3636

LAWS OF MARYLAND

Ch. 776

(S) (5) (F) "QUALIFIED SECURITY" MEANS:

(1)  ANY NOTE, BOND, DEBENTURE, OR OTHER EVIDENCE OF
INDEBTEDNESS;

(2)  ANY STOCK OR OTHER FORM OF EQUITY PARTICIPATION;

(3)  ANY CERTIFICATE OF INTEREST OR PARTICIPATION IN A
PROFIT SHARING AGREEMENT;

(4)  ANY INVESTMENT CONTRACT;

(5)  ANY CERTIFICATE OF DEPOSIT FOR A SECURITY;

(6)  ANY CERTIFICATE OF INTEREST OF PARTICIPATION IN A
PATENT OR PATENT APPLICATION OR IN ROYALTY OR OTHER PAYMENTS
UNDER A PATENT OR PATENT APPLICATION; OR

(7)  ANY INTEREST OR INSTRUMENT COMMONLY KNOWN AS A
"SECURITY" OR ANY CERTIFICATE FOR, RECEIPT FOR, GUARANTEE OF, OR
OPTION, WARRANT, OR RIGHT TO SUBSCRIBE TO OR PURCHASE ANY
QUALIFIED SECURITY.

(T) "SMALL BUSINESS INVESTMENT CORPORATION (SBIC)" MEANS AN

INVESTMENT COMPANY ORGANIZED TO PROVIDE CAPITAL TO SMALL

BUSINESSES AND LICENSED ACCORDING TO APPLICABLE FEDERAL LAWS AND
REGULATIONS.

(U) "STATE LEVERAGE" MEANS FINANCIAL ASSISTANCE PROVIDED TO
AN ENTERPRISE OR TO A STATE LICENSEE, DIRECTLY OR IN COOPERATION
WITH QUALIFIED FINANCIAL INSTITUTIONS, BY:

(1) THE PURCHASE OR GUARANTEE OF DEBENTURES OR OTHER
DEBT INSTRUMENTS;

(2) THE LOAN OF FUNDS; OR

(3) THE PURCHASE OF EQUITY SECURITIES.

(V) "VENTURE CAPITAL FINANCING" MEANS THE USE OF EQUITY OR
DEBT OR BOTH, INCLUDING CONVERTIBLE DEBENTURES OR DEBT WITH
WARRANTS AND STOCK OPTIONS, TO PROVIDE INTERMEDIATE TO LONG TERM
FUNDING TO SUPPORT THE GROWTH OF SMALL, NEW, OR EXISTING FIRMS
THAT HAVE POTENTIAL FOR MARKET EXPANSION AND ARE IN NEED OF
ADDITIONAL FINANCING FOR SUSTAINED GROWTH, OR RESEARCH AND
DEVELOPMENT.

13-236.

THE GENERAL ASSEMBLY FINDS THAT:

(1) VENTURE CAPITAL FINANCING IS NEEDED IN THE STATE
TO: