Text: SSB01096 Text: SSB01098 Text: SSB01000 - SSB01099 Text: SSB 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 515.35, subsection 4, Code 1999, is
1 10 amended by adding the following new paragraph and relettering
1 11 subsequent paragraphs:
1 12 NEW PARAGRAPH. n. IOWA AGRICULTURAL INDUSTRY FINANCE
1 13 CORPORATIONS. A company organized under this chapter may
1 14 invest in an Iowa agricultural industry finance corporation by
1 15 holding the shares or equity interests in or the corporate
1 16 debt of an Iowa agricultural industry finance corporation. A
1 17 company's investment in an Iowa agricultural industry finance
1 18 corporation shall not be subject to the five percent aggregate
1 19 investment limitation on below investment grade bonds as
1 20 otherwise required in this subsection. However, a company
1 21 shall not invest more than five percent of its capital and
1 22 surplus in any number of Iowa agricultural industry finance
1 23 corporations. For purposes of this paragraph, the bond of an
1 24 Iowa agricultural industry finance corporation or the shares
1 25 or equity interest of an Iowa agricultural industry finance
1 26 corporation shall be valued as provided in subsection 1.
1 27 EXPLANATION
1 28 In 1998, the general assembly enacted Senate File 2415
1 29 (1998 Iowa Acts, ch. 1207) which allowed the formation of
1 30 agricultural industry finance corporations for the purpose of
1 31 encouraging local agricultural producer-led ventures to expand
1 32 production and processing of high value agricultural products.
1 33 This bill amends provisions relating to investments made by
1 34 banks and certain insurance companies.
1 35 Code section 12C.6A requires that public funds of the state
2 1 be deposited in a financial institution which demonstrates a
2 2 commitment to serve the needs of the local community in which
2 3 it is chartered to do business. This required commitment may
2 4 be demonstrated by participation in local community and rural
2 5 development and redevelopment projects, and in state and
2 6 federal business and economic development programs. This bill
2 7 provides that the bank's participation may include investment
2 8 in an Iowa agricultural industry finance corporation.
2 9 Code section 515.35 limits the types of investments that
2 10 property and casualty insurance companies may hold. The bill
2 11 provides that such an insurance company may invest in an Iowa
2 12 agricultural industry finance corporation by holding shares or
2 13 equity interests in or the corporate debt of the corporation.
2 14 The bill does not restrict a company from investing in below
2 15 investment grade bonds. The bill provides that a company
2 16 cannot invest more than 5 percent of its capital and surplus
2 17 in any number of Iowa agricultural industry finance
2 18 corporations.
2 19 LSB 2069SC 78
2 20 da/gg/8
Text: SSB01096 Text: SSB01098 Text: SSB01000 - SSB01099 Text: SSB Index Bills and Amendments: General Index Bill History: General Index
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