S.C. Code Ann. § 11-45-50 – Fund to seek capital commitments; issuance of tax credit certificates in event of insufficient funds; use of loan proceeds; limitations

(A) The fund must seek capital commitments to the fund in accordance with procedures approved by the State Budget and Control Board. The fund may retain an amount annually not to exceed one percent of the capital commitments received for expenses incurred by the fund. Capital contributions received by the fund must be in cash or in immediately available funds and are to be used only as provided by this chapter.
(B) The fund shall retain any fees earned after repayment to lenders to use as a contingency fund for future obligations to lenders and to fulfill additional capital commitments. If at any time a principal or interest payment is due and the fund has insufficient monies to repay same, the fund shall issue tax credit certificates in an amount to meet the obligation as provided for below, and tax credits as stipulated in subsection (C) are hereby established in these required amounts.
(C) These tax credits may be used to offset the lenders' state bank tax or premium tax liability in the event the fund does not meet its obligation to repay the lenders' cash investment together with required interest at the date and time the payment is due. These tax credits may be carried forward without limitation but are not refundable.
(D) The tax credits may also be transferred among bank or insurance company lenders for consideration, and then used by the subsequent holder. These tax credits shall take the form of a certificate issued by the board of the fund stating the amounts, year, and conditions of the tax credits reflected on the certificate.
(E) The board in accepting loans to the fund giving rise to these tax credits shall ensure that no more than fifty million dollars in total tax credit certificates are issued and outstanding at any one time with no more than twenty million dollars in tax credit certificates being redeemable for any one year. Any tax credit certificates issued in one year but carried forward and redeemed in a subsequent year do not count against the twenty million dollar limitation on the total amount of tax credit certificates which may be redeemed in that subsequent year.
(F) The fund is authorized to use the proceeds of loans received from lenders, together with other available monies, for making investments with venture capital investors and for paying and funding services as necessary.
(G) No part of the fund may inure to the benefit of or be distributed to its employees, officers, or board of directors, or to members of their immediate families as this term is defined in Section 2-17-10(7), except that the fund is authorized to pay reasonable compensation for services provided by employees of the fund and out-of-pocket expenses incurred by its employees, officers, or board members, as long as such compensation does not create a conflict of interest pursuant to Section 11-45-40. The provisions of this subsection are supplemental to and not in lieu of the provisions of Chapter 17, Title 2 and Chapter 13, Title 8.