Iowa Code 504.1302 – Authorized distributions
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1. A mutual benefit corporation may purchase its memberships if, after the purchase is completed, both of the following apply:
a. The corporation will be able to pay its debts as they become due in the usual course of its activities.
b. The corporation’s total assets will at least equal the sum of its total liabilities.
Terms Used In Iowa Code 504.1302
- Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
- Corporation: means a public benefit, mutual benefit, or religious corporation. See Iowa Code 504.141
- 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
- Liabilities: The aggregate of all debts and other legal obligations of a particular person or legal entity.
2. Corporations may make distributions upon dissolution in conformity with subchapter XIV.