Iowa agricultural industry finance corporations — guiding principles

In carrying out its duties and exercising its powers under this subchapter, an Iowa agricultural industry finance corporation shall be guided by the following principles: 1. a. The corporation must exercise diligence and care in the selection of persons and projects to receive financing as provided in section 15E.209. The corporation must apply customary and acceptable business and lending standards and practices in selecting persons and projects designated for financing and managing agreements under which financing is provided. b. In selecting projects to receive financing, it is the intent of the general assembly that the corporation seek projects with wage, benefit, and work safety plans which improve the quality of employment in the state and which would not displace employees of existing Iowa agricultural industry ventures. 2. Except as otherwise provided in this section, the corporation shall not become an owner of real or depreciable property, including agricultural land, as provided in section 9H.4. However, this subsection shall not preclude the corporation from holding an interest in real or depreciable property if any of the following apply: a. The corporation holds nonagricultural property for purposes of carrying out the management of its corporate affairs, including office space, furniture, and supplies. b. The corporation holds an interest in real or depreciable property on a temporary basis, and any of the following apply: 1. The interest is a bona fide encumbrance taken for purposes of security in connection with providing financing under section 15E.209. 2. The interest is acquired by operation of law, including by any of the following: a. Devise or bequest. b. Court order. c. Dissolution under chapter 490, subchapter XIV. d. Order in bankruptcy. e. Pursuant to a proceeding to enforce a debt against real property under chapter 654, to forfeit a contract to purchase real property under chapter 656, to enforce a secured interest in real or depreciable property under chapter 554, or to otherwise garnish, levy on, execute on, seize, or attach real or depreciable property in the collection of debts, or by any procedure for the enforcement of a lien or claim. 3. The interest is acquired in order to facilitate a transfer between persons pursuant to a transaction authorized under this subchapter.