- (1) A CAPCO may make a qualified distribution at any time. To make a distribution or payment from a particular investment pool, other than a qualified distribution and therepayment of the initial $500,000 equity contribution or any other equity contribution made by its equity holders, a CAPCO must (i) have made qualified investments from such investment pool in an amount cumulatively equal to at least one hundred percent (100%) percent of the certified capital invested in such investment pool and, (ii) with respect to a program two investment pool, have invested at least $75,000 of such investment pool in no less than five (5) qualified diversity businesses, for a cumulative investment amount of at least $375,000.
- (2) Notwithstanding subsection (1) of this section, a CAPCO may make payments of principal and interest on its indebtedness without any restriction, including payments of indebtedness of the CAPCO on which certified investors earned premium tax credits.
- (3) In both program one and program two, the State of Alabama shall receive a ten percent (10%) share of any distributions other than qualified distributions, payments with respect to indebtedness, and the return of the initial $500,000 equity contribution and any other equity contributions, from the CAPCO to its equity holders.
- (4) Except with respect to required payments to the State of Alabama pursuant to subsection (3) above, (i) once a CAPCO has made qualified investments in an amount cumulatively equal to one hundred percent (100%) of the certified capital allocated to it with respect to a particular program, of which, in the case of a program two investment pool, at least $75,000 of such program two investment pool shall have been invested in no less than five (5) qualified diversity businesses, for a cumulative investment amount of at least $375,000, the investment pool associated with such capital shall no longer be subject to regulation under the Act or these regulations, and (ii) once all of a CAPCO’s investment pools have satisfied the requirement of the preceding sentence, the CAPCO shall no longer be subject to regulation under the Act or these regulations.
Author: F. Neal Wade
Statutory Authority: Code of Ala. 1975, as amended; Act 2002-429.
History: New Rule: Filed July 25, 2003; effective August 29, 2003. Amended: Filed February 6, 2008; effective March 12, 2008.