In <cite data-path="27">this subtitle</cite> the following words have the meanings indicated.
“Board of Estimates” means the Board of Estimates of the City of Baltimore.
“City” means Mayor and City Council of Baltimore.
“Economic Development Agency” means an agency, commission or other entity, public or private, so designated for purposes of <cite data-path="27">this subtitle</cite> by the Board of Estimates.
“Enterprise” means any individual, partnership, corporation, joint venture or other entity carrying on business, or proposing to carry on business within the limits of Baltimore City.
“Equity” means equity as determined in accordance with generally accepted accounting principles.
“Fund” means the Enterprise Development Fund established for purposes of <cite data-path="27">this subtitle</cite> by the City.
“Program” means the Enterprise Development Program established for purposes of <cite data-path="27">this subtitle</cite> by the City.
“Working capital” means working capital as determined in accordance with generally accepted accounting principles.
1984, ch. 745
The General Assembly finds that there is a critical need in the City for venture capital to assist in the establishment and growth of enterprises in order to promote the expansion, stability, and diversification of the City’s industrial and commercial base and the expansion of employment opportunities in the City.
The purpose of <cite data-path="27">this subtitle</cite> is to establish a program through which the City may commit limited amounts of public funds for the establishment and growth of enterprises through equity investment, loans and loan guaranties to enterprises meeting the criteria established in <cite data-path="27">this subtitle</cite> in order to create a business environment in the City which will attract venture capital from private sources. It is the intention and the purpose of the General Assembly to create an enterprise development program that will promote a partnership between the public and private sectors for the essential public purpose of creating new and better employment opportunities and enhancing the long-term economic well-being and general welfare of the residents of the City.
It is the intention of the General Assembly that the City shall have complete and absolute discretion to determine the enterprises that will receive the benefit of the financial assistance contemplated and authorized by <cite data-path="27">this subtitle</cite>.
<cite data-path="27">This subtitle</cite> shall be broadly construed to effect its purposes.
1984, ch. 745
The financing, development, operation and administration of any enterprise financially assisted pursuant to <cite data-path="27">this subtitle</cite> are subject to the provisions of <cite data-doc="Md. Code" data-path="49B">Article 49B of the Annotated Code of Maryland</cite> that concern discrimination and unlawful practices.
1984, ch. 745
Any finding or determination by or on behalf of the City as to the implementation of <cite data-path="27">this subtitle</cite> is conclusive.
1984, ch. 745
In order to accomplish the legislative purposes of <cite data-path="27">this subtitle</cite>, the City may implement the Program and establish the Fund.
The Program shall be administered and the Fund shall be held, managed, supervised, and accounted for by or at the direction of the Board of Estimates.
The Board of Estimates in its sole and absolute discretion may:delegate to an economic development agency the full responsibility and discretion to administer the Program and to hold, manage, supervise and account for the Fund on behalf of the City; or
create a local authority to administer the Program and to hold, manage, supervise and account for the Fund on behalf of the City and grant it such powers and duties as the Board of Estimates deems necessary or convenient consistent with the conditions, limitations and purposes of <cite data-path="27">this subtitle</cite>.
The funds shall be a continuing, non-lapsing, revolving Fund that consists of:moneys appropriated by the City;
any dividends, profits, royalties or other earnings received as a result of any equity investment made pursuant to <cite data-path="27">this subtitle</cite>;
any repayment of principal of and interest on a loan made pursuant to <cite data-path="27">this subtitle</cite>;
premiums and fees received from loans made or guaranteed pursuant to <cite data-path="27">this subtitle</cite>;
proceeds from the sale, lease, rental or other disposal of property, goods or other collateral held or acquired by the City to secure the repayment of a loan made or guaranteed pursuant to <cite data-path="27">this subtitle</cite>;
moneys from any source to effect the purposes of <cite data-path="27">this subtitle</cite>, including, without limitation, any federal or private grant; and
investment earnings on the Fund.
The Fund shall be segregated from other funds of the City.
The Fund shall be invested and reinvested in the same manner as other funds of the City. Any investment earnings on the Fund (including, without limitation, dividends, profits, royalties or other earnings received as a result of equity investments made by the Fund, interest on loans made from the Fund and premiums and fees received from loans guaranteed by the Fund) to the extent not expended or obligated within any fiscal year pursuant to <cite data-path="27">this subtitle</cite> shall be paid into the general fund of the City.
The City shall use the Fund exclusively:to pay all expenses incurred pursuant to <cite data-path="27">this subtitle</cite>, including expenses for administrative, legal, actuarial and other services;
to make equity investments or loans pursuant to <cite data-path="27|§27-6">Section 27-6</cite>;
to make any payment required in connection with a loan guaranteed pursuant to <cite data-path="27|§27-7">Section 27-7</cite>; and
to make any payment on behalf of an enterprise to any third party pursuant to <cite data-path="27|§27-7|(c)">Section 27-7(c)</cite> for the extension of credit or for a loan guaranty by that third party.
Any obligation incurred by the City pursuant to <cite data-path="27">this subtitle</cite> shall be a limited obligation of the City payable exclusively from moneys on deposit in the Fund. In no event shall the City be held liable for any debts or obligations of an enterprise financially assisted pursuant to <cite data-path="27">this subtitle</cite>.
The unobligated balance in the Fund as of the beginning of any fiscal year may not exceed $3,000,000.
1984, ch. 745
To implement the Program, the City may make an equity investment in or a loan to an enterprise, provided that the City in its sole and absolute discretion determines that such equity investment or loan will:provide working capital to the enterprise or be used by the enterprise to purchase machinery or equipment; and
assist in the establishment or growth of an enterprise and likely result in the establishment or expansion of manufacturing, office, research or related activities in the City.
Any equity investment or loan made pursuant to paragraph (a):shall be made only to and for the benefit of an enterprise; and
shall be upon the terms and conditions as the City in its sole and absolute discretion may prescribe, provided that:if a loan is made from the proceeds of a bond issue, the loan may not bear interest at a rate that would cause the bonds to be “arbitrage bonds” within the meaning of Section 103(c) of the Internal Revenue Code of 1954, as amended, or any successor provision; and
a loan shall mature at a date no later than 10 years following the date on which the first funds are advanced to the enterprise.
The City may establish fees in an amount calculated to cover the administrative expense of making the equity investment or the loan.
The City may make an equity investment in or a loan to an enterprise pursuant to <cite data-path="27|§27-6">this section</cite> or may guarantee a loan made by a private lender to an enterprise or procure a third party to guarantee a loan to an enterprise pursuant to <cite data-path="27|§27-7">Section 27-7</cite> in any combination which the City, in its sole and absolute discretion, deems appropriate.
1984, ch. 745
1986, ch. 595
1990, ch. 6
1995, ch. 3
To implement the Program, the City may guarantee a loan made by a private lender to an enterprise, provided that the City in its sole and absolute discretion determines that the loan to be guaranteed will:provide working capital to the enterprise or be used by the enterprise to purchase machinery or equipment; and
assist in the establishment or growth of an enterprise and likely result in the establishment or expansion of manufacturing, office, research or related activities in the City.
The City in its sole and absolute discretion may prescribe the terms upon which a loan is to be guaranteed and may establish premiums and fees in an amount calculated to cover the administrative expense of guaranteeing the loan and the risk of loss arising from a loan default, provided that the loan that is to be guaranteed shall be made to and for the benefit of an enterprise.
In lieu of directly guaranteeing a loan, the City in its sole and absolute discretion may procure a third party to guarantee a loan to an enterprise and may pay the fees therefor on behalf of the enterprise, provided that the conditions and limitations set forth in paragraphs (a) and (b) of <cite data-path="27|§27-7">this section</cite> are fully satisfied.
The City shall determine in accordance with sound financial principles the reserves that shall be maintained in the Fund to ensure full and prompt payment when due of any amounts payable as a result of any default on a loan guaranteed pursuant to <cite data-path="27|§27-7">this section</cite>, and for purposes of paragraph (2) of <cite data-path="27|§27-5|(e)">Section 27-5(e)</cite> such reserves shall be deemed obligated in the fiscal year in which the loan to which such reserves apply is guaranteed.
The City may guarantee a loan made by a private lender to an enterprise or procure a third party to guarantee a loan to an enterprise pursuant to <cite data-path="27|§27-7">this section</cite> or may make an equity investment in or a loan to an enterprise pursuant to <cite data-path="27|§27-6">Section 27-6</cite> in any combination which the City, in its sole and absolute discretion, deems appropriate.
1984, ch. 745
The City, in its sole and absolute discretion, may terminate the Program and cease to make equity investments and loans and to guarantee loans pursuant to <cite data-path="27">this subtitle</cite>.
Prior to the termination of the Program, all outstanding equity investments shall be liquidated on terms most favorable to the City and the net proceeds thereof shall be deposited in the Fund.
Following termination of the Program, the City shall continue:to service from the Fund all outstanding loans and loan guaranties made by the City pursuant to <cite data-path="27">this subtitle</cite> prior to the termination of the Program in accordance with their respective terms;
to deposit in the Fund all repayments of principal of an <em>{and} </em>interest on all outstanding loans made by the City pursuant to <cite data-path="27">this subtitle</cite> prior to the termination of the Program and any proceeds from the sale, lease, rental or other disposal of property, goods or other collateral held or acquired by the City to secure the repayment of a loan made or guaranteed by the City pursuant to <cite data-path="27">this subtitle</cite> prior to the termination of the Program;
to pay from the Fund, as and when due, any obligations entered into by the City with respect to any loan guaranty made by the City pursuant to <cite data-path="27">this subtitle</cite> prior to the termination of the Program; and
to pay from the Fund all expenses incurred by the City in administering the Fund.
At such time as all loans made, and all obligations entered into, by the City pursuant to <cite data-path="27">this subtitle</cite> prior to the termination of the Program have been paid, satisfied or otherwise terminated, all moneys remaining in the Fund shall be paid over to the general fund of the City.
1984, ch. 745