620.647. Board or corporation to authorize contractual agreements for qualified economic development organizations--qualified funds to contract with at least one qualified economic development organiz
Board or corporation to authorize contractual agreements for qualifiedeconomic development organizations--qualified funds to contract withat least one qualified economic development organization, requiredprovisions--payment of distributions to qualified economic developmentorganizations, use of payments, restrictions.
620.647. 1. The board or corporation may authorize each qualifiedeconomic development organization to enter into contractual agreements withany qualified fund allowing such qualified fund to offer tax creditsauthorized pursuant to the provisions of sections 620.635 to 620.653 tothose persons making qualified contributions to the qualified fund. Theboard shall establish policies and procedures requiring each authorizedqualified economic development organization to secure from each qualifiedfund and its investors the maximum fund equity interest possible, asdictated by market conditions, in exchange for the use of the tax credits.All tax credits authorized pursuant to sections 620.635 to 620.653 shall beadministered by the department.
2. Each qualified fund shall enter into a contract with one or morequalified economic development organizations which shall entitle allqualified economic development organizations in existence at that time toreceive and share equally all distributions of equity and dividends orother earnings of the fund that are generated as a result of any equityinterest secured as a result of actions taken to comply with subsection 1of this section. Such contracts shall require the qualified funds totransfer to the board all distributions of dividends or other earnings ofthe fund that are owed to any qualified economic development organizationthat has dissolved or has ceased doing business for a period of one year ormore.
3. All distributions of dividends, earnings, equity or the like owedpursuant to the provisions of sections 620.635 to 620.653 to a qualifiedeconomic development organization by any qualified fund shall be paid tothe qualified economic development organization. The qualified economicdevelopment organization shall use such payments solely for reinvestment inqualified funds in order to provide ongoing seed capital, start-up capitaland follow-up capital for Missouri businesses. No qualified economicdevelopment organization may transfer any dividends, earnings, equity orthe like owed it pursuant to sections 620.635 to 620.653 to any otherperson or entity without the approval of the board.
(L. 1999 S.B. 518 § 5)Effective 7-8-99