§ 686C.4 — Establishing fair market value of total gross assets

Iowa § 686C.4

• Jurisdiction: Iowa
• Title XV: JUDICIAL BRANCH AND JUDICIAL PROCEDURES
• Ch. 686C: ASBESTOS-RELATED LIABILITY OF SUCCESSOR CORPORATIONS

Text

1. A successor may establish the fair market value of total gross assets, which include
intangibleassets,forthepurposeofthelimitationsundersection686C.3,throughanymethod
reasonable under the circumstances, including any of the following:
a. By reference to the going concern value of the assets or to the purchase price
attributable to or paid for the assets in an arms-length transaction.
b. In the absence of other readily available information from which the fair market value
can be determined, by reference to the value of the assets recorded on a balance sheet.
2. To the extent total gross assets include any liability insurance that was issued to the
transferor whose assets are being valued for purposes of this section, the applicability, terms,
conditions, and limits of such insurance shall not be affected by this chapter, nor shall this
chapter otherwise affect the rights and obligations of an insurer, transferor, or successor
under any insurance contract or any related agreement, including, without limitation,
preenactment settlements resolving coverage-related disputes, and the rights of an insurer to
seek payment for applicable deductibles, retrospective premiums, or self-insured retentions
or to seek contribution from a successor for uninsured or self-insured periods or periods
where insurance is uncollectible or otherwise unavailable. Without limiting the foregoing,
to the extent total gross assets include any such liability insurance, a settlement of a dispute
concerning any such liability insurance coverage entered into by a transferor or successor
with the insurers of the transferor before July 1, 2017, shall be determinative of the total
coverage of such liability insurance to be included in the calculation of the transferor’s total
gross assets.