Iowa § 499.48 Distribution in liquidation

Iowa Statutes

§ 499.48 — Distribution in liquidation

Iowa § 499.48

Title XIIBUSINESS ENTITIES

Ch. 499COOPERATIVE ASSOCIATIONS

This text of Iowa § 499.48 (Distribution in liquidation) is published on Counsel Stack Legal Research, covering Iowa primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

Iowa Code § 499.48 (2026).

Text

1.On dissolution or liquidation, the assets of the association shall be used to pay liquidation expenses first, next the association’s obligations other than patronage dividends or patronage dividend certificates which it has issued, and the remainder shall be distributed in the following priority:

a.To pay to each person the full amount originally paid by that person in cash for stock or other equity interest in the association.

b.To pay to each person in proportion to the total of each person’s revolving fund, stock, or other equity interest in the association remaining after the payment under paragraph “a”.

2.In applying subsection 1, paragraphs “a” and “b”, all classes of stock, all revolving funds, and all other equity interests in the association shall be treated equally based on

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1. On dissolution or liquidation, the assets of the association shall be used to pay
liquidation expenses first, next the association’s obligations other than patronage dividends
or patronage dividend certificates which it has issued, and the remainder shall be distributed
in the following priority:
a. To pay to each person the full amount originally paid by that person in cash for stock
or other equity interest in the association.
b. To pay to each person in proportion to the total of each person’s revolving fund, stock,
or other equity interest in the association remaining after the payment under paragraph “a”.
2. In applying subsection 1, paragraphs “a” and “b”, all classes of stock, all revolving
funds, and all other equity interests in the association shall be treated equally based on their
statedvalues. However,anassociationmayestablishitsownmethodofdistributingtheassets
remaining, after paying liquidation expenses and obligations other than patronage dividends
or patronage dividend certificates which it has issued, in articles of incorporation adopted,
amended, or restated after July 1, 1986.