Text: SSB01207 Text: SSB01209 Text: SSB01200 - SSB01299 Text: SSB Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 Section 1. Section 15E.208, subsection 3, paragraph b, is 1 2 amended to read as follows: 1 3 b. The Iowa agricultural industry finance loan shall be 1 4 repayable upon terms and conditions negotiated by the parties. 1 5 (1) The repayment period shall begin six years following 1 6 the date when the Iowa agricultural industry finance loan is 1 7 awarded and end twenty-five years after the date that the 1 8 repayment period begins. 1 9 (2) At least four percent of the amount of the Iowa 1 10 agricultural industry finance loan due shall be paid each year 1 11 to the department. However, the department may accept an 1 12 assignment of a loan made by the corporation providing 1 13 financing to an eligible person pursuant to section 15E.209. 1 14 The assigned loan shall grant to the department the 1 15 corporation's right to payment under the loan. Any such 1 16 assignment shall be made by an agreement executed by the 1 17 department and the corporation. The assignment agreement 1 18 shall be subject to all of the following: 1 19 (a) The period of assignment may be for any number of 1 20 years. The department shall apply to the amounts due under 1 21 the Iowa agricultural industry finance loan the principal, 1 22 interest, and fees which the eligible person is obligated to 1 23 pay under the assigned loan. The total amount of the 1 24 principal, interest, and fees that the eligible person is 1 25 obligated to pay to the department during the period of 1 26 assignment plus any other repayment of the Iowa agricultural 1 27 industry finance loan made by the corporation to the 1 28 department must equal the amount of the Iowa agricultural 1 29 industry finance loan that the corporation would otherwise be 1 30 obligated to repay the department during that same period. 1 31 However, the agreement may provide that during any year of the 1 32 assignment period the eligible person may pay more or less 1 33 than four percent of the amount of the Iowa agricultural 1 34 industry finance loan that the corporation would otherwise be 1 35 obligated to repay during that year. 2 1 (b) The assignment agreement shall contain conditions 2 2 relating to the right of payment assigned to the department 2 3 which may include securing the payment obligation in any 2 4 manner that allows the department to enforce a debt against 2 5 the property of the eligible person. The department shall not 2 6 have a right of recourse against the corporation for any 2 7 amount required to be applied from the assigned loan to the 2 8 Iowa agricultural industry finance loan. 2 9 (3) The corporation shall not be subject to a prepayment 2 10 penalty. 2 11 Sec. 2. EFFECTIVE DATE. This Act, being deemed of 2 12 immediate importance, takes effect upon enactment. 2 13 EXPLANATION 2 14 BACKGROUND IOWA AGRICULTURAL INDUSTRY FINANCE 2 15 CORPORATIONS. Under Division XIX of Code chapter 15E, an Iowa 2 16 agricultural industry finance corporation (corporation) is a 2 17 private business which is recognized by the state to provide 2 18 financing to eligible persons who are engaging in specific 2 19 agricultural industrial ventures (an agricultural products 2 20 processor or an agricultural biotechnology enterprise). There 2 21 is one such corporation currently organized that has received 2 22 an Iowa agricultural industry finance loan from the department 2 23 of economic development. The general assembly appropriated 2 24 $25,000,000 to the department of economic development, subject 2 25 to repayment, for purposes of awarding such a loan to an 2 26 eligible corporation in order to finance these ventures (see 2 27 1998 Acts, chapter 1207). The corporation must repay the 2 28 department $1,000,000 (4 percent of the total amount of the 2 29 loan) each year for 25 years. The moneys are to be deposited 2 30 into the road use tax fund. 2 31 This bill provides that the department may accept an 2 32 assignment of a loan made by the corporation providing 2 33 financing to an eligible person. The period of assignment may 2 34 be for any number of years. The bill provides that under an 2 35 assignment agreement moneys paid by the eligible person to the 3 1 department are in lieu of the amount of moneys required to be 3 2 paid by the corporation to the department. The eligible 3 3 person does not have to pay $1,000,000 per year but the total 3 4 amount paid under the agreement must equal the amount that the 3 5 department would have received from the corporation during 3 6 that same period. The bill provides that the assignment 3 7 agreement must contain conditions relating to the right of 3 8 payment assigned to the department which may include creditor 3 9 rights. The bill provides that the department has no right of 3 10 recourse against the corporation for amounts that are not 3 11 collected under the loan assignment. 3 12 The bill takes effect upon enactment. 3 13 LSB 3544XC 80 3 14 da/cl/14
Text: SSB01207 Text: SSB01209 Text: SSB01200 - SSB01299 Text: SSB Index Bills and Amendments: General Index Bill History: General Index
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