Sec. 9-5.3. Equity intermediary agreements.
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Sec. 9-5.3. Equity intermediary agreements.
(a)The Department is authorized to exercise its powers and duties set forth in this Article through equity intermediary agreements to assist young, high risk, technology based firms, including business start-ups.
(b)An equity intermediary agreement may include seed financing or capitalization of one or more equity investment pools managed by a financial intermediary, provided that the assistance is used for investing in third parties.
(c)The Department is authorized to rely upon the financial intermediary to determine the portion of the equity investment requirements of the third party recipient to be financed and upon the documentation and analysis standards of the intermediary instead of the requirements of subsection
(b)of Section 9-5.1, provided that other organizations have contributed substantially to the capitalization of the equity pool.