Code of Maine Rules
94 - INDEPENDENT AGENCIES
457 - FINANCE AUTHORITY OF MAINE (FAME)
Chapter 319 - MAINE ECONOMIC DEVELOPMENT VENTURE CAPITAL REVOLVING INVESTMENT PROGRAM
Section 457-319-6 - Investment Contract

Universal Citation: 94 ME Code Rules ยง 457-319-6

Current through 2024-13, March 27, 2024

The authority will enter into a contract with each qualifying investment fund that has been approved for participation in the program. The contract must provide that a qualifying investment fund shall, at a minimum, conform to the following terms and conditions:

A. The qualifying investment fund shall certify that it will use funds only for eligible purposes and that it will make best efforts to invest an amount equal to the authority's investment in the fund in for-profit enterprises located within the State of Maine, which:

1. Are manufacturers;

2. Are sellers of goods or providers of services, 60% or more of the customers of which are located or are from out of the State and the employment functions are carried out predominantly within the State, as determined by the chief executive officer;

3. Are engaged in the development or application of advanced technologies; or

4. Bring capital into the State on a permanent basis in the ordinary course of business, as determined by the chief executive officer.

B. The authority's rights are equal to those of all other investors investing in the same class as the Authority in the qualifying investment fund.

C. If the qualifying investment fund breaches its contract with the authority or ceases to operate an investment program in substantial conformance with its application to the authority, the authority may require immediate repayment to the authority of any investment made from the program fund.

D. A qualifying investment fund may not use more than 4% annually of the aggregate amount invested in the fund by the authority and other investors for administrative expenses or load charges. The authority shall review and approve a qualifying investment fund's administrative expenses annually.

E. A qualifying investment fund shall report at least semiannually to the authority on the businesses in which the qualifying investment fund invests and the administration of the program. The report must include a description of each business, the amount, type and terms of assistance the business received, the amount of funds invested in businesses that meet the criteria of section 6A, the number of jobs that were created or retained and other information the authority requires. The report must contain an accounting of the investment portfolio and any investments that are in default, as well as an accounting of the qualifying investment fund's administrative and technical assistance expenses incurred and charged.

F. The Agreement shall contain such provisions as the chief executive officer may require releasing the authority from any suits or claims arising out of the investment.

G. The authority shall review annually each qualifying investment fund's participation in the program and, in its discretion, may require an independent audit at the expense of the qualifying investment fund. If the authority determines that a qualifying investment fund has used funds for ineligible purposes, the qualifying investment fund shall repay those funds to the authority for deposit into the fund.

H. Other terms and conditions that the authority determines appropriate.

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