PART I.GENERAL PROVISIONS

 

§211F-1  Definitions.  As used in thischapter:

"Board" means the board of directorsof the Hawaii strategic development corporation.

"Corporation" means the Hawaiistrategic development corporation, except where the context clearly indicatesanother meaning.

"Direct investment" means aninvestment by the corporation in qualified securities of an enterprise toprovide capital to an enterprise.

"Economic development project" meansan endeavor related to industrial, commercial, or advanced technology-basedagricultural enterprise.  Economic development project shall not include thatportion of an endeavor devoted to the construction of housing.

"Enterprise" means a person with aplace of business in Hawaii which is, or proposes to be, engaged in business inHawaii, provided that the endeavor shall not be devoted to the sale of goods atretail, construction of housing, or tourism- related services.

"Minority-owned businesses" meansbusinesses at least fifty per cent owned, controlled, and managed by sociallyor economically disadvantaged persons.

"Person" means a sole proprietorship,partnership, joint venture, corporation, or other association of personsorganized for commercial or industrial purposes.

"Professional investor" means anybank, bank holding company, savings institution, trust company, insurancecompany, investment company registered under the Federal Investment Company Actof 1940, financial services loan company, pension or profit-sharing trust orother financial institution or institutional buyer, licensee under the FederalSmall Business Investment Act of 1958, or any person, partnership, or otherentity of whose resources a substantial amount is dedicated to investing insecurities or debt instruments and whose net worth exceeds $250,000.

"Qualified security" means any note,stock, treasury stock bond, debenture, evidence of indebtedness, certificate ofinterest or participation in any profit-sharing agreement, preorganizationcertificate of subscription, transferable share, investment contract,certificate of deposit for a security, certificate of interest or participationin a patent or patent application, or in royalty or other payments under such apatent or application, or, in general, any interest or instrument commonlyknown 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 financingprovided for the earliest stage of business development, including but notlimited to developing a working prototype, preparing a business plan,performing an initial market analysis, or organizing a management team.

"Venture capital investment" meansany of the following investments in a business:

(1)  Common or preferred stock and equity securitieswithout a repurchase requirement for at least five years;

(2)  A right to purchase stock or equity securities;

(3)  Any debenture or loan, whether or not convertibleor having stock purchase rights, which are subordinated, together with securityinterests against the assets of the borrower, by their terms to all borrowingsof the borrower from other institutional lenders, and that is for a term of notless than three years, and that has no part amortized during the first three years;and

(4)  General or limited partnership interests. [L1990, c 110, pt of §3; am L 1994, c 264, §4; am L 1997, c 64, §1]