Text: HF00698 Text: HF00700 Text: HF00600 - HF00699 Text: HF Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 Section 1. Section 12C.6A, subsection 4, paragraph g, Code 1 2 1999, is amended to read as follows: 1 3 g. Participation in local community and rural development 1 4 and redevelopment projects, and in state and federal business 1 5 and economic development programs, including investment in an 1 6 Iowa agricultural industry finance corporation formed under 1 7 the Iowa agricultural industry finance Act pursuant to chapter 1 8 15E or in an investment fund controlled by an Iowa 1 9 agricultural industry finance corporation. 1 10 Sec. 2. Section 511.8, Code 1999, is amended by adding the 1 11 following new subsection: 1 12 NEW SUBSECTION. 22. IOWA AGRICULTURAL INDUSTRY FINANCE 1 13 CORPORATIONS. The investment program of a company organized 1 14 under chapter 508 may include the shares or equity interests 1 15 in or the corporate debt of an Iowa agricultural industry 1 16 finance corporation. A company's investment in an Iowa 1 17 agricultural industry finance corporation shall not be subject 1 18 to any aggregate investment limitation on below investment 1 19 grade bonds. However, a company shall not invest more than 1 20 five percent of its capital and surplus in any number of Iowa 1 21 agricultural industry finance corporations. For purposes of 1 22 this subsection, all of the following shall apply: 1 23 a. The bond of an Iowa agricultural industry finance 1 24 corporation shall be valued as provided in subsection 17. 1 25 b. The shares or equity interest of an Iowa agricultural 1 26 industry finance corporation shall be valued at book value. 1 27 Sec. 3. Section 515.35, subsection 4, Code 1999, is 1 28 amended by adding the following new paragraph and relettering 1 29 subsequent paragraphs: 1 30 NEW PARAGRAPH. n. IOWA AGRICULTURAL INDUSTRY FINANCE 1 31 CORPORATIONS. A company organized under this chapter may 1 32 invest in an Iowa agricultural industry finance corporation by 1 33 holding the shares or equity interests in or the corporate 1 34 debt of an Iowa agricultural industry finance corporation. A 1 35 company's investment in an Iowa agricultural industry finance 2 1 corporation shall not be subject to the five percent aggregate 2 2 investment limitation on below investment grade bonds as 2 3 otherwise required in this subsection. However, a company 2 4 shall not invest more than five percent of its capital and 2 5 surplus in any number of Iowa agricultural industry finance 2 6 corporations. For purposes of this paragraph, the bond of an 2 7 Iowa agricultural industry finance corporation or the shares 2 8 or equity interest of an Iowa agricultural industry finance 2 9 corporation shall be valued as provided in subsection 1. 2 10 EXPLANATION 2 11 In 1998, the general assembly enacted Senate File 2415 2 12 (1998 Iowa Acts, ch. 1207) which allowed the formation of 2 13 agricultural industry finance corporations for the purpose of 2 14 encouraging local agricultural producer-led ventures to expand 2 15 production and processing of high value agricultural products. 2 16 This bill amends provisions relating to investments made by 2 17 banks and insurance companies. Code section 12C.6A requires 2 18 that public funds of the state be deposited in a bank which 2 19 demonstrates a commitment to serve the needs of the local 2 20 community in which it is chartered to do business. This 2 21 required commitment may be demonstrated by participation in 2 22 local community and rural development and redevelopment 2 23 projects, and in state and federal business and economic 2 24 development programs. This bill provides that the bank's 2 25 participation may include investment in an Iowa agricultural 2 26 industry finance corporation or an investment fund controlled 2 27 by an Iowa agricultural industry finance corporation. 2 28 Code sections 511.8 and 515.35 limit the types of 2 29 investments that life insurance companies and property and 2 30 casualty insurance companies may hold. The bill provides that 2 31 an insurance company may invest in an Iowa agricultural 2 32 industry finance corporation by holding shares or equity 2 33 interests in or the corporate debt of the corporation. The 2 34 bill does not restrict a company from investing in below 2 35 investment grade bonds. The bill provides that a company 3 1 cannot invest more than 5 percent of its capital and surplus 3 2 in any number of Iowa agricultural industry finance 3 3 corporations. 3 4 LSB 2772HV 78 3 5 da/gg/8
Text: HF00698 Text: HF00700 Text: HF00600 - HF00699 Text: HF Index Bills and Amendments: General Index Bill History: General Index
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