Text: HF02107 Text: HF02109 Text: HF02100 - HF02199 Text: HF Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 Section 1. 1999 Iowa Acts, chapter 177, section 7, is 1 2 amended to read as follows: 1 3 SEC. 7. CURRENT INVESTMENT AGREEMENTS. 1 4 1.TheExcept as provided in subsections 2 and 3, the 1 5 treasurer of state shall not renew a certificate of deposit in 1 6 an eligible lending institution, if the total term for the 1 7 certificate of deposit exceeds the requirements of section 1 8 12.34, subsection 3, as amended by this Act.However, nothing1 9 2. Nothing in this Act shall affect the terms or 1 10 conditions of an investment agreement executed by the 1 11 treasurer of state with an eligible lending institution that 1 12 is in effect on the effective date of this Act. 1 13 3. a. The treasurer of state may renew a certificate of 1 14 deposit in an eligible lending institution as part of a linked 1 15 investment loan package and in accordance with the investment 1 16 agreement, as provided in this subsection, if all of the 1 17 following apply: 1 18 (1) The investment agreement was executed prior to May 24, 1 19 1999. 1 20 (2) The eligible lending institution executed a loan 1 21 agreement with the eligible borrower listed in the linked 1 22 investment loan package prior to May 24, 1999, and the loan 1 23 agreement applies on and after May 24, 1999. 1 24 (3) The eligible borrower continues to meet the conditions 1 25 of an eligible borrower as provided in chapter 12, Code 1999. 1 26 b. The treasurer of state may renew the certificate of 1 27 deposit on an annual basis until the earlier of the following: 1 28 (1) The termination of the loan agreement executed by the 1 29 eligible lending institution and the eligible borrower. 1 30 (2) The last year that the certificate of deposit may be 1 31 renewed as provided in section 12.34, Code 1999. 1 32 Sec. 2. EFFECTIVE DATE. This Act, being deemed of 1 33 immediate importance, takes effect upon enactment. 1 34 EXPLANATION 1 35 During the 1999 legislative session, the general assembly 2 1 enacted House File 779 (1999 Iowa Acts, ch. 177) which amended 2 2 a number of provisions in a division of Code chapter 12 2 3 referred to as the "Linked Investments for Tomorrow Act". 2 4 Under programs administered under this division, the treasurer 2 5 of state may invest a portion of the state pooled money fund 2 6 in certificates of deposit in eligible lending institutions. 2 7 The state receives a lower interest rate as part of an 2 8 agreement in which the lending institution loans moneys to 2 9 eligible persons under specified programs at a reduced rate of 2 10 interest. The treasurer of state is authorized to renew the 2 11 certificate of deposit annually. 2 12 Prior to 1999, the treasurer of state could annually renew 2 13 a certificate of deposit for a total term not to exceed nine 2 14 years. House File 779 decreased the total term to five years. 2 15 House File 779 also placed additional eligibility requirements 2 16 upon borrowers involved in a program to assist businesses 2 17 producing, processing, or marketing horticultural or 2 18 nontraditional crops (see Code section 12.41). House File 779 2 19 provided that in order to be eligible the gross income earned 2 20 by the borrower's business could not be more than $300,000 for 2 21 the last tax year. 2 22 Finally, House File 779 provided that its provisions did 2 23 not affect the terms or conditions of an investment agreement 2 24 executed by the treasurer of state with an eligible lending 2 25 institution in effect on its effective date (the governor 2 26 approved the Act on May 24, 1999). 2 27 This bill provides that the treasurer of state may renew a 2 28 certificate of deposit in an eligible lending institution in 2 29 accordance with the investment agreement which was executed by 2 30 the treasurer of state prior to May 24, 1999, if the eligible 2 31 borrower listed in the linked investment loan package 2 32 continues to meet the conditions of the program prior to the 2 33 May 24, 1999, effective date of the legislation. Therefore, 2 34 the $300,000 requirement would not apply. This bill also 2 35 provides that the treasurer of state may renew the certificate 3 1 of deposit until the termination of the loan or the nine-year 3 2 period, whichever occurs earlier. 3 3 The bill takes effect upon enactment. 3 4 LSB 6151HH 78 3 5 da/cf/24
Text: HF02107 Text: HF02109 Text: HF02100 - HF02199 Text: HF Index Bills and Amendments: General Index Bill History: General Index
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