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<subtitle article="gec" title_number="12" subtitle_number="5" title_name="Local Development Authorities and Resources" subtitle_name="Montgomery County Equity Investments in Companies Located in the County">
  <section article="gec" article_name="Economic Development" number="12-501" title_number="12" title_name="Local Development Authorities and Resources" subtitle_number="5" subtitle_name="Montgomery County Equity Investments in Companies Located in the County">
    <level label="a">
      <text>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.</text>
    </level>
    <level label="b">
      <text>The proceeds of an equity investment made under subsection (a) of this section may be used for:</text>
      <level label="1">
        <text>working capital;</text>
      </level>
      <level label="2">
        <text>salaries;</text>
      </level>
      <level label="3">
        <text>marketing materials;</text>
      </level>
      <level label="4">
        <text>acquisition of inventory, equipment, or real property;</text>
      </level>
      <level label="5">
        <text>construction;</text>
      </level>
      <level label="6">
        <text>renovation;</text>
      </level>
      <level label="7">
        <text>leasehold improvements; or</text>
      </level>
      <level label="8">
        <text>research and development.</text>
      </level>
    </level>
    <level label="c">
      <text>The county may not acquire an ownership interest exceeding 25% of any enterprise.</text>
    </level>
    <level label="d">
      <level label="1">
        <text>The terms of an equity investment approved by the county shall be set forth in a funding agreement.</text>
      </level>
      <level label="2">
        <text>A funding agreement made under paragraph (1) of this subsection shall prohibit the county from:</text>
        <level label="i">
          <text>participating in the selection of the management of the company;</text>
        </level>
        <level label="ii">
          <text>engaging in oversight of the operation of the company; or</text>
        </level>
        <level label="iii">
          <text>assuming any present or future liability of the company.</text>
        </level>
      </level>
      <level label="3">
        <text>At the county’s discretion, a funding agreement made under paragraph (1) of this subsection may consist of:</text>
        <level label="i">
          <text>an investment agreement;</text>
        </level>
        <level label="ii">
          <text>a limited partnership agreement;</text>
        </level>
        <level label="iii">
          <text>a preferred stock purchase agreement; or</text>
        </level>
        <level label="iv">
          <text>other documents that the county may require.</text>
        </level>
      </level>
    </level>
    <level label="e">
      <text>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.</text>
    </level>
  </section>
</subtitle>