Article VIII, Iowa Constitution

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Iowa Constitution
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Article VIII of the Iowa Constitution is labeled Corporations. It has twelve sections.

Section 1

Text of Section 1:

How Created

No corporation shall be created by special laws; but the general assembly shall provide, by general laws, for the organization of all corporations hereafter to be created, except as hereinafter provided.[1]

Section 2

Text of Section 2:

Taxation of Corporations

The property of all corporations for pecuniary profit, shall be subject to taxation, the same as that of individuals.[1]

Section 3

Text of Section 3:

State Not to Be a Stockholder

The state shall not become a stockholder in any corporation, nor shall it assume or pay the debt or liability of any corporation, unless incurred in time of war for the benefit of the state.[1]

Section 4

Text of Section 4:

Municipal Corporations

No political or municipal corporation shall become a stockholder in any banking corporation, directly or indirectly.[1]

Section 5

Text of Section 5:

Banking Associations

No act of the general assembly, authorizing or creating corporations or associations with banking powers, nor amendments thereto shall take effect, or in any manner be in force, until the same shall have been submitted, separately, to the people, at a general or special election, as provided by law, to be held not less than three months after the passage of the act, and shall have been approved by a majority of all the electors voting for and against it at such election.[1]

Section 6

Text of Section 6:

State Bank

Subject to the provisions of the foregoing section, the general assembly may also provide for the establishment of a state bank with branches.[1]

Note: Sections 6 to 11 apply to banks of issue only. See 63 Iowa 11, also 220 Iowa 794 and 221 Iowa 102.

Section 7

Text of Section 7:

Specie Basis

If a state bank be established, it shall be founded on an actual specie basis, and the branches shall be mutually responsible for each other's liabilities upon all notes, bills, and other issues intended for circulation as money.[1]

Section 8

Text of Section 8:

General Banking Law

If a general banking law shall be enacted, it shall provide for the registry and countersigning, by an officer of state, of all bills, or paper credit designed to circulate as money, and require security to the full amount thereof, to be deposited with the state treasurer, in United States stocks, or in interest paying stocks of states in good credit and standing, to be rated at ten per cent. below their average value in the city of New York, for the thirty days next preceding their deposit; and in case of a depreciation of any portion of said stocks, to the amount of ten per cent. on the dollar, the bank or banks owning such stock shall be required to make up said deficiency by depositing additional stocks: and said law shall also provide for the recording of the names of all stockholders in such corporations, the amount of stock held by each, the time of any transfer, and to whom.[1]

Section 9

Text of Section 9:

Stockholders' Responsibility

Every stockholder in a banking corporation or institution shall be individually responsible and liable to its creditors, over and above the amount of stock by him or her held, to an amount equal to his or her respective shares so held for all of its liabilities, accruing while he or she remains such stockholder.[1]

Section 10

Text of Section 10:

Billholders Preferred

In case of the insolvency of any banking institution, the billholders shall have a preference over its other creditors.[1]

Section 11

Text of Section 11:

Specie Payments--Suspension

The suspension of specie payments by banking institutions shall never be permitted or sanctioned.[1]

Section 12

Text of Section 12:

Amendment or Repeal of Laws--Exclusive Privileges

Subject to the provisions of this article, the general assembly shall have power to amend or repeal all laws for the organization or creation of corporations, or granting of special or exclusive privileges or immunities, by a vote of two thirds of each branch of the general assembly; and no exclusive privileges, except as in this article provided, shall ever be granted.[1]

Analogous provision, §491.39 of the Code.

See also

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