MA Gen L ch 40g § 4b (2021)
2021 Massachusetts General Laws|Part I - Administration of the Government|Title VII - Cities, Towns and Districts|Chapter 40g - Massachusetts Technology Development Corporation|Section 4b - Commonwealth Fund; Co-Investment Funds

Section 4B. The corporation is hereby authorized and directed to establish a fund to be called the Commonwealth Fund which shall be managed by the MTDC to benefit and expand the economic climate within the commonwealth so long as such is consistent with sound investment policy. MTDC is also authorized to seek and secure additional assets from public and private investment managers to establish one or more funds to be called the Co-Investment Funds which shall become co-investors along with the commonwealth and other funds.  The initial amount that MTDC will transfer from its assets to the Commonwealth Fund, during the fiscal year ending June thirtieth, nineteen hundred and ninety-three shall not exceed one million dollars, and in subsequent years, the amount shall be determined by the board, subject to the limitation that such amount will not exceed 40 per cent of the total assets of the MTDC Restricted for Investment Programs Funds of the prior fiscal year.  The Commonwealth Fund and the Co-Investment Funds shall be held in an account separate from all other funds and accounts of MTDC. Earnings from the investment of each of the funds shall be credited to them and losses, if any, from such investment shall be charged against them. The assets of these funds may be invested with the assets of other funds owned or managed by MTDC; provided, however, that such investments, earnings and losses therefrom, are apportioned and accounted to each participating fund in proportion of its share of the total investment. In no event shall losses of these funds be charged against any other funds of MTDC. Subject to the terms of an agreement between MTDC and the secretary of administration, a share of the net gains from the investments of the Commonwealth Fund shall be distributed to the General Fund.  MTDC shall invest and reinvest the monies from the Commonwealth Fund and the Co-Investment Funds and the income from such funds in the following ways:  (1) In the purchase of qualified securities issued by enterprises authorized in accordance with the requirements of this chapter; provided, however, that the board finds that such investment will enhance the economic climate of the commonwealth by acting to provide investment capital, both public and private, to firms which will utilize each investment to start and to expand their operation, assist in the direct and indirect creation of employment in the commonwealth and offer the potential of significant financial returns to the Commonwealth Fund and the Co-Investment Funds; provided further, that the board need not find as a basis for any such purchase that the MTDC participation is necessary to the success of the enterprise because funding for the enterprise is unavailable from the traditional capital markets, or because funding for the enterprise is unavailable from the traditional capital markets, or because funding has been offered on terms that would substantially hinder the enterprise, or that the enterprise has the reasonable potential to create a substantial amount of primary employment within the commonwealth, but such purchases shall not be subject to the requirements of clause (2) of the fifth paragraph of section 4.  (2) The total amount of dollars invested in any enterprise shall not be limited except as required for the prudent diversification of assets; provided, however, that notwithstanding any provision of this chapter to the contrary, no investment shall be made pursuant to this section without the prior written notice to the house and senate committees on ways and means.  (3) In the purchase of such securities as may be lawful investments for fiduciaries in the commonwealth.  In making purchases pursuant to subsection (1), the board shall not be subject to any limitations on lawful investments for fiduciaries in the commonwealth or to any provisions of law governing the investment of state pension funds or other public monies.  MTDC shall receive a fee for the management of the Commonwealth Fund and the Co-Investment Funds, as defined by the investment agreement or agreements which may include a portion of the earnings of said funds, to be paid out of the monies in said funds. Said investment agreement or agreements shall legally bind the MTDC for the term or terms of the agreement or agreements and shall not be modified by legislative or executive action during the term or terms of the agreement or agreements.