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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