WILLIAM DONALD SCHAEFER, Governor Ch. 222

of the initial members of the Board of Trustees; and generally relating to the
Maryland Venture Capital Trust.

BY adding to

Article 83A - Department of Economic and Employment Development

Section 5-1A-01 through 5 1A 07 5-1A-09, inclusive, to be under the new

subtitle "Subtitle 1A. Maryland Venture Capital Trust"
Annotated Code of Maryland
(1988 Replacement Volume and 1989 Supplement)

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That the Laws of Maryland read as follows:

Article 83A - Department of Economic and Employment Development

SUBTITLE 1A. MARYLAND VENTURE CAPITAL TRUST
5-1A-01.

(A) IN THIS SECTION THE FOLLOWING WORDS HAVE THE
MEANINGS INDICATED.

(B) "PARTICIPATING INVESTORS" MEANS ANY PERSONS OR LEGAL
ENTITIES WHICH INVEST MONEY IN THE MARYLAND VENTURE CAPITAL
TRUST.

(C) "SEED CAPITAL FINANCING" MEANS FINANCING PROVIDED TO
A BUSINESS ENTERPRISE IN THE INITIAL STAGES OF ITS DEVELOPMENT
AND INCLUDES FINANCING TO FINISH RESEARCH AND DEVELOPMENT
OF A PRODUCT, DEVELOP MARKETING PLANS, AND PROVIDE FOR
INITIAL FACILITIES, INVENTORY, AND WORKING CAPITAL FOR THE
BUSINESS ENTERPRISE.

(D) "TRUST" MEANS THE MARYLAND VENTURE CAPITAL TRUST.

(E) "VENTURE CAPITAL FUND" MEANS AN INVESTMENT FUND
PROVIDING CAPITAL TO A BUSINESS ENTERPRISE AT ANY STAGE OF ITS
DEVELOPMENT BEFORE ANY PUBLIC OFFERING OF STOCK.

5-1A-02.

THIS SUBTITLE SHALL BE LIBERALLY CONSTRUED TO EFFECT ITS
PURPOSES.

5-1A-03.

(A) THE GENERAL ASSEMBLY FINDS THAT:

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