GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 1999

S	1 

SENATE BILL 1464

Short Title:  Treasurer Invest in Rural SBIC.	(Public)

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Sponsors: Senator Hoyle.

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Referred to:  Rules and Operations of the Senate.

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May 25, 2000

A BILL TO BE ENTITLED
AN ACT TO AUTHORIZE THE STATE TREASURER TO INVEST IN A SMALL BUSINESS INVESTMENT COMPANY THAT INVESTS IN RURAL, NORTH CAROLINA BUSINESSES.
The General Assembly of North Carolina enacts:
Section 1.  G.S. 147-69.2(b) is amended by adding a new subdivision to read:
"(12)	With respect to assets of the Escheat Fund, securities of a qualified SBIC, or a limited partnership interest in which a qualified SBIC is the only general partner, not to exceed fifteen million dollars ($15,000,000).  This maximum dollar amount does not apply to or restrict the reinvestment in accordance with this subdivision of any income from these investments.  For the purposes of this subdivision, a qualified SBIC is a small business investment company as defined in the Small Business Investment Act of 1958, 15 U.S.C. § 661, et seq., that is domiciled or has an office in North Carolina and whose primary purpose is to provide mezzanine financing to growing companies located in rural North Carolina.  An investment made pursuant to this subdivision must be conditioned on the qualified SBIC's reinvestment of the invested funds only in businesses located in rural North Carolina. In the event of a loss to the Escheat Fund by reason of an investment made pursuant to this subdivision, it is the intention of the General Assembly to hold the Escheat Fund harmless from any such loss by appropriating to the Escheat Fund funds equivalent to the loss."
Section 2.  This act is effective when it becomes law.