501.103 - PERMISSIBLE MEMBERS -- LIMITED FARMING ACTIVITIES.
501.103 PERMISSIBLE MEMBERS -- LIMITED FARMING ACTIVITIES. 1. Notwithstanding section 9H.4, any person or entity, subject to the limitations set forth in section 501.305, and subject to the cooperative's articles and bylaws, is permitted to own interests, including voting interests, in a cooperative. 2. Notwithstanding section 9H.4, a cooperative may, directly or indirectly, acquire or otherwise obtain or lease agricultural land in this state, for as long as the cooperative continues to meet the following requirements: a. Farming entities own sixty percent of the interests and are eligible to cast sixty percent of the votes at member meetings. b. Authorized persons own at least seventy-five percent of the interests and are eligible to cast at least seventy- five percent of the votes at member meetings. c. The cooperative does not, either directly or indirectly, acquire or otherwise obtain or lease agricultural land, if the total agricultural land either directly or indirectly owned or leased by the cooperative would then exceed six hundred forty acres. 3. A cooperative that claims that it is exempt from the restrictions of section 9H.4 pursuant to subsection 2 shall file a biennial report with the secretary of state on or before March 31 of each even-numbered year on forms supplied by the secretary of state. The report shall be signed by the president or the vice president of the cooperative and shall contain the following: a. The cooperative's name and address. b. A certification that the cooperative meets both of the requirements of subsection 2. c. The number of acres of agricultural land owned, leased, or held by the cooperative, including the following: (1) The total number of acres in the state. (2) The number of acres in each county identified by county name. (3) The number of acres owned. (4) The number of acres leased. (5) The number of acres held other than by ownership or lease. (6) The number of acres used for the production of row crops. 4. The president or the vice president of the cooperative who falsifies a report is guilty of perjury as provided in section 720.2. 5. In the event of a transfer of an interest in a cooperative by operation of law as a result of death, divorce, bankruptcy, or pursuant to a security interest, the cooperative may disregard the transfer for purposes of determining compliance with subsection 2 for a period of two years after the transfer.
Section History: Recent Form 96 Acts, ch 1010, §5; 97 Acts, ch 171, §34; 98 Acts, ch 1152, §8, 69; 2005 Acts, ch 19, §73 Referred to in §10.3, 10.5, 10.7, 10.10, 10B.4A, 502.102 Suspension of filing requirement, §10B.4A