15E.209 - FINANCING PROVIDED BY AN IOWA AGRICULTURAL INDUSTRY FINANCE CORPORATION.
15E.209 FINANCING PROVIDED BY AN IOWA AGRICULTURAL
INDUSTRY FINANCE CORPORATION.
1. An Iowa agricultural industry finance corporation may only
provide financing to a person determined eligible by the corporation
according to requirements of the corporation and this section. At a
minimum, an eligible person must be one of the following:
a. An agricultural producer participating in an Iowa
agricultural industry venture as provided according to the terms of
an agreement executed by the agricultural producer and the
corporation. The agreement may require that the agricultural
producer acquire an interest in an agricultural products processor
certified by the corporation, or enter into a marketing agreement
under which the agricultural producer agrees to market an amount of
the agricultural producer's agricultural commodities to the
agricultural products processor.
b. An agricultural products processor which participates as
part of an Iowa agricultural industry venture as provided according
to the terms of an agreement executed by the agricultural products
processor and the corporation. The corporation shall only provide
financing if the venture involves the construction, expansion, or
acquisition of an agricultural products processing facility as
certified by the corporation and if all of the following apply:
(1) The certified facility must be located in this state.
(2) Either of the following apply:
(a) More than fifty percent of the ownership interest in the
certified facility must be held by qualified investors. If the
certified facility is owned by an entity rather than by individuals,
more than fifty percent of the interest in the entity and more than
fifty percent of the voting interest in the entity must be held by
qualified investors.
(b) More than fifty percent of the commodities processed by the
certified facility during any twelve-month period is produced in this
state. However, the corporation may provide financing, if its board
of directors determines that adequate supplies of the commodity are
not available for processing as otherwise required in this
subparagraph division.
c. An agricultural biotechnology enterprise which qualifies
as an Iowa agricultural industry venture as provided according to the
terms of an agreement executed by the agricultural biotechnology
enterprise and the corporation, if the board of directors for the
corporation determines that the enterprise would advance the intent
and purposes set out in section 15E.203.
2. Financing may be in the form of a loan, loan guarantee, sale
and purchase of mortgage instruments for eligible recipients, or
other similar forms of financing. The financing shall be awarded
pursuant to an agreement between the corporation and the eligible
person.
3. A corporation shall not provide financing to support an
outstanding debt or other obligation, regardless of whether the
original financing was provided by a corporation. Section History: Recent Form
98 Acts, ch 1207, §10; 2009 Acts, ch 41, §263
Referred to in §15E.202, 15E.205, 15E.207, 15E.208