20 ILCS 3501/810-20
2021 Illinois Compiled Statutes|Chapter 20 - EXECUTIVE BRANCH|20 ILCS 3501/ - Illinois Finance Authority Act.|Article 810 - Venture Investment Fund

Sec. 810-20. Powers and Duties; Illinois Venture Investment Fund Limits. The  Authority shall invest and reinvest the Fund and the income, thereof, in the  following ways:(a) To make a direct investment in qualified securities issued by  enterprises  and to dispose of those securities within 10 years after the date of the direct  investment as determined by the Authority for the purpose of providing venture  capital or seed capital, provided that the investment shall not exceed 49% of  the estimated cost of development, testing, and initial production and  marketing  and associated working capital for the technology, product, process, or  invention, or $750,000, whichever is less;(b) To enter into written agreements or contracts (including limited  partnership agreements) with one or more professional investors or one or more  seed capital investors, if any, for the purpose of establishing a pool of funds  to be used exclusively as venture capital or seed capital investments. The  Authority shall not invest more than $2,000,000 in a single pool of funds or  affiliated pools of funds.  The agreement or contract shall provide for the pool of funds to be managed by  a professional investor. The manager may be the general partner of a limited  partnership of which the Authority is a limited partner.  The agreement or contract may provide for reimbursement of expenses of, and  payment of a fee to, the manager. The agreement or contract may also provide  for payment to the manager of a percentage, not to exceed 40% (computed on an  annual basis), of cash and other property payable to the Authority as its  pro-rata share of distributions to investors in the pool of funds, provided  that (i)  no amount shall be received by the manager upon sale or other disposition of  qualified investments in enterprises until recovery by the Authority of its  investment and upon liquidation or withdrawal of the Authority from the pool of  funds, the manager shall be obligated to refund any amount received by it from  such percentage if necessary to allow the Authority to recover its investment  or  (ii) the terms of payment of cash and other property to the Authority are no  less favorable to the Authority than payments to other seed capital investors  (other than the manager) who are parties to the agreement or contract.(c) To make co-venture investments by entering into agreements with one or  more  professional investors or one or more seed capital investors, if any, who have  formally agreed to invest at least 50% as much as the Authority invests in the  enterprise, for the purpose of providing venture capital or seed capital; but  no more than $1,000,000 shall be invested by the Authority in the qualified  securities of a single enterprise. A total of not more than $1,500,000 may be  invested in the securities of a single enterprise, if the Authority shall find,  after the initial investment by the Authority, that additional investments in  the enterprise are necessary to protect or enhance the initial investment of  the  Authority.  Each co-venture investment agreement shall provide that the Authority will  recover its investment before or simultaneously with any distribution to  participating professional investors or seed capital investors. The Authority  and participating professional investors and seed capital investors shall share  ratably in the profits earned in any form on the co-venture investment, but the  Authority may, at its discretion, agree to pay to a participating professional  investor a percentage, not to exceed 40% (computed on an annual basis), of cash  and other property payable to the Authority as its pro-rata share of  distributions to investors in the pool of funds, provided that (i) no amount  shall be received by the participating professional investor upon sale or other  disposition of qualified investments in the enterprises until recovery by the  Authority of its investment and upon liquidation or withdrawal of the Authority  from the pool of funds, the participating professional investor shall be  obligated to refund any amount received by it from such percentage if necessary  to allow the Authority to recover its investment or (ii) the terms of payment  of cash and other property to the Authority are no less favorable to the  Authority  than payments to other seed capital investors or professional investors (other  than the professional investor) who are parties to the agreement or contract;(d) To purchase qualified securities of certified development corporations  created under  Section 503 of the federal Small Business Administration Act,  including the Illinois Small Business Growth Corporation, for the purpose of  making loans to enterprises that have the potential to create substantial  employment within the State per dollar invested by the Authority, provided that  the investment does not exceed 25% of the total investment in each corporation  at the time the investment is approved by the Authority. Investment by the  Authority in the Illinois Small Business Growth Corporation is not limited by  the foregoing provision;(e) To purchase qualified securities of small business investment companies  and  minority enterprise small business investment corporations certified by the  federal Small Business Administration which are committed to making 60% of  their  investments in the State, provided that investments from the Fund do not exceed  25% of the total investment in these entities at the time the investment is  approved by the Authority;(f) To make the investments of any funds held in reserves or sinking funds,  or any funds not required for immediate disbursement, as may be lawful  investments  for fiduciaries in the State;(g) To facilitate and promote the acquisition and revitalization of existing  manufacturing enterprises by, at the Authority's discretion, developing and maintaining a list of firms, or  divisions thereof, located within the State that are available for purchase,  merger, or acquisition. The list may be made available at such charges as the  Authority may determine to all interested persons and institutions upon  request. No firm shall appear on the list without its prior written permission.  The list  may contain such additional financial, technical, market and other information  as may be supplied by the listed firm. The Authority shall bear no  responsibility for the accuracy of the information contained on the list, and  each listed firm shall hold the Authority harmless against any claim of  inaccuracy.  Enterprises supported by investments from the Fund may receive consideration  by the Authority in the allocation of loans to be insured or loans to be made  from the proceeds of bonds to be insured by the Industrial Revenue Bond  Insurance Fund established under this Article, and the  Authority may coordinate its activities under the 2 programs.  (Source: P.A. 97-789, eff. 7-13-12.)