§ 12-501. Equity investments

   (a) In general. -- 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) Use of proceeds. -- 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) Limitations on ownership interest. -- The county may not acquire an ownership interest exceeding 25% of any enterprise.

(d) Funding agreement. --

   (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) Posting on website. -- 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.

HISTORY: 2010, ch. 710.