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PAG LIN 1 1 Amend Senate File 60, as passed by the Senate, as 1 2 follows: 1 3 #1. Page 1, by inserting before line 1 the 1 4 following: 1 5 "Section 1. Section 12.32, Code 1995, is amended 1 6 to read as follows: 1 7 12.32 DEFINITIONS. 1 8 As used in this division, unless the context 1 9 otherwise requires: 1 10 1. "Eligible borrower" means any person who is in 1 11 the business or is entering the business of producing, 1 12 processing, or marketing horticultural crops or 1 13 nontraditional crops in this state or any person in 1 14 this state who is qualified to participate in one of 1 15 the programs in this division. 1 16 2. "Eligible lending institution" means a 1 17 financial institution that is empowered to make 1 18 commercial loans, and is eligible pursuant to chapter 1 19 12C to be a depository of state funds, and agrees to1 20participate in the linked investments for tomorrow1 21program. 1 22 3. "Linked investment" means a certificate of 1 23 deposit placed pursuant to this division by the 1 24 treasurer of state with an eligible lending 1 25 institution, at an interest rate not more thanthree1 26 two percent below current market rates on the 1 27 condition that the institution agrees to lend the 1 28 value of the deposit, according to the investment 1 29 agreement provided in section12.3712.35, to an 1 30 eligible borrower at a rate not to exceed four percent 1 31 above the rate paid on the certificate of deposit. 1 32 Sec. . Section 12.34, Code 1995, is amended to 1 33 read as follows: 1 34 12.34 LINKED INVESTMENTS &endash; LIMITATIONS. 1 35 1. The treasurer of state may invest up to ten 1 36 percent of thebalance of the state pooled money fund1 37 average balance of the pooled money investment fund 1 38 for the previous fiscal year in certificates of 1 39 deposit in eligible lending institutions pursuant to 1 40 this division. 1 41 2. Certificates of deposit placed by the treasurer 1 42 on or after July 1, 1995, pursuant to this division 1 43 may be renewed at the option of the treasurer but the 1 44 length of time from the beginning of the initial 1 45 certificate of deposit for a given borrower until the 1 46 maturity of the final renewal shall not exceed six 1 47 years. 1 48 3. A preference shall be given to those persons 1 49 who are less able than other persons to secure funds 1 50 without participation in the linked investment 2 1 program. 2 22.4. The treasurer shall adopt rules pursuant to 2 3 chapter 17A to implement this divisionincluding, but2 4not limited to, rules identifying horticultural crops2 5and nontraditional crops for which the linked2 6investments may be loaned. 2 7 Sec. . Section 12.35, Code 1995, is amended to 2 8 read as follows: 2 9 12.35 APPLICATION. 2 10 1. An eligible lending institution that desires to 2 11 receive a linked investment shall enter into an 2 12 agreement with the treasurer of state, which shall 2 13 include requirements necessary to carry out this 2 14 division. 2 151.2. An eligible lending institution that desires 2 16 to receive a linked investment shall accept and review 2 17 applications for loans from eligible borrowers. The 2 18 lending institution shall apply all usual lending 2 19 standards to determine the credit worthiness of each 2 20 eligible borrower and shall determine whether the 2 21 applicant is an eligible borrower.Loan applications2 22shall be for the purchase or lease of land, machinery,2 23equipment, seed, fertilizer, direct marketing2 24facilities, or new or expanding processing facilities2 25for horticultural crops or nontraditional crops. The2 26maximum size of a loan is two hundred thousand dollars2 27per borrower for a production loan and five hundred2 28thousand dollars for processing or marketing2 29facilities.2 302.3. The eligible financial institution shall 2 31 forward to thestatetreasurer of state a linked 2 32 investment loan package in the form and manner as 2 33 prescribed by the treasurer of state. The package 2 34 shall include information required by the treasurer of 2 35 state, including but not limited to the amount of the 2 36 loan requested and the purpose of the loan. The 2 37 institution shall certify that the applicant is an 2 38 eligible borrowerand shall certify the present2 39borrowing rate applicable to the specific eligible2 40borrower. 2 41 Sec. . Section 12.36, Code 1995, is amended to 2 42 read as follows: 2 43 12.36 ACTIONS BY TREASURER&endash; AGREEMENT. 2 44 1. The treasurer of state shall accept or reject a 2 45 linked investment loan package or any portion of the 2 46 package based on the type or terms of the loan 2 47 involved, the availability of state funds, or the 2 48 compliance of the eligible borrower or eligible 2 49 lending institution. 2 50 2. Upon acceptance of the linked investment loan 3 1 package or any portion of the package, the treasurer 3 2 of state shall place certificates of deposit with the 3 3 eligible lending institution at a rate not more than 3 4threetwo percent below the current market rate. 3 5After July 1, 1992, theThe treasurer of state shall 3 6 not place a certificate of deposit with an eligible 3 7 lending institution pursuant to this division, unless 3 8 the certificate of deposit earns a rate of interest of 3 9 at least two percent.When necessary, the treasurer3 10may place certificates of deposit prior to acceptance3 11of a linked investment loan package.Certificates of 3 12 deposits placed by the treasurer of state shall mature 3 13 in three hundred sixty-five days or less. Interest 3 14 earned on the certificate of deposit and principal not 3 15 renewed shall be remitted to the treasurer of state at 3 16 the time the certificate of deposit matures. 3 17 Certificates of deposit placed pursuant to this 3 18 division are not subject to a penalty for early 3 19 withdrawal. 3 203. The eligible lending institution shall enter3 21into an investment agreement with the treasurer of3 22state, which shall include requirements necessary to3 23carry out this division. The requirements shall3 24reflect the market conditions prevailing in the3 25eligible lending institution's lending area. The3 26agreement may include a specification of the period of3 27time in which the lending institution is to lend funds3 28upon the placement of a linked investment, and shall3 29include provisions for the certificates of deposit to3 30be placed for one-year maturities that may be renewed3 31for eight additional one-year periods. Interest shall3 32be paid at the times determined by the treasurer of3 33state.3 34 Sec. . Section 12.38, Code 1995, is amended to 3 35 read as follows: 3 36 12.38 REPORTS. 3 37 By February 1 of each year, the treasurer of state 3 38 shall report on the linked investments for tomorrow 3 39program, the rural small business transfer linked3 40investment loan program, the targeted small business3 41linked investments program, and the main street linked3 42investments loan programprograms for the preceding 3 43 calendar year to the governor, the department of 3 44 economic development, the speaker of the house of 3 45 representatives, and the president of the senate. The 3 46 speaker of the house shall transmit copies of this 3 47 report to the house co-chair of the the joint economic 3 48 development appropriations subcommittee and the chairs 3 49 of the standing committees in the house which 3 50 customarily consider legislation regarding agriculture 4 1 and commerce, and the president of the senate shall 4 2 transmit copies of this report to the senate co-chair 4 3 of the joint economic development appropriations 4 4 subcommittee and the chairs of the standing committees 4 5 in the senate which customarily consider legislation 4 6 regarding agriculture and commerce. The report shall 4 7 set forth the linked investments made by the treasurer 4 8 of state under the program during the year, the date 4 9 of the investments, the total amount deposited, the 4 10 number of deposits, and an estimate of foregone 4 11 interest, the borrowing rate applicable to each 4 12 borrower, and shall include information regarding the 4 13 nature, terms, and amounts of the loans upon which the 4 14 linked investments were based and the eligible 4 15 borrowers to which the loans were made. 4 16 Sec. . Section 12.40, Code 1995, is amended to 4 17 read as follows: 4 18 12.40 RURAL SMALL BUSINESS TRANSFER LINKED 4 19 INVESTMENT LOAN PROGRAM. 4 20 The treasurer of state shall adopt rules consistent 4 21 with this division to implement a rural small business 4 22 transfer linked investment loan program to maintain 4 23 and expand existing employment opportunities and the 4 24 provision of retail goods in small rural communities 4 25 by assisting in the transfer of ownership of retail- 4 26 oriented businesses which, in the absence of 4 27 sufficient financial assistance, may close. The rules 4 28 shall be in accordance with the following: 4 29 1. As used in this section, "rural small business" 4 30 means an existing rural small business, for which 4 31 local competition does not exist in the principal 4 32 realm of business activity of that business, and the 4 33 loss of which will work a hardship on the rural 4 34 community. A rural small business may include a 4 35 grocery store, drug store, gasoline station, 4 36 convenience store, hardware business, or farm supply 4 37 store. A rural small business does not include a new 4 38 business. 4 392. The treasurer of state shall adopt rules4 40consistent with this division to implement a rural4 41small business transfer linked investment loan program4 42to further the following purposes:4 43a. To promote the business prosperity and economic4 44welfare of Iowa through promoting the prosperity and4 45economic welfare of rural Iowa.4 46b. To maintain and expand existing employment4 47opportunities and the provision of retail goods on a4 48local level in small rural communities by assisting in4 49the transfer of ownership of retail-oriented4 50businesses where, in the absence of sufficient5 1financial assistance, the businesses may close.5 23.2.Upon the placement of linked investment5 3moneys with an eligible lending institution, the5 4institution is required to lend money to a person5 5pursuant to rules adopted by the treasurer of state5 6for the transfer of a rural small business. TheIn 5 7 order to qualify as an eligible borrower, the rural 5 8 small business must be located in a city with a 5 9 population of five thousand or less. A city located 5 10 in a county with a population in excess of three 5 11 hundred thousand, if the city is contiguous to another 5 12 city in the county and that other city is contiguous 5 13 to the largest city in that county, shall be 5 14considered as having a population in excess of five5 15thousandineligible to qualify as a borrower. 5 164.3.TheIn order to qualify as an eligible 5 17 borrower, the transfer of the rural small business 5 18 must be by purchase, lease-purchase, or contract of 5 19 sale. The purchase must be for a portion of the 5 20 business which is essential to its continued 5 21 viability, including real estate where the business is 5 22 located, fixtures attached to the real estate, 5 23 equipment relied upon by the business, and inventory 5 24 for sale by the business. 5 255. The eligible lending institution shall apply5 26all usual lending standards to determine the5 27creditworthiness of each eligible borrower. The5 28lending institution shall forward to the treasurer of5 29state all information or any certification relating to5 30the loan required and in a manner prescribed by this5 31division and rules which shall be adopted by the5 32treasurer of state.5 336.4.AIn order to qualify as an eligible 5 34 borrower, a borrower and the seller of the rural small 5 35 business shall not be within the third degree of 5 36 consanguinity or affinity. 5 37 5. Loan proceeds shall not be used to refinance 5 38 existing debt, including credit card debt. However, 5 39 proceeds may be used to refinance a short-term bridge 5 40 loan made in anticipation of the treasurer's approval 5 41 of the linked investment loan package. 5 427.6. The maximum loan amount that a borrower may 5 43 receive under this program shallnot be more thanbe 5 44 fifty thousand dollars. 5 458. Not more than one-third of the amount of the5 46percentage authorized in section 12.34 may be used for5 47purposes of supporting this program and the main5 48street linked investment loan program under section5 4912.51.5 50 Sec. . NEW SECTION. 12.41 HORTICULTURAL AND 6 1 NONTRADITIONAL CROPS LINKED INVESTMENT LOAN PROGRAM. 6 2 The treasurer of state shall adopt rules to 6 3 implement a horticultural and nontraditional crops 6 4 linked investment loan program to provide statewide 6 5 availability of lower cost funds for lending that will 6 6 stimulate existing or encourage new businesses in the 6 7 areas of producing, processing, or marketing 6 8 horticultural or nontraditional crops. The rules 6 9 shall be in accordance with the following: 6 10 1. In order to qualify as an eligible borrower, 6 11 the loan application shall be for the purchase or 6 12 lease of land, machinery, equipment, or the purchase 6 13 of other inputs used in the business of producing, 6 14 processing, or marketing horticultural or 6 15 nontraditional crops as defined by the treasurer. 6 16 2. Loan proceeds shall not be used to refinance 6 17 existing debt, including credit card debt. However, 6 18 proceeds may be used to refinance a short-term bridge 6 19 loan made in anticipation of the treasurer's approval 6 20 of the linked investment loan package. 6 21 3. The maximum loan amount that an eligible 6 22 borrower may receive under this program is one hundred 6 23 thousand dollars. 6 24 Sec. . Section 12.43, Code 1995, is amended to 6 25 read as follows: 6 26 12.43 TARGETED SMALL BUSINESS LINKED INVESTMENTS 6 27 LOAN PROGRAMCREATED &endash; DEFINITIONS. 6 28 The treasurer of state shall adopt rules to 6 29 implement a targeted small business linkedinvestments6 30 investment loan program to increase the availability 6 31 of lower cost funds to inject needed capital into 6 32 small businesses owned and operated by women or 6 33 minorities, which is the public policy of the state. 6 34 The rules shall be in accordance with the following: 6 35 1. "Targeted small business" means a business as 6 36 defined in section 15.102, subsection 5. 6 37 2.A linked investment shall only be approved in6 38connection with a loan application for aIn order to 6 39 qualify as an eligible borrower, the targeted small 6 40 businesswhich has beenmust be certified pursuant to 6 41 section 10A.104, subsection 8. 6 42 3. In order to qualify as an eligible borrower, 6 43 the net worth of the targeted small business shall not 6 44 exceed four hundred thousand dollars. 6 453.4. Loan applications for a targeted small 6 46 business shall be for business expenses, including, 6 47 but not limited to, the purchase of land, machinery, 6 48 equipment, or licenses, or patent, trademark, or 6 49 copyright feesand expenses. 6 50 5. Loan proceeds shall not be used to refinance 7 1 existing debt, including credit card debt. However, 7 2 proceeds may be used to refinance a short-term bridge 7 3 loan made in anticipation of the treasurer's approval 7 4 of the linked investment loan package. 7 54.6. The maximum size of a targeted small 7 6 business loan is two hundredfiftythousand dollars 7 7 per borrower." 7 85.7. A preference shall be given to those persons 7 9 who are less able than other persons to secure funds 7 10 for a targeted small business without participation in 7 11 the targeted small business linked investment 7 12 program." 7 13 #2. Page 1, by inserting after line 25 the 7 14 following: 7 15 "Sec. . Sections 12.33, 12.51, and 12.52, Code 7 16 1995, are repealed." 7 17 #3. Title page, line 1, by inserting after the 7 18 word "to" the following: "the linked investments for 7 19 tomorrow Act, including who may be an eligible 7 20 borrower, limitation on the amount which may be 7 21 invested by the treasurer of state, program criteria 7 22 under the Act and". 7 23 #4. By renumbering as necessary. 7 24 SF 60H 7 25 mk/pk/25
Text: S03419 Text: S03421 Text: S03400 - S03499 Text: S Index Bills and Amendments: General Index Bill History: General Index
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