Text: HF00371 Text: HF00373 Text: HF00300 - HF00399 Text: HF Index Bills and Amendments: General Index Bill History: General Index
PAG LIN
1 1 Section 1. NEW SECTION. 499.30A REVERSION OF
1 2 DISTRIBUTIONS.
1 3 1. As used in this section, "disbursement" means an amount
1 4 of any dividend, patronage dividend, distribution including
1 5 earnings distribution, or any other increment or sum realized
1 6 or accruing from a membership or stock, subscription, or other
1 7 equity interest in a cooperative association.
1 8 2. Once a person's membership or stock, subscription, or
1 9 other member's equity in a cooperative association is deemed
1 10 abandoned under section 556.5, the cooperative association may
1 11 retain any disbursement held by the cooperative association
1 12 for or owing to the person. The cooperative association may
1 13 also deliver the disbursement to the treasurer of state for
1 14 disposition as abandoned property pursuant to section 556.5.
1 15 3. If the cooperative association elects to retain the
1 16 disbursement under this section, the disbursement shall be
1 17 deposited into a reversion fund established by the cooperative
1 18 association.
1 19 4. a. Subject to this subsection, a person asserting an
1 20 interest in the disbursement may file a claim for it with the
1 21 cooperative association in a manner and according to
1 22 procedures required by the cooperative association. If a
1 23 person is entitled to an abandoned membership, stock,
1 24 subscription, or other interest as provided in section 556.20
1 25 or 556.21, the cooperative association shall also pay the
1 26 person the disbursement deposited in the reversion fund that
1 27 is realized or accrued from the membership or stock,
1 28 subscription, or other interest.
1 29 b. If a person has not filed a claim for the disbursement
1 30 within one year after the disbursement has been deposited into
1 31 the cooperative association's reversion fund, the disbursement
1 32 shall be forfeited to the cooperative association, unless the
1 33 cooperative association provides otherwise in its articles of
1 34 incorporation or bylaws.
1 35 5. The disbursement deposited into the reversion fund that
2 1 is forfeited to the cooperative association shall be used as
2 2 the directors deem suitable for any of the following purposes:
2 3 a. Teaching and promoting cooperation. The directors may
2 4 deposit the amounts of disbursements into the education fund
2 5 as provided in section 499.30.
2 6 b. Economic development including private or joint public
2 7 and private investments involving the creation of economic
2 8 opportunities for its members or the retention of existing
2 9 sources of income that would otherwise be lost.
2 10 Sec. 2. Section 556.1, subsection 2, Code 2001, is amended
2 11 to read as follows:
2 12 2. "Business association" means a corporation, cooperative
2 13 association, joint stock company, business trust, investment
2 14 company, partnership, limited liability company, trust
2 15 company, mutual fund, or other business entity consisting of
2 16 one or more persons, whether or not for profit.
2 17 Sec. 3. Section 556.1, Code 2001, is amended by adding the
2 18 following new subsection:
2 19 NEW SUBSECTION. 2A. "Cooperative association" means an
2 20 entity which is structured and operated on a cooperative
2 21 basis, including an association of persons organized under
2 22 chapter 497, 498, or 499; an entity composed of entities
2 23 organized under those chapters; a cooperative corporation
2 24 organized under chapter 501; or any other entity recognized
2 25 pursuant to 26 U.S.C. } 1381(a) which meets the definitional
2 26 requirements of an association as provided in 12 U.S.C. }
2 27 1141(j)(a) or 7 U.S.C. } 291.
2 28 Sec. 4. Section 556.5, subsection 4, Code 2001, is amended
2 29 to read as follows:
2 30 4. At the time an interest is deemed abandoned under this
2 31 section, the following shall apply:
2 32 a. Except as provided in paragraph "b", any dividend,
2 33 distribution, or other sum then held for or owing to the owner
2 34 as a result of the interest, and not previously deemed
2 35 abandoned, is deemed abandoned.
3 1 b. A disbursement held by a cooperative association for or
3 2 owing to person who is a member or subscriber of the
3 3 cooperative association shall not be deemed abandoned for
3 4 purposes of this chapter, if the cooperative association
3 5 elects to retain the disbursement as provided in section
3 6 499.30A.
3 7 EXPLANATION
3 8 This bill provides for the reversion of dividends and
3 9 distributions by a cooperative association organized under
3 10 Code chapter 499.
3 11 Generally, property that is considered abandoned is turned
3 12 over to the treasurer of state. This includes any stock,
3 13 shareholding, or other intangible ownership interests in a
3 14 business association such as a corporation or cooperative
3 15 association (Code section 556.5). It also includes any
3 16 dividend or distribution (e.g., dividends from common stock,
3 17 patronage dividends, earnings, or other sum accruing from that
3 18 equity interest). For this type of property, abandonment
3 19 occurs within three years after the owner has not evidenced a
3 20 presence. Once property is abandoned it is delivered to the
3 21 treasurer of state for notice (Code sections 556.12). If
3 22 unclaimed after a year, the property is generally marketed if
3 23 necessary and the property or proceeds are forfeited to the
3 24 general fund of the state (Code sections 556.17 and 556.18).
3 25 This bill provides that a cooperative association organized
3 26 under Code chapter 499 may retain the dividend or
3 27 distribution, referred to as a disbursement. The bill
3 28 provides that once a person's membership or stock,
3 29 subscription, or other ownership interest in a cooperative
3 30 association is deemed abandoned under Code section 556.5, the
3 31 cooperative association may retain the disbursement held by
3 32 the cooperative association for or owing to the person. The
3 33 cooperative association may also deliver the disbursement to
3 34 the treasurer of state as abandoned property. The bill
3 35 provides that if the cooperative association elects to retain
4 1 the disbursement, it must deposit it into a reversion fund.
4 2 The bill allows a person claiming an interest in the
4 3 disbursement to file a claim with the cooperative association.
4 4 It provides that if the person is entitled to membership,
4 5 stock, subscription, or other ownership interest under Code
4 6 chapter 556, the person is also entitled to receive the
4 7 accrued disbursement. However, after one year following
4 8 deposit, an unclaimed disbursement is forfeited to the
4 9 cooperative association. The bill provides that the reversion
4 10 fund must be used for purposes related to education or
4 11 economic development.
4 12 LSB 1945HH 79
4 13 da/gg/8
Text: HF00371 Text: HF00373 Text: HF00300 - HF00399 Text: HF Index Bills and Amendments: General Index Bill History: General Index
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