Ala. Admin. Code r. 281-2-1-.10 - Distributions

Current through Register Vol. 40, No. 6, March 31, 2022

(1) A CAPCO may make a qualified distribution at any time. To make a distribution or payment from a particular investment pool, other than a qualified distribution and the repayment of the initial $500,000 equity contribution or any other equity contribution made by its equity holders, a CAPCO must (i) have made qualified investments from such investment pool in an amount cumulatively equal to at least one hundred percent (100%) percent of the certified capital invested in such investment pool and, (ii) with respect to a program two investment pool, have invested at least $75,000 of such investment pool in no less than five (5) qualified diversity businesses, for a cumulative investment amount of at least $375,000.

(2) Notwithstanding subsection (1) of this section, a CAPCO may make payments of principal and interest on its indebtedness without any restriction, including payments of indebtedness of the CAPCO on which certified investors earned premium tax credits.

(3) In both program one and program two, the State of Alabama shall receive a ten percent (10%) share of any distributions other than qualified distributions, payments with respect to indebtedness, and the return of the initial $500,000 equity contribution and any other equity contributions, from the CAPCO to its equity holders.

(4) Except with respect to required payments to the State of Alabama pursuant to subsection (3) above,

(i) once a CAPCO has made qualified investments in an amount cumulatively equal to one hundred percent (100%) of the certified capital allocated to it with respect to a particular program, of which, in the case of a program two investment pool, at least $75,000 of such program two investment pool shall have been invested in no less than five (5) qualified diversity businesses, for a cumulative investment amount of at least $375,000, the investment pool associated with such capital shall no longer be subject to regulation under the Act or these regulations, and

(ii) once all of a CAPCO's investment pools have satisfied the requirement of the preceding sentence, the CAPCO shall no longer be subject to regulation under the Act or these regulations.

F. Neal Wade

Notes

Ala. Admin. Code r. 281-2-1-.10

New Rule: Filed July 25, 2003; effective August 29, 2003. Amended: Filed February 6, 2008; effective March 12, 2008.

Statutory Authority: Code of Ala. 1975, as amended; Act 2002-429.