Common use of Subrogation of Pledging Bank; Appointment of Treasurer as Agent Clause in Contracts

Subrogation of Pledging Bank; Appointment of Treasurer as Agent. In the event an assessment is paid by the Pledging Bank to the Treasurer pursuant to Section 12C.23A of the Iowa Code, or in the event that Collateral pledged by the Pledging Bank is liquidated pursuant to Section 12C.23A, subsection 3, paragraph “e” of the Iowa Code and the proceeds are used to pay the assessment, the Pledging Bank is subrogated to the claim of a public funds depositor to the extent the claim is paid from funds paid by the Pledging Bank or proceeds of Collateral pledged by the Pledging Bank are used to pay the assessment. The Pledging Bank hereby appoints the Treasurer as agent of the Pledging Bank to assert the claim on behalf of the Pledging Bank as subrogee. The Pledging Bank agrees that any amount recovered by the Treasurer by reason of such claim shall be deposited in the state sinking fund for public deposits in banks.