10-30-12. Loans - Investment by applicant.
120 words·~1 min read·
/nd/title-10/chapter-10-30-development-corporations/10-30-12·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
Any person, firm, or limited liability company who applies for a loan or obtains money from the development corporation shall be required to invest in the stock of the corporation in an amount to be fixed by the board of directors of not less than two percent nor more than five percent of the funds obtained. The requirement of this section may be waived by a majority vote of the board of directors for unusual circumstances or when a loan or obligation is insured or guaranteed in whole or in part by the state or federal government or any agency of either. The board may provide for repurchase of a borrower's stock when the loan has been repaid in full.