262.14 LOANS -- CONDITIONS -- OTHER INVESTMENTS.
The board may invest funds belonging to the institutions, subject
to chapter 12F and the following regulations:
1. Each loan shall be secured by a mortgage paramount to all
other liens upon approved farm lands in this state, accompanied by
abstract showing merchantable title in the borrower. The loan shall
not exceed sixty-five percent of the cash value of the land,
exclusive of buildings.
2. Each such loan if for a sum more than one-fourth of the value
of the farm shall be on the basis of stipulated annual principal
reductions.
3. a. Any portion of the funds may be invested by the board.
In the investment of the funds, the board shall exercise the judgment
and care, under the circumstances then prevailing, which persons of
prudence, discretion and intelligence exercise in their own affairs
as provided in chapter 633A, subchapter IV, part 3.
b. The board shall give appropriate consideration to those
facts and circumstances that the board knows or should know are
relevant to the particular investment involved, including the role
the investment plays in the total value of the board's funds.
c. For the purposes of this subsection, appropriate
consideration includes, but is not limited to, a determination by the
board that the particular investment is reasonably designed to
further the purposes prescribed by law to the board, taking into
consideration the risk of loss and the opportunity for gain or other
return associated with the investment and consideration of the
following factors as they relate to the funds of the board:
(1) The composition of the funds of the board with regard to
diversification.
(2) The liquidity and current return of the investments relative
to the anticipated cash flow requirements.
(3) The projected return of the investments relative to the
funding objectives of the board.
d. The board shall have a written investment policy, the goal
of which is to provide for the financial health of the institutions
governed by the board. The board shall establish investment
practices that preserve principal, provide for liquidity sufficient
for anticipated needs, and maintain purchasing power of investable
assets of the board and its institutions. The policy shall also
include a list of authorized investments, maturity guidelines,
procedures for selecting and approving investment managers and other
investment professionals as described in section 11.2, subsection 2,
and provisions for regular and frequent oversight of investment
decisions by the board, including audit. The board shall make
available to the auditor of state and treasurer of state the most
recent annual report of any investment entity or investment
professional employed by an institution governed by the board. The
investment policy shall cover investments of endowment and
nonendowment funds.
e. Consistent with this subsection, investments made under
this subsection shall be made in a manner that will enhance the
economy of this state, and in particular, will result in increased
employment of the residents of this state.
4. Any gift accepted by the Iowa state board of regents for the
use and benefit of any institution under its control may be invested
in securities designated by the donor, but whenever such gifts are
accepted and the money invested according to the request of the said
donor, neither the state, the Iowa state board of regents, nor any
member thereof, shall be liable therefor or on account thereof.
5. A register containing a complete abstract of each loan and
investment, and showing its actual condition, shall be kept by the
board and be at all times open to inspection.
6. All loans made under the provisions of this section shall have
an interest rate of not less than three and one-half percent per
annum.
262.14 LOANS -- CONDITIONS -- OTHER INVESTMENTS.
The board may invest funds belonging to the institutions, subject
to chapter 12F and the following regulations:
1. Each loan shall be secured by a mortgage paramount to all
other liens upon approved farm lands in this state, accompanied by
abstract showing merchantable title in the borrower. The loan shall
not exceed sixty-five percent of the cash value of the land,
exclusive of buildings.
2. Each such loan if for a sum more than one-fourth of the value
of the farm shall be on the basis of stipulated annual principal
reductions.
3. a. Any portion of the funds may be invested by the board.
In the investment of the funds, the board shall exercise the judgment
and care, under the circumstances then prevailing, which persons of
prudence, discretion and intelligence exercise in their own affairs
as provided in chapter 633A, subchapter IV, part 3.
b. The board shall give appropriate consideration to those
facts and circumstances that the board knows or should know are
relevant to the particular investment involved, including the role
the investment plays in the total value of the board's funds.
c. For the purposes of this subsection, appropriate
consideration includes, but is not limited to, a determination by the
board that the particular investment is reasonably designed to
further the purposes prescribed by law to the board, taking into
consideration the risk of loss and the opportunity for gain or other
return associated with the investment and consideration of the
following factors as they relate to the funds of the board:
(1) The composition of the funds of the board with regard to
diversification.
(2) The liquidity and current return of the investments relative
to the anticipated cash flow requirements.
(3) The projected return of the investments relative to the
funding objectives of the board.
d. The board shall have a written investment policy, the goal
of which is to provide for the financial health of the institutions
governed by the board. The board shall establish investment
practices that preserve principal, provide for liquidity sufficient
for anticipated needs, and maintain purchasing power of investable
assets of the board and its institutions. The policy shall also
include a list of authorized investments, maturity guidelines,
procedures for selecting and approving investment managers and other
investment professionals as described in section 11.2, subsection 2,
and provisions for regular and frequent oversight of investment
decisions by the board, including audit. The board shall make
available to the auditor of state and treasurer of state the most
recent annual report of any investment entity or investment
professional employed by an institution governed by the board. The
investment policy shall cover investments of endowment and
nonendowment funds.
e. Consistent with this subsection, investments made under
this subsection shall be made in a manner that will enhance the
economy of this state, and in particular, will result in increased
employment of the residents of this state.
4. Any gift accepted by the Iowa state board of regents for the
use and benefit of any institution under its control may be invested
in securities designated by the donor, but whenever such gifts are
accepted and the money invested according to the request of the said
donor, neither the state, the Iowa state board of regents, nor any
member thereof, shall be liable therefor or on account thereof.
5. A register containing a complete abstract of each loan and
investment, and showing its actual condition, shall be kept by the
board and be at all times open to inspection.
6. All loans made under the provisions of this section shall have
an interest rate of not less than three and one-half percent per
annum.
262.14 LOANS -- CONDITIONS -- OTHER INVESTMENTS.
The board may invest funds belonging to the institutions, subject
to chapter 12F and the following regulations:
1. Each loan shall be secured by a mortgage paramount to all
other liens upon approved farm lands in this state, accompanied by
abstract showing merchantable title in the borrower. The loan shall
not exceed sixty-five percent of the cash value of the land,
exclusive of buildings.
2. Each such loan if for a sum more than one-fourth of the value
of the farm shall be on the basis of stipulated annual principal
reductions.
3. a. Any portion of the funds may be invested by the board.
In the investment of the funds, the board shall exercise the judgment
and care, under the circumstances then prevailing, which persons of
prudence, discretion and intelligence exercise in their own affairs
as provided in chapter 633A, subchapter IV, part 3.
b. The board shall give appropriate consideration to those
facts and circumstances that the board knows or should know are
relevant to the particular investment involved, including the role
the investment plays in the total value of the board's funds.
c. For the purposes of this subsection, appropriate
consideration includes, but is not limited to, a determination by the
board that the particular investment is reasonably designed to
further the purposes prescribed by law to the board, taking into
consideration the risk of loss and the opportunity for gain or other
return associated with the investment and consideration of the
following factors as they relate to the funds of the board:
(1) The composition of the funds of the board with regard to
diversification.
(2) The liquidity and current return of the investments relative
to the anticipated cash flow requirements.
(3) The projected return of the investments relative to the
funding objectives of the board.
d. The board shall have a written investment policy, the goal
of which is to provide for the financial health of the institutions
governed by the board. The board shall establish investment
practices that preserve principal, provide for liquidity sufficient
for anticipated needs, and maintain purchasing power of investable
assets of the board and its institutions. The policy shall also
include a list of authorized investments, maturity guidelines,
procedures for selecting and approving investment managers and other
investment professionals as described in section 11.2, subsection 2,
and provisions for regular and frequent oversight of investment
decisions by the board, including audit. The board shall make
available to the auditor of state and treasurer of state the most
recent annual report of any investment entity or investment
professional employed by an institution governed by the board. The
investment policy shall cover investments of endowment and
nonendowment funds.
e. Consistent with this subsection, investments made under
this subsection shall be made in a manner that will enhance the
economy of this state, and in particular, will result in increased
employment of the residents of this state.
4. Any gift accepted by the Iowa state board of regents for the
use and benefit of any institution under its control may be invested
in securities designated by the donor, but whenever such gifts are
accepted and the money invested according to the request of the said
donor, neither the state, the Iowa state board of regents, nor any
member thereof, shall be liable therefor or on account thereof.
5. A register containing a complete abstract of each loan and
investment, and showing its actual condition, shall be kept by the
board and be at all times open to inspection.
6. All loans made under the provisions of this section shall have
an interest rate of not less than three and one-half percent per
annum.
