Text: SF02243 Text: SF02245 Text: SF02200 - SF02299 Text: SF Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 Section 1. Section 499.19, Code 1995, is amended to read 1 2 as follows: 1 3 499.19 CANCELLATION OF MEMBERSHIP OR STOCK. 1 4 If a common stockholder or member of a cooperative 1 5 association dies,orbecomes ineligible, or is expelled, that 1 6 person's stock or membership shall forthwith be canceled.In1 7cases of expulsion theIf a cooperative association, other 1 8 than an agricultural association, expels a member or 1 9 stockholder, the association shall pay the stockholder or 1 10 member its value as shown by the books on the date of 1 11 cancellation, but not more than its original issuing price, 1 12 within sixty days thereafter. In cases of death or 1 13 ineligibility, it shall pay such value to the stockholder or 1 14 member or the stockholder's or member's personal 1 15 representative within two years thereafter, without interest. 1 16 If the cooperative association is an agricultural association, 1 17 the association shall pay the member or shareholder the value 1 18 of the person's interest in the association as provided in 1 19 section 499.20. 1 20 Sec. 2. Section 499.20, Code 1995, is amended to read as 1 21 follows: 1 22 499.20 WITHDRAWALOF MEMBERSAND REDEMPTION. 1 23 The articles may permit and regulate voluntary withdrawal 1 24 of members and the resulting cancellation of their common 1 25 stock and memberships. However, if the cooperative 1 26 association is an agricultural association, the articles shall 1 27 provide for the voluntary withdrawal of members or 1 28 shareholders, the redemption of a member's certificate of 1 29 membership or a shareholder's stock, and the resulting 1 30 cancellation of common stock and membership. The member or 1 31 shareholder shall be paid in cash the fair value of that 1 32 person's interest in the association as of the day of 1 33 withdrawal. The fair value shall be determined as provided in 1 34 section 499.66. The association shall pay the member or 1 35 shareholder, upon surrender of that person's certificate of 2 1 membership or shares of stock. 2 2 Sec. 3. Section 499.30, subsection 1, Code Supplement 2 3 1995, is amended to read as follows: 2 4 1.ToExcept as provided in subsection 2, to provide a 2 5 reasonable reserve for depreciation, obsolescence, bad debts, 2 6 or contingent losses or expenses. 2 7 Sec. 4. Section 499.30, subsection 2, paragraph b, Code 2 8 Supplement 1995, is amended to read as follows: 2 9 b. If a cooperative association is an agricultural 2 10 association which invests capital or borrows money by pledging 2 11 assets of the association in an agricultural production 2 12 enterprise, as provided in section 499.51, a member or 2 13 shareholder of the association who has made a demand pursuant 2 14 to section 499.51 may demand cash payment of the member's 2 15 local patronage dividends, the redemption of the shareholder's 2 16 stock, the cash payment of the shareholder's stock dividends, 2 17 and the allocation of remaining net earnings into the member's 2 18 account, after providing for a reasonable reserve for 2 19 depreciation, obsolescence, bad debts, or contingent losses or 2 20 expenses which are unrelated to the business of the 2 21 agricultural production enterprise. 2 22b.c.To the extent thatIf the cooperative association is 2 23 not operating on a pooling basis as provided inthis2 24subsectionparagraph "a" or the cooperative association does 2 25 not invest in an agricultural production enterprise engaged in 2 26 an animal feeding operation or the production of value-added 2 27 agricultural products as provided in paragraph "b", at least 2 28 ten percent of the remaining earnings must be added to surplus 2 29 until surplus equals either thirty percent of the total of all 2 30 capital paid in for stock or memberships, plus all unpaid 2 31 patronage dividends, plus certificates of indebtedness payable 2 32 upon liquidation, earnings from nonmember business, and 2 33 earnings arising from the earnings of other cooperative 2 34 organizations of which the association is a member, or one 2 35 thousand dollars, whichever is greater. No additions shall be 3 1 made to surplus when it exceeds either fifty percent of the 3 2 total, or one thousand dollars, whichever is greater. 3 3 Sec. 5. NEW SECTION. 499.51 COOPERATIVE ASSOCIATION SAFE 3 4 ACCOUNT. 3 5 1. As used in this section, "agricultural production 3 6 enterprise" means a profit or nonprofit enterprise in which an 3 7 interest may be held by an agricultural association, if the 3 8 enterprise produces agricultural commodities or value-added 3 9 products, including an animal feeding operation as defined in 3 10 section 455B.161 or an ethanol production facility. 3 11 2. A member or shareholder of an agricultural association 3 12 may submit to the board a written demand that assets of the 3 13 member or shareholder which have been contributed to the 3 14 association not be invested in an agricultural production 3 15 enterprise or be pledged as security for a loan which is used 3 16 to finance an agricultural production enterprise. The member 3 17 or shareholder shall not be entitled to receive a return on 3 18 the investment in the agricultural production enterprise. The 3 19 association may issue different classes of membership or stock 3 20 in order to administer this section. However, a member or 3 21 stockholder shall not be deprived of any other right or 3 22 interest in the cooperative association. 3 23 EXPLANATION 3 24 This bill amends chapter 499, relating to cooperative 3 25 associations, and, specifically to agricultural associations. 3 26 The bill provides that if the cooperative association is an 3 27 agricultural association, the articles must provide for the 3 28 voluntary withdrawal of members or shareholders and the 3 29 redemption of a member's certificate of membership or a 3 30 shareholder's stock, and the resulting cancellation of common 3 31 stock and memberships. 3 32 The bill provides that if the agricultural association 3 33 invests in agricultural production enterprises which are 3 34 involved in livestock production or value-added processing, a 3 35 member or stockholder may demand cash payment of the member's 4 1 local patronage dividends, the redemption of the shareholder's 4 2 stock, the cash payment of the shareholder's stock dividends, 4 3 and the allocation of remaining net earnings into the member's 4 4 account, after providing for a reasonable reserve for 4 5 depreciation, obsolescence, bad debts, or contingent losses or 4 6 expenses which are unrelated to the business of the 4 7 agricultural production enterprise. 4 8 The bill also provides that a member or shareholder of an 4 9 agricultural association may submit to the board a written 4 10 demand that assets of the member or shareholder which have 4 11 been contributed to the association not be invested in an 4 12 agricultural production enterprise. 4 13 LSB 3610XS 76 4 14 da/cf/24
Text: SF02243 Text: SF02245 Text: SF02200 - SF02299 Text: SF Index Bills and Amendments: General Index Bill History: General Index
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