Section 12-501 - Equity investments.
§ 12-501. Equity investments.
(a) In general.- Notwithstanding any other provision of law, Montgomery County may make an equity investment through the county's Economic Development Fund in a company that is located in Montgomery County or that agrees to relocate its business to Montgomery County.
(b) Use of proceeds.- The proceeds of an equity investment made under subsection (a) of this section may be used for:
(1) working capital;
(2) salaries;
(3) marketing materials;
(4) acquisition of inventory, equipment, or real property;
(5) construction;
(6) renovation;
(7) leasehold improvements; or
(8) research and development.
(c) Limitations on ownership interest.- The county may not acquire an ownership interest exceeding 25% of any enterprise.
(d) Funding agreement.-
(1) The terms of an equity investment approved by the county shall be set forth in a funding agreement.
(2) A funding agreement made under paragraph (1) of this subsection shall prohibit the county from:
(i) participating in the selection of the management of the company;
(ii) engaging in oversight of the operation of the company; or
(iii) assuming any present or future liability of the company.
(3) At the county's discretion, a funding agreement made under paragraph (1) of this subsection may consist of:
(i) an investment agreement;
(ii) a limited partnership agreement;
(iii) a preferred stock purchase agreement; or
(iv) other documents that the county may require.
(e) Posting on website.- Notice of each equity investment made by Montgomery County under subsection (a) of this section shall be posted in a readily accessible and clearly identified location on the Montgomery County government website within 5 days after the date on which the county initiates the equity investment transaction.
[2010, ch. 710.]