32-11-201. Application procedure. When applying for a license, an applicant shall provide the information required by the department in the form required by the department. The information must include: (1) information on the directors, officers, and controlling persons of the applicant; (2) the applicant’s business plan, including at least 10 years of detailed financial projections, and other relevant […]
32-11-202. Requisite net worth. (1) In order to receive a license, an applicant shall demonstrate to the satisfaction of the department that the applicant has raised sufficient capital so that: (a) the net worth of the BIDCO is expected to be adequate, in the context of its business plan, to support the BIDCO’s management team and to […]
32-11-203. Fees — special revenue account. (1) A fee for filing an application with the department must be paid at the time the application is filed with the department and is not refundable. A person shall pay the department: (a) $5,000 for filing an application for a license; (b) $1,250 for filing an application for approval to acquire […]
32-11-204. Criteria for directors, officers, and controlling persons. (1) A license may be issued only if the department determines that each director, officer, and controlling person of the applicant is: (a) of good character and sound financial standing; (b) competent to perform the director’s, officer’s, or controlling person’s functions for the applicant; and (c) when considered collectively with the […]
32-11-205. Determination of likelihood of future noncompliance. The department may determine that it is not reasonable to believe that an applicant would comply with this chapter if licensed. Bases that the department may use to make that determination include proof that the applicant has been convicted of any felony or a misdemeanor involving fraud or dishonesty, […]
32-11-206. Denial of application. If the department denies a license, the department shall provide the applicant with a written statement explaining the reasons for the denial. History: En. Sec. 9, Ch. 411, L. 2007.
32-11-207. License — display — transfer or assignment — surrender. (1) A licensee shall post the license in a conspicuous place in the licensee’s principal office. (2) A licensee may not transfer or assign its license. (3) Upon approval by a two-thirds vote of its board of directors and after complying with subsections (4) and (5), a licensee […]
32-11-208. Corporate name and representation of status. (1) The corporate name of a licensee must include the word “BIDCO” or “Bidco” and must be distinguishable on the records of the department from the name of any other organized entity and from a reserved or registered name. A licensee may not transact business under a name other […]
32-11-209. Misrepresentation. (1) Except as otherwise provided in 32-11-208, a person transacting business in the state who is not a licensee may not knowingly use a name or title that indicates that the person is a BIDCO or otherwise represent that the person is a BIDCO or a licensee. (2) A licensee may not knowingly misrepresent the […]
32-11-210. Dividends. (1) A licensee may not pay or obligate itself to pay a cash dividend or dividend in kind to the licensee’s shareholders unless the payment is consistent with a dividend policy that has been adopted by the licensee and approved by the department. (2) When approving dividend policies under this section, the department shall consider […]
32-11-211. Stock buyback. A licensee may not buy back or obligate itself to buy back a share of equity interest from a shareholder without the prior approval of the department. History: En. Sec. 16, Ch. 411, L. 2007.
32-11-212. Offices. (1) A licensee shall maintain at least one office in this state. (2) The location of each office of a licensee must be reasonably accessible to the public. (3) A licensee shall post in a conspicuous place at each of the licensee’s offices a sign that bears the corporate name of the licensee. (4) If a licensee […]
32-11-213 and 32-11-214 reserved.
32-11-215. Board of directors. (1) The board of directors of a licensee must have at least seven directors. (2) The board of directors shall hold at least one meeting each calendar quarter. History: En. Sec. 13, Ch. 411, L. 2007.
32-11-216. Notice of officer and director changes. Within 30 days after each of the following events, the licensee shall notify the department in writing of the event and provide any additional information that the department requires: (1) the death, resignation, or removal of a director or officer; (2) the election of a director; or (3) the appointment of an […]
32-11-217. Business of licensee — general powers. (1) A licensee may not engage in a business other than providing financing assistance and management assistance to businesses. (2) In addition to the other powers provided by this chapter and the powers conferred on the licensee by the laws under which it is incorporated that are not inconsistent with […]
32-11-218. Financing assistance allowed — forms, terms, conditions. (1) The financing assistance that a licensee may provide includes: (a) loans; (b) purchase of debt instruments; (c) straight equity investments including the purchase of common stock or preferred stock; (d) debt with equity features, including warrants to purchase stock, convertible debentures, or receipt of a percentage of net income or sales; […]
32-11-219. Participation in government programs. (1) A licensee may participate in a federal, state, or local government program for which the licensee is eligible and that has as the program’s function the provision or facilitation of financing assistance or management assistance to businesses. (2) If a licensee participates in a program referred to in subsection (1), the […]
32-11-220. Scope of management assistance. When providing management assistance, a licensee may provide management advice, management services, technical advice, and technical services. History: En. Sec. 21, Ch. 411, L. 2007.
32-11-221. Limitation to purposes of business. Financing assistance and management assistance provided by a licensee to a business may be only for the business purposes of the business. History: En. Sec. 22, Ch. 411, L. 2007.
