code section 524.”

— Iowa Code § 524.224(1) — 1 case

Receivership of Farmers State Bank v. Bernau, 433 N.W.2d 734 (Iowa 1988). “See Iowa Code §§ 524.224 , .226. By July 27 the bank was able to recover $68,000 in outstanding loans but could not raise the necessary $1 million capital.”

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