§ 63M-1-1213. Organization of Utah fund of funds.

(1) The corporation shall organize the Utah fund of funds.

(2) The Utah fund of funds shall make investments in private seed and venture capital partnerships or entities in a manner and for the following purposes:

(a) to encourage the availability of a wide variety of venture capital in the state;

(b) to strengthen the economy of the state;

(c) to help business in the state gain access to sources of capital;

(d) to help build a significant, permanent source of capital available to serve the needs of businesses in the state; and

(e) to accomplish all these benefits in a way that minimizes the use of contingent tax credits.

(3) The Utah fund of funds shall be organized:

(a) as a limited partnership or limited liability company under Utah law having the corporation as the general partner or manager;

(b) to provide for equity interests for designated investors which provide for a designated scheduled rate of return and a scheduled redemption in accordance with rules made by the board pursuant to Title 63G, Chapter 3, Utah Administrative Rulemaking Act; and

(c) to provide for loans by or the issuance of debt obligations to designated investors which provide for designated payments of principal, interest, or interest equivalent in accordance with rules made by the board pursuant to Title 63G, Chapter 3, Utah Administrative Rulemaking Act.

(4) Public money may not be invested in the Utah fund of funds.

Amended by Chapter 18, 2008 General Session
Renumbered and Amended by Chapter 382, 2008 General Session