Hawaii Administrative Rules › Title 15 - DEPARTMENT OF BUSINESS, ECONOMIC DEVELOPMENT AND TOURISM › Department of Business, Economic Development and Tourism › Chapter 127 - HAWAII STRATEGIC DEVELOPMENT CORPORATION RULES OF PRACTICE AND PROCEDURE › Subchapter 1 - RULES OF GENERAL APPLICABILITY › Section 15-127-2 - Definitions

Current through June, 2024
As used in this chapter, unless a different meaning
					 clearly appears in the context:
"Board" means the board of directors of the Hawaii
					 strategic development corporation;
"Corporation" means the Hawaii strategic development
					 corporation.
"Direct investment" means a cash investment by the
					 corporation in qualified securities of an enterprise;
"Economic development project" means an industrial,
					 commercial, or agricultural enterprise organized for profit. Economic
					 development projects shall not include tourism-related service businesses,
					 retailing in Hawaii or the construction of housing;
"Enterprise" means a person with a place of business in
					 Hawaii which is, or proposes to be, engaged in business for profit in Hawaii,
					 provided that the endeavor shall not be devoted to the sale of goods at retail
					 in Hawaii, construction of housing, or tourism-related service
					 businesses;
"Ex officio member" means the state director of business,
					 economic development and tourism or the designated representative;
"Financial participation" means investments made by the
					 corporation in conjunction with private investors i.e. coinvesting;
"Meeting" means the convening of the board for which a
					 quorum is required in order to transact business or to make a decision by
					 vote;
"Local investment" means an investment in an
					 enterprise;
"Minority-owned businesses" means businesses at least
					 fifty per cent owned and managed by socially or economically disadvantaged
					 persons;
"Person" means a sole proprietorship, partnership, joint
					 venture, corporation, or other business association of persons organized for
					 profit;
"Professional investor" means any bank, bank holding
					 company, savings institution', trust company, insurance company, investment
					 company registered under the Federal Investment Company Act of 1940, financial
					 services loan company, pension or profit-sharing trust or other financial
					 institution or institutional buyer, licensee under the Federal Small Business
					 investment Act of 1958, or any person, partnership, or other entity of whose
					 resources a substantial amount is dedicated to investing in equity or debt
					 instruments and whose tangible net worth exceeds $250,000;
"Qualified security" means any note, stock, treasury stock
					 bond, debenture, evidence of indebtedness, certificate of interest or
					 participation in any profit-sharing agreement, preorganization certificate of
					 subscription, transferable share, investment contract, certificate of deposit
					 for a security, certificate of interest or participation in a patent, or in
					 royalty or other payments under such a patent, or, in general, any interest or
					 instrument commonly known as a "security" or any certificate for, receipt for,
					 or option, warrant, or right to subscribe to or purchase any of the
					 foregoing;
"Seed capital" means financing provided for the earliest
					 stage of business development, including but not limited to developing a
					 working prototype, preparing a business plan, performing an initial market
					 analysis, or organizing a management team;
"Surety" refers to the acquisition of insurance, a
					 guarantee, or letter of credit to guarantee all or part of loans, bonds,
					 debentures, or leases for qualified economic development projects;
"Venture capital" means financing in exchange for
					 qualified securities;
"Venture capital investment" means any of the following
					 investments in a business:
(1) Equity interests without a repurchase agreement for at
					 least five years;
(2) A right or option to purchase equity interests;
(3) Any debenture or loan, whether or not convertible or
					 having stock purchase rights, which are subordinated, together with security
					 interests against the assets of the borrower, on the same terms as other
					 financial institutions, and that is for a term of not less than three years
					 with principal payments deferred during the first three years; and
(4) Limited partnership interests.