{"data":{"id":"us-ok/okla.-stat.-tit.-74-74-5060.21","jurisdiction":"us-ok","citation":"Okla. Stat. tit. 74, § 74-5060.21","heading":"Seed-Capital Revolving Fund - Authorized investments -","body":"Investment committee.\n\nA. There is hereby created in the State Treasury a revolving\n\nfund for the Oklahoma Center for the Advancement of Science and\n\nTechnology to be designated the \"Seed-Capital Revolving Fund\". The\n\nfund shall be a continuing fund, not subject to fiscal year\n\nlimitations. The fund shall consist of all monies authorized by law\n\nfor deposit in the fund including but not limited to gifts, grants,\n\nprivate donations and funds by government entities authorized to\n\nprovide funding for the purposes authorized for use of the fund and\n\nwith payments on loans made from the fund, rents, dividends paid on\n\nshares of stock purchased with monies from the fund, royalty\n\nproceeds, or any other form of return on authorized investments made\n\nby the Center. All monies accruing to the credit of said fund are\n\nhereby appropriated and may be budgeted and expended by the Oklahoma\n\nCenter for the Advancement of Science and Technology for use as\n\nseed-capital for enterprises and for the purposes set forth in this\n\nsection, and shall not be used for administrative, management, or\n\noperating expenses of the Center. Expenditures from said fund shall\n\nbe made upon warrants issued by the State Treasurer against claims\n\nfiled as prescribed by law with the Director of the Office of\n\nManagement and Enterprise Services for approval and payment.\n\nB. The Seed-Capital Revolving Fund shall be managed consistent\n\nwith the long-term goal that revenues earned from investment of the\n\nfund be used to cover administrative costs of the fund. The Center\n\nmay contract with the Commercialization Center or another entity to\n\nmanage the Seed-Capital Revolving Fund and to carry out the\n\nactivities set forth in this section.\n\nC. The Center may use the Seed-Capital Revolving Fund to\n\nprovide seed-capital to enterprises and to carry out the purposes of\n\nthe Oklahoma Science and Technology Research and Development Act\n\nthrough authorized investments, including:\n\n1. Loans, loans convertible to equity, and equity;\n\n2. Leaseholds;\n\n3. Management or consultant service agreements;\n\n4. Loans with stock subscription or similar warrants that are\n\nbeneficially owned by the Center;\n\n5. Loans with stock subscription or similar warrants that are\n\nbeneficially owned by a party other than the Center;\n\n6. Any other contractual arrangement in which the Center is\n\nproviding scientific and technological services to any federal,\n\nstate, county or municipal agency, or to any individual,\n\ncorporation, enterprise, association or any other entity involving\n\nscience and technology. The Center, in connection with the\n\nprovision of any form of financial assistance, may enter into\n\nroyalty agreements with an enterprise;\n\n7. Participation as a general or limited partner in other seed-\n\ncapital funds or participation as a limited partner in individual\n\ncases as authorized by the board of directors;\n\n8. Royalty or other interests in patents, licenses, trade\n\nsecrets or other technology; and\n\n9. All other seed-capital investments and qualified securities\n\nas defined in the Oklahoma Science and Technology Research and\n\nDevelopment Act.\n\nD. The Center may use the Seed-Capital Revolving Fund to\n\npurchase qualified securities issued by enterprises engaged in new\n\nproduct or process innovations subject to the conditions set forth\n\nin this section.\n\nE. The Center may use the Seed-Capital Revolving Fund to make\n\nloans for business incubator facilities in exchange for interests in\n\nthe enterprises.\n\nF. The Center shall make authorized seed-capital investments in\n\nenterprises engaged in new product or process innovations only\n\nafter:\n\n1. Receipt of an application from the enterprise which\n\ncontains:\n\na. a business plan including a description of the\n\nenterprise and its management, product and market,\n\nb. a statement of the amount, timing and projected use of\n\nthe capital required,\n\nc. a statement of the potential economic impact of the\npital investments in\n\nenterprises engaged in new product or process innovations only\n\nafter:\n\n1. Receipt of an application from the enterprise which\n\ncontains:\n\na. a business plan including a description of the\n\nenterprise and its management, product and market,\n\nb. a statement of the amount, timing and projected use of\n\nthe capital required,\n\nc. a statement of the potential economic impact of the\n\nenterprise, including the number, location and types\n\nof jobs expected to be created, and\n\nd. such other information as the Center board of\n\ndirectors shall request; and\n\n2. Approval of the investment by the Center. Such approval may\n\nbe made after the board of directors finds, based upon the\n\napplication submitted by the enterprise and such additional\n\ninvestigation as the staff of the Center shall make and incorporate\n\nin its minutes, or based on the recommendation of the fund manager,\n\nif the Center contracts with the Commercialization Center or another\n\nentity to manage the Seed-Capital Revolving Fund, that:\n\na. the proceeds of the investment or financial assistance\n\nwill be used only to cover the seed-capital needs of\n\nthe enterprise except as authorized by this section,\n\nb. the enterprise has a reasonable chance of success,\n\nc. the Center's participation is instrumental to the\n\nsuccess of the enterprise and will assist in its\n\nretention within the state,\n\nd. the Center's investment is leveraged by at least one\n\nadditional equity or near-equity investor,\n\ne. the enterprise has the reasonable potential to enhance\n\nemployment opportunities within the state,\n\nf. the entrepreneur and other founders of the enterprise\n\nhave already made or are contractually committed to\n\nmake an appropriate financial and time commitment to\n\nthe enterprise,\n\ng. any securities to be purchased are qualified\n\nsecurities,\n\nh. there is a reasonable possibility that the Center will\n\nrecoup at least its initial investment or financial\n\ncommitment, and\n\ni. binding commitments have been made to the Center by\n\nthe enterprise for adequate reporting of financial\n\ndata to the Center, which shall include a requirement\n\nfor an annual report, or if required by the board, an\n\nannual audit of the financial and operational records\n\nof the enterprise, and for such control on the part of\n\nthe Center as the board of directors shall consider\n\nprudent over the management of the enterprise, so as\n\nto protect the investment or financial commitment of\n\nthe Center, including in the discretion of the board\n\nand without limitation, right of access to financial\n\nand other records of the enterprise, and membership or\n\nrepresentation on the board of directors of the\n\nenterprise.\n\nG. The board of directors shall create an investment committee\n\nto assist in evaluating potential investments in qualified\n\nsecurities and provision of other forms of authorized financial\n\nassistance. The membership of this investment committee shall serve\n\nat the pleasure of the board and shall consist of:\n\n1. No more than two members of the board of directors, neither\n\nof whom serves on any advisory committee to the Center; and\n\n2. Persons drawn from sources other than the Center who meet\n\nstandards similar to those applying to the board of directors and\n\nwho are recognized by their peers for outstanding knowledge and\n\nleadership in their fields, all of whom shall serve at the pleasure\n\nof the board.\n\nH. The Center shall not make investments in qualified\n\nsecurities issued by enterprises in excess of the amount necessary\n\nto own more than forty-nine percent (49%) of qualified securities in\n\nany one enterprise at the time such securities are purchased by the\n\nCenter, after giving effect to the conversion of all outstanding\n\nconvertible qualified securities of the enterprise; however, in the\n\nevent of severe financial difficulty of the enterprise, threatening,\nissued by enterprises in excess of the amount necessary\n\nto own more than forty-nine percent (49%) of qualified securities in\n\nany one enterprise at the time such securities are purchased by the\n\nCenter, after giving effect to the conversion of all outstanding\n\nconvertible qualified securities of the enterprise; however, in the\n\nevent of severe financial difficulty of the enterprise, threatening,\n\nin the judgment of the board of directors, the investment of the\n\nCenter therein, a greater percentage of such securities may be owned\n\nby the Center.","path":["OK Code","Title 74"],"source_url":"https://www.oklegislature.gov/OK_Statutes/CompleteTitles/os74.pdf","current_through":"2026-08-14","vintage":"open-us-law v2026.08, retrieved 2026-09-14","retrieved_at":"2026-09-14T18:32:36Z","sha256":"23c4b90c20d1c86bd6d6f4360ad9f5bddfcc9a15d4aea9ba0c899f4470a1d267","source_id":"us-ok","stale":false,"prev":"us-ok/okla.-stat.-tit.-74-74-5060.20b","next":"us-ok/okla.-stat.-tit.-74-74-5060.22"},"notice":"GroundRules: Original legal text. Not legal advice."}