Louisiana Revised Statutes 51:2387 – Declaration of purpose
Terms Used In Louisiana Revised Statutes 51:2387
- Financing assistance: means to lend money or otherwise extend credit to a person or to purchase securities issued by a person, either directly or indirectly through an underwriter. See Louisiana Revised Statutes 51:2388
- Fraud: Intentional deception resulting in injury to another.
- Management assistance: means management or technical advice or services provided to a person. See Louisiana Revised Statutes 51:2388
- Order: includes a condition of a license and an agreement made by a person with the commissioner under this Chapter. See Louisiana Revised Statutes 51:2388
- Public law: A public bill or joint resolution that has passed both chambers and been enacted into law. Public laws have general applicability nationwide.
The purposes of this Chapter are to:
(1) Promote economic development by encouraging the formation of business and industrial development companies, a new type of private institution, to help grow the financial services industry in Louisiana, create high-paying job opportunities in this sector and meet the financing assistance and management assistance needs of business firms in this state and elsewhere.
(2) Provide for a system of licensing, regulation, and enforcement that will enable business and industrial development companies to satisfy eligibility requirements to participate, if they so choose, in the program of the Small Business Administration pursuant to Part 7(a) of the Small Business Act, Public Law 85-536, 15 U.S.C. § 636(a), and other programs for which they may be eligible.
(3) Provide for a system of licensing, regulation, and enforcement designed to prevent fraud, conflict of interest, and mismanagement, and to promote competent management, accurate recordkeeping, and appropriate communication with shareholders or members, in order to provide the following:
(a) Comfort to prospective shareholders or members so as to facilitate equity investments in business and industrial development companies.
(b) Comfort to prospective debt sources so as to facilitate the borrowing of money by business and industrial development companies.
(4) Safeguard the general reputation of business and industrial development companies as a type of nondepository financial institution in order to increase the confidence of prospective equity investors in and prospective debt sources for those institutions.
Acts 1991, No. 506, §1; Acts 2004, No. 806, §1.