3642

LAWS OF MARYLAND

Ch. 776

(1)  ROYALTIES FROM ENTERPRISES, AS A MULTIPLE OF THE
AMOUNT INVESTED, TO BE INITIALLY SET AT 5 PERCENT OF SALES AND TO
BE RENEGOTIATED BASED ON THE RATE OF RETURN ON THE ORIGINAL
INVESTMENT FRANCHISES IN AMOUNTS TO BE DETERMINED BY THE
AUTHORITY; AND

(2)  IF A DEBT SECURITY IS USED, INTEREST PAYMENTS.

(C) (D) THE AUTHORITY MAY, FROM TIME TO TIME AS NEEDED FOR
THE PROGRAM, WITHDRAW AMOUNTS FROM THE SMALL BUSINESS DEVELOPMENT
GUARANTY FUND, NOT TO EXCEED A TOTAL OF $1,000,000, AND DEPOSIT
THESE AMOUNTS INTO THE EQUITY PARTICIPATION INVESTMENT PROGRAM
FUND.

(C) (D) (E) THE AUTHORITY SHALL USE THE FUND AND INCOME
FROM THE THE FUND:

(1)  IN THE PURCHASE OF QUALIFIED SECURITIES ISSUED BY
AN ENTERPRISE A FRANCHISE FOR THE PURPOSE OF PROVIDING VENTURE
CAPITAL EQUITY PARTICIPATION FINANCING AS PERMITTED UNDER THE
PROGRAM;

(2)  TO PROVIDE DIRECT LOANS AND GUARANTEES OF LOANS
AND INVESTMENTS TO EXPAND THE CAPITAL RESOURCES OF QUALIFIED
SMALL BUSINESS FINANCING COMPANIES; AND FRANCHISES;

(3)  IN THE PURCHASE OF ADVISORY SERVICES AND
TECHNICAL ASSISTANCE TO STRENGTHEN AND GUIDE THE SELECTION AND
MANAGEMENT OF THE BUSINESS ENTERPRISE; AND CONSISTENT WITH THE
PROGRAM;

(4)  IN THE PURCHASE OF ANY SECURITIES THAT MAY BE A
LAWFUL INVESTMENT FOR A FIDUCIARY OF THE STATE . ; AND

(5) TO PROVIDE EQUITY PARTICIPATION FINANCING AS
PERMITTED UNDER THE PROGRAM.

(D) (E) (F) (1) THE STATE TREASURER SHALL HOLD AND THE
STATE COMPTROLLER SHALL ACCOUNT FOR THE FUND.

(2) ANY INVESTMENT EARNINGS OF THE FUND SHALL BE PAID
INTO THE FUND.

13-243.

(A) THE STATE BOND COMMISSION MAY AUTHORIZE THE ISSUANCE OF
GENERAL OBLIGATION BONDS OF THE STATE IN 1 OR MORE SERIES AND IN
PRINCIPAL AMOUNTS OF NOT MORE THAN $10,000,000 IN THE AGGREGATE
TO CARRY OUT THE PURPOSES OF THIS ACT.

(B) AFTER DEDUCTING THE EXPENSES OF ISSUANCE AND SALE, THE
PROCEEDS FROM THE SALE OF BONDS UNDER THIS SECTION SHALL BE PAID
TO THE MARYLAND SMALL BUSINESS DEVELOPMENT FINANCING AUTHORITY
VENTURE CAPITAL FUND.