SB 527 Text

Senate Bill No. 527
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(Originating in the Committee on Finance;
reported March 3, 1994.)
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A BILL to amend and reenact section seven, article seven, chapter twelve of the code of West Virginia, one thousand nine hundred thirty-one, as amended, relating to placing limitations on investments by the jobs investment trust board; providing for an additional short-term debt investment; providing for an extension of the twelve-month repayment term; specifying criteria for granting an extension; and requiring the board to report any extension to the governor and the Legislature.

Be it enacted by the Legislature of West Virginia:
That section seven, article seven, chapter twelve of the code of West Virginia, one thousand nine hundred thirty-one, as amended, be amended and reenacted to read as follows:

ARTICLE 7. JOBS INVESTMENT TRUST FUND.

§12-7-7. Limitation on investments.

Subject to the provisions of section nine of this article, the board may invest in any eligible business: Provided, That at the time of the placement of the investment not more than twenty percent of the board's total investment portfolio is invested inone eligible business within any two-year period: Provided, however, That the board may invest in an eligible business up to an additional twenty percent of the board's total investment portfolio, or up to a total of two million dollars, whichever is less. The additional investment must be in the form of a short- term debt investment to be repaid within twelve months of the investment: Provided further, That the board may extend the twelve-month repayment term for such periods, not to exceed seven additional months in the aggregate from the original repayment due date, and upon the same terms specified under the twelve-month repayment term, if the eligible business demonstrates to the board: (i) That the business is progressing with a plan for capital formation and business development; and (ii) that the extension of the twelve-month period, and any other modification thereto, will not substantially prejudice the position of the board in relation to the other investors in, and creditors of, the eligible business. The board shall report any extension of any repayment terms, approved by the board pursuant to the provisions of this section, to the governor and to the legislature's joint committee on government and finance within twenty days of the approval.

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