90-3-520. (Temporary) Seed capital project loan agreement with venture capital company. A seed capital project loan agreement with a venture capital company must contain the following terms:
     (1) a loan amount that may not be less than $500,000 or more than $1 million; and
     (2) payback provisions:
     (a) that are structured as contracted debt;
     (b) that allow debt to be repaid in portions of the original loan amount or as interest on the original loan amount in the same proportion as any paybacks made to the other investors or lenders that make up the remaining capitalization of the venture capital company, based upon the original capital invested in or loaned to the venture capital company by the other investors or lenders;
     (c) that are not more or less favorable than the repayment and earnings provisions applicable to other investors or lenders that make up the remaining capitalization of the venture capital company; and
     (d) that are based on a term no greater than 12 years. (Repealed effective July 1, 1999--secs. 13, 16(1), Ch. 549, L. 1997.)

     History: En. Sec. 6, Ch. 566, L. 1991.