§ 11. Certified capital companies. (a) Definitions. For the purpose of\nthis section the following terms shall mean:\n (1) "Certification date" - the date on which a certified capital\ncompany is so designated by the department for a specific certified\ncapital company program.\n (2) "Certified capital" - an investment of cash by a certified\ninvestor in a certified capital company which fully funds the purchase\nprice of either or both its equity interest in the certified capital\ncompany or a qualified debt instrument issued by the certified capital\ncompany. Any such investment shall be subject to the provisions of\narticle fourteen of the insurance law.\n (3) "Certified capital company" - a partnership, corporation, trust or\nlimited liability company, organized on a for-profit basis that is\nlocated, headquartered and licensed or registered to conduct business in\nNew York, that has as its primary business activity the investment of\ncash in qualified businesses and that is certified by the department as\nmeeting the criteria set forth in subdivision (b) of this section.\n (4) "Certified investor" - any insurance company that contributes\ncertified capital.\n (5) "Department" - the department of financial services; provided,\nhowever, that "department" shall mean the department of economic\ndevelopment with regard to any application, certification, report,\nsubmission, filing or other action required or governed by this section\noccurring on or after August first, two thousand eleven.\n (6) "Net profits on certified investments" - the amount of money\nreturned to the certified capital company in repayment of or exchange\nfor the certified capital company's qualified investment or investments\nin the qualified business in excess of the amount of such qualified\ninvestment or investments. Such number shall aggregate all of the\ncertified capital company's qualified investments where gains on\nqualified investments are netted against losses on qualified\ninvestments.\n (7) "Qualified business" - an independently owned and operated\nbusiness that meets all of the following conditions as of the time of\nthe first investment in the business:\n (A) It is headquartered in New York state, and its principal business\noperations are located in New York state, and the qualified investment\nit receives is used solely to support its business operations in the\nstate, except for advertising, promotions and sales purposes. In cases\nwhere the qualified investment is made in a start-up company such\ncapital must be used solely to establish and support its business\noperations in New York state, except for advertising, promotions and\nsales purposes.\n (B) It has either (i) no more than one hundred employees, at least\neighty percent of whom are employed in New York state or, (ii) no more\nthan two hundred employees, at least eighty percent of whom are employed\nin this state, and during the fiscal year immediately preceding the\nqualified investment it had, together with its affiliates, gross\nrevenues of no more than five million dollars, on a consolidated basis\nas determined in accordance with generally accepted accounting\nprinciples, except that, with respect to certified capital company\nprogram three and certified capital company program four and certified\ncapital company program five, in the case of a company located in an\nempire zone established pursuant to article eighteen-B of the general\nmunicipal law such gross revenues shall not exceed eight million\ndollars.\n (C) It is involved in commerce for the purpose of developing and\nmanufacturing products and systems, including but not limited to high\ntechnology products and systems such as computers, computer software,\nmedical equipment, biotechnology, telecommunications equipment and\nproducts, processing or assembling all types of products, conducting\nresearch and development on all types of products or providing services,\nbut excluding real estate, real estate
‹ Prev All New York sections Next ›
Lexace provides legal information, not legal advice, and no attorney–client relationship is created. Statute text is provided for general information and may not reflect the most recent amendments; verify against the official state code.