WILLIAM DONALD SCHAEFER, Governor Ch. 535

13-241.

(a)  There is an Equity Participation Investment Program
Fund established as a nonlapsing, revolving fund.

(b)  The Fund consists of:

(1)  Money drawn from the Small Business Development
Guaranty Fund;

(2)  Money appropriated by the State to the Fund;

(3)  Money made available to the Fund through federal
programs or private contributions;

(4)  Income from investments that the State Treasurer,
on instruction of the Authority, makes from moneys in the Fund;

(5)  Proceeds from the sale, disposition, lease or
rental by the Authority of collateral related to equity
participation financing provided by the Authority;

(6)  Premiums, fees, royalties, and repayments of
principal, interest and investments paid by and on behalf of
[franchise] enterprises to the Authority under the terms of
equity participation financing provided by the Authority; and

(7)  Any other moneys made available under this
Program.

(c)  The Fund shall be self-sustaining and shall achieve
investment returns on its portfolio in the form of:

(1)  Royalties from [franchises] ENTERPRISES in
amounts to be determined by the Authority; and

(2)  If a debt security is used, interest payments.

(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 $2,000,000, and deposit
these amounts into the Equity Participation Investment Program
Fund.

(e)  The Authority shall use the Fund and income from the
Fund:

(1)   In the purchase of qualified securities issued by
[a franchise] AN ENTERPRISE for the purpose of providing equity
participation financing as permitted under the Program;

(2)  To provide guarantees of investments to expand
the capital resources of qualified [franchises] ENTERPRISES;

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