(1) (a) A person seeking approval as a rural investment company shall submit an application to the office. (b) (i) For the investment authority described in Subsection (6)(a)(i), the office shall begin accepting applications on November 1, 2017. (ii) For the investment authority described in Subsection (6)(a)(ii), the office shall begin accepting applications on November 1, 2022. (2) An application submitted under Subsection (1) shall be in a form and in accordance with procedures prescribed by the office, and shall include the following: (a) the total investment authority sought by the applicant, which may not exceed $42,000,000; (b) a copy of the applicant's or an affiliate of the applicant's license as a federally licensed rural business investment company or as a federally licensed small business investment company; (c) evidence that before the date the application is submitted, the applicant or affiliates of the applicant have invested at least $50,000,000 in nonpublic companies located in counties in the United States with fewer than 50,000 inhabitants; (d) a signed affidavit from each claimant that commits to make a credit-eligible capital contribution to the applicant, stating the amount of that commitment; and (e) the sum of all credit-eligible capital contribution commitments described in Subsection (2)(d), which must equal 58% of the total investment authority sought by the applicant. (3) The office shall: (a) review and evaluate the applications submitted under this section within 30 days of receipt in the order in which the applications are received; and (b) consider applications received on the same day to have been received simultaneously. (4) (a) If, after review and evaluation of an application, the office determines that the application does not meet the requirements of Subsection (2), the office shall: (i) deny the application; or (ii) (A) notify the applicant that the application was inadequate and allow the applicant to provide additional information to the office to complete, clarify, or cure defects identified by the office in the application; and (B) inform the applicant that the additional information described in Subsection (4)(a)(ii)(A) must be received by the office within five days of the notice in order to be considered. (b) If an applicant submits additional information to the office in accordance with Subsection (4) (a)(ii), the office shall: (i) consider the application to have been received on the date it was originally received by the office; and (ii) review and evaluate the additional information within 10 days of receiving the additional information. (5) If, after review and evaluation of an application submitted under this section and any additional information submitted in accordance with Subsection (4)(a)(ii), the office determines that the application meets the requirements of Subsection (2), the office shall: (a) determine the amount of investment authority to award the applicant in accordance with Subsection (6); (b) provide to the applicant a written notice of approval as a rural investment company specifying the amount of the applicant's investment authority; and (c) notify each claimant whose affidavit was included in the application under Subsection (2) that the claimant qualifies for a tax credit that will be issued in accordance with Section 63N-4-304. (6) (a) (i) For the first application period described in Subsection (1)(b)(i), the office may not approve more than $42,000,000 in total investment authority and not more than $24,360,000 in total credit-eligible contributions under this part. (ii) For the second application period described in Subsection (1)(b)(ii), the office may not approve more than $42,000,000 in total investment authority and not more than $24,360,000 in total credit-eligible contributions under this part. (b) Subject to Subsection (6)(d), if an application is approved under Subsection (5), the office shall approve the amount of investment authority requested on the application. (c) (i) During the first application period described in Subsection (1)(b)(i), the office may continue to accept applications under this section until the amount of approved investment authority reaches $42,000,000. (ii) During the second application period described in Subsection (1)(b)(ii), the office may continue to accept applications under this section until the amount of approved investment authority reaches $42,000,000. (d) If the office approves multiple applications received simultaneously under Subsection (3) and the total amount of investment authority requested on those applications exceeds the amount of investment authority remaining, the office shall proportionally reduce the investment authority and credit-eligible capital contributions for each of these applications as necessary to avoid exceeding the amount of investment authority and credit-eligible capital contributions remaining. (7) Within 65 days after the day on which a rural investment company receives approval under Subsection (5)(b), the rural investment company shall: (a) collect the total amount of committed credit-eligible capital contributions from each claimant whose affidavit was included in the application under Subsection (2); (b) collect one or more cash equity investments contributed by affiliates of the rural investment company, including employees, officers, and directors of such affiliates, that equal at least 10% of the rural investment company's investment authority; (c) collect one or more cash investments that, when added to the amounts collected under Subsections (7)(a) and (b), equal the rural investment company's investment authority; and (d) send sufficient documentation to the office to prove that the amounts described in this Subsection (7) have been collected. (8) If the rural investment company fails to fully comply with Subsection (7): (a) the rural investment company's approval shall lapse and the corresponding investment authority and credit-eligible capital contributions shall not count toward the limits on the program size described in Subsection (6); (b) if the office awards lapsed investment authority to a rural investment company, the office shall first award lapsed investment authority pro rata to each rural investment company that was awarded less than the requested investment authority under Subsection (6)(d), which a rural investment company may allocate to the rural investment company's investors at the company's discretion; and (c) the office may award any remaining investment authority to new applicants.
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