§ 810-30 — Investment in Pools of Funds

Proposals for the establishment of pools of funds under paragraph (b) of Section 810-20 of this Act shall be submitted on a form, contain the information, and be accompanied by a fee as prescribed by the Authority. The Authority shall not enter into any agreement or contract under paragraph (b) of Section 810-20 of this Act unless the agreement or contract provides that the pool of funds will be invested in an enterprise only if the manager finds all of the following: (a) The enterprise has a reasonable chance of success. (b) The technology, product, process, or invention for which the investment is being made is feasible and has the potential to achieve commercial success. (c) The enterprise has the potential to create substantial employment within the State. (d) The entrepreneur, investors, shareholders, or founders of the enterprise have made or are obligated to make a substantial commitment of time and funds to the enterprise. (e) The possible gains in the investment are at least commensurable with the risk of loss and there is a reasonable possibility that the investors, including the Authority, will recoup their investment within 10 years after the investment, through the receipt of interest, dividends, capital gains, or other distributions of profit or royalties. (f) The enterprise shall have made binding commitments for adequate reporting of and access to financing data of the enterprise.

Legislative History

(Source: P.A. 93-205, eff. 1-1-04.)