§ 12-501
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/md/economic-development/12-501A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
§12–501.
(a)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)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)The county may not acquire an ownership interest exceeding 25% of any enterprise.
(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)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.