PART I.
GENERAL PROVISIONS



 



§211F-1  Definitions.  As used in this
chapter:



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



"Corporation" means the Hawaii
strategic development corporation, except where the context clearly indicates
another meaning.



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



"Economic development project" means
an endeavor related to industrial, commercial, or advanced technology-based
agricultural enterprise.  Economic development project shall not include that
portion of an endeavor devoted to the construction of housing.



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



"Minority-owned businesses" means
businesses at least fifty per cent owned, controlled, and managed by socially
or economically disadvantaged persons.



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



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



"Qualified security" means any note,
stock, treasury stock bond, debenture, evidence of indebtedness, certificate of
interest or participation in any profit-sharing agreement, preorganization
certificate of subscription, transferable share, investment contract,
certificate of deposit for a security, certificate of interest or participation
in a patent or patent application, or in royalty or other payments under such a
patent or application, or, in general, any interest or instrument commonly
known 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 financing
provided for the earliest stage of business development, including but not
limited to developing a working prototype, preparing a business plan,
performing an initial market analysis, or organizing a management team.



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



(1)  Common or preferred stock and equity securities
without 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 convertible
or having stock purchase rights, which are subordinated, together with security
interests against the assets of the borrower, by their terms to all borrowings
of the borrower from other institutional lenders, and that is for a term of not
less than three years, and that has no part amortized during the first three years;
and



(4)  General or limited partnership interests. [L
1990, c 110, pt of §3; am L 1994, c 264, §4; am L 1997, c 64, §1]