Sec. 5. Exits and repayment
140 words·~1 min read·
/bill/116/hr/6403/ih/section-5A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
If a State to which an allocation is made under a covered program receives funds from an exit with respect to a covered investment, the State shall use those funds to further invest in startups in the manner contemplated by the applicable covered program. The Secretary shall— require that each allocation agreement described in section 3(c)(1)(D) include the requirement under paragraph (1); and in any audit conducted of the State by the Secretary under a covered program, confirm that there is compliance with respect to the requirement under paragraph (1).
If a State to which an allocation is made under a covered program receives funds from an exit with respect to a covered investment and fails to comply with any requirement under this Act, that State shall repay to the Secretary the amount of that allocation, including any realized gains.