BLAIR LEE III, Acting Governor                           2573

AUTHORITY SHALL CHARGE AN INTEREST RATE EQUAL TO THE MARKET
RATE FOR A CONVENTIONAL LOAN OF COMPARABLE RISK. THE
AUTHORITY MAY GRANT A DIRECT LOAN ONLY AS A LAST RESORT,
BEEN ALL OTHER AVENUES FOR FINANCIAL ASSISTANCE HAVE BEEN
EXHAUSTED.

(2)    THE AUTHORITY MAY GUARANTY A LOAN MADE TO
AN ELIGIBLE APPLICANT. THE TERMS AND CONDITIONS OF A LOAN
GUARANTY ARE WITHIN THE SOLE DISCRETION OF THE AUTHORITY.
THE AUTHORITY MAY NOT GUARANTY MORE THAN $500,000 $150,000
OF A LOAN. THE DURATION OF THE LOAN GUARANTEED MAY NOT
EXCEED THE TERM OF THE CONTRACT.

(3)    (I) THE AUTHORITY MAY GUARANTY NO MORE
THAN 10 PERCENT OF A PERSON'S EQUITY INVESTMENT IN AN
ELIGIBLE CORPORATION.

(II)   THE AUTHORITY MAY NOT GUARANTY A
PERSON'S EQUITY INVESTMENT IF THAT PERSON:

(A)    PREVIOUSLY HELD AN EQUITY
INVESTMENT IN THE CORPORATION;

(B)    PREVIOUSLY PARTICIPATED IN THE
MANAGEMENT OF THE CORPORATION; OR

(C)    IN ANY OTHER MANNER IS RELATED
TO THE ENTERPRISE, ITS CURRENT SHAREHOLDERS, OFFICERS, OR
OTHER MANAGEMENT PERSONNEL.

(III)  THE AUTHORITY MAY NOT GUARANTY MORE
THAN $500,000 $150,000 OF A PERSON'S EQUITY INVESTMENT IN AN
ELIGIBLE CORPORATION.

(4)    THE AUTHORITY SHALL GRANT LOANS OR
GUARANTIES PRIMARILY FOR FUNDS USED AS WORKING CAPITAL.

(5)    THE AUTHORITY MAY ONLY GUARANTY A LOAN TO
BE USED FOR PROJECTS FINANCED BY FEDERAL, STATE, OR LOCAL
GOVERNMENT, WHERE THE INDIVIDUAL HAS APPLIED FOR SUCH
FINANCING BUT HAS BEEN REJECTED.

266HH-6.

SUBJECT TO THE AUTHORITY OF THE SECRETARY OF ECONOMIC
AND COMMUNITY DEVELOPMENT, THE AUTHORITY MAY:

(1)    ADOPT BYLAWS FOR THE REGULATION OF ITS
AFFAIRS AND THE CONDUCT OF ITS BUSINESS;

(2)    ADOPT AN OFFICIAL SEAL AND ALTER THE SAME
AT PLEASURE;

(3)    MAINTAIN AN OFFICE AT PLACES WITHIN THE
STATE AS IT MAY DESIGNATE;

(4)    SUE AND BE SUED IN ITS OWN NAME AND PLEAD
AND BE IMPLEADED; SERVICE OF PROCESS IN ANY ACTION SHALL BE