Section 5-602 - Enterprise Fund.

MARYLAND STATUTES AND CODES

Section 5-602 - Enterprise Fund.

§ 5-602. Enterprise Fund.

(a) Established.- There is an Enterprise Fund in the Department.

(b) Purpose.- The Department may use the Fund to:

(1) make a grant or loan, at the rate of interest set by the Department;

(2) provide equity investment financing for a business enterprise;

(3) guarantee a loan, equity, investment, or other private financing to expand the capital resources of a business enterprise;

(4) purchase advisory services and technical assistance to better support economic development; and

(5) pay the administrative, legal, and actuarial expenses of the Department.

(d) Status.-

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

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

(e) Purchase of services.-

(1) Except as provided in paragraph (2) of this subsection, Division II of the State Finance and Procurement Article does not apply to a service that the Department obtains that is related to the investment, management, analysis, purchase, or sale of an asset of the Department in a transaction authorized under this subtitle, including a commission related to the transfer of a share of stock in a business entity.

(2) The Department is subject to Title 12, Subtitle 4 of the State Finance and Procurement Article for services related to the investment, management, analysis, purchase, or sale of assets of the Department in any transaction authorized under this subtitle, including commissions related to the transfer of shares of stock in a business entity.

(f) Disposition of property.-

(1) Section 10-305 of the State Finance and Procurement Article does not apply to the sale, lease, transfer, exchange, or other disposition of real or personal property, including a share of stock in a business entity, that the Department acquires in a transaction authorized under this subtitle.

(2) The Department shall consult with the Treasurer in connection with the proposed disposition of property that the Department acquires under this subtitle.

(g) Composition.- The Fund consists of:

(1) money appropriated by the State to the Fund;

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

(3) repayment of principal of a loan made from the Fund;

(4) payment of interest on a loan made from the Fund;

(5) proceeds from the sale, disposition, lease, or rental by the Department of collateral related to financing that the Department provides under this subtitle;

(6) premiums, fees, royalties, interest, repayments of principal, and returns on investments paid to the Department by or on behalf of:

(i) a business enterprise in which the Department has made an investment under this subtitle; or

(ii) an investor providing an investment guaranteed by the Department under this subtitle;

(7) recovery of an investment made by the Department in a business enterprise under this subtitle, including an arrangement under which the Department's investment in the business enterprise is recovered through:

(i) a requirement that the Department receive a proportion of cash flow, commission, royalty, or payment on a patent; or

(ii) the repurchase from the Department of any evidence of financial participation, including a note, stock, bond, or debenture;

(8) repayment of a conditional grant extended by the Department; and

(9) any other money made available to the Department for the Fund.

(h) Investment earnings.-

(1) The Treasurer shall invest money in the Fund in the same manner as other State money.

(2) Any investment earnings of the Fund shall be credited to the Fund.

(i) Money generated by particular unit.- Unless the Secretary determines otherwise, money in the Fund that was generated by a particular unit in the Department shall be allocated for the use of that unit.

[An. Code 1957, art. 83A, §§ 5-502, 5-503; 2008, ch. 306, § 2.]