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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