{"data":{"id":"us-ky/krs-154.20-283","jurisdiction":"us-ky","citation":"KRS 154.20-283","heading":"Prohibition against certain qualified investments and financial interests","body":"-- Investment fund manager's limitations on holding management positions in\nsmall businesses in which investment fund has invested.\n(1) No qualified investments shall be made  in a small business that is the \"alter ego\" of\nthe investment fund or the investment fund manager. For purposes of this\nsubsection, a business is an \"alter ego\" of an investment fund or an investment fund\nmanager if any of the following criteria are satisfied:\n(a) Prior to an investment fund making a qualified investment in the small\nbusiness, the small business is owned in whole or in an amount greater than\ntwenty percent (20%) of the small business by an investor, officer, director,\npartner, member, manager, trustee or employee of the investment fund or the\ninvestment fund manager; or\n(b) The small business employs on a full-time or part-time basis an investor.\n(2) An investment fund manager may occupy any management position in any small\nbusiness in whic h that investment fund has made a qualified investment for the\npurpose of:\n(a) Filling a management position in an effort to remedy problems arising from a\nlack of profitability of the small business, or from dishonesty of the persons\notherwise managing the small business; or\n(b) Serving in a management position in the small business in order to add value\nto the investment fund and the business by his or her experience, skills, or\nrelationships to help a business succeed.\n(3) No officer, member, or employee  of the authority shall have a direct or indirect\nfinancial interest in any investment fund or investment fund manager.","path":[],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=2716","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:50:53Z","sha256":"6c62ede8790131b93b2bbb796c93d8596fde1739a1351cf7337ebb2f885ff690","source_id":"us-ky","stale":false,"prev":"us-ky/krs-154.20-281","next":"us-ky/krs-154.20-284"},"notice":"GroundRules: Original legal text. Not legal advice."}