Text: SF00382 Text: SF00384 Text: SF00300 - SF00399 Text: SF 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. 1 9 Sec. 2. Section 511.8, Code 1999, is amended by adding the 1 10 following new subsection: 1 11 NEW SUBSECTION. 22. IOWA AGRICULTURAL INDUSTRY FINANCE 1 12 CORPORATIONS. The investment program of a company organized 1 13 under chapter 508 may include the shares or equity interests 1 14 in or the corporate debt of an Iowa agricultural industry 1 15 finance corporation. A company's investment in an Iowa 1 16 agricultural industry finance corporation shall not be subject 1 17 to any aggregate investment limitation on below investment 1 18 grade bonds. However, a company shall not invest more than 1 19 five percent of its capital and surplus in any number of Iowa 1 20 agricultural industry finance corporations. For purposes of 1 21 this subsection, all of the following shall apply: 1 22 a. The bond of an Iowa agricultural industry finance 1 23 corporation shall be valued as provided in subsection 17. 1 24 b. The shares or equity interest of an Iowa agricultural 1 25 industry finance corporation shall be valued at book value. 1 26 Sec. 3. Section 515.35, subsection 4, Code 1999, is 1 27 amended by adding the following new paragraph and relettering 1 28 subsequent paragraphs: 1 29 NEW PARAGRAPH. n. IOWA AGRICULTURAL INDUSTRY FINANCE 1 30 CORPORATIONS. A company organized under this chapter may 1 31 invest in an Iowa agricultural industry finance corporation by 1 32 holding the shares or equity interests in or the corporate 1 33 debt of an Iowa agricultural industry finance corporation. A 1 34 company's investment in an Iowa agricultural industry finance 1 35 corporation shall not be subject to the five percent aggregate 2 1 investment limitation on below investment grade bonds as 2 2 otherwise required in this subsection. However, a company 2 3 shall not invest more than five percent of its capital and 2 4 surplus in any number of Iowa agricultural industry finance 2 5 corporations. For purposes of this paragraph, the bond of an 2 6 Iowa agricultural industry finance corporation or the shares 2 7 or equity interest of an Iowa agricultural industry finance 2 8 corporation shall be valued as provided in subsection 1. 2 9 EXPLANATION 2 10 In 1998, the general assembly enacted Senate File 2415 2 11 (1998 Iowa Acts, ch. 1207) which allowed the formation of 2 12 agricultural industry finance corporations for the purpose of 2 13 encouraging local agricultural producer-led ventures to expand 2 14 production and processing of high value agricultural products. 2 15 This bill amends provisions relating to investments made by 2 16 banks and insurance companies. 2 17 Code section 12C.6A requires that public funds of the state 2 18 be deposited in a financial institution which demonstrates a 2 19 commitment to serve the needs of the local community in which 2 20 it is chartered to do business. This required commitment may 2 21 be demonstrated by participation in local community and rural 2 22 development and redevelopment projects, and in state and 2 23 federal business and economic development programs. This bill 2 24 provides that the bank's participation may include investment 2 25 in an Iowa agricultural industry finance corporation. 2 26 Code sections 511.8 and 515.35 limit the types of 2 27 investments that life insurance companies and property and 2 28 casualty insurance companies may hold. The bill provides that 2 29 an insurance company may invest in an Iowa agricultural 2 30 industry finance corporation by holding shares or equity 2 31 interests in or the corporate debt of the corporation. The 2 32 bill does not restrict a company from investing in below 2 33 investment grade bonds. The bill provides that a company 2 34 cannot invest more than 5 percent of its capital and surplus 2 35 in any number of Iowa agricultural industry finance 3 1 corporations. 3 2 LSB 1319XS 78 3 3 da/gg/8
Text: SF00382 Text: SF00384 Text: SF00300 - SF00399 Text: SF Index Bills and Amendments: General Index Bill History: General Index
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