SECTIONS 28200-28201 - California Statutes

CORPORATIONS CODE

SECTION 28200-28201

28200. The organizational documents of the licensee shall include
the following statement:
(a) The activities of the licensee are limited to the promotion of
economic, business, or industrial development in the State of
California through the provision of financial or managerial
assistance primarily to small business firms and to other activities
that are incidental or necessary to carry out that purpose.
(b) The licensee will not engage in the business of issuing
redeemable securities.
(c) The security holders of the licensee are limited, on a
class-by-class basis, to persons who reside in the State of
California, or who have a substantial business presence in the State
of California, and who hold not less than 80 percent of the licensee'
s securities.
(d) The securities of the licensee will be sold solely to
accredited investors (Section 28031) and the licensee will not
purchase any securities issued by an investment company as defined in
Section 3 of the Investment Company Act of 1940 or issued by any
company that would be an investment company except for the exclusions
from that definition under paragraph (1) or (7) of Section 3(a) of
that act, other than (1) any debt security that is rated investment
grade by not less than one nationally recognized statistical rating
organization or (2) any security issued by a registered open-end
investment company that is required by its investment policies to
invest not less than 65 percent of its total assets in securities
described in paragraph (1) or securities that are determined by that
registered open-end investment company to be comparable in quality to
securities described in paragraph (1).
(e) The licensee will engage in the transaction of business
pursuant to the exemption from registration under the Investment
Company Act of 1940 afforded to economic, business, and industrial
development companies as provided for by Section 6(a)(5) of the
Investment Company Act of 1940, as amended (15 U.S.C. Sec. 80a-6(a)),
and a license pursuant to the Capital Access Company Law (Division 3
(commencing with Section 28000)).
(f) The investment of funds by the licensee will be limited by and
subject to the provisions of Section 6(a)(5) of the Investment
Company Act of 1940, the Corporate Securities Law of 1968, and the
Capital Access Company Law.

28201. No licensee shall, except by prior written notice to the
commissioner, transact business under any name other than its
corporate name.