Iowa § 686C.5 Adjustment

Iowa Statutes

§ 686C.5 — Adjustment

Iowa § 686C.5

Title XVJUDICIAL BRANCH AND JUDICIAL PROCEDURES

Ch. 686CASBESTOS-RELATED LIABILITY OF SUCCESSOR CORPORATIONS

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Bluebook

Iowa Code § 686C.5 (2026).

Text

1.Except as provided in subsections 2, 3, and 4, the fair market value of total gross assets at the time of a merger or consolidation shall increase annually at a rate equal to the sum of the prime rate as listed in the first edition of the Wall street journal published for each calendar year since the merger or consolidation, unless the prime rate is not published in that edition of the Wall street journal, in which case any reasonable determination of the prime rate on the first day of the year may be used, plus one percent.

2.The rate determined under subsection 1 shall not be compounded.

3.The adjustment of the fair market value of total gross assets shall continue as provided in subsection 1 until the date the adjusted value is first exceeded by the cumulative amounts of successor

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1. Except as provided in subsections 2, 3, and 4, the fair market value of total gross assets
at the time of a merger or consolidation shall increase annually at a rate equal to the sum
of the prime rate as listed in the first edition of the Wall street journal published for each
calendar year since the merger or consolidation, unless the prime rate is not published in that
edition of the Wall street journal, in which case any reasonable determination of the prime
rate on the first day of the year may be used, plus one percent.
2. The rate determined under subsection 1 shall not be compounded.
3. The adjustment of the fair market value of total gross assets shall continue as provided
in subsection 1 until the date the adjusted value is first exceeded by the cumulative amounts
of successor asbestos-related liabilities paid or committed to be paid by or on behalf of the
successor corporation or a predecessor or by or on behalf of a transferor after the time of the
merger or consolidation for which the fair market value of total gross assets is determined.
4. No adjustment of the fair market value of total gross assets shall be applied to any
liability insurance that may be included in the total gross assets pursuant to section 686C.4,
subsection 2.