Iowa Code 15E.206 – Formation of an Iowa agricultural industry finance corporation
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1. This section authorizes the formation of Iowa agricultural industry finance corporations in order to perfect the manner in which such corporations are formed and operate. Such a corporation is a private business corporation and not a public corporation or instrumentality of the state. The corporation shall not enjoy any of the privileges nor be required to comply with any of the requirements of a state agency.
Terms Used In Iowa Code 15E.206
- authority: means the economic development authority created in section 15. See Iowa Code 15E.1
- Board: means the Iowa capital investment board created in section 15E. See Iowa Code 15E.62
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
- following: when used by way of reference to a chapter or other part of a statute mean the next preceding or next following chapter or other part. See Iowa Code 4.1
- state: when applied to the different parts of the United States, includes the District of Columbia and the territories, and the words "United States" may include the said district and territories. See Iowa Code 4.1
- State agency: means a board, department, commission or authority of or acting on behalf of the state having the power to enter into contracts with or without the approval of the executive council to acquire property in its own name or in the name of the state. See Iowa Code 7D.34
2. In facilitating the formation of an Iowa agricultural industry finance corporation, the following persons shall serve as incorporators as provided in section 490.201:
a. A member of the economic development authority chosen by the members of the authority or a designee of the member.
b. The director of the economic development authority, or a designee of the director.
c. The secretary of agriculture or a designee of the secretary.
3. a. After incorporation, such a corporation shall be organized by an initial board of directors as provided in chapter 490, subchapter II. The initial board of directors shall be elected by the members of an appointment committee. The members of the appointment committee shall be appointed by the economic development authority. The initial board of directors shall consist of seven members. The members of the appointment committee shall include persons who have an expertise in areas of banking, agricultural lending, business development, agricultural production and processing, seed and venture capital investment, and other areas of expertise as deemed appropriate by the interim board of directors.
b. The members of the appointment committee shall exercise due care to assure that persons appointed to the initial board of directors have the requisite financial experience necessary in order to carry out the duties of the corporation as established in this subchapter, including in areas related to agricultural lending, commercial banking, and investment management.
c. Upon the election of the initial board of directors, the terms of the members of the appointment committee shall expire.
d. The authority shall assist the incorporators and the appointment committee in any manner determined necessary and appropriate by the economic development authority and the director of the authority in order to administer this section.