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Statutes Text

Article - Economic Development


    (a)    The Authority shall administer the Fund.

    (b)    (1)    The Fund is a special, nonlapsing fund that is not subject to reversion under § 7–302 of the State Finance and Procurement Article.

        (2)    The Treasurer shall hold the Fund separately, and the Comptroller shall account for the Fund.

    (c)    The Fund consists of:

        (1)    money drawn from the Small Business Development Guaranty Fund established under Part IV of this subtitle;

        (2)    money the State appropriates to the Fund;

        (3)    money made available to the Fund through federal programs or private contributions;

        (4)    proceeds from the sale, disposition, lease, or rental by the Authority of collateral related to equity participation financing;

        (5)    premiums, fees, royalties, and repayments of principal, interest, and investments paid by and on behalf of enterprises to the Authority under the terms of equity participation financing; and

        (6)    any other money made available under the Program.

    (d)    The Authority shall use the Fund to:

        (1)    purchase qualified securities that an enterprise issues to provide equity participation financing as the Program allows;

        (2)    provide guaranties of investments to expand the capital resources of enterprises;

        (3)    purchase advisory services and technical assistance consistent with the Program;

        (4)    purchase securities in which a fiduciary of the State may lawfully invest;

        (5)    provide equity participation financing as the Program allows; and

        (6)    pay for administrative, legal, and actuarial services that relate to the Program.

    (e)    The Fund shall be self–sustaining and shall achieve investment returns on its portfolio in the form of:

        (1)    royalties from enterprises in amounts to be determined by the Authority; and

        (2)    interest payments from any debt securities.

    (f)    As needed for the Program, the Authority may withdraw from time to time up to a total of $2,000,000 from the Small Business Development Guaranty Fund and deposit the withdrawal into the Fund.

    (g)    (1)    The Treasurer shall invest the money of the Fund in the same manner as other State money may be invested.

        (2)    Any investment earnings of the Fund shall be paid into the Fund.

    (h)    In accordance with § 2.5–109 of this article, the Authority shall submit a report on the Program.

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