2003 Minnesota Statutes

     116J.876 Definitions. 

    Subdivision 1.    Terms.  For the purposes of this 
 section and sections 116J.8761 to 116J.8769, the terms defined 
 in this section have the meanings given them. 

    Subd. 2.    Agreement.  "Agreement" means an agreement 
 between a lender and the commissioner under which a lender may 
 participate in the program. 

    Subd. 3.    Borrower.  "Borrower" means the recipient of 
 a loan which is, has been, or will be filed by the lender for 
 enrollment under the program and meets the following 
 requirements: 

    (1) the borrower is a corporation, partnership, joint 
 venture, sole proprietorship, cooperative, or other entity, 
 whether profit or nonprofit, which is authorized to conduct 
 business in the state; and 

    (2) the borrower is not an executive officer, director, or 
 principal shareholder of the lender, or a member of the 
 immediate family of an executive officer, director, or principal 
 shareholder of the lender, or an entity controlled by an 
 executive officer, director, principal shareholder, or member of 
 the immediate family. 

    Subd. 4.    Capital access account; account.  "Capital 
 access account" or "account" means an account created in the 
 special revenue fund for the purposes of the capital access 
 program. 

    Subd. 5.    Claim.  "Claim" means any claim filed by the 
 lender under section 116J.8767. 

    Subd. 6.    Commissioner.  "Commissioner" means the 
 commissioner of employment and economic development. 

    Subd. 6a.    Community development venture capital fund. 
  "Community development venture capital fund" means a regional 
 or local venture capital fund that makes equity investments in 
 small or emerging companies and has a financial as well as a 
 social mission. 

    Subd. 7.    Early loan.  "Early loan" means an enrolled 
 loan where at the time of enrollment the amount of previously 
 enrolled loans made by the lender under the program was less 
 than $5,000,000. 

    Subd. 8.    Eligible loan.  "Eligible loan" means a loan 
 made by the lender to a borrower that meets the requirements of 
 section 116J.8764. 

    Subd. 9.    Enrolled loan.  "Enrolled loan" means a loan 
 enrolled by the commissioner under the terms of section 
 116J.8764. 

    Subd. 10.    Lender.  "Lender" means a financial 
 institution as defined in section 13A.01, subdivision 2, that 
 has entered into an agreement with the commissioner to 
 participate in the program.  

    Subd. 11.    Passive real estate ownership.  "Passive 
 real estate ownership" means ownership of real estate for the 
 purpose of deriving income from speculation, trade, or rentals, 
 except that the term does not include (1) the ownership of that 
 portion of real estate being used or intended to be used for the 
 operation of the business of the owner of the real estate; or 
 (2) ownership of real estate for the purpose of construction or 
 renovation until the completion of the construction or 
 renovation phase. 

    Subd. 12.    Program.  "Program" means the capital 
 access program created by sections 116J.876 to 116J.8769.  

    Subd. 13.    Reserve fund.  "Reserve fund" means an 
 administrative account maintained by the commissioner for funds 
 accumulated under an agreement with the commissioner to cover 
 losses sustained by the lender on enrolled loans. 

    HIST: 1989 c 335 art 1 s 146; 2001 c 153 s 1; 1Sp2003 c 4 s 1