§ 15-5-1603 - Definitions. - Arkansas Statutes

15-5-1603. Definitions.

As used in this subchapter:

(1) "Angel investor" means a high-net-worth individual or a network of high-net-worth individuals who invest in early stage technology-based enterprises;

(2) "Enterprise Development Account" means a separate account bearing that name and to be maintained within the Arkansas Risk Capital Matching Fund, the moneys in which account shall be used for the purposes and in the manner prescribed by this subchapter;

(3) "Equity capital" means capital invested in common stock or preferred stock, royalty rights, limited partnership interests, limited liability company interests, and any other equity, securities, or rights that evidence ownership or investment in private enterprises;

(4) "Near-equity capital" means capital invested in unsecured, undersecured, subordinated, or convertible loans or debt securities;

(5) "Private sector advisory committee" means a committee composed of individual representatives from the private sector in Arkansas, established to offer assistance and advice to the trustees of the fund in:

(A) Developing rules; and

(B) Reviewing:

(i) Investments under consideration by the review committee; and

(ii) Annual reports from the trustees of the Venture Capital Investment Trust;

(6) "Review committee" means a committee comprosed of the President of the Arkansas Development Finance Authority, the President of the Arkansas Science and Technology Authority, and the Director of the Arkansas Economic Development Commission;

(7) "Technology-based enterprises" means a group of growing businesses in one (1) or more of the following business sectors:

(A) Advanced materials and manufacturing systems;

(B) Agriculture, food, and environmental sciences;

(C) Biotechnology, bioengineering, medical technology, and life sciences;

(D) Information technology;

(E) Transportation logistics; and

(F) Biobased products;

(8) "Technology Validation Account" means the separate account bearing that name and to be maintained as a separate account within the Arkansas Risk Capital Matching Fund, the moneys in which account shall be used for the purposes and in the manner prescribed by this subchapter; and

(9) "Venture Capital Investment Trust" means the public trust formed July 21, 2003, under 28-72-201 et seq., the trustees of which are the President of the Arkansas Development Finance Authority, the President of the Arkansas Science and Technology Authority, and the Director of the Department of Finance and Administration and that has as a principal purpose increasing the availability of equity capital and near-equity capital for emerging and expanding enterprises in the State of Arkansas.