30 ILCS 750/9-5
2021 Illinois Compiled Statutes|Chapter 30 - FINANCE|30 ILCS 750/ - Build Illinois Act.|Article 9

 (from Ch. 127, par. 2709-5)Sec. 9-5.     Equity Investments.     Any equity investment shall:(a) Be made only if a participating lender or  other investor also provides a portion of the financing with  respect to the project.  The participating lender's or other  investor's financing may be in the form of an equity position,  convertible debt, convertible preferred stock, loan, letter  of credit, guarantee, bond purchase or any other form approved  by the Department;(b) Finance no more than the lesser of 33 1/3%  of the total amount of any single  project or $250,000 for any single project unless such  limitations are waived by the Director upon a finding that  such waiver is appropriate to accomplish the purposes of this Article;(c) Be made only if the Department determines,  on the basis of all the information available to it, that the  project would not be undertaken unless the equity investment is provided;(d) Be protected by adequate security on equity investment  agreements issued by the Department.  Equity investment agreements may be  secured by first or second mortgage positions on real or  personal property, by royalty payments, by personal notes or  guarantees, or by any other security satisfactory to the  Department to secure payment of the equity investment;(e) Be in such principal amount and form, and  contain such terms and provisions with respect to the property  insurance, repairs, alterations, payment of taxes and assessments,  delinquency charges, default remedies, additional  security and other matters as the Department shall determine  adequate to protect the public interest;(f) Be made to an eligible small business approved  by the Department as responsible and creditworthy;(g) Be reviewed by the credit review committee  established by the Department pursuant to this Article;(h) Be made only after the Department has made a  determination that the loan or investment agreement will  cause a project to be undertaken which has the potential to  create substantial employment in relation to the principal  amount of the loan or investment;(i) Be made for a small business that has certified  the project is a new plant start-up or expansion or a new  venture opportunity and is not an area relocation of an  existing business from another site within Illinois unless  that relocation provides substantial employment growth;(j) Be made for a small business which agrees: to at all times keep  proper books of record and account in accordance with generally accepted  accounting principles consistently applied, and agree that the Department  is authorized to make or cause to be made, in such manner and at such times  as the Department may reasonably require but subject to Section 9-8 of this  Act, (i) inspection and audits of any books, records and papers in the  custody or control of the small business or others, relating to the small  business's financial or business conditions, including without limitation  the making of copies thereof and extracts therefrom, and (ii) inspection  and appraisals of any of the small business's assets, authorizations to all  federal, State and municipal authorities and officials to furnish reports  of examinations, records and other information relating to the conditions  and affairs of the small business and any information from reports,  returns, files and records of such authorities upon written request to the  small business by the Department;(k) Be made only to a small business which agrees that if at any time  after the Department has made an equity investment, whatever the reason for  such event and whether it shall be voluntary or involuntary or be effected  by operation of law or pursuant to any court or any order, rule or  regulation of any governmental or non-governmental body the small business  shall (a) commence a voluntary case under the federal bankruptcy laws (as  now or hereafter in effect), (b) file a petition seeking to take advantage  of any other laws, domestic or foreign, relating to bankruptcy, insolvency,  reorganization, composition, winding up or adjustment of debts, (c) consent  to or fail to contest in a timely and appropriate manner any petition filed  against it in an involuntary case under such bankruptcy or similar laws,  (d) apply for or consent to, or fail to contest in a timely and appropriate  manner, the appointment of, or the taking of possession by, a receiver,  custodian, trustee or liquidator of itself or of a substantial part of its  property, (e) admit in writing its inability to pay, or generally not be  paying, its debts as they become due, (f) make a general assignment for the  benefit of creditors; then, and in every such event, in the case of any of  the events specified in clauses (a) through (f) above, without any notice  to the small business or any other act by the Department, the small  business (or an entity acting on its behalf) shall immediately become  obligated to purchase or redeem, and the Department shall immediately  become obligated to sell or surrender for redemption,  all such shares from the Department.    (Source: P.A. 84-1124.)