63N-6-301.  Utah Capital Investment Corporation — Powers and purposes — Reporting requirements.

(1) 

Terms Used In Utah Code 63N-6-301

  • Amendment: A proposal to alter the text of a pending bill or other measure by striking out some of it, by inserting new language, or both. Before an amendment becomes part of the measure, thelegislature must agree to it.
  • Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
  • Contract: A legal written agreement that becomes binding when signed.
  • Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
  • Corporation: means the Utah Capital Investment Corporation created under Section 63N-6-301. See Utah Code 63N-6-103
  • Fair market value: The price at which an asset would change hands in a transaction between a willing, informed buyer and a willing, informed seller.
  • State: when applied to the different parts of the United States, includes a state, district, or territory of the United States. See Utah Code 68-3-12.5
  • Utah fund of funds: means a limited liability company established under Section 63N-6-401. See Utah Code 63N-6-103
(a)  There is created an independent quasi-public nonprofit corporation known as the Utah Capital Investment Corporation.

(b)  The corporation:

(i)  may exercise all powers conferred on independent corporations under Section 63E-2-106;

(ii)  is subject to the prohibited participation provisions of Section 63E-2-107; and

(iii)  is subject to the other provisions of Title 63E, Chapter 2, Independent Corporations Act, except as otherwise provided in this part.

(c)  The corporation shall file with the Division of Corporations and Commercial Code:

(i)  articles of incorporation; and

(ii)  any amendment to its articles of incorporation.

(d)  In addition to the articles of incorporation, the corporation may adopt bylaws and operational policies that are consistent with this chapter.

(e)  Except as otherwise provided in this part, this part does not exempt the corporation from the requirements under state law which apply to other corporations organized under Title 63E, Chapter 2, Independent Corporations Act.

(2)  The purposes of the corporation are to:

(a)  administer the Utah fund of funds;

(b)  select an investment fund allocation manager to manage investments by the Utah fund of funds;

(c)  negotiate the terms of a contract with the investment fund allocation manager;

(d)  execute the contract with the selected investment fund manager on behalf of the Utah fund of funds; and

(e)  receive investment returns from the Utah fund of funds.

(3)  The corporation may not:

(a)  exercise governmental functions;

(b)  have members;

(c)  pledge the credit or taxing power of the state or any political subdivision of the state; or

(d)  make its debts payable out of any money except money of the corporation.

(4)  The obligations of the corporation are not obligations of the state or any political subdivision of the state within the meaning of any constitutional or statutory debt limitations, but are obligations of the corporation payable solely and only from the corporation’s funds.

(5)  The corporation may:

(a)  engage consultants and legal counsel;

(b)  expend funds;

(c)  invest funds;

(d)  issue debt and equity, and borrow funds;

(e)  enter into contracts;

(f)  insure against loss;

(g)  hire employees; and

(h)  perform any other act necessary to carry out its purposes.

(6) 

(a)  The corporation shall publish on or before September 1 an annual report of the activities conducted by the Utah fund of funds and submit, in accordance with Section 68-3-14, the written report to:

(i)  the governor;

(ii)  the Business, Economic Development, and Labor Appropriations Subcommittee;

(iii)  the Business and Labor Interim Committee; and

(iv)  the Retirement and Independent Entities Interim Committee.

(b)  The annual report shall:

(i)  be designed to provide clear, accurate, and accessible information to the public, the governor, and the Legislature;

(ii)  include a copy of the audit of the Utah fund of funds described in Section 63N-6-405;

(iii)  include a detailed balance sheet, revenue and expenses statement, and cash flow statement;

(iv)  include detailed information regarding:

(A)  realized gains from investments and any realized losses; and

(B)  unrealized gains and any unrealized losses based on the net present value of ongoing investments;

(v)  include detailed information regarding all yearly expenditures, including:

(A)  administrative, operating, and financing costs;

(B)  aggregate compensation information for full- and part-time employees, including benefit and travel expenses; and

(C)  expenses related to the allocation manager;

(vi)  include detailed information regarding all funding sources for administrative, operations, and financing expenses, including expenses charged by or to the Utah fund of funds, including management and placement fees;

(vii)  for each individual fund that the Utah fund of funds is invested in that represents at least 5% of the net assets of the Utah fund of funds, include the name of the fund, the total value of the fund, the fair market value of the Utah fund of funds’ investment in the fund, and the percentage of the total value of the fund held by the Utah fund of funds; and

(viii)  include an aggregate total value for all funds the Utah fund of funds is invested in.

Amended by Chapter 298, 2022 General Session
Amended by Chapter 362, 2022 General Session

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