SENATE FILE _____

BY  (PROPOSED COMMITTEE ON AGRICULTURE BILL BY CHAIRPERSON SENG)

A BILL FOR

An Act relating to preferred stock issued by cooperative associations.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

   Section 1.  Section 499.24, Code 2011, is amended to read as follows:
   499.24  Preferred stock.
   Preferred stock shall bear cumulative or noncumulative dividends as fixed by the articles, not exceeding eight percent per annum. It shall have no vote. It shall be issued and be transferable without regard to eligibility or membership, and be redeemable on terms specified in the articles and as provided for in this chapter. The directors shall determine the time and amount of its issue.
EXPLANATION
   This bill relates to preferred stock issued by a cooperative association organized under Code chapter 499. It eliminates a requirement that the stock’s dividends cannot earn more than 8 percent per annum.