§ 533.304 — Investment in certain shares or equity interests

Iowa § 533.304

• Jurisdiction: Iowa
• Title XIII: COMMERCE
• Ch. 533: CREDIT UNIONS

Text

1. For purposes of this section, unless the context otherwise requires:
a. “Equity interests” means limited partnership interests and other equity investments
in which liability is limited to the amount of the investment, but does not mean general
partnership interests or other interests involving general liability.
b. “Small business” means a corporation, partnership, proprietorship, or other entity
formed under the laws of the United States, or a state, district, or territory of the United
States, that meets the appropriate United States small business administration definition
of small business and that is principally engaged in the development or exploitation of
inventions, technological improvements, new processes, or other products not previously
generally available in this state, or other investments which provide an economic benefit to
this state.

c. “Venturecapitalfund” means a corporation, partnership, proprietorship, or other entity
formed under the laws of the United States, or a state, district, or territory of the United
States, whose principal business is or will be the making of investments in and the provision
of significant managerial assistance to small businesses that meet the United States small
business administration definition of small business.
2. A state credit union may invest in either of the following to the extent that the total
investments under this section shall not be more than five percent of the state credit union’s
assets:
a. Shares or equity interests in venture capital funds that agree to invest an amount equal
to at least fifty percent of the state credit union’s investment in small businesses having their
principal offices within this state and having either more than one-half of their assets within
this state or more than one-half of their employees employed within this state.
b. Shares or equity interests in small businesses having their principal offices within this
state and having either more than one-half of their assets within this state or more than
one-half of their employees employed within this state. A state credit union shall not invest
in more than twenty percent of the total capital and surplus of any one small business under
this paragraph.