§ 10-470
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/md/economic-development/10-470A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
§10–470.
(a)The Corporation may require that all or part of a grant be repaid, with interest at a rate the Corporation sets, when conditions specified by the Corporation occur.
(1)Whenever the Corporation is authorized by law to make a grant, including a grant from the Economic Development Opportunities Program Account authorized under § 7–314 of the State Finance and Procurement Article, the Corporation may use money appropriated for the grant to make an equity investment in a qualified business.
(i)Except as provided in subparagraph
(ii)of this paragraph and Subtitle 4A of this title, in making an equity investment under this subtitle or Subtitle 4A of this title, the Corporation may not acquire an ownership interest in an enterprise that exceeds 25%.
(ii)In making an equity investment under this subtitle or Subtitle 4A of this title in one or more venture or private equity firms, the Corporation may acquire an ownership interest exceeding 25%.
(3)Within 15 years after making an equity investment under this subtitle or Subtitle 4A of this title, the Corporation shall divest itself of that investment.
(4)The liability of the State and the Corporation in making an equity investment under this subtitle or Subtitle 4A of this title is limited to the amount of that investment.