Current as of: 2009Chapter 40F: Section 1. Definitions
[Text of section effective until July 1, 2010. Repealed by 1987, 324, Sec. 6. See, also, 1990, 528, Sec. 6 and 2000, 159, Sec. 302.]
Section 1. For the purposes of this chapter the following words and terms shall have the followed meanings, except where the context clearly indicates otherwise:
"Capital participation instruments", purchase of stock, both common and preferred, convertible securities, warrants, subscriptions, options to acquire, capital loans, and working capital or inventory loans, royalties, and any other lawful derivations of the foregoing.
"Community development corporation" or "CDC", a quasi-public nonprofit corporation organized under the General Laws to carry out certain public purposes and with by-laws providing that:
(1) it is organized to operate within a specified geographic area coincident with existing political boundaries;
(2) that membership in the corporation shall be open to all residents of said area who are eighteen years or older;
(3) that at least a majority of its board of directors shall be elected by the full membership with each member having an equal vote;
(4) that the by-laws of the Community Development Corporation shall provide that any other directors be either appointees of elected state or local government officials or appointees of other nonprofit organizations having as a purpose the promotion of development in the designated geographic area;
(5) that said elections shall be held annually for at least one-third of the members of the board of directors so that each elected director shall serve for a term of at least three years;
(6) that the designated geographic area shall be consistent with some existing, or combination of existing, political district, provided that the aggregate population of such geographic area shall not exceed one hundred and fifteen thousand people based on the most recent federal census.
"Corporation" or "CDFC", the Massachusetts Community Development Finance Corporation created by section two.
"Costs of a project", any and all costs associated with the design, planning, and implementation of a project undertaken in a target area which can reasonably be recovered in the financing of the project. Such costs may include but are not limited to the costs of planning, design, and other administrative costs, options to buy land, feasibility or other studies, seed money, construction, working capital, and other costs determined by the directors of the corporation to be necessary for the purposes of this chapter; provided, however, that no more than ten percent of the amount invested by the Massachusetts Community Development Finance Corporation towards the project shall be used for administrative costs of the project.
"Paid in capital", all monies received in return for capital stock of the CDFC.
"Primary employment", work which pays at least one and one-half times the minimum wage, offers adequate fringe benefits including health insurance, and is not seasonal or part time.
"Project", any commercial, industrial or real estate business or other economic development activity undertaken in a target area, designed to reduce conditions of blight, economic depression, or widespread reliance on public assistance.
"Small business", any business that has either an average gross sales of less than twelve million dollars per year for the most recent two fiscal years, or has less than two hundred and fifty full-time employees, except that businesses primarily engaged in wholesaling shall be considered eligible if their average gross annual sales for the most recent two fiscal years do not exceed twenty-four million dollars per year.
"Small business investment corporation" or "SBIC", a Massachusetts corporation organized to provide capital to small businesses located in the commonwealth and licensed according to the provisions of the Small Business Investment Act of 1958, (Public Law 85-699).
"Target area", any contiguous geographic area which is (1) a "blighted open area", "decadent area" or "substandard area" as defined in section one of chapter one hundred and twenty-one A, and in which according to the most recent United States census, the average household income is reported to be at least fifteen per cent lower than that reported for the Boston standard metropolitan statistical area, also known as Boston SMSA, as recognized by the United States Bureau of the Census in the 1970 census, or (2) any other contiguous geographic area in which the board of directors of the particular CDC finds and publishes in accordance with statistical criteria previously established by the CDFC that substantial conditions of blight, economic depression, and widespread reliance on public assistance exist in said area.Prev | Next
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