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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