Section 12-501 - Equity investments. - Maryland Statutes

§ 12-501. Equity investments.
 

(a)  In general.- Notwithstanding any other provision of law, Montgomery County may make an equity investment through the county's Economic Development Fund in a company that is located in Montgomery County or that agrees to relocate its business to Montgomery County. 

(b)  Use of proceeds.- The proceeds of an equity investment made under subsection (a) of this section may be used for: 

(1) working capital; 

(2) salaries; 

(3) marketing materials; 

(4) acquisition of inventory, equipment, or real property; 

(5) construction; 

(6) renovation; 

(7) leasehold improvements; or 

(8) research and development. 

(c)  Limitations on ownership interest.- The county may not acquire an ownership interest exceeding 25% of any enterprise. 

(d)  Funding agreement.-  

(1) The terms of an equity investment approved by the county shall be set forth in a funding agreement. 

(2) A funding agreement made under paragraph (1) of this subsection shall prohibit the county from: 

(i) participating in the selection of the management of the company; 

(ii) engaging in oversight of the operation of the company; or 

(iii) assuming any present or future liability of the company. 

(3) At the county's discretion, a funding agreement made under paragraph (1) of this subsection may consist of: 

(i) an investment agreement; 

(ii) a limited partnership agreement; 

(iii) a preferred stock purchase agreement; or 

(iv) other documents that the county may require. 

(e)  Posting on website.- Notice of each equity investment made by Montgomery County under subsection (a) of this section shall be posted in a readily accessible and clearly identified location on the Montgomery County government website within 5 days after the date on which the county initiates the equity investment transaction. 
 

[2010, ch. 710.]