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Senate File 292

Partial Bill History

Bill Text

PAG LIN
  1  1                                          SENATE FILE 292
  1  2 
  1  3                             AN ACT
  1  4 RELATING TO COOPERATIVE CORPORATIONS, BY PROVIDING FOR
  1  5    THE TRANSFER OF STOCK, THE ALLOCATION OF PATRONAGE 
  1  6    DIVIDENDS UPON TERMINATION OF MEMBERSHIP, AND 
  1  7    DISSOLUTION.  
  1  8 
  1  9 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
  1 10 
  1 11    Section 1.  Section 501.501, subsection 2, Code 1997, is
  1 12 amended to read as follows:
  1 13    2.  A member may shall not sell or otherwise transfer
  1 14 stock, other than voting stock, to any other member or to any
  1 15 person who has been approved by the board for membership,
  1 16 subject to the limitations in the articles or bylaws on the
  1 17 amount of each class of stock that may be owned by one member.
  1 18 A member may be restricted or limited from selling or
  1 19 otherwise transferring any other class of stock of the
  1 20 cooperative as provided by the cooperative's articles of
  1 21 incorporation or bylaws or an agreement executed between the
  1 22 cooperative and the member.
  1 23    Sec. 2.  Section 501.502, subsection 5, Code 1997, is
  1 24 amended to read as follows:
  1 25    5.  The cooperative shall redeem, without interest, all of
  1 26 the terminated member's allocated patronage refunds and
  1 27 preferred stock originally issued as allocated patronage
  1 28 refunds for the issue price. as follows:
  1 29    a.  A If a terminated member's current equity is less than
  1 30 two percent of the cooperative's total members' equity, the
  1 31 cooperative shall make this payment either redeem the
  1 32 terminated member's equity within one year after the
  1 33 termination of the membership or redeem the terminated
  1 34 member's equity in annual amounts of not less than twenty
  1 35 percent of the total amount provided that the entire amount
  2  1 must be redeemed within five years after the termination of
  2  2 the membership.  However, if
  2  3    b.  If a terminated member's current equity equals or
  2  4 exceeds two percent of the cooperative's total members'
  2  5 equity, the cooperative shall redeem the terminated member's
  2  6 equity in annual amounts of not less than fifteen percent of
  2  7 the total amount provided that the entire amount must be
  2  8 redeemed within seven years after the termination of the
  2  9 membership.
  2 10    Sec. 3.  Section 501.604, Code 1997, is amended to read as
  2 11 follows:
  2 12    501.604  DISSOLUTION.
  2 13    The provisions of sections 490.1401 through 490.1440 shall
  2 14 apply to cooperatives a cooperative in the same manner as they
  2 15 apply to corporations a corporation organized under chapter
  2 16 490.  However, notwithstanding any provision in those sections
  2 17 to the contrary, upon the cooperative's dissolution, the
  2 18 cooperative's assets shall first be used to pay expenses
  2 19 necessary to carry out the dissolution and liquidation of
  2 20 assets, then be used to pay the cooperative's obligations
  2 21 other than the payment of patronage dividends or stock issued
  2 22 as patronage dividends, and the remainder shall be paid in the
  2 23 manner set forth in the cooperative's articles of
  2 24 incorporation.  
  2 25 
  2 26 
  2 27                                                             
  2 28                               MARY E. KRAMER
  2 29                               President of the Senate
  2 30 
  2 31 
  2 32                                                             
  2 33                               RON J. CORBETT
  2 34                               Speaker of the House
  2 35 
  3  1    I hereby certify that this bill originated in the Senate and
  3  2 is known as Senate File 292, Seventy-seventh General Assembly.
  3  3 
  3  4 
  3  5                                                             
  3  6                               MARY PAT GUNDERSON
  3  7                               Secretary of the Senate
  3  8 Approved                , 1997
  3  9 
  3 10 
  3 11                         
  3 12 TERRY E. BRANSTAD
  3 13 Governor
     
Text: SF00291                           Text: SF00293
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