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Text: SF00376                           Text: SF00378
Text: SF00300 - SF00399                 Text: SF Index
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Senate File 377

Partial Bill History

Bill Text

PAG LIN
  1  1    Section 1.  Section 499.30, subsection 5, Code 1995, is
  1  2 amended to read as follows:
  1  3    5.  Notwithstanding an association's articles of
  1  4 incorporation, for each taxable year of the association, the
  1  5 association shall allocate all remaining net earnings to the
  1  6 account of each member, including subscribers described in
  1  7 section 499.16, ratably in proportion to the business the
  1  8 member did with the association during that year.  The
  1  9 directors shall determine, or the articles of incorporation or
  1 10 bylaws of the association may specify, the percentage or the
  1 11 amount of the allocation that to be currently shall be paid in
  1 12 cash.  However, so long as there are unpaid local deferred
  1 13 patronage dividends of deceased members for prior years for a
  1 14 cooperative association other than a public utility as defined
  1 15 in section 476.1, the amount to be currently payable in cash
  1 16 shall not exceed twenty percent of the allocation during any
  1 17 period when unpaid local deferred patronage dividends of
  1 18 deceased members for prior years are outstanding.
  1 19 Notwithstanding the twenty percent allocation limitation, the
  1 20 directors of a cooperative association or the articles of
  1 21 incorporation or bylaws of the association may specify any
  1 22 percentage or amount to be currently paid in cash to the
  1 23 estates of deceased natural persons who were members.  All the
  1 24 remaining allocation not paid in cash shall be transferred to
  1 25 a revolving fund as provided in section 499.33 and credited to
  1 26 the members and subscribers.  The credits in the revolving
  1 27 fund are referred to in this chapter as deferred patronage
  1 28 dividends.
  1 29    Sec. 2.  Section 499.33, Code 1995, is amended to read as
  1 30 follows:
  1 31    499.33  USE OF REVOLVING FUND.
  1 32    1.  The directors may use the a revolving fund to pay the
  1 33 obligations or add to the capital of the association or retire
  1 34 its preferred stock.  In that event the deferred patronage
  1 35 dividends credited to members constitute a charge on the
  2  1 revolving fund, on future additions to the revolving fund, and
  2  2 on the corporate assets, subordinate to existing or future
  2  3 creditors and preferred stockholders.  Deferred Except as
  2  4 otherwise provided in subsection 2, deferred  patronage
  2  5 dividends for any year have priority over those for subsequent
  2  6 years.  However, prior
  2  7    2.  a.  Prior to other payments of deferred patronage
  2  8 dividends or redemption of preferred stock held by members,
  2  9 the directors of cooperative associations a cooperative
  2 10 association, other than those cooperative associations a
  2 11 cooperative association which are is a public utilities
  2 12 utility as defined in section 476.1, shall pay local deferred
  2 13 patronage dividends and redeem local deferred patronage
  2 14 preferred stock of deceased natural persons who were members,
  2 15 and may pay deferred patronage dividends or may redeem
  2 16 preferred stock of deceased natural persons who were members
  2 17 or of members who become ineligible, without reference to the
  2 18 order of priority.  Directors
  2 19    b.  The directors of cooperative associations a cooperative
  2 20 association which are is a public utilities utility as defined
  2 21 in section 476.1 may pay deferred patronage dividends and
  2 22 redeem preferred stock of deceased natural persons who were
  2 23 members, and may pay all other deferred patronage dividends or
  2 24 redeem preferred stock of members who become ineligible
  2 25 without reference to priority.
  2 26    3.  Payment of deferred patronage dividends or the
  2 27 redemption of preferred stock of ineligible members shall be
  2 28 carried out to the extent and in the manner specified in the
  2 29 bylaws of the association.  
  2 30 SF 377
  2 31 da/cc/26
     
Text: SF00376                           Text: SF00378
Text: SF00300 - SF00399                 Text: SF Index
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