Text: HF00563 Text: HF00565 Text: HF00500 - HF00599 Text: HF Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 HOUSE FILE 564 1 2 1 3 AN ACT 1 4 PROVIDING FOR THE REVERSION OF DIVIDENDS AND DISTRIBUTIONS BY 1 5 CERTAIN COOPERATIVE ASSOCIATIONS. 1 6 1 7 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 1 8 1 9 Section 1. Section 490.140, Code 2001, is amended by 1 10 adding the following new subsection: 1 11 NEW SUBSECTION. 3A. "Cooperative association" means an 1 12 entity which is structured and operated on a cooperative basis 1 13 pursuant to 26 U.S.C. } 1381(a) and which meets the 1 14 definitional requirements of an association as provided in 12 1 15 U.S.C. } 1141(j)(a) or 7 U.S.C. } 291. 1 16 Sec. 2. NEW SECTION. 490.629 REVERSION OF DISBURSEMENTS 1 17 TO COOPERATIVE ASSOCIATIONS. 1 18 1. As used in this section, "disbursement" means an amount 1 19 of any distribution or any other increment or sum realized or 1 20 accruing from stock or other equity interest in a cooperative 1 21 association organized under this chapter. 1 22 2. Once a person's stock or other equity interest in a 1 23 cooperative association organized under this chapter is deemed 1 24 abandoned under section 556.5, any disbursement held by the 1 25 cooperative association for or owing to the person shall be 1 26 subject to the same requirements as provided in section 1 27 499.30A that applies to a cooperative association organized 1 28 under chapter 499, including all of the following: 1 29 a. The retention of the disbursement in a reversion fund 1 30 established by the cooperative association or the delivery of 1 31 the disbursement to the treasurer of state. 1 32 b. The payment of the disbursement to a person filing a 1 33 claim with the cooperative association who asserts an interest 1 34 in the disbursement. 1 35 c. The forfeiture of the disbursement to the cooperative 2 1 association, and the use of the forfeited disbursement by the 2 2 cooperative association in order to teach and promote 2 3 cooperation or provide for economic development, including 2 4 creating economic opportunities for its shareholders. 2 5 Sec. 3. NEW SECTION. 499.30A REVERSION OF DISBURSEMENTS. 2 6 1. As used in this section, "disbursement" means an amount 2 7 of any dividend, patronage dividend, distribution including 2 8 earnings distribution, or any other increment or sum realized 2 9 or accruing from a membership or stock, subscription, or other 2 10 equity interest in a cooperative association. 2 11 2. Once a person's membership or stock, subscription, or 2 12 other member's equity in a cooperative association is deemed 2 13 abandoned under section 556.5, the cooperative association may 2 14 retain any disbursement held by the cooperative association 2 15 for or owing to the person. The cooperative association may 2 16 also deliver the disbursement to the treasurer of state for 2 17 disposition as abandoned property pursuant to sections 556.5 2 18 and 556.11. 2 19 3. If the cooperative association elects to retain the 2 20 disbursement under this section, the disbursement shall be 2 21 deposited into a reversion fund established by the cooperative 2 22 association. 2 23 4. Any disbursement that is retained by the cooperative 2 24 association shall be forfeited to the cooperative association 2 25 if the cooperative association publishes at least one notice 2 26 of the abandoned property in a publication regularly 2 27 distributed to its membership or in a newspaper having a 2 28 general circulation in the county where the cooperative 2 29 association is located. The notice shall include all of the 2 30 following: 2 31 a. The name and address of the cooperative association. 2 32 b. The name of the person who has an interest in the 2 33 disbursement according to the records of the cooperative 2 34 association. 2 35 c. A brief description of the type of disbursement 3 1 retained by the cooperative association. 3 2 d. A statement that the disbursement will be forfeited to 3 3 the cooperative association unless the person files a claim 3 4 for the disbursement within the period provided for in this 3 5 section. 3 6 5. a. Subject to this subsection, a person asserting an 3 7 interest in the disbursement may file a claim for it with the 3 8 cooperative association in a manner and according to 3 9 procedures required by the cooperative association. If a 3 10 person is entitled to an abandoned membership, stock, 3 11 subscription, or other interest as provided in section 556.20 3 12 or 556.21, the cooperative association shall also pay the 3 13 person the disbursement deposited in the reversion fund that 3 14 is realized or accrued from the membership or stock, 3 15 subscription, or other interest. 3 16 b. If a person has not filed a claim for the disbursement 3 17 within six months after the first date that the notice of 3 18 abandoned property is first published as provided in this 3 19 section, the disbursement shall be forfeited to the 3 20 cooperative association. 3 21 6. The disbursements deposited into the reversion fund 3 22 that are forfeited to the cooperative association shall be 3 23 used as provided in this subsection. The cooperative 3 24 association may authorize the payment of forfeited 3 25 disbursements to persons claiming interests in forfeited 3 26 disbursements as provided in the cooperative association's 3 27 articles of incorporation or bylaws. Otherwise, forfeited 3 28 disbursements shall be used as the directors deem suitable for 3 29 any of the following purposes: 3 30 a. Teaching and promoting cooperation. The directors may 3 31 deposit the amounts of disbursements into the education fund 3 32 as provided in section 499.30. 3 33 b. Economic development including private or joint public 3 34 and private investments involving the creation of economic 3 35 opportunities for its members or the retention of existing 4 1 sources of income that would otherwise be lost. 4 2 Sec. 4. Section 556.1, subsection 2, Code 2001, is amended 4 3 to read as follows: 4 4 2. "Business association" means a corporation, cooperative 4 5 association, joint stock company, business trust, investment 4 6 company, partnership, limited liability company, trust 4 7 company, mutual fund, or other business entity consisting of 4 8 one or more persons, whether or not for profit. 4 9 Sec. 5. Section 556.1, Code 2001, is amended by adding the 4 10 following new subsection: 4 11 NEW SUBSECTION. 2A. "Cooperative association" means an 4 12 entity which is structured and operated on a cooperative 4 13 basis, including an association of persons organized under 4 14 chapter 497, 498, or 499; an entity composed of entities 4 15 organized under those chapters; a cooperative corporation 4 16 organized under chapter 501; a cooperative association 4 17 organized under chapter 490; or any other entity recognized 4 18 pursuant to 26 U.S.C. } 1381(a) which meets the definitional 4 19 requirements of an association as provided in 12 U.S.C. } 4 20 1141(j)(a) or 7 U.S.C. } 291. 4 21 Sec. 6. Section 556.5, subsection 4, Code 2001, is amended 4 22 to read as follows: 4 23 4. At the time an interest is deemed abandoned under this 4 24 section, the following shall apply: 4 25 a. Except as provided in paragraph "b", any dividend, 4 26 distribution, or other sum then held for or owing to the owner 4 27 as a result of the interest, and not previously deemed 4 28 abandoned, is deemed abandoned. 4 29 b. A disbursement held by a cooperative association shall 4 30 not be deemed abandoned under this chapter if the disbursement 4 31 is retained by a cooperative association organized under 4 32 chapter 490 as provided in section 490.629 or by a cooperative 4 33 association organized under chapter 499 as provided in section 4 34 499.30A. 4 35 5 1 5 2 5 3 BRENT SIEGRIST 5 4 Speaker of the House 5 5 5 6 5 7 5 8 MARY E. KRAMER 5 9 President of the Senate 5 10 5 11 I hereby certify that this bill originated in the House and 5 12 is known as House File 564, Seventy-ninth General Assembly. 5 13 5 14 5 15 5 16 MARGARET THOMSON 5 17 Chief Clerk of the House 5 18 Approved , 2001 5 19 5 20 5 21 5 22 THOMAS J. VILSACK 5 23 Governor
Text: HF00563 Text: HF00565 Text: HF00500 - HF00599 Text: HF Index Bills and Amendments: General Index Bill History: General Index
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