1. (a)

   1. (1) QCDEs applying for certification of equity investments or long-term debt securities shall submit to the Arkansas Economic Development Commission a refundable performance fee in the amount of five-tenths of one percent (0.5%) of the amount of the equity investment or long-term debt security for deposit into the New Markets Performance Guarantee Fund, Arkansas Code § 19-5-1254.

   2. (2) The QCDE shall forfeit the refundable performance fee if it fails to:

      1. (A) Issue the total amount of qualified equity investments certified by the commission and receive cash in the total amount certified under and within the time period stated in Arkansas Code § 15-4-3605; or
      2. (B) Meet the investment requirement under Arkansas Code § 15-4-3607(3) by the second credit allowance date of the qualified equity investment.
   3. (3) Forfeiture of the fee under Arkansas Code § 15-4-3609(b)(2)(A) shall be subject to the six-month cure period established under Arkansas Code § 15-4-3608.
2. (b) The refundable performance fee shall be held in the New Markets Performance Guarantee Fund until compliance with the requirements of Arkansas Code § 15-4-3609 is established.

3. (c)

   1. (1) A QCDE may request a refund of the performance fee from the commission no sooner than thirty (30) days after having met all the requirements of Arkansas Code § 15-4-3609.
   2. (2) The Treasurer of State shall comply with the refund request or give notice of noncompliance within thirty (30) days of receiving the request.

   3. (3) Note.

      1. (A) At the time of this part’s development, an appropriation for the New Markets Performance Guarantee Fund did not exist.
      2. (B) Therefore, until legislative appropriation is authorized, funds deposited into this account, that is five-tenths of one percent (0.5%) of the actual allocation amount, will not be available for refund in accordance with Arkansas Code § 15-4-3609.
      3. (C) Requests for refunds shall not be considered received prior to the date of appropriation authorization.

Codification Notes: "QCDE" means qualified community development entity.