House Study Bill 99 - Introduced HOUSE FILE _____ BY (PROPOSED COMMITTEE ON AGRICULTURE BILL BY CHAIRPERSON SWEENEY) A BILL FOR An Act relating to preferred stock issued by cooperative 1 associations. 2 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 3 TLSB 2141HC (2) 84 da/nh

H.F. _____ Section 1. Section 499.24, Code 2011, is amended to read as 1 follows: 2 499.24 Preferred stock. 3 Preferred stock shall bear cumulative or noncumulative 4 dividends as fixed by the articles , not exceeding eight percent 5 per annum . It shall have no vote. It shall be issued and 6 be transferable without regard to eligibility or membership, 7 and be redeemable on terms specified in the articles and as 8 provided for in this chapter . The directors shall determine 9 the time and amount of its issue. 10 EXPLANATION 11 This bill relates to preferred stock issued by a cooperative 12 association organized under Code chapter 499. It eliminates a 13 requirement that the stock’s dividends cannot earn more than 8 14 percent per annum. 15 -1- LSB 2141HC (2) 84 da/nh 1/ 1