CODE OF VIRGINIA

CREATION, ADMINISTRATION, AND MANAGEMENT OF VIRGINIA SMALL BUSINESS GROWTH FUND
(§ 2.2-2310)

A. In addition to any other fund or account the Authority may create pursuant to
subdivision 23 of § 2.2-2285, there shall be a permanent fund known as the
Virginia Small Business Growth Fund (the “Fund”). The Fund shall be
comprised of (i) sums appropriated to it by the General Assembly, (ii) all
income from the investment of moneys held by the Fund, and (iii) any other sums
designated for deposit to the Fund from any source, public or private. The Fund
shall be administered and managed by the Authority, and all moneys in the Fund
shall be used to create special reserve funds to cover potential future losses
from the loan portfolios of participating banks and lending institutions as
provided in subsection D. Any remaining balances in the Fund shall not revert to
the general fund but shall be retained in order to create additional special
reserve funds.

B. All moneys belonging to the Fund shall be deposited to the credit of the
State Treasurer and recorded on the books of the State Comptroller. Earnings
from investments and interest shall be returned to the Fund.

C. The Authority, or its designated agent, may collect moneys owed to the Fund.
Proceedings to recover moneys owed to the Fund may be instituted by the
Authority in the name of the Fund in any appropriate court.

D. The Fund shall be used as a special reserve fund to cover potential future
losses from the loan portfolios of participating banks and lending institutions.
The Authority shall (i) work with banks and lending institutions to establish a
separate account for the Virginia Small Business Growth Fund in each
participating bank or lending institution and (ii) deposit into such accounts
moneys from the Fund in an amount at least equal to the total of the sum of the
bank or lending institution’s and the individual borrower’s deposits
into such account. Such matching sum by the Authority shall not exceed fourteen
percent of the principal amount of the loan.

E. The Authority shall determine the qualifications, terms, and conditions for
the use of the Fund and the accounts thereof. In connection with applications
for claims made against the Fund, the Authority may require the production of
any document, instrument, certificate, legal opinion, or any other information
it deems necessary or convenient. All claims made against the Fund shall be
approved by the Board or an authorized committee or subcommittee thereof. All
claims made against each account shall be reported to the Board or an authorized
committee thereof.

HISTORY: 1997, c. 870, §§ 9-228.5, 9-228.6, 9-228.7, 9-228.8; 2000, c. 40;
2001, c. 844.