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§ 2-118.1. Maryland Community Investment Venture Fund

West's Annotated Code of MarylandFinancial InstitutionsEffective: July 1, 2023

West's Annotated Code of Maryland
Financial Institutions
Title 2. Commissioner and Boards
Subtitle 1. Commissioner of Financial Regulation (Refs & Annos)
Effective: July 1, 2023
MD Code, Financial Institutions, § 2-118.1
§ 2-118.1. Maryland Community Investment Venture Fund
Currentness
Definitions
(a)(1) In this section the following words have the meanings indicated.
(2) “Fund” means the Maryland Community Investment Venture Fund.
(3) “Low- to moderate-income tract” has the meaning stated in § 5-203 of this article.
Establishment
(b)(1) There is a Maryland Community Investment Venture Fund.
(2) The Fund is a private venture fund that:
(i) Is an instrumentality of the State; and
(ii) Uses public and private investment funds.
Purpose
(c)(1) Subject to paragraph (2) of this subsection, the purpose of the Fund is to develop opportunities for banking institutions and credit unions to better serve the needs of low- to moderate-income tracts by:
(i) Investing in the development of financial product or financial product underwriting innovations that enhance access to capital, funding, and other financial services for businesses in low- to moderate-income tracts in the State;
(ii) Deploying, testing, and evaluating the innovations for providing capital and funding to businesses in low- to moderate-income tracts in the State; and
(iii) Promoting and making the innovations available to banking institutions and credit unions for use in enhancing access to capital, funding, and other financial services for businesses in low- to moderate-income tracts in the State.
(2) With the approval of the Commissioner, the purpose of the Fund may be altered in a manner that is consistent with the intent and requirements of this section.
Governance structure
(d)(1)(i) The Commissioner shall establish a governance structure for the Fund.
(ii) The Commissioner may collaborate with investors in the Fund when establishing the governance structure.
(2) The Commissioner, or the Commissioner's designee, shall serve on the governing body of the Fund.
Expenses; initial investment
(e)(1) The Commissioner may use up to $250,000 from the Banking Institution and Credit Union Regulation Fund established under § 2-118 of this subtitle to cover the expenses associated with establishing the Fund, including accounting, advisory, third-party service provider, marketing, and other necessary expenses.
(2) To encourage private investment, the Commissioner may provide an initial equity capital investment in the Fund in an amount up to $2,500,000 from the Banking Institution and Credit Union Regulation Fund.
Matching investments
(f)(1) Through June 30, 2028, the Commissioner may match an investment made in the Fund by a banking institution or credit union up to the amount of the assessment credit earned by the banking institution or credit union in accordance with § 5-203(d) or § 6-712(c)(4) of this article.
(2) The Commissioner may not make an investment in the Fund after June 30, 2028.
Returns
(g) All investment returns or return of capital from the Fund with respect to an investment authorized by the Commissioner shall be credited to the Banking Institution and Credit Union Regulation Fund.
Evaluation
(h) At the direction of the Commissioner, and in addition to any customary and appropriate audits of the Fund, the governing body of the Fund shall obtain the services of an independent third party designated by the Commissioner on an annual basis to evaluate whether the investments made to the Fund comply with this section.
Additional funds
(i)(1) If the Commissioner determines that separate private venture funds are necessary to accomplish the purpose of the Fund, the Commissioner may use money from the Fund to establish additional private venture funds.
(2) An additional private venture fund established in accordance with this subsection shall comply with the requirements of subsections (b) through (f) of this section.

Credits

Added by Acts 2023, c. 432, § 1, eff. July 1, 2023; Acts 2023, c. 433, § 1, eff. July 1, 2023.
MD Code, Financial Institutions, § 2-118.1, MD FIN INST § 2-118.1
Current through legislation effective through April 9, 2023, from the 2024 Regular Session of the General Assembly. Some statute sections may be more current, see credits for details.
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