686C.5 Adjustment. 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 sumof the prime rate as listed in the first edition of the Wall street journal published for eachcalendar year since the merger or consolidation, unless the prime rate is not published in thatedition of the Wall street journal, in which case any reasonable determination of the primerate 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 amountsof successor asbestos-related liabilities paid or committed to be paid by or on behalf of thesuccessor corporation or a predecessor or by or on behalf of a transferor after the time of themerger 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 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. 2017 Acts, ch 11, §23 Sat Dec 23 12:26:26 2023 Iowa Code 2024, Section 686C.5 (7, 0)
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