HARRY HUGHES, Governor 3641

(2) IF THE ENTERPRISE SUFFERS SEVERE FINANCIAL

DIFFICULTY, AS DETERMINED BY THE AUTHORITY, A GREATER PERCENTAGE
OF SECURITIES MAY BE OWNED BY THE AUTHORITY OR AN ADDITIONAL
INVESTMENT MAY BE MADE IN THE SECURITIES OF AN ENTERPRISE OF NOT
MORE THAN A TOTAL INVESTMENT OF $500,000.

13-242.

FRANCHISEE OR OWN AN INTEREST GREATER THAN 45 PERCENT IN ANY
FRANCHISE.

(2) THE AMOUNT OF THE AUTHORITY'S EQUITY
PARTICIPATION FINANCING FOR ANY FRANCHISE SHALL NOT EXCEED
$100,000 AND SHALL NOT EXCEED 45 PERCENT OF THE TOTAL INITIAL
INVESTMENT IN THE FRANCHISE.

(3) THE TOTAL AMOUNT OF EQUITY PARTICIPATION
FINANCING SHALL NOT EXCEED $1,000,000 FOR ANY 12-MONTH PERIOD.

(4) THE AUTHORITY SHALL FIND THAT THERE IS A
REASONABLE PROBABILITY THAT THE AUTHORITY WILL RECOVER ITS
INITIAL INVESTMENT AND AN ADEQUATE RETURN ON INVESTMENT, AND THE
AUTHORITY'S INVESTMENT SHALL BE RECOVERABLE WITHIN 5 YEARS OF THE
EQUITY PARTICIPATION FINANCING UNLESS EXTENDED BY THE AUTHORITY.

(5) THE AUTHORITY'S RECOVERY SHALL BE THE GREATER OF
THE CURRENT VALUE OF THE PERCENTAGE OF THE EQUITY INVESTMENT IN
THE BUSINESS ENTITY OR THE AMOUNT OF THE INITIAL INVESTMENT IN
THE BUSINESS ENTITY.

(6) THE VALUE OF THE BUSINESS ENTITY AT THE TIME OF
RECOVERY SHALL BE THE AVERAGE OF 3 INDEPENDENT APPRAISALS OF THE
VALUE.

(C) THE LIABILITY OF THE STATE OF MARYLAND AND OF THE
AUTHORITY IN PROVIDING EQUITY PARTICIPATION FINANCING SHALL BE
LIMITED TO ITS INVESTMENTS UNDER THE PROGRAM.

13-241.

(A)  THE AUTHORITY SHALL OPERATE, THERE IS AN EQUITY

PARTICIPATION INVESTMENT PROGRAM FUND ESTABLISHED AS A
CONTINUING, NONLAPSING SPECIAL, REVOLVING FUND., A PROGRAM
INVESTMENT FUND THAT CONSISTS OF MONEY APPROPRIATED BY THE STATE
AND OTHER MONEY MADE AVAILABLE TO THE FUND THROUGH FEDERAL
PROGRAMS OR PRIVATE CONTRIBUTIONS.

(B) THE FUND CONSISTS OF MONEY DRAWN FROM THE SMALL
BUSINESS DEVELOPMENT GUARANTY FUND, MONEY APPROPRIATED BY THE
STATE, AND OTHER MONEY MADE AVAILABLE TO THE FUND THROUGH FEDERAL
PROGRAMS OR PRIVATE CONTRIBUTIONS.

(B) (C) THE FUND SHALL BE SELF-SUSTAINING AND SHALL ACHIEVE
INVESTMENT RETURNS ON ITS PORTFOLIO IN THE FORM OF: