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.