PARRIS N. GLENDENING, Governor                             S.B. 810

(ii) The amount of funds available for investments under this
subsection and the criteria upon which investment decisions will be made by the
Department.

[(d) There is an Enterprise Fund in the Department established as a nonlapsing,
revolving special fund managed and supervised by the Secretary.

(e)     The Fund may consist of any of the following:

(1)     Moneys appropriated by the State to the Fund;

(2)     Moneys made available to the Fund through appropriate federal
programs or private contributions;

(3)     Income from investments that the State Treasurer makes from moneys
in the Fund;                                                               

(4)     Repayments of principal and interest from loans made from the Fund;

(5)     Proceeds from the sale, disposition, lease or rental by the Department of
collateral related to any financing provided by the Department under this section;

(6)     Premiums, fees, royalties, and repayments of principal, interest and
investment paid to the Department by or on behalf of a business enterprise in which the
Department has made an equity investment, or by or on behalf of an investor providing an
investment guaranteed by the Department under this section;

(7)     Recovery of any equity investment made by the Department in a
business enterprise, including any arrangement under which the Department's investment
in the business enterprise is recovered through:

(i) A requirement that the Department receive a proportion of cash
flow, commissions, royalties, or payments on a patent; or

(ii) The repurchase from the Department of any evidence of equity
participation, such as notes, stocks, bonds or debentures;

(8)     Repayments received from conditional grants extended by the
Department; and

(9)     Any other moneys made available to the Department.

(f)      (1) The Department may use the Fund for the following purposes:

(i) To make grants or loans, at a rate of interest to be determined by
the Department;

(ii) To provide equity investment financing for a business enterprise;

(iii) To provide guarantees of loans, equity, investment, or other
private financings to expand the capital resources of a business enterprise;

(iv) To purchase advisory services and technical assistance to enable
the Department to better support economic development; and

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