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The 190th General Court of the Commonwealth of Massachusetts

Section 3: Powers and duties

Section 3. The GCC shall have the power to:

(a) adopt by-laws for the regulation of its affairs and the conduct of its business;

(b) adopt an official seal;

(c) sue and be sued in its own name;

(d) make and execute contracts and all other instruments necessary or convenient for the exercise of its power and functions;

(e) acquire, hold and dispose of personal property for its corporate purposes;

(f) enter into agreements or other transactions with federal and state agencies;

(g) acquire real property, or an interest in real property, by purchase or foreclosure, if such acquisition is necessary or appropriate to protect or secure an investment or loan in which the agency has an interest; to sell, transfer and convey such property to a buyer and in the event such sale, transfer or conveyance cannot be effected with reasonable promptness or at a reasonable price, to lease such property to a tenant;

(h) invest funds held in reserves or sinking funds, or funds not required for immediate disbursement, in such investments as may be lawful for fiduciaries in the commonwealth;

(i) borrow money by the issuance of debt obligations whether tax exempt or taxable and secure such obligations by the pledge of its revenues or of the revenues, mortgages and notes of others; provided, however, that the corporation shall not issue debt obligations if the principal amount of those debt obligations, when added to the principal amount of existing debt obligations issued by the corporation, excluding debt obligations previously refunded or to be refunded by the corporation, would exceed 30 million dollars;

(j) employ and fix the compensation of a president, who shall be the chief executive officer of the corporation and such other agents, employees, professional and business advisers as may be necessary in the judgment of the directors; provided, however, that the president, professional advisers and business advisers shall not be subject to chapter 31 or section 9A of chapter 30;

(k) appear in its own behalf before boards, commissions, departments or other agencies of municipal, state or federal government;

(l) procure insurance against any loss in connection with its property in such amounts, and from such insurers, as may be necessary or desirable;

(m) consent, subject to any contract with noteholders or bondholders, whenever it deems it necessary or desirable in the fulfillment of the purposes of this chapter, to the modification, with respect to rate of interest, time of payment of an installment of principal or interest, or other terms, of a mortgage, mortgage loan, mortgage loan commitment, contract or other agreement to which the GCC is a party;

(n) do any and all things necessary or convenient to carry out its purposes and exercise the powers expressly given and granted in this chapter;

(o) receive and accept from federal and state agencies and public or private entities grants, loans or advances for or in aid of the purposes of this chapter and to receive and accept contributions from a source of either money, property, labor or other things of value, to be held, used and applied for the purposes of this chapter;

(p) create, issue, buy and sell stock and other capital participation instruments; to hold such stock and capital participation instruments and to underwrite the creation of a capital market for these securities;

(q) provide advisory services, technical assistance and training programs to small businesses as may be necessary or desirable to carry out the purposes of this chapter;

(r) exercise other powers, rights or responsibilities of a corporation organized under chapter 156B;

(s) create and issue shares which a person, firm or corporation may purchase; provided, however, that each share issued shall be in the form of non-voting common stock with each share having a par value of $10; provided, further, that the total value of the shares issued shall not exceed $25,000,000;

(t) make loans or grants to, or otherwise finance or invest in, a business to further the purposes of this chapter; provided, further, that such loans or grants may be made to certified community development corporations or other community based nonprofit entities for the purpose of such corporations or entities providing financing to businesses;

(u) provide loan guarantees to public or private entities for the purpose of causing such entities to provide financing to a business;

(v) establish and collect such fees, charges and interest rates as the corporation determines to be reasonable; and

(w) require, by contract in a financing agreement, or otherwise, specific operational activities, financial actions or management changes, as conditions for the receipt of a loan, financing or investment by the corporation.

No debt obligation issued under clause (i), stock or capital participation instrument created under clause (p) or share issued under clause (s) shall be or become an indebtedness or obligation of the commonwealth, and it shall be plainly stated on the face of each bond, capital participation instrument, share or other evidence of indebtedness that it does not constitute an indebtedness or obligation of the commonwealth but is payable solely from the revenues or income of the Massachusetts Growth Capital Corporation.