N.Y. Comp. Codes R. & Regs. tit. 21 § 4254.3
Current through Register Vol. 46, No. 25, June 18, 2024
Section 4254.3 - General Requirements(a) The corporation shall use the fund monies, in accordance with the authorizing legislation and other applicable law and regulations, for direct or indirect investments, including equity investments and hybrid investments, in beneficiary companies and for all costs and expenses arising from and related to such investments.(b) The documentation for each fund investment will provide reasonable terms and conditions for recompense to be provided to the corporation by the beneficiary company if it leaves the State within a period of time to be established by the corporation for such investment, such recompense may include the full or partial repayment of the investment received by the beneficiary company or other consideration satisfactory to the corporation.(c) Any moneys received by or returned to the corporation with respect to the fund investments may be used by the corporation pay for future fund investments, including new investments and follow-on investments, and the costs and expenses arising from and related to any and all fund investments. In the event of termination of participation in the fund by any investment entity, the corporation may, on a reasonable basis and with authorization of by the directors of the corporation, use all or part of the commitment made to such terminated investment entity to make direct or indirect fund investments or to redeploy to one or more of the other participating investment entities all or part of such commitment.(d) The corporation shall adopt guidelines regarding conflicts of interest with respect to the investment of fund monies in beneficiary companies, including such investments made directly by the corporation, made with the advice or recommendation of an investment entity, or made through an investment entity.N.Y. Comp. Codes R. & Regs. Tit. 21 § 4254.3
Adopted, New York State Register, Volume XXXVI, Issue 22, effective 6/4/2014