HARRY HUGHES, Governor                     3633

BY adding to

Article - Financial Institutions

Section 13-235 through 13-243 13-241, inclusive, to be under

the new part "Part VII. Venture Capital Equity

Participation Investment Program"
Annotated Code of Maryland
(1980 Volume and 1984 Supplement)

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That Section(s) 13-235 and the part "Part

VII.  "Remedies of Authority", respectively, of Article -
Financial Institutions of the Annotated Code of Maryland be
renumbered to be Section(s) 13-244 13-242 and the part "Part

VIII.  Remedies of Authority", respectively.

SECTION 2. AND BE IT FURTHER ENACTED, That the Laws of
Maryland read as follows:

Article - Financial Institutions

PART VII. VENTURE CAPITAL EQUITY PARTICIPATION
INVESTMENT PROGRAM

13-235.

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

(B) "ACCREDITED INVESTOR" HAS THE MEANING USED IN

REGULATION D OF THE SECURITIES ACT OF 1933, AND INCLUDES

INDIVIDUALS MEETING ESTABLISHED WEALTH CRITERIA CERTAIN

INSTITUTIONS, AND SENIOR OFFICIALS, OR INSIDERS OF ISSUER FIRMS.

(C) "CERTIFIED DEVELOPMENT COMPANY" MEANS A DEVELOPMENT
COMPANY ORGANIZED TO OPERATE ON A LOCAL, REGIONAL, OR STATEWIDE
BASIS, AS EITHER A PRIVATE NONPROFIT CORPORATION OR A FOR PROFIT
STOCK CORPORATION, TO SELL DEBENTURES GUARANTEED BY THE FEDERAL
SMALL BUSINESS ADMINISTRATION PERTAINING TO IDENTIFIABLE SMALL
CONCERNS AND TO RENDER OTHER ASSISTANCE TO SMALL BUSINESSES.

(D) "COMMUNITY DEVELOPMENT CORPORATION (CDC)" MEANS A

COMMUNITY BASED NONPROFIT CORPORATION ORGANIZED UNDER THE GENERAL
LAWS OF THE STATE TO PERFORM CERTAIN COMMUNITY SERVICES AND
REGULATED BY THE COMMUNITY SERVICES ADMINISTRATION OR ANY OTHER
FEDERAL AGENCY.

(E) "CO-VENTURE" MEANS:

(1) AN INVESTMENT BY THE AUTHORITY IN QUALIFIED
SECURITIES OF AN ENTERPRISE IN WHICH A SUBSTANTIAL INVESTMENT IS
MADE BY A PROFESSIONAL INVESTOR TO PROVIDE VENTURE CAPITAL TO AN
ENTERPRISE; OR