Missouri Statute | Act | Code |Corporations, Associations And Partnerships| US Code - US Statute | Chapter 348 Authorities And Corporations For Economic And Technological

USA Statutes : missouri
Title : CORPORATIONS, ASSOCIATIONS AND PARTNERSHIPS
Chapter : Chapter 348 Authorities and Corporations for Economic and Technological

Sections 348.005 to 348.180 shall be known and may be cited as
the "Missouri Agricultural and Small Business Development Loan Act". (L.
1981 H.B. 681 § 1)

1. It is hereby found and declared that:

(1) The high and increasing cost of agricultural land, improvements, and
equipment creates an urgent demand for financing which is not available
in the amounts needed and at reasonable interest rates in the present
market, and the inability on the part of persons engaged in agriculture
to acquire modern agricultural property at reasonable financing costs
makes it difficult for such persons to continue their operations at
present levels; and

(2) Such inability to continue agricultural operations decreases
employment and results in unemployment and its attendant problems; and

(3) That environmental damage, resulting from air, water, and other
pollution and from public water supply, solid waste disposal, noise and
other environmental problems, seriously endangers the public health and
welfare; and

(4) That the high cost of financing capital improvements and the need to
comply with environmental quality standards impose a heavy economic
burden on small business in this state; and

(5) That it is desirable to provide small business with additional and
alternative methods of financing the costs of acquisition and
installation of the devices, equipment, and facilities required to comply
with the quality standards which have been established to reduce,
control, and prevent pollution and related problems; and

(6) That the viability of small business is threatened by the high cost
of obtaining funds to meet general capital improvement programs and that
the continued existence of small business enterprise in this state is
desirable and necessary for the maintenance and expansion of employment
opportunities in and the preservation of the economic well-being of this
state; and

(7) It is necessary, desirable, and in the best interest of the citizens
of this state that provision be made for the establishment of a public
corporation to promote the development of agriculture and small business
and to reduce, control, and prevent environmental damage in this state by
making available to persons engaged in agriculture in this state and to
small businesses located in this state, at interest rates lower than
would be otherwise obtainable, funds for use in agriculture operations or
for use in the reduction, control, and prevention of environmental damage
or, in the case of small business, for use in general capital improvement
programs, and to vest such corporation with all powers that may be
necessary to enable it to accomplish such purposes; and

(8) It is the intent of the general assembly that such public corporation
shall give special consideration to small business, as defined in
sections 348.005 to 348.180, in authorizing the issuance of bonds for the
financing of agricultural property or pollution control facilities in
order to assist small business in assuming the economic burdens imposed
by the required financing of such agricultural property or pollution
control facilities.

2. Sections 348.005 to 348.180 shall be liberally construed to accomplish
the intentions expressed in this section. (L. 1981 H.B. 681 § 2)

As used in sections 348.005 to 348.225, the following terms
shall mean:

(1) "Agricultural development loan", a loan for the acquisition,
construction, improvement, or rehabilitation of agricultural property;

(2) "Agricultural property", any land and easements and real and personal
property, including, but not limited to, buildings, structures,
improvements, equipment, and livestock, which is used or is to be used in
Missouri by Missouri residents for:

(a) The operation of a farm or ranch;

(b) Planting, cultivating, or harvesting cereals, natural fibers, fruits,
vegetables, or trees;

(c) Grazing, feeding, or the care of livestock, poultry, or fish;

(d) Dairy production;

(e) Storing, transporting, or processing farm and ranch products,
including, without limitation, facilities such as grain elevators, cotton
gins, shipping heads, livestock pens, warehouses, wharfs, docks,
creameries, or feed plants; and

(f) Supplying and conserving water, draining or irrigating land,
collecting, treating, and disposing of liquid and solid waste, or
controlling pollution, as needed for the operations set out in this
subdivision;

(3) "Authority", the Missouri agricultural and small business development
authority organized pursuant to the provisions of sections 348.005 to
348.180;

(4) "Bonds", any bonds, notes, debentures, interim certificates, bond,
grant, or revenue anticipation notes, or any other evidences of
indebtedness;

(5) "Borrower", any individual, partnership, corporation, including a
corporation or other entity organized pursuant to section 274.220, RSMo,
firm, cooperative, association, trust, estate, political subdivision,
state agency, or other legal entity or its representative executing a
note or other evidence of a loan;

(6) "Eligible borrower", a borrower qualifying for an agricultural
development loan, a small business development loan, or a small business
pollution control facility loan under such criteria and priorities as may
be established in rules of the authority or in procedural manuals issued
thereunder for the purpose of directing the use of available loan funds
on the basis of need for and value of each loan for the maintenance of
the agricultural economy or small business and on the meeting of
pollution control objectives and assuring conformity with conditions
established by insurers or guarantors of loans and the preservation of
the security of bonds or notes issued to finance the loan;

(7) "Insurer" or "guarantor", the Farmers Home Administration of the
Department of Agriculture of the United States, the United States Small
Business Administration, or any other or successor agency or
instrumentality of the United States having power, or any insurance
company qualified under Missouri law, to ensure or guarantee the payment
of agricultural development loans, small business development loans, or
small business pollution control facility loans and interest thereon, or
any portion thereof;

(8) "Lender", any state or national bank, federal land bank, production
credit association, bank for cooperatives, federal or state- chartered
savings and loan association or building and loan association or small
business investment company that is subject to credit examination by an
agency of the state or federal government, or any other lending
institution approved by the insurer or guarantor of an agricultural
development loan, small business development loan, or small business
pollution control facility loan which undertakes to make or service such
a loan;

(9) "Pollution", any form of environmental pollution including, but not
limited to, water pollution, air pollution, land pollution, solid waste
pollution, thermal pollution, radiation contamination, or noise pollution;

(10) "Pollution control facility" or "facilities", any land, interest in
land, building, structure, facility, system, fixture, improvement,
appurtenance, machinery, equipment, or any combination thereof, and all
real and personal property deemed necessary therewith, having to do with,
or the end purpose of which is, reducing, controlling, or preventing
pollution;

(11) "Small business", those enterprises which, at the time of their
application to the authority, meet the criteria, as interpreted and
applied by the authority, for definition as a "small business"
established for the Small Business Administration and set forth in
Section 121.301 of Part 121 of Title 13 of the Code of Federal
Regulations;

(12) "Small business development loan", a loan for the acquisition,
construction, improvement, or rehabilitation of property owned or to be
acquired by a small business as defined herein;

(13) "Small business pollution control facility loan", a loan for the
acquisition, construction, improvement, or rehabilitation of a pollution
control facility or facilities by a small business;

(14) "Value-added agricultural products", any product or products that
are the result of:

(a) Using an agricultural product grown in this state to produce a meat
or dairy product in this state;

(b) A change in the physical state or form of the original agricultural
product;

(c) An agricultural product grown in this state whose value has been
enhanced by special production methods such as organically grown
products; or

(d) A physical segregation of a commodity or agricultural product grown
in this state that enhances its value such as identity preserved
marketing systems. (L. 1981 H.B. 681 § 3, A.L. 1994 H.B. 1248 & 1048,
A.L. 1997 H.B. 557, A.L. 1998 H.B. 950, A.L. 2003 H.B. 289)

There is hereby created, with such duties and powers as are set
forth in sections 348.005 to 348.415 to carry out the provisions hereof,
a body politic and corporate, an independent instrumentality exercising
essential public functions, to be known as the "Missouri Agricultural and
Small Business Development Authority". The powers of the authority shall
be vested in seven commissioners, who shall be residents of this state,
to be appointed by the governor, by and with the advice and consent of
the senate, except that the director of the department of agriculture
shall serve as a member of the authority as an ex officio member. Not
more than four of the commissioners shall be of the same political party.
(L. 1981 H.B. 681 § 4, A.L. 1994 H.B. 1248 & 1048, A.L. 1999 H.B. 888)

Effective 7-2-99

*Authority assigned to department of agriculture. See Appendix A
Reorganization Plan No. 4, 1982, on file with the Secretary of State.

Notwithstanding the provisions of any other law to the contrary:

(1) No officer or employee of this state shall be deemed to have
forfeited or shall forfeit his office or employment by reason of his
acceptance of membership on the authority or his service thereto;

(2) It shall not constitute a conflict of interest for a director,
officer, or employee of any financial institution, investment banking
firm, brokerage firm, commercial bank or trust company, architectural
firm, insurance company, or any other firm, person, or corporation, to
serve as a member of the authority, provided such trustee, director,
officer, or employee shall abstain from deliberation, action, and vote by
the authority in each instance where the business affiliation or public
office association of any such trustee, director, officer, or employee is
involved. (L. 1981 H.B. 681 § 5)

The commissioners shall serve five-year terms, with each term
beginning July first and ending on June thirtieth; except, that of the
commissioners first appointed, one shall be appointed for a term of two
years, two shall be appointed for a term of three years, two shall be
appointed for a term of four years, and two shall be appointed for a term
of five years. Each commissioner appointed thereafter shall be appointed
for a term ending five years from the date of expiration of the term for
which his predecessor was appointed; except, that a person appointed to
fill a vacancy prior to the expiration of such a term shall be appointed
for the remainder of the term. No commissioner appointed pursuant to
sections 348.005 to 348.180 by the governor shall serve more than two
consecutive full terms. Each commissioner shall hold office for the term
of his appointment and until his successor shall have been appointed and
qualified. (L. 1981 H.B. 681 § 6)

Before entering into his duties, each commissioner of the
authority shall execute a surety bond in the penal sum of fifty thousand
dollars, and the executive director shall execute a surety bond in the
penal sum of one hundred thousand dollars or, in lieu thereof, the
chairman of the authority shall execute a blanket bond covering all
members, the executive director, and the employees or other officers of
the authority, each surety bond to be conditioned upon the faithful
performance of the duties of the office or offices covered, to be
executed by a surety company authorized to transact business in this
state as surety and to be approved by the attorney general and filed in
the office of the secretary of state. The cost of each such bond shall be
paid by the authority. (L. 1981 H.B. 681 § 7)

A commissioner shall be removed from office by the governor for
misfeasance, malfeasance, or willful neglect of duty or other cause after
notice and public hearing, unless such notice or hearing shall be
expressly waived in writing. (L. 1981 H.B. 681 § 8)

The commissioners shall annually elect from among their number a
chairman and a vice chairman, and such other officers as they may deem
necessary. (L. 1981 H.B. 681 § 9)

Meetings shall be held at the call of the chairman or whenever
two commissioners so request. Four commissioners of the authority shall
constitute a quorum, and any action taken by the authority under the
provisions of sections 348.005 to 348.180 may be authorized by resolution
approved by a majority, but not less than four, of the commissioners
present at any regular or special meeting. No vacancy in the membership
of the authority shall impair the right of a quorum to exercise all the
rights and perform all the duties of the authority. (L. 1981 H.B. 681 §
10)

Commissioners shall receive no compensation for the performance
of their duties under sections 348.005 to 348.180, but each commissioner
shall be reimbursed from the funds of the authority for his actual and
necessary expenses incurred in carrying out his official duties under
sections 348.005 to 348.180. (L. 1981 H.B. 681 § 11)

The commissioners shall employ an executive director. The
executive director shall be the secretary of the authority and shall
administer, manage, and direct the affairs and business of the authority,
subject to the policies, control, and direction of the commissioners. The
commissioners may employ technical experts and such other officers,
agents, and employees as they deem necessary, and may fix their
qualifications, duties, and compensation. The executive director and all
other employees of the authority shall be state employees and eligible
for all corresponding benefits. The commissioners may delegate to the
executive director, or to one or more of its agents or employees, such
powers and duties as it may deem proper. (L. 1981 H.B. 681 § 12, A.L.
1999 H.B. 888)

Effective 7-2-99

1. The authority shall have all of the powers necessary and
convenient to carry out and effectuate the purposes and provisions of
sections 348.005 to 348.180, including, but not limited to, the power to:

(1) Sue and be sued in its own name;

(2) Have an official seal and alter the same at pleasure;

(3) Have perpetual succession; and

(4) Maintain an office at such place or places within this state as it
may designate.

2. For purposes of effectuating its public purposes, the authority may:

(1) Borrow money and issue bonds as provided in sections 348.005 to
348.180;

(2) Procure insurance or guarantees from any public or private entities,
including any department, agency, or instrumentality of the United
States, for payment of any bonds issued by the authority, including the
power to pay premiums on any such insurance;

(3) Receive and accept from any source aid or contributions of money,
property, labor, or other things of value to be held, used, and applied
to carry out the purposes of sections 348.005 to 348.180, subject to the
conditions upon which the grants or contributions are made, including,
but not limited to, gifts or grants from any department, agency, or
instrumentality of the United States for any purpose consistent with
sections 348.005 to 348.180;

(4) Enter into agreements with any department, agency, or instrumentality
of the United States or this state, or with any lender, and into loan
agreements, sales contracts, and leases with contracting parties, for the
purpose of planning, regulating, and providing for the financing and
refinancing of any agricultural property and pollution control facilities
or general property for small businesses;

(5) Enter into contracts or agreements with lenders for the servicing and
processing of loans pursuant to sections 348.005 to 348.180;

(6) Provide technical assistance to local public bodies and to profit and
not-for-profit entities in the development or operation of agricultural
enterprises and pollution control facilities for small businesses;

(7) To the extent permitted under its contract with the holders of bonds
of the authority, consent to any modification with respect to the rate of
interest, time and payment of any installment of principal or interest,
or any other term of any contract, loan, loan note, loan note commitment,
contract, lease, or agreement of any kind to which the authority is a
party; and

(8) To the extent permitted under its contract with the holders of bonds
of the authority, enter into contracts with any lender containing
provisions enabling it to reduce the rental or carrying charges to
persons unable to pay the regular schedule of charges when, by reason of
other income or payment by any department, agency, or instrumentality of
the United States or of this state, the reduction can be made without
jeopardizing the economic stability of the agricultural property being
financed.

3. In addition to the powers specifically enumerated under the provisions
of sections 348.005 to 348.180, the authority shall have the power to do
any and all things necessary or convenient to carry out its purposes and
exercise the powers given and granted in sections 348.005 to 348.180. (L.
1981 H.B. 681 §§ 14, 16, 22)

The authority shall have the power, as necessary or convenient
to carry out and effectuate the purposes and provisions of sections
348.005 to 348.180. Any rule or portion of a rule promulgated under the
authority of sections 348.005 to 348.180 shall become effective only if
it has been promulgated in compliance with the provisions of chapter 536,
RSMo, as it may be amended from time to time. (L. 1981 H.B. 681 § 15,
A.L. 1995 S.B. 3, A.L. 1997 H.B. 557)

*Rulemaking authority, effective when, null and void, when, see RSMo
348.426.

The authority shall have the following duties:

(1) To invest any funds not needed for immediate disbursement, including
any funds held in reserve, in direct and general obligations of or
obligations fully and unconditionally guaranteed by the United States or
any agency of the United States, obligations issued by agencies of the
United States, obligations of this state, or any obligations or
securities which may from time to time be legally purchased by political
subdivisions of this state, or unsecured promissory notes of national
banking associations having the highest investment rating;

(2) To collect fees and charges, as the authority determines to be
reasonable, in connection with its loans, advances, insurance,
commitments, and servicing;

(3) To cooperate with and exchange services, personnel, and information
with any federal, state, or local governmental agency;

(4) To sell, at public or private sale, with or without public bidding,
any loan or other obligation held by the authority; and

(5) To do any act necessary or convenient to the exercise of the powers
granted by sections 348.005 to 348.180 or reasonably implied from the
provisions of sections 348.005 to 348.180. (L. 1981 H.B. 681 § 17)

CROSS REFERENCES: Bi-state development agency, bonds of, investment in
authorized, RSMo 70.377 Multinational banks, securities and obligations
of, investment in, when, RSMo 409.950 Savings accounts in insured savings
and loan associations, investment in authorized, RSMo 369.194

The authority shall have the power, as necessary or convenient
to carry out and effectuate the purposes and provisions of sections
348.005 to 348.180, to enter into agreements or other transactions with,
and accept grants and the cooperation of, the United States or any agency
or instrumentality thereof or of this state or any agency or
instrumentality thereof, in furtherance of the purposes of sections
348.005 to 348.180, and to do any and all things necessary in order to
avail itself of such aid and cooperation. (L. 1981 H.B. 681 § 18)

The authority shall have the power, as necessary or convenient
to carry out and effectuate the purposes and provisions of sections
348.005 to 348.180, to:

(1) Make contracts with the state or any governmental agency or political
subdivision thereof, the federal government, public corporations or
bodies, and private corporations or individuals in furtherance of the
purposes of sections 348.005 to 348.180; and

(2) Make and execute contracts and all other instruments necessary or
convenient for the exercise of its powers and functions under sections
348.005 to 348.180; and

(3) Receive and accept aid or contributions, from any source, of money,
property, labor, or other things of value, to be held, used, and applied
to carry out the purposes of sections 348.005 to 348.180, subject to such
conditions upon which such grants and contributions may be made;

(4) Borrow money and issue bonds, notes, and other evidences of
indebtedness thereof, as provided in sections 348.005 to 348.180;

(5) Include in any borrowing such amounts as may be deemed necessary by
the authority to establish reserves and to pay financing charges,
interest on the obligations for a period not exceeding three years from
the date of issuance of such obligations, consultant, advisory, and legal
fees, and such other expenses as are necessary or incidental to such
borrowing;

(6) Procure, or agree to the procurement of, insurance or guarantees from
the federal government for the payment of any bonds, notes, or any other
evidences of indebtedness thereof issued by the authority, including the
power to pay premiums on any such insurance;

(7) Purchase bonds or notes of the authority out of any funds or money of
the authority available therefor, and to hold, cancel, or resell such
bonds or notes. (L. 1981 H.B. 681 § 19)

Upon termination or dissolution, all rights and properties of
the authority shall pass to and be vested in the state of Missouri,
subject to the rights of noteholders, bondholders, and other creditors.
(L. 1981 H.B. 681 § 20)

The authority may purchase agricultural development loans, small
business development loans, and small business pollution control
facilities loans originated by lenders, or may participate with lenders
in making such loans, and may enter into commitments to lenders for such
purchase or participation, provided that, as to each loan:

(1) The applicant cannot, in the authority's judgment, obtain a loan on
equivalent terms without such purchase or participation;

(2) The yield to the authority on the loan or on its participation
therein will, in its judgment, be sufficient to pay all costs and
expenses incurred by the authority in making or participating in the loan
and issuing bonds or notes to finance it, including any discount,
principal, interest, redemption premium, reserves, and property or loan
insurance and servicing cost not paid by the borrower or the lender;

(3) The payment of principal and interest with respect to the loans is
guaranteed to the amount of the authority's participation therein, or is
insured under a policy providing for payment of a percentage of any loss
at least equal to that percentage by which the original principal amount
of the loan exceeds seventy-five percent of the appraised value of the
property, subject to a first mortgage or perfected security interest
granted for the security of the loans; and

(4) The lender provides all documentation required to demonstrate that
the applicant is an eligible borrower and that all conditions for
insurance or guaranty of the loan have been fulfilled, and agrees to
service the loan or provide for its servicing by another lender, in
accordance with rules of the authority. (L. 1981 H.B. 681 § 21)

The authority may issue from time to time its negotiable notes
and bonds in such principal amount as it shall determine to be necessary
to provide sufficient funds for achieving its corporate purposes,
including the payment of interest on notes and bonds of the authority,
establishment of reserves to secure such notes and bonds including any
reserve funds, and all other expenditures of the authority incident to
and necessary or convenient to carry out its corporate purposes and
powers. (L. 1981 H.B. 681 § 23)

Obligations issued under the provisions of sections 348.005 to
348.180 shall not constitute a debt, liability, or obligation of this
state or of any political subdivision of this state, nor shall any such
obligation be a pledge of the faith and credit of this state or of any
political subdivision of this state, but shall be payable solely from the
revenues or assets of the authority. The issuance of bonds under sections
348.005 to 348.180 shall not, directly or indirectly, or contingently,
obligate the state or any political subdivision thereof to levy any form
of taxation therefor or to make any appropriation for their payment. Each
obligation issued under sections 348.005 to 348.180 shall contain on the
face thereof a statement to the effect that the authority shall not be
obligated to pay the same nor the interest thereon except from the
revenues or assets pledged therefor, and that neither the faith and
credit nor the taxing power of this state or of any political subdivision
of this state is pledged to the payment of the principal of or the
interest on such obligation. (L. 1981 H.B. 681 § 24)

1. The authority shall have the power, from time to time, to
issue notes to renew notes and bonds to pay notes, including the interest
thereon, and, whenever it deems refunding expedient, to refund any bonds
by the issuance of new bonds, whether the bonds to be refunded have or
have not matured, and to issue bonds partly to refund bonds then
outstanding and partly for any of its corporate* purposes.

2. Bonds or notes may be issued under the provisions of sections 348.005
to 348.180 without obtaining the consent of any department, division,
commission, board, body, bureau, or agency of this state, and without any
other proceedings or the happening of any conditions or things other than
those proceedings, conditions, or things which are specifically required
by sections 348.005 to 348.180 and by the provisions of the resolution
authorizing the issuance of such bonds or notes, or the trust agreement
securing the same. (L. 1981 H.B. 681 §§ 25, 26)

*Original rolls have word "corporation".

The notes and bonds shall be authorized by resolution of the
authority, shall bear such date or dates and shall mature at such time or
times as such resolution may provide; except, that no bond shall mature
more than fifty years from the date of its issue. The bonds may be issued
as serial bonds payable in annual installments or as term bonds, or as a
combination thereof. The notes and bonds shall bear interest at such rate
or rates, be in such denominations, be in such form, either coupon or
registered, carry such registration privileges, be executed in such
manner, be payable in such medium of payment, at such place or places
within or without the state, and be subject to such terms of redemption
as such resolution may provide. The notes and bonds of the authority may
be sold by the authority, at public or private sale, at such price as the
authority shall determine. (L. 1981 H.B. 681 § 27)

Any pledge made by the authority shall be valid and binding from
the time when the pledge is made. The revenues, moneys, or property so
pledged and thereafter received by the authority shall immediately be
subject to the lien of such pledge without any physical delivery thereof
or further act, and the lien of any such pledge shall be valid and
binding as against all parties having claims of any kind in tort,
contract, or otherwise against the authority, irrespective of whether
such parties have notice thereof. (L. 1981 H.B. 681 § 28)

In case any of the commissioners, executive director, or
officers of the authority whose signatures or facsimile signatures appear
on any notes, bonds, or coupons shall cease to be such commissioners,
executive director, or officers before the delivery of such notes or
bonds, such signatures or facsimile signatures shall, nevertheless, be
valid and sufficient for all purposes, the same as if such commissioners,
directors, or officers had remained in office until such delivery. (L.
1981 H.B. 681 § 29)

The authority, subject to such agreement with noteholders or
bondholders as may then exist, shall have the power, out of any funds
available therefor, to purchase notes or bonds of the authority, which
shall thereupon be canceled, at a price not exceeding:

(1) If the notes or bonds are then redeemable, the redemption price then
applicable plus accrued interest to the next interest payment thereon; or

(2) If the notes or bonds are not then redeemable, the redemption price
applicable on the first date after such purchase upon which the notes or
bonds become subject to redemption plus accrued interest to such date.
(L. 1981 H.B. 681 § 30)

The authority may provide for the issuance of refunding
obligations for the purpose of refunding any obligations then outstanding
which have been issued under the provisions of sections 348.005 to
348.180, including the payment of any redemption premium thereon and any
interest accrued or to accrue to the date of redemption of such
obligations and for any corporate purpose of the authority. The issuance
of such obligations, the maturities and other details thereof, the rights
of the holders thereof, and the rights, duties, and obligations of the
authority in respect to the same shall be governed by the provisions of
sections 348.005 to 348.180 which relate to the issuance of obligations,
insofar as such provisions may be appropriate therefor. (L. 1981 H.B. 681
§ 31)

Refunding obligations issued as provided in section 348.145 may
be sold or exchanged for outstanding obligations issued under sections
348.005 to 348.180 and, if sold, the proceeds thereof may be applied, in
addition to any other authorized purposes, to the purchase, redemption,
or payment of such outstanding obligations. Pending the application of
the proceeds of any such refunding obligations, with any other available
funds, to the payment of the principal, accrued interest, and any
redemption premium on the obligations being refunded, and, if so provided
or permitted in the resolution authorizing the issuance of such refunding
obligations or in the trust agreement securing the same, to the payment
of any interest on such refunding obligations and any expenses in
connection with such refunding, such proceeds may be invested in direct
obligations of, or obligations the principal of and the interest on which
are unconditionally guaranteed by the United States government, or any
agency thereof, which shall mature or which shall be subject to
redemption by the holders thereof, at the option of such holders, not
later than the respective dates when the proceeds, together with the
interest accruing thereon, will be required for the purposes intended.
(L. 1981 H.B. 681 § 32)

The issuance of bonds, notes, and other obligations and
refunding bonds under the provisions of sections 348.005 to 348.180 need
not comply with the requirements of any other state law applicable to the
issuance of bonds, notes, and other obligations. No proceedings, notice,
or approval shall be required for the issuance of any such bonds, notes,
and other obligations, or any instrument as security therefor, except as
is provided in sections 348.005 to 348.180. (L. 1981 H.B. 681 § 33)

The state does hereby pledge to and agree with the holders of
any notes or bonds issued under sections 348.005 to 348.180 that the
state shall not limit or alter the rights hereby vested in the authority
to fulfill the terms of any agreement made with such holders thereof, nor
in any way impair the rights and remedies of such holders until such
notes and bonds, together with the interest thereon and the interest on
any unpaid installments of interest, and all costs and expenses in
connection with any action or proceeding by or on behalf of such holders,
are fully met and discharged. The authority is authorized to include this
pledge and agreement of the state in any agreement with the holders of
such notes or bonds. (L. 1981 H.B. 681 § 34)

Neither the commissioners, the executive director of the
authority, nor any other person executing the notes or bonds of the
authority shall be subject to any personal liability or accountability by
reason of the issuance thereof. (L. 1981 H.B. 681 § 35)

1. Whether or not the notes and bonds are of such form and
character as to be negotiable instruments under the terms of the Missouri
uniform commercial code, the notes and bonds are hereby made negotiable
instruments within the meaning of and for all the purposes of the
Missouri uniform commercial code, subject only to the provisions
contained in such notes and bonds for registration.

2. Bonds issued by the authority shall be deemed to be securities issued
by a public instrumentality and body corporate. (L. 1981 H.B. 681 §§ 36,
37)

The authority shall have the power, as necessary or convenient
to carry out and effectuate the purposes and provisions of sections
348.005 to 348.180, and subject to any agreement with bondholders or
noteholders, to invest moneys of the authority, including proceeds form
the sale of any bonds or notes, in:

(1) Direct obligations of or obligations guaranteed as to principal and
interest by the United States government, or any agency thereof, or by
the state of Missouri;

(2) Obligations issued by the Government National Mortgage Association,
Bank for Cooperatives, Federal Intermediate Credit Banks, Federal Home
Loan Bank System, or Federal Land Banks, or by the Federal National
Mortgage Association;

(3) Negotiable or nonnegotiable certificates of deposit issued by any
bank which is insured by the Federal Deposit Insurance Corporation, or
its successor corporation, if then in existence;

(4) Any other obligations of this state or of the United States, or any
agency or instrumentality of either, which may then be purchased with
funds belonging to this state or held in the state treasury; or

(5) Such securities and deposit accounts as are permissible for the
investment of state public funds by the state treasurer. (L. 1981 H.B.
681 § 38)

The authority shall, following the close of each fiscal year,
submit an annual report of its activities for the preceding year to the
governor and the general assembly. Each report shall set forth a complete
operating and financial statement for the authority during the fiscal
year it covers. At least once in each year, an independent certified
public accountant shall audit the books and accounts of the authority.
(L. 1981 H.B. 681 § 39)

Records and documents submitted by program applicants and
lenders to the Missouri agricultural and small business development
authority relating to financial investments in a business, or sales
projections or processes or other business plan information which if
released or otherwise made public may endanger the competitiveness of a
business, or records and documents submitted to the authority relating to
financial assistance that is awarded by the authority, except for the
amount and recipient of any loan or grant from a program administered by
the authority shall be deemed a closed record as such term is defined in
section 610.010, RSMo, may be discussed in a meeting that has been closed
pursuant to section 610.022, RSMo, and shall not be subject to the
provisions of sections 109.200 to 109.310, RSMo, the state and local
records laws. Such records and documents may be released by the authority
upon written approval by the applicant. (L. 1998 H.B. 950 § 1)

In recognition of the role of agriculture in the economic
well-being of this state and in recognition that opportunities to succeed
in agriculture should not be limited by the economic means of persons
engaged in agriculture, the general assembly of the state of Missouri
declares that state assistance in the guarantee of loans made to enable
independent family-farm producers to enter and succeed in the development
and operation of single-purpose animal facilities will benefit the state
of Missouri economically and socially and is a public purpose of great
importance. (L. 1994 H.B. 1248 & 1048)

In addition to the duties and powers established in sections
348.005 to 348.180, the Missouri agricultural and small business
development authority shall develop and implement a single-purpose animal
facilities loan guarantee program as provided in sections 348.185 to
348.225. The authority shall promulgate rules and regulations necessary
to carry out the purposes of sections 348.185 to 348.225. The rules and
regulations promulgated pursuant to sections 348.185 to 348.225 shall be
designed to encourage maximum involvement and participation by lenders
and financial institutions in the loan guarantee program. The authority
shall be the administrative agency for the implementation of the loan
guarantee program, and may employ such persons as necessary, within the
limits of appropriations made for that purpose, to administer the loan
guarantee program. No rule or portion of a rule promulgated under the
authority of sections 348.185 to 348.225 shall become effective unless it
has been promulgated pursuant to the provisions of section 536.024, RSMo.
(L. 1994 H.B. 1248 & 1048, A.L. 1995 S.B. 3)

1. The authority may issue certificates of guaranty covering a
first loss guarantee up to but not more than fifty percent of the loan on
a declining principal basis for loans to individuals executing a note or
other evidence of a loan made for livestock production or other
single-purpose animal facility, including animal waste systems or
livestock purchase, but not to exceed the amount of two hundred fifty
thousand dollars for any one individual and to pay from the
single-purpose animal facilities loan guarantee fund to an eligible
lender up to fifty percent of the amount on a declining principal basis
of any loss on any guaranteed loan made under the provisions of sections
348.185 to 348.225, in the event of default on the loan. Upon payment of
the loan, the authority shall be subrogated to all the rights of the
eligible lender.

2. As used in sections 348.185 to 348.225, the term "eligible lender"
means those entities defined as "lenders" under subdivision (8) of
section 348.015.

3. The authority shall charge for each guaranteed loan a one-time
participation fee of one percent which shall be collected by the lender
at the time of closing and paid to the authority. In addition, the
authority may charge a special loan guarantee fee of up to one percent
per annum of the outstanding principal which shall be collected from the
borrower by the lender and paid to the authority. Amounts so collected
shall be deposited in the single-purpose animal facilities loan program
fund and used, upon appropriation, to pay the costs of administering the
program.

4. All moneys paid to satisfy a defaulted guaranteed loan shall only be
paid out of the single-purpose animal facilities loan guarantee fund
established by sections 348.185 to 348.225.

5. The total outstanding guaranteed loans shall at no time exceed an
amount which, according to sound actuarial judgment, would allow
immediate redemption of twenty percent of the outstanding loans
guaranteed by the fund at any one time. (L. 1994 H.B. 1248 & 1048, A.L.
2003 H.B. 464 merged with S.B. 388)

1. There is hereby established in the state treasury the
"Single-Purpose Animal Facilities Loan Guarantee Fund". The fund shall
consist of money appropriated to it by the general assembly, charges,
gifts, grants and bequests from federal, private or other sources.
Notwithstanding the provisions of section 33.080, RSMo, no portion of the
fund shall be transferred to the general revenue fund.

2. All moneys received by the authority for payments made on previously
defaulted guaranteed loans shall be paid promptly into the state treasury
and deposited in the fund.

3. The fund shall be administered by the Missouri agricultural and small
business development authority organized pursuant to sections 348.005 to
348.180.

4. Beginning with fiscal year 1994-1995, the general assembly may
appropriate moneys not to exceed four million dollars for the
establishment and initial funding of the single-purpose animal facilities
loan guarantee fund. (L. 1994 H.B. 1248 & 1048, A.L. 1997 H.B. 557)

Moneys in the fund, both unobligated and obligated as a reserve,
which in the judgment of the authority are not currently needed for
payments of defaults of guaranteed loans, may be invested by the state
treasurer, and any income therefrom shall be deposited to the credit of
the fund. (L. 1994 H.B. 1248 & 1048)

1. Persons eligible for guarantees for loans under the
provisions of sections 348.185 to 348.225 are individuals engaged in
farming operations as defined in section 348.015, who intend to use the
proceeds from the loan to finance breeding or feeder livestock, including
the purchase of additional or replacement livestock, land, buildings,
facilities, equipment, machinery, and animal waste facilities used to
produce poultry, hogs, beef, or dairy cattle, or other animals and who
are seeking a loan or loans to finance not more than ninety percent of
the anticipated cost.

2. The authority shall adopt and promulgate regulations establishing
eligibility under the provisions of sections 348.185 to 348.225, taking
into consideration the individual's ability to repay the loan, the
general economic conditions of the area in which the individual will be
located, the prospect of success of the particular facility for which the
loan is sought and such other factors as the authority may establish. The
eligibility of any person for a loan guarantee under the provisions of
sections 348.185 to 348.225 shall not be determined or otherwise affected
by any consideration of that person's race, religion, sex, creed, color,
or location of residence. The authority may also provide for:

(1) The requirement or nonrequirement of security or endorsement and the
nature thereof;

(2) The manner and time of repayment of the principal and interest;

(3) The maximum rate of interest;

(4) The right of the borrower to accelerate payments without penalty;

(5) The amount of the guaranty charge;

(6) The effective period of the guaranty;

(7) The percent of the loan, not to exceed fifty percent, covered by the
guaranty;

(8) The assignability of loans by the lender;

(9) Procedures in event of default by the borrower;

(10) The due diligence effort on the part of lenders for collection of
guaranteed loans;

(11) Collection assistance to be provided to lenders; and

(12) The extension of the guaranty in consideration of duty in the armed
forces, unemployment, natural disasters, or other hardships. (L. 1994
H.B. 1248 & 1048, A.L. 2003 H.B. 464 merged with S.B. 388)

The authority, by rules and regulations, shall determine the
policy of collections and recovery of loans, including the use of private
collection agencies. The authority may institute action to recover any
amount due the state in any loan transaction, use private collection
agencies, or otherwise carry out the policy of the authority. The lender
making the original loan shall cooperate with the authority in the
collection of the loan and shall use its regular collection procedures
prior to any action being undertaken by the authority. (L. 1994 H.B. 1248
& 1048)

If the Missouri clean water commission makes available to the
authority any funds for implementation of the authority's animal waste
facilities loan program, loans made pursuant to that program are eligible
for loan guarantees under the provisions of sections 348.185 to 348.225.
A loan made under the animal waste facilities loan program may be
combined with loans made by eligible lenders under the provisions of
sections 348.185 to 348.225, but the eligible lender shall have first
priority on payments of defaults from the fund. A loan made under the
animal waste facilities loan program shall not be subject to any dollar
amount limitation otherwise imposed by any provision of law or a loan
guaranteed under the provisions of sections 348.185 to 348.225. (L. 1994
H.B. 1248 & 1048)

There is hereby created in the state treasury the
"Single-Purpose Animal Facilities Loan Program Fund". The fund shall
consist of money collected and deposited pursuant to subsection 3 of
section 348.195. Notwithstanding the provisions of section 33.080, RSMo,
no portion of the fund shall be transferred to the general revenue fund.
The money in the single-purpose animal facilities loan program fund shall
be used, upon appropriation, for administration of the program
established under sections 348.185 to 348.225 and for no other purpose.
(L. 1994 H.B. 1248 & 1048)

1. As used in sections 348.251 to 348.266, the following terms
mean:

(1) "Technology application", the introduction and adaptation of refined
management practices in fields such as scheduling, inventory management,
marketing, product development, and training in order to improve the
quality, productivity and profitability of an existing firm. Technology
application shall be considered a component of business modernization;

(2) "Technology commercialization", the process of moving
investment-grade technology from a business, university or laboratory
into the marketplace for application;

(3) "Technology development", strategically focused research directed at
developing investment-grade technologies which are important for market
competitiveness.

2. The governor may, on behalf of the state and in accordance with
chapter 355, RSMo, establish a private not-for-profit corporation named
the "Missouri Technology Corporation", to carry out the provisions of
sections 348.251 to 348.266. As used in sections 348.251 to 348.266 the
word "corporation" means the Missouri technology corporation authorized
by this section. Before certification by the governor, the corporation
shall conduct a public hearing for the purpose of giving all interested
parties an opportunity to review and comment upon the articles of
incorporation, bylaws and method of operation of the corporation. Notice
of the hearing shall be given at least fourteen days prior to the
hearing. (L. 1993 H.B. 566, A.L. 1994 H.B. 1248 & 1048)

1. The Missouri technology corporation may contract with
not-for-profit organizations to carry out the provisions of sections
348.251 to 348.275. By entering into such contracts, the corporation
shall attempt to achieve the following objectives:

(1) The establishment of a research alliance which shall advance
technology development, as defined in subdivision (3) of section 348.251.
The corporation, in this capacity, shall have the authority to contract
directly with centers for advanced technology, as established by section
348.272, and other not-for-profit entities. In proceeding with this
objective, the corporation and centers for advanced technology shall
utilize the results of targeted industry studies commissioned by the
department of economic development;

(2) Technology commercialization, as defined in subdivision (2) of
section 348.251;

(3) The establishment of a finance corporation to assist in the
implementation of section 348.261; and

(4) The enhancement of technology application, as defined in subdivision
(1) of section 348.251.

2. Any contract signed between the corporation and any not-for-profit
organization, including innovation centers as defined in section 348.271,
shall require that the not-for-profit organization must provide at least
one-hundred-percent match for any funding received from the corporation
through the technology investment fund, as established in section
348.264. (L. 1995 H.B. 414)

The articles of incorporation and bylaws of the Missouri
technology corporation shall provide that:

(1) The purposes of the corporation are to contribute to the
strengthening of the economy of the state through the development of
science and technology, to promote the modernization of Missouri
businesses by supporting the transfer of science, technology and quality
improvement methods to the workplace, and to enhance the productivity and
modernization of Missouri businesses by providing leadership in the
establishment of methods of technology application, technology
commercialization and technology development;

(2) The board of directors of the corporation is composed of fifteen
persons. The governor shall annually appoint one of its members, who must
be from the private sector, as chairman. The board shall consist of the
following members:

(a) The director of the department of economic development, or the
director's designee;

(b) The president of the University of Missouri system, or the
president's designee;

(c) A member of the state senate, appointed by the president pro tem of
the senate;

(d) A member of the house of representatives, appointed by the speaker of
the house;

(e) Eleven members appointed by the governor, two of which shall be from
the public sector and nine members from the private sector who shall
include, but shall not be limited to, individuals who represent
technology-based businesses and industrial interests;

(f) Each of the directors of the corporation who is appointed by the
governor shall serve for a term of four years and until a successor is
duly appointed; except that, of the directors serving on the corporation
as of August 28, 1995, three directors shall be designated by the
governor to serve a term of four years, three directors shall be
designated to serve a term of three years, three directors shall be
designated to serve a term of two years, and two directors shall be
designated to serve a term of one year. Each director shall continue to
serve until a successor is duly appointed by the governor;

(3) The corporation may receive money from any source, may borrow money,
may enter into contracts, and may expend money for any activities
appropriate to its purpose;

(4) The corporation may appoint staff and do all other things necessary
or incidental to carrying out the functions listed in section 348.261;

(5) Any changes in the articles of incorporation or bylaws must be
approved by the governor;

(6) The corporation shall submit an annual report to the governor and to
the Missouri general assembly. The report shall be due on the first day
of November for each year and shall include detailed information on the
structure, operation and financial status of the corporation. The
corporation shall conduct an annual public hearing to receive comments
from interested parties regarding the report, and notice of the hearing
shall be given at least fourteen days prior to the hearing; and

(7) The corporation is subject to an annual audit by the state auditor
and that the corporation shall bear the full cost of the audit. (L. 1993
H.B. 566, A.L. 1994 H.B. 1248 & 1048, A.L. 1995 H.B. 414)

1. The authority shall have all of the powers necessary and
convenient to carry out and effectuate the purposes and provisions of
sections 348.005 to 348.180, including, but not limited to, the power to:

(1) Sue and be sued in its own name;

(2) Have an official seal and alter the same at pleasure;

(3) Have perpetual succession; and

(4) Maintain an office at such place or places within this state as it
may designate.

2. For purposes of effectuating its public purposes, the authority may:

(1) Borrow money and issue bonds as provided in sections 348.005 to
348.180;

(2) Procure insurance or guarantees from any public or private entities,
including any department, agency, or instrumentality of the United
States, for payment of any bonds issued by the authority, including the
power to pay premiums on any such insurance;

(3) Receive and accept from any source aid or contributions of money,
property, labor, or other things of value to be held, used, and applied
to carry out the purposes of sections 348.005 to 348.180, subject to the
conditions upon which the grants or contributions are made, including,
but not limited to, gifts or grants from any department, agency, or
instrumentality of the United States for any purpose consistent with
sections 348.005 to 348.180;

(4) Enter into agreements with any department, agency, or instrumentality
of the United States or this state, or with any lender, and into loan
agreements, sales contracts, and leases with contracting parties, for the
purpose of planning, regulating, and providing for the financing and
refinancing of any agricultural property and pollution control facilities
or general property for small businesses;

(5) Enter into contracts or agreements with lenders for the servicing and
processing of loans pursuant to sections 348.005 to 348.180;

(6) Provide technical assistance to local public bodies and to profit and
not-for-profit entities in the development or operation of agricultural
enterprises and pollution control facilities for small businesses;

(7) To the extent permitted under its contract with the holders of bonds
of the authority, consent to any modification with respect to the rate of
interest, time and payment of any installment of principal or interest,
or any other term of any contract, loan, loan note, loan note commitment,
contract, lease, or agreement of any kind to which the authority is a
party; and

(8) To the extent permitted under its contract with the holders of bonds
of the authority, enter into contracts with any lender containing
provisions enabling it to reduce the rental or carrying charges to
persons unable to pay the regular schedule of charges when, by reason of
other income or payment by any department, agency, or instrumentality of
the United States or of this state, the reduction can be made without
jeopardizing the economic stability of the agricultural property being
financed.

3. In addition to the powers specifically enumerated under the provisions
of sections 348.005 to 348.180, the authority shall have the power to do
any and all things necessary or convenient to carry out its purposes and
exercise the powers given and granted in sections 348.005 to 348.180. (L.
1981 H.B. 681 §§ 14, 16, 22)

The authority shall have the power, as necessary or convenient
to carry out and effectuate the purposes and provisions of sections
348.005 to 348.180. Any rule or portion of a rule promulgated under the
authority of sections 348.005 to 348.180 shall become effective only if
it has been promulgated in compliance with the provisions of chapter 536,
RSMo, as it may be amended from time to time. (L. 1981 H.B. 681 § 15,
A.L. 1995 S.B. 3, A.L. 1997 H.B. 557)

*Rulemaking authority, effective when, null and void, when, see RSMo
348.426.

The authority shall have the following duties:

(1) To invest any funds not needed for immediate disbursement, including
any funds held in reserve, in direct and general obligations of or
obligations fully and unconditionally guaranteed by the United States or
any agency of the United States, obligations issued by agencies of the
United States, obligations of this state, or any obligations or
securities which may from time to time be legally purchased by political
subdivisions of this state, or unsecured promissory notes of national
banking associations having the highest investment rating;

(2) To collect fees and charges, as the authority determines to be
reasonable, in connection with its loans, advances, insurance,
commitments, and servicing;

(3) To cooperate with and exchange services, personnel, and information
with any federal, state, or local governmental agency;

(4) To sell, at public or private sale, with or without public bidding,
any loan or other obligation held by the authority; and

(5) To do any act necessary or convenient to the exercise of the powers
granted by sections 348.005 to 348.180 or reasonably implied from the
provisions of sections 348.005 to 348.180. (L. 1981 H.B. 681 § 17)

CROSS REFERENCES: Bi-state development agency, bonds of, investment in
authorized, RSMo 70.377 Multinational banks, securities and obligations
of, investment in, when, RSMo 409.950 Savings accounts in insured savings
and loan associations, investment in authorized, RSMo 369.194

The authority shall have the power, as necessary or convenient
to carry out and effectuate the purposes and provisions of sections
348.005 to 348.180, to enter into agreements or other transactions with,
and accept grants and the cooperation of, the United States or any agency
or instrumentality thereof or of this state or any agency or
instrumentality thereof, in furtherance of the purposes of sections
348.005 to 348.180, and to do any and all things necessary in order to
avail itself of such aid and cooperation. (L. 1981 H.B. 681 § 18)

The authority shall have the power, as necessary or convenient
to carry out and effectuate the purposes and provisions of sections
348.005 to 348.180, to:

(1) Make contracts with the state or any governmental agency or political
subdivision thereof, the federal government, public corporations or
bodies, and private corporations or individuals in furtherance of the
purposes of sections 348.005 to 348.180; and

(2) Make and execute contracts and all other instruments necessary or
convenient for the exercise of its powers and functions under sections
348.005 to 348.180; and

(3) Receive and accept aid or contributions, from any source, of money,
property, labor, or other things of value, to be held, used, and applied
to carry out the purposes of sections 348.005 to 348.180, subject to such
conditions upon which such grants and contributions may be made;

(4) Borrow money and issue bonds, notes, and other evidences of
indebtedness thereof, as provided in sections 348.005 to 348.180;

(5) Include in any borrowing such amounts as may be deemed necessary by
the authority to establish reserves and to pay financing charges,
interest on the obligations for a period not exceeding three years from
the date of issuance of such obligations, consultant, advisory, and legal
fees, and such other expenses as are necessary or incidental to such
borrowing;

(6) Procure, or agree to the procurement of, insurance or guarantees from
the federal government for the payment of any bonds, notes, or any other
evidences of indebtedness thereof issued by the authority, including the
power to pay premiums on any such insurance;

(7) Purchase bonds or notes of the authority out of any funds or money of
the authority available therefor, and to hold, cancel, or resell such
bonds or notes. (L. 1981 H.B. 681 § 19)

Upon termination or dissolution, all rights and properties of
the authority shall pass to and be vested in the state of Missouri,
subject to the rights of noteholders, bondholders, and other creditors.
(L. 1981 H.B. 681 § 20)

The authority may purchase agricultural development loans, small
business development loans, and small business pollution control
facilities loans originated by lenders, or may participate with lenders
in making such loans, and may enter into commitments to lenders for such
purchase or participation, provided that, as to each loan:

(1) The applicant cannot, in the authority's judgment, obtain a loan on
equivalent terms without such purchase or participation;

(2) The yield to the authority on the loan or on its participation
therein will, in its judgment, be sufficient to pay all costs and
expenses incurred by the authority in making or participating in the loan
and issuing bonds or notes to finance it, including any discount,
principal, interest, redemption premium, reserves, and property or loan
insurance and servicing cost not paid by the borrower or the lender;

(3) The payment of principal and interest with respect to the loans is
guaranteed to the amount of the authority's participation therein, or is
insured under a policy providing for payment of a percentage of any loss
at least equal to that percentage by which the original principal amount
of the loan exceeds seventy-five percent of the appraised value of the
property, subject to a first mortgage or perfected security interest
granted for the security of the loans; and

(4) The lender provides all documentation required to demonstrate that
the applicant is an eligible borrower and that all conditions for
insurance or guaranty of the loan have been fulfilled, and agrees to
service the loan or provide for its servicing by another lender, in
accordance with rules of the authority. (L. 1981 H.B. 681 § 21)

The authority may issue from time to time its negotiable notes
and bonds in such principal amount as it shall determine to be necessary
to provide sufficient funds for achieving its corporate purposes,
including the payment of interest on notes and bonds of the authority,
establishment of reserves to secure such notes and bonds including any
reserve funds, and all other expenditures of the authority incident to
and necessary or convenient to carry out its corporate purposes and
powers. (L. 1981 H.B. 681 § 23)

Obligations issued under the provisions of sections 348.005 to
348.180 shall not constitute a debt, liability, or obligation of this
state or of any political subdivision of this state, nor shall any such
obligation be a pledge of the faith and credit of this state or of any
political subdivision of this state, but shall be payable solely from the
revenues or assets of the authority. The issuance of bonds under sections
348.005 to 348.180 shall not, directly or indirectly, or contingently,
obligate the state or any political subdivision thereof to levy any form
of taxation therefor or to make any appropriation for their payment. Each
obligation issued under sections 348.005 to 348.180 shall contain on the
face thereof a statement to the effect that the authority shall not be
obligated to pay the same nor the interest thereon except from the
revenues or assets pledged therefor, and that neither the faith and
credit nor the taxing power of this state or of any political subdivision
of this state is pledged to the payment of the principal of or the
interest on such obligation. (L. 1981 H.B. 681 § 24)

1. The authority shall have the power, from time to time, to
issue notes to renew notes and bonds to pay notes, including the interest
thereon, and, whenever it deems refunding expedient, to refund any bonds
by the issuance of new bonds, whether the bonds to be refunded have or
have not matured, and to issue bonds partly to refund bonds then
outstanding and partly for any of its corporate* purposes.

2. Bonds or notes may be issued under the provisions of sections 348.005
to 348.180 without obtaining the consent of any department, division,
commission, board, body, bureau, or agency of this state, and without any
other proceedings or the happening of any conditions or things other than
those proceedings, conditions, or things which are specifically required
by sections 348.005 to 348.180 and by the provisions of the resolution
authorizing the issuance of such bonds or notes, or the trust agreement
securing the same. (L. 1981 H.B. 681 §§ 25, 26)

*Original rolls have word "corporation".

The notes and bonds shall be authorized by resolution of the
authority, shall bear such date or dates and shall mature at such time or
times as such resolution may provide; except, that no bond shall mature
more than fifty years from the date of its issue. The bonds may be issued
as serial bonds payable in annual installments or as term bonds, or as a
combination thereof. The notes and bonds shall bear interest at such rate
or rates, be in such denominations, be in such form, either coupon or
registered, carry such registration privileges, be executed in such
manner, be payable in such medium of payment, at such place or places
within or without the state, and be subject to such terms of redemption
as such resolution may provide. The notes and bonds of the authority may
be sold by the authority, at public or private sale, at such price as the
authority shall determine. (L. 1981 H.B. 681 § 27)

Any pledge made by the authority shall be valid and binding from
the time when the pledge is made. The revenues, moneys, or property so
pledged and thereafter received by the authority shall immediately be
subject to the lien of such pledge without any physical delivery thereof
or further act, and the lien of any such pledge shall be valid and
binding as against all parties having claims of any kind in tort,
contract, or otherwise against the authority, irrespective of whether
such parties have notice thereof. (L. 1981 H.B. 681 § 28)

In case any of the commissioners, executive director, or
officers of the authority whose signatures or facsimile signatures appear
on any notes, bonds, or coupons shall cease to be such commissioners,
executive director, or officers before the delivery of such notes or
bonds, such signatures or facsimile signatures shall, nevertheless, be
valid and sufficient for all purposes, the same as if such commissioners,
directors, or officers had remained in office until such delivery. (L.
1981 H.B. 681 § 29)

The authority, subject to such agreement with noteholders or
bondholders as may then exist, shall have the power, out of any funds
available therefor, to purchase notes or bonds of the authority, which
shall thereupon be canceled, at a price not exceeding:

(1) If the notes or bonds are then redeemable, the redemption price then
applicable plus accrued interest to the next interest payment thereon; or

(2) If the notes or bonds are not then redeemable, the redemption price
applicable on the first date after such purchase upon which the notes or
bonds become subject to redemption plus accrued interest to such date.
(L. 1981 H.B. 681 § 30)

The authority may provide for the issuance of refunding
obligations for the purpose of refunding any obligations then outstanding
which have been issued under the provisions of sections 348.005 to
348.180, including the payment of any redemption premium thereon and any
interest accrued or to accrue to the date of redemption of such
obligations and for any corporate purpose of the authority. The issuance
of such obligations, the maturities and other details thereof, the rights
of the holders thereof, and the rights, duties, and obligations of the
authority in respect to the same shall be governed by the provisions of
sections 348.005 to 348.180 which relate to the issuance of obligations,
insofar as such provisions may be appropriate therefor. (L. 1981 H.B. 681
§ 31)

Refunding obligations issued as provided in section 348.145 may
be sold or exchanged for outstanding obligations issued under sections
348.005 to 348.180 and, if sold, the proceeds thereof may be applied, in
addition to any other authorized purposes, to the purchase, redemption,
or payment of such outstanding obligations. Pending the application of
the proceeds of any such refunding obligations, with any other available
funds, to the payment of the principal, accrued interest, and any
redemption premium on the obligations being refunded, and, if so provided
or permitted in the resolution authorizing the issuance of such refunding
obligations or in the trust agreement securing the same, to the payment
of any interest on such refunding obligations and any expenses in
connection with such refunding, such proceeds may be invested in direct
obligations of, or obligations the principal of and the interest on which
are unconditionally guaranteed by the United States government, or any
agency thereof, which shall mature or which shall be subject to
redemption by the holders thereof, at the option of such holders, not
later than the respective dates when the proceeds, together with the
interest accruing thereon, will be required for the purposes intended.
(L. 1981 H.B. 681 § 32)

The issuance of bonds, notes, and other obligations and
refunding bonds under the provisions of sections 348.005 to 348.180 need
not comply with the requirements of any other state law applicable to the
issuance of bonds, notes, and other obligations. No proceedings, notice,
or approval shall be required for the issuance of any such bonds, notes,
and other obligations, or any instrument as security therefor, except as
is provided in sections 348.005 to 348.180. (L. 1981 H.B. 681 § 33)

The state does hereby pledge to and agree with the holders of
any notes or bonds issued under sections 348.005 to 348.180 that the
state shall not limit or alter the rights hereby vested in the authority
to fulfill the terms of any agreement made with such holders thereof, nor
in any way impair the rights and remedies of such holders until such
notes and bonds, together with the interest thereon and the interest on
any unpaid installments of interest, and all costs and expenses in
connection with any action or proceeding by or on behalf of such holders,
are fully met and discharged. The authority is authorized to include this
pledge and agreement of the state in any agreement with the holders of
such notes or bonds. (L. 1981 H.B. 681 § 34)

Neither the commissioners, the executive director of the
authority, nor any other person executing the notes or bonds of the
authority shall be subject to any personal liability or accountability by
reason of the issuance thereof. (L. 1981 H.B. 681 § 35)

1. Whether or not the notes and bonds are of such form and
character as to be negotiable instruments under the terms of the Missouri
uniform commercial code, the notes and bonds are hereby made negotiable
instruments within the meaning of and for all the purposes of the
Missouri uniform commercial code, subject only to the provisions
contained in such notes and bonds for registration.

2. Bonds issued by the authority shall be deemed to be securities issued
by a public instrumentality and body corporate. (L. 1981 H.B. 681 §§ 36,
37)

The authority shall have the power, as necessary or convenient
to carry out and effectuate the purposes and provisions of sections
348.005 to 348.180, and subject to any agreement with bondholders or
noteholders, to invest moneys of the authority, including proceeds form
the sale of any bonds or notes, in:

(1) Direct obligations of or obligations guaranteed as to principal and
interest by the United States government, or any agency thereof, or by
the state of Missouri;

(2) Obligations issued by the Government National Mortgage Association,
Bank for Cooperatives, Federal Intermediate Credit Banks, Federal Home
Loan Bank System, or Federal Land Banks, or by the Federal National
Mortgage Association;

(3) Negotiable or nonnegotiable certificates of deposit issued by any
bank which is insured by the Federal Deposit Insurance Corporation, or
its successor corporation, if then in existence;

(4) Any other obligations of this state or of the United States, or any
agency or instrumentality of either, which may then be purchased with
funds belonging to this state or held in the state treasury; or

(5) Such securities and deposit accounts as are permissible for the
investment of state public funds by the state treasurer. (L. 1981 H.B.
681 § 38)

The authority shall, following the close of each fiscal year,
submit an annual report of its activities for the preceding year to the
governor and the general assembly. Each report shall set forth a complete
operating and financial statement for the authority during the fiscal
year it covers. At least once in each year, an independent certified
public accountant shall audit the books and accounts of the authority.
(L. 1981 H.B. 681 § 39)

Records and documents submitted by program applicants and
lenders to the Missouri agricultural and small business development
authority relating to financial investments in a business, or sales
projections or processes or other business plan information which if
released or otherwise made public may endanger the competitiveness of a
business, or records and documents submitted to the authority relating to
financial assistance that is awarded by the authority, except for the
amount and recipient of any loan or grant from a program administered by
the authority shall be deemed a closed record as such term is defined in
section 610.010, RSMo, may be discussed in a meeting that has been closed
pursuant to section 610.022, RSMo, and shall not be subject to the
provisions of sections 109.200 to 109.310, RSMo, the state and local
records laws. Such records and documents may be released by the authority
upon written approval by the applicant. (L. 1998 H.B. 950 § 1)

In recognition of the role of agriculture in the economic
well-being of this state and in recognition that opportunities to succeed
in agriculture should not be limited by the economic means of persons
engaged in agriculture, the general assembly of the state of Missouri
declares that state assistance in the guarantee of loans made to enable
independent family-farm producers to enter and succeed in the development
and operation of single-purpose animal facilities will benefit the state
of Missouri economically and socially and is a public purpose of great
importance. (L. 1994 H.B. 1248 & 1048)

In addition to the duties and powers established in sections
348.005 to 348.180, the Missouri agricultural and small business
development authority shall develop and implement a single-purpose animal
facilities loan guarantee program as provided in sections 348.185 to
348.225. The authority shall promulgate rules and regulations necessary
to carry out the purposes of sections 348.185 to 348.225. The rules and
regulations promulgated pursuant to sections 348.185 to 348.225 shall be
designed to encourage maximum involvement and participation by lenders
and financial institutions in the loan guarantee program. The authority
shall be the administrative agency for the implementation of the loan
guarantee program, and may employ such persons as necessary, within the
limits of appropriations made for that purpose, to administer the loan
guarantee program. No rule or portion of a rule promulgated under the
authority of sections 348.185 to 348.225 shall become effective unless it
has been promulgated pursuant to the provisions of section 536.024, RSMo.
(L. 1994 H.B. 1248 & 1048, A.L. 1995 S.B. 3)

1. The authority may issue certificates of guaranty covering a
first loss guarantee up to but not more than fifty percent of the loan on
a declining principal basis for loans to individuals executing a note or
other evidence of a loan made for livestock production or other
single-purpose animal facility, including animal waste systems or
livestock purchase, but not to exceed the amount of two hundred fifty
thousand dollars for any one individual and to pay from the
single-purpose animal facilities loan guarantee fund to an eligible
lender up to fifty percent of the amount on a declining principal basis
of any loss on any guaranteed loan made under the provisions of sections
348.185 to 348.225, in the event of default on the loan. Upon payment of
the loan, the authority shall be subrogated to all the rights of the
eligible lender.

2. As used in sections 348.185 to 348.225, the term "eligible lender"
means those entities defined as "lenders" under subdivision (8) of
section 348.015.

3. The authority shall charge for each guaranteed loan a one-time
participation fee of one percent which shall be collected by the lender
at the time of closing and paid to the authority. In addition, the
authority may charge a special loan guarantee fee of up to one percent
per annum of the outstanding principal which shall be collected from the
borrower by the lender and paid to the authority. Amounts so collected
shall be deposited in the single-purpose animal facilities loan program
fund and used, upon appropriation, to pay the costs of administering the
program.

4. All moneys paid to satisfy a defaulted guaranteed loan shall only be
paid out of the single-purpose animal facilities loan guarantee fund
established by sections 348.185 to 348.225.

5. The total outstanding guaranteed loans shall at no time exceed an
amount which, according to sound actuarial judgment, would allow
immediate redemption of twenty percent of the outstanding loans
guaranteed by the fund at any one time. (L. 1994 H.B. 1248 & 1048, A.L.
2003 H.B. 464 merged with S.B. 388)

1. There is hereby established in the state treasury the
"Single-Purpose Animal Facilities Loan Guarantee Fund". The fund shall
consist of money appropriated to it by the general assembly, charges,
gifts, grants and bequests from federal, private or other sources.
Notwithstanding the provisions of section 33.080, RSMo, no portion of the
fund shall be transferred to the general revenue fund.

2. All moneys received by the authority for payments made on previously
defaulted guaranteed loans shall be paid promptly into the state treasury
and deposited in the fund.

3. The fund shall be administered by the Missouri agricultural and small
business development authority organized pursuant to sections 348.005 to
348.180.

4. Beginning with fiscal year 1994-1995, the general assembly may
appropriate moneys not to exceed four million dollars for the
establishment and initial funding of the single-purpose animal facilities
loan guarantee fund. (L. 1994 H.B. 1248 & 1048, A.L. 1997 H.B. 557)

Moneys in the fund, both unobligated and obligated as a reserve,
which in the judgment of the authority are not currently needed for
payments of defaults of guaranteed loans, may be invested by the state
treasurer, and any income therefrom shall be deposited to the credit of
the fund. (L. 1994 H.B. 1248 & 1048)

1. Persons eligible for guarantees for loans under the
provisions of sections 348.185 to 348.225 are individuals engaged in
farming operations as defined in section 348.015, who intend to use the
proceeds from the loan to finance breeding or feeder livestock, including
the purchase of additional or replacement livestock, land, buildings,
facilities, equipment, machinery, and animal waste facilities used to
produce poultry, hogs, beef, or dairy cattle, or other animals and who
are seeking a loan or loans to finance not more than ninety percent of
the anticipated cost.

2. The authority shall adopt and promulgate regulations establishing
eligibility under the provisions of sections 348.185 to 348.225, taking
into consideration the individual's ability to repay the loan, the
general economic conditions of the area in which the individual will be
located, the prospect of success of the particular facility for which the
loan is sought and such other factors as the authority may establish. The
eligibility of any person for a loan guarantee under the provisions of
sections 348.185 to 348.225 shall not be determined or otherwise affected
by any consideration of that person's race, religion, sex, creed, color,
or location of residence. The authority may also provide for:

(1) The requirement or nonrequirement of security or endorsement and the
nature thereof;

(2) The manner and time of repayment of the principal and interest;

(3) The maximum rate of interest;

(4) The right of the borrower to accelerate payments without penalty;

(5) The amount of the guaranty charge;

(6) The effective period of the guaranty;

(7) The percent of the loan, not to exceed fifty percent, covered by the
guaranty;

(8) The assignability of loans by the lender;

(9) Procedures in event of default by the borrower;

(10) The due diligence effort on the part of lenders for collection of
guaranteed loans;

(11) Collection assistance to be provided to lenders; and

(12) The extension of the guaranty in consideration of duty in the armed
forces, unemployment, natural disasters, or other hardships. (L. 1994
H.B. 1248 & 1048, A.L. 2003 H.B. 464 merged with S.B. 388)

The authority, by rules and regulations, shall determine the
policy of collections and recovery of loans, including the use of private
collection agencies. The authority may institute action to recover any
amount due the state in any loan transaction, use private collection
agencies, or otherwise carry out the policy of the authority. The lender
making the original loan shall cooperate with the authority in the
collection of the loan and shall use its regular collection procedures
prior to any action being undertaken by the authority. (L. 1994 H.B. 1248
& 1048)

If the Missouri clean water commission makes available to the
authority any funds for implementation of the authority's animal waste
facilities loan program, loans made pursuant to that program are eligible
for loan guarantees under the provisions of sections 348.185 to 348.225.
A loan made under the animal waste facilities loan program may be
combined with loans made by eligible lenders under the provisions of
sections 348.185 to 348.225, but the eligible lender shall have first
priority on payments of defaults from the fund. A loan made under the
animal waste facilities loan program shall not be subject to any dollar
amount limitation otherwise imposed by any provision of law or a loan
guaranteed under the provisions of sections 348.185 to 348.225. (L. 1994
H.B. 1248 & 1048)

There is hereby created in the state treasury the
"Single-Purpose Animal Facilities Loan Program Fund". The fund shall
consist of money collected and deposited pursuant to subsection 3 of
section 348.195. Notwithstanding the provisions of section 33.080, RSMo,
no portion of the fund shall be transferred to the general revenue fund.
The money in the single-purpose animal facilities loan program fund shall
be used, upon appropriation, for administration of the program
established under sections 348.185 to 348.225 and for no other purpose.
(L. 1994 H.B. 1248 & 1048)

1. As used in sections 348.251 to 348.266, the following terms
mean:

(1) "Technology application", the introduction and adaptation of refined
management practices in fields such as scheduling, inventory management,
marketing, product development, and training in order to improve the
quality, productivity and profitability of an existing firm. Technology
application shall be considered a component of business modernization;

(2) "Technology commercialization", the process of moving
investment-grade technology from a business, university or laboratory
into the marketplace for application;

(3) "Technology development", strategically focused research directed at
developing investment-grade technologies which are important for market
competitiveness.

2. The governor may, on behalf of the state and in accordance with
chapter 355, RSMo, establish a private not-for-profit corporation named
the "Missouri Technology Corporation", to carry out the provisions of
sections 348.251 to 348.266. As used in sections 348.251 to 348.266 the
word "corporation" means the Missouri technology corporation authorized
by this section. Before certification by the governor, the corporation
shall conduct a public hearing for the purpose of giving all interested
parties an opportunity to review and comment upon the articles of
incorporation, bylaws and method of operation of the corporation. Notice
of the hearing shall be given at least fourteen days prior to the
hearing. (L. 1993 H.B. 566, A.L. 1994 H.B. 1248 & 1048)

1. The Missouri technology corporation may contract with
not-for-profit organizations to carry out the provisions of sections
348.251 to 348.275. By entering into such contracts, the corporation
shall attempt to achieve the following objectives:

(1) The establishment of a research alliance which shall advance
technology development, as defined in subdivision (3) of section 348.251.
The corporation, in this capacity, shall have the authority to contract
directly with centers for advanced technology, as established by section
348.272, and other not-for-profit entities. In proceeding with this
objective, the corporation and centers for advanced technology shall
utilize the results of targeted industry studies commissioned by the
department of economic development;

(2) Technology commercialization, as defined in subdivision (2) of
section 348.251;

(3) The establishment of a finance corporation to assist in the
implementation of section 348.261; and

(4) The enhancement of technology application, as defined in subdivision
(1) of section 348.251.

2. Any contract signed between the corporation and any not-for-profit
organization, including innovation centers as defined in section 348.271,
shall require that the not-for-profit organization must provide at least
one-hundred-percent match for any funding received from the corporation
through the technology investment fund, as established in section
348.264. (L. 1995 H.B. 414)

The articles of incorporation and bylaws of the Missouri
technology corporation shall provide that:

(1) The purposes of the corporation are to contribute to the
strengthening of the economy of the state through the development of
science and technology, to promote the modernization of Missouri
businesses by supporting the transfer of science, technology and quality
improvement methods to the workplace, and to enhance the productivity and
modernization of Missouri businesses by providing leadership in the
establishment of methods of technology application, technology
commercialization and technology development;

(2) The board of directors of the corporation is composed of fifteen
persons. The governor shall annually appoint one of its members, who must
be from the private sector, as chairman. The board shall consist of the
following members:

(a) The director of the department of economic development, or the
director's designee;

(b) The president of the University of Missouri system, or the
president's designee;

(c) A member of the state senate, appointed by the president pro tem of
the senate;

(d) A member of the house of representatives, appointed by the speaker of
the house;

(e) Eleven members appointed by the governor, two of which shall be from
the public sector and nine members from the private sector who shall
include, but shall not be limited to, individuals who represent
technology-based businesses and industrial interests;

(f) Each of the directors of the corporation who is appointed by the
governor shall serve for a term of four years and until a successor is
duly appointed; except that, of the directors serving on the corporation
as of August 28, 1995, three directors shall be designated by the
governor to serve a term of four years, three directors shall be
designated to serve a term of three years, three directors shall be
designated to serve a term of two years, and two directors shall be
designated to serve a term of one year. Each director shall continue to
serve until a successor is duly appointed by the governor;

(3) The corporation may receive money from any source, may borrow money,
may enter into contracts, and may expend money for any activities
appropriate to its purpose;

(4) The corporation may appoint staff and do all other things necessary
or incidental to carrying out the functions listed in section 348.261;

(5) Any changes in the articles of incorporation or bylaws must be
approved by the governor;

(6) The corporation shall submit an annual report to the governor and to
the Missouri general assembly. The report shall be due on the first day
of November for each year and shall include detailed information on the
structure, operation and financial status of the corporation. The
corporation shall conduct an annual public hearing to receive comments
from interested parties regarding the report, and notice of the hearing
shall be given at least fourteen days prior to the hearing; and

(7) The corporation is subject to an annual audit by the state auditor
and that the corporation shall bear the full cost of the audit. (L. 1993
H.B. 566, A.L. 1994 H.B. 1248 & 1048, A.L. 1995 H.B. 414)

The corporation, after being certified by the governor as
provided by section 348.251, may:

(1) Establish a statewide business modernization network to assist
Missouri businesses in identifying ways to enhance productivity and
market competitiveness;

(2) Identify scientific and technological problems and opportunities
related to the economy of Missouri and formulate proposals to overcome
those problems or realize those opportunities;

(3) Identify specific areas where scientific research and technological
investigation will contribute to the improvement of productivity of
Missouri manufacturers and farmers;

(4) Determine specific areas in which financial investment in scientific
and technological research and development from private businesses
located in Missouri could be enhanced or increased if state resources
were made available to assist in financing activities;

(5) Assist in establishing cooperative associations of universities in
Missouri and of private enterprises for the purpose of coordinating
research and development programs that will, consistent with the primary
educational function of the universities, aid in the creation of new jobs
in Missouri;

(6) Assist in financing the establishment and continued development of
technology-intensive businesses in Missouri;

(7) Advise universities of the research needs of Missouri business and
improve the exchange of scientific and technological information for the
mutual benefit of universities and private business;

(8) Coordinate programs established by universities to provide Missouri
businesses with scientific and technological information;

(9) Establish programs in scientific education which will support the
accelerated development of technology-intensive businesses in Missouri;

(10) Provide financial assistance through contracts, grants and loans to
programs of scientific and technological research and development;

(11) Determine how public universities can increase income derived from
the sale or licensure of products or processes having commercial value
that are developed as a result of university sponsored research programs;

(12) Contract with innovation centers, as established in section 348.271,
small business development corporations, as established in sections
620.1000 to 620.1007, RSMo, centers for advanced technology, as
established in section 348.272, and other entities or organizations for
the provision of technology application, technology commercialization and
technology development services. Such contracting procedures shall not be
subject to the provisions of chapter 34, RSMo; and

(13) Make direct seed capital or venture capital investments in Missouri
business investment funds or businesses which demonstrate the promise of
growth and job creation. Investments from the corporation may be in the
form of debt or equity in the respective businesses. (L. 1993 H.B. 566,
A.L. 1994 H.B. 1248 & 1048, A.L. 1995 H.B. 574)

In order to assist the corporation in achieving the objectives
identified in section 348.261, the department of economic development may
contract with the corporation for activities consistent with the
corporation's purpose, as specified in section 348.256. When contracting
with the corporation under the provisions of this section, the department
of economic development may directly enter into agreements with the
corporation and shall not be bound by the provisions of chapter 34, RSMo.
(L. 1994 H.B. 1248 & 1048)

1. The Missouri business modernization and technology
corporation shall replace the corporation for science and technology. All
moneys, property or any other assets remaining with the corporation for
science and technology after all obligations are satisfied on August 28,
1993, shall be transferred to the Missouri business modernization and
technology corporation. All powers, duties and functions performed by the
Missouri corporation of science and technology on August 28, 1993, shall
be transferred to the Missouri business modernization and technology
corporation.

2. The Missouri technology corporation shall replace the Missouri
business modernization and technology corporation. All moneys, property
or any other assets remaining with the Missouri business modernization
and technology corporation after all obligations are satisfied on August
28, 1994, shall be transferred to the Missouri technology corporation.
All powers, duties and functions performed by the Missouri business
modernization and technology corporation on August 28, 1994, shall be
transferred to the Missouri technology corporation. (L. 1993 H.B. 566,
A.L. 1994 H.B. 1248 & 1048)

1. There is hereby established in the state treasury a special
fund to be known as the "Missouri Technology Investment Fund", which
shall consist of all moneys which may be appropriated to it by the
general assembly, and also any gifts, contributions, grants or bequests
received from federal, private or other sources. Such moneys shall
include federal funds which may be received from the National Institute
for Science and Technology, the Small Business Administration and the
Department of Defense through its Technology Reinvestment Program. Money
in the Missouri technology investment program shall be used to carry out
the provisions of sections 348.251 to 348.275. Moneys for business
modernization programs, technology application programs, technology
commercialization programs and technology development programs
established pursuant to the provisions of sections 348.251 to 348.275
shall be available from appropriations made by the general assembly from
the Missouri technology investment fund. Any moneys remaining in the
Missouri technology investment fund at the end of any fiscal year shall
not lapse to the general revenue fund, as provided in section 33.080,
RSMo, but shall remain in the Missouri technology investment fund.

2. Notwithstanding the provisions of sections 173.500 to 173.565, RSMo,
the Missouri technology investment fund shall be utilized to fund
projects which would previously have been funded through the higher
education applied projects fund. (L. 1994 H.B. 1248 & 1048, A.L. 1995
H.B. 414)

1. Debts incurred by the Missouri technology corporation
established pursuant to the authority of sections 348.251 to 348.275 do
not represent or constitute a debt of this state within the meaning of
the provisions of the constitution or statutes of this state.

2. The Missouri technology corporation established pursuant to sections
348.251 to 348.275 shall be subject to all provisions of chapter 355,
RSMo, which do not conflict with the provisions of sections 348.251 to
348.275. (L. 1993 H.B. 566, A.L. 1994 H.B. 1248 & 1048, A.L. 1995 H.B.
414)

1. In order to foster the growth of Missouri's economy and to
stimulate the creation of new jobs in technology-based industry for the
state's work force, the Missouri technology corporation, in accordance
with the provisions of this section and within the limits of
appropriations therefor is authorized to contract with Missouri
not-for-profit corporations for the operation of innovation centers
within the state. The primary emphasis of some, if not of all innovation
centers, shall be in the areas of technology commercialization, finance
and business modernization. Innovation centers operated under the
provisions of this section shall provide assistance to individuals and
business organizations during the early stages of the development of new
technology-based business ventures. Such assistance may include the
provision of facilities, equipment, administrative and managerial
support, planning assistance, and such other services and programs that
enhance the development of such ventures and such assistance may be
provided for fees or other consideration.

2. The innovation centers operated under this section shall counsel and
assist the new technology-based business ventures in finding a suitable
site in the state of Missouri for location of the business upon its
graduation from the innovation program. Each innovation center shall
annually submit a report of its activities to the department of economic
development and the Missouri technology corporation which shall include,
but not be limited to, the success rate of the businesses graduating from
the center, the progress and locations of businesses which have graduated
from the center, the types of businesses which have graduated from the
center, and the number of jobs created by the businesses involved in the
center. (L. 1989 H.B. 249 & 47, A.L. 1993 H.B. 566, A.L. 1994 H.B. 1248 &
1048, A.L. 1995 H.B. 414)

1. In order to encourage greater collaboration between private
industry and the universities of this state in the development and
application of new technologies, the director of the department of
economic development is authorized to designate centers for advanced
technology. Each center so designated shall conduct research in specific
technological areas identified by the Missouri business modernization and
technology corporation as having significant potential for economic
growth in Missouri, or in which the application of new technologies could
significantly enhance the productivity and stability of Missouri
businesses. Such designations shall be made in accordance with the
standards and criteria set forth in subsection 3 of this section. Centers
so designated shall be eligible for support from the department of
economic development in the manner provided for in subsection 4 of this
section, and for such additional support as may otherwise be provided by
law.

2. As used in this section, the following terms shall mean:

(1) "Applicant", a university or university-affiliated research
institute, or a consortium of such institutions, which requests
designation as a center in accordance with such requirements as are
established by the corporation for this purpose;

(2) "Center for advanced technology" or "center", a university or
university-affiliated research institute, or a consortium of such
institutions, designated by the foundation, which conducts a continuing
program of basic and applied research, development, and technology
transfer in one or more technological areas, in collaboration with and
through the support of private business and industry;

(3) "Corporation", the Missouri business modernization and technology
corporation;

(4) "University", any institution of postsecondary education, including
public and private universities, colleges, junior colleges, vocational
and technical schools, and other postsecondary institutions.

3. The corporation shall:

(1) Identify technological areas for which centers should be designated,
including, but not limited to, technological areas that are related to
industries with significant potential for economic growth and development
in Missouri and technological areas that are related to the enhancement
of productivity in various industries located in Missouri;

(2) Establish criteria that applicants must satisfy for designation as a
center, including, but not limited to, the following:

(a) An established record of research, development and instruction in the
area or areas of technology involved;

(b) The capacity to conduct research and development activities in
collaboration with business and industry;

(c) The capacity to secure substantial private and other governmental
funding for the proposed center;

(d) The ability and willingness to cooperate with other institutions in
this state in conducting research and development activities, and in
disseminating research results; and to work with technical and community
colleges in this state to enhance the quality of technical education in
the area or areas of technology involved;

(e) The ability and willingness to cooperate with the corporation, the
department of economic development, and other economic development
agencies in promoting the growth and development in Missouri of
industries based upon or benefiting from the area or areas of technology
involved;

(3) Establish such requirements as it deems appropriate for the format,
content and filing of applications for designation as centers for
advanced technology;

(4) Establish such procedures as it deems appropriate for the evaluation
of applications for designation as centers for advanced technology,
including the establishment of peer review panels composed of nationally
recognized experts in the technological areas and industries to which the
application is related.

4. From such funds as may be appropriated for this purpose by the general
assembly, the department of economic development may provide financial
support, through contracts or other means, to designated centers for
advanced technology in order to enhance and accelerate the development of
such centers. Funds received pursuant to this subsection may be used for
the purchase of equipment and fixtures, employment of faculty and support
staff, provision of graduate fellowships, and other purposes approved by
the department of economic development, but may not be used for capital
construction.

5. From such funds as may be appropriated for this purpose by the general
assembly, the department of economic development may provide grants to
any one university or university-affiliated research institution for
purposes of planning and program development aimed at enabling such
university or university-affiliated research institution to qualify for
designation as a center. Such grants shall be awarded on a competitive
basis, and shall be available only to those applicants which, in the
judgment of the corporation and department of economic development, may
reasonably be expected to be designated as centers. (L. 1986 S.B. 426 §
5, A.L. 1989 H.B. 249 & 47, A.L. 1993 H.B. 566)

1. The department of economic development may draft and
promulgate rules and regulations consistent with the provisions of
sections 348.251 to 348.272 as are necessary or useful to carry out the
provisions of those sections.

2. No rule or portion of a rule promulgated under the authority of
sections 348.251 to 348.272 shall become effective until it has been
approved by the joint committee on administrative rules in accordance
with the procedures provided in this section, and the delegation of the
legislative authority to enact law by the adoption of such rules is
dependent upon the power of the joint committee on administrative rules
to review and suspend rules pending ratification by the senate and the
house of representatives as provided in this section.

3. Upon filing any proposed rule with the secretary of state, the
department shall concurrently submit such proposed rule to the committee,
which may hold hearings upon any proposed rule or portion thereof at any
time.

4. A final order of rulemaking shall not be filed with the secretary of
state until thirty days after such final order of rulemaking has been
received by the committee. The committee may hold one or more hearings
upon such final order of rulemaking during the thirty-day period. If the
committee does not disapprove such order of rulemaking within the thirty-
day period, the department may file such order of rulemaking with the
secretary of state and the order of rulemaking shall be deemed approved.

5. The committee may, by majority vote of the members, suspend the order
of rulemaking or portion thereof by action taken prior to the filing of
the final order of rulemaking only for one or more of the following
grounds:

(1) An absence of statutory authority for the proposed rule;

(2) An emergency relating to public health, safety or welfare;

(3) The proposed rule is in conflict with state law;

(4) A substantial change in circumstance since enactment of the law upon
which the proposed rule is based.

6. If the committee disapproves any rule or portion thereof, the
department shall not file such disapproved portion of any rule with the
secretary of state and the secretary of state shall not publish in the
Missouri Register any final order of rulemaking containing the
disapproved portion.

7. If the committee disapproves any rule or portion thereof, the
committee shall report its findings to the senate and the house of
representatives. No rule or portion thereof disapproved by the committee
shall take effect so long as the senate and the house of representatives
ratify the act of the joint committee by resolution adopted in each house
within thirty legislative days after such rule or portion thereof has
been disapproved by the joint committee.

8. Upon adoption of a rule as provided in this section, any such rule or
portion thereof may be suspended or revoked by the general assembly
either by bill or, pursuant to section 8, article IV of the Constitution
of Missouri, by concurrent resolution upon recommendation of the joint
committee on administrative rules. The committee shall be authorized to
hold hearings and make recommendations pursuant to the provisions of
section 536.037, RSMo. The secretary of state shall publish in the
Missouri Register, as soon as practicable, notice of the suspension or
revocation. (L. 1995 H.B. 414)

As used in sections 348.300 to 348.318, the following terms mean:

(1) "Commercial activity located in Missouri", any research, development,
prototype fabrication, and subsequent precommercialization activity, or
any activity related thereto, conducted in Missouri for the purpose of
producing a service or a product or process for manufacture, assembly or
sale or developing a service based on such a product or process by any
person, corporation, partnership, joint venture, unincorporated
association, trust or other organization doing business in Missouri.
Subsequent to January 1, 1999, a commercial activity located in Missouri
shall mean only such activity that is located within a distressed
community, as defined in section 135.530, RSMo;

(2) "Follow-up capital", capital provided to a commercial activity
located in Missouri in which a qualified fund has previously invested
seed capital or start-up capital and which does not exceed ten times the
amount of such seed and start-up capital;

(3) "Qualified contribution", cash contribution to a qualified fund;

(4) "Qualified economic development organization", any corporation
organized under the provisions of chapter 355, RSMo, which has as of
January 1, 1991, obtained a contract with the department of economic
development to operate an innovation center to promote, assist and
coordinate the research and development of new services, products or
processes in the state of Missouri; and the Missouri technology
corporation organized pursuant to the provisions of sections 348.253 to
348.266;

(5) "Qualified fund", any corporation, partnership, joint venture,
unincorporated association, trust or other organization which is
established under the laws of Missouri after December 31, 1985, which
meets all of the following requirements established by this subdivision.
The fund shall have as its sole purpose and business the making of
investments, of which at least ninety percent of the dollars invested
shall be qualified investments. The fund shall enter into a contract with
one or more qualified economic development organizations which shall
entitle the qualified economic development organizations to receive not
less than ten percent of all distributions of equity and dividends or
other earnings of the fund. Such contracts shall require the qualified
fund to transfer to the Missouri technology corporation organized
pursuant to the provisions of sections 348.253 to 348.266, this interest
and make corresponding distributions thereto in the event the qualified
economic development organization holding such interest is dissolved or
ceases to do business for a period of one year or more;

(6) "Qualified investment", any investment of seed capital, start-up
capital, or follow-up capital in any commercial activity located in
Missouri;

(7) "Person", any individual, corporation, partnership or other entity;

(8) "Seed capital", capital provided to a commercial activity located in
Missouri for research, development and precommercialization activities to
prove a concept for a new product or process or service, and for
activities related thereto;

(9) "Start-up capital", capital provided to a commercial activity located
in Missouri for use in preproduction product development or service
development or initial marketing thereof, and for activities related
thereto;

(10) "State tax liability", any state tax liability incurred by a
taxpayer under the provisions of chapters 143, 147 and 148, RSMo,
exclusive of the provisions relating to the withholding of tax as
provided for in sections 143.191 to 143.265, RSMo, and related provisions;

(11) "Uninvested capital", the amount of any distribution, other than of
earnings, by a qualified fund made within five years of the issuance of a
certificate of tax credit as provided by sections 348.300 to 348.318; or
the portion of all qualified contributions to a qualified fund which are
not invested as qualified investments within five years of the issuance
of a certificate of tax credit as provided by sections 348.300 to 348.318
to the extent that the amount not so invested exceeds ten percent of all
such qualified contributions. (L. 1986 S.B. 591 § 1, A.L. 1991 S.B. 185,
A.L. 1993 H.B. 566, A.L. 1998 H.B. 1656)

Effective 1-1-99

1. Any person who makes a qualified contribution to a qualified
fund shall be entitled to receive a tax credit equal to fifty percent of
the amount of the qualified contribution. The tax credit shall be
evidenced by a tax credit certificate in accordance with the provisions
of sections 348.300 to 348.318 and may be used to satisfy the state tax
liability of the owner of such certificate that becomes due in the tax
year in which the qualified contribution is made, or in any of the ten
tax years thereafter. No person may receive a tax credit pursuant to
sections 348.300 to 348.318 unless that person presents a tax credit
certificate to the department of revenue for payment of such state tax
liability.

2. The amount of such qualified contributions which can be made is
limited so that the aggregate of all tax credits authorized under the
provisions of sections 348.300 to 348.318 shall not exceed nine million
dollars. All tax credits authorized under the provisions of this section
may be transferred, sold or assigned. (L. 1986 S.B. 591 § 2, A.L. 1992
S.B. 661 & 620, A.L. 1998 H.B. 1656)

Effective 1-1-99

CROSS REFERENCE: Tax Credit Accountability Act of 2004, additional
requirements, RSMo 135.800 to 135.830

The total amount of credit evidenced by certificates of tax
credit issued to taxpayers at the request of any one qualified economic
development organization shall not exceed two million dollars; except
that, this two-million-dollar limitation shall not apply to certificates
of tax credit issued after January 1, 1996. Prior to January 1, 1996, any
qualified economic development organization may enter into a contractual
agreement with any other qualified economic development organization to
allocate to the latter any portion of the two million dollars of tax
credits which it is authorized to issue to taxpayers under the provisions
of this section. The certificate of tax credit may be issued in one
aggregate certificate or in a reasonable number of multiple certificates
in regard to one qualified contribution. Any issued certificate may be
surrendered in exchange for new certificates not to exceed in value the
value of the issued certificate. The number and denomination of multiple
certificates, if issued, shall be determined by the director of the
department of economic development. (L. 1986 S.B. 591 § 3, A.L. 1991 S.B.
185)

Effective 6-18-91

No person shall receive, by issuance, transfer or assignment,
certificates of tax credit issued under the provisions of sections
348.300 to 348.318* in an amount in excess of one million dollars.
Subject to the provisions of this section, certificates of tax credit
issued in accordance with sections 348.300 to 348.318* may be transferred
or assigned by notarized endorsement thereof which names the transferee.
(L. 1986 S.B. 591 § 4)

Effective 5-30-86

*Words "this act" appear in original rolls. S.B. 591 (1986) also contains
§§ 100.310 and 100.390.

1. The director of the department of economic development shall
be responsible for the administration and issuance of the certificate of
tax credits authorized by sections 348.300 to 348.318*. The director of
the department of economic development shall issue a certificate of tax
credit at the request of any qualified economic development organization.
Each request shall include a true copy of the documents creating the
qualified fund and the interest of the qualified economic development
organization in the qualified fund, the name of the person who is to
receive a certificate of tax credit, the type of state tax liability, as
specified in subdivision (10) of section 348.300, against which the tax
credit is to be used, and the amount of the certificate of tax credit to
be issued to the person making the qualified contribution. Each request
shall be acknowledged under oath by the person making the qualified
contribution and the president of the qualified economic development
organization.

2. In the event that two or more qualified economic development
organizations have an interest in a qualified fund, either or both of
such qualified economic development organizations may request issuance of
certificates of tax credit in accordance with the provisions of sections
348.300 to 348.318* to persons contributing to qualified funds. (L. 1986
S.B. 591 § 5)

Effective 5-30-86

*Words "this act" appear in original rolls. S.B. 591 (1986) also contains
§§ 100.310 and 100.390.

The Missouri department of revenue shall accept a certificate of
tax credit in lieu of other payment in such amount as is equal to the
lesser of the amount of the tax or the remaining unused amount of the
credit as indicated on the certificate of tax credit; and shall indicate
on the certificate of tax credit the amount of tax thereby paid, the date
of such payment, and the remainder of the unused credit available to the
taxpayer after such payment. The certificate of tax credit shall be
returned to the director of the department of economic development. The
director of the department of economic development shall issue a new
certificate to the proper owner for any unused balance. (L. 1986 S.B. 591
§ 6)

Effective 5-30-86

No provision of sections 348.300 to 348.318* shall be construed
to require a qualified economic development organization to accept an
interest in any fund, nor shall any provision of sections 348.300 to
348.318* be construed to limit or restrict the terms and conditions on
which a qualified economic development organization may agree to accept
an interest in any fund. (L. 1986 S.B. 591 § 7)

Effective 5-30-86

*Words "this act" appear in original rolls. S.B. 591 (1986) also contains
§§ 100.310 and 100.390.

1. Each qualified fund, on or before the due date of its federal
income tax return, shall make a report for a period corresponding to the
qualified fund's federal income tax year. The report shall be made on a
form required by the department of economic development. It shall be
verified by the affidavit of the fund's president, or another authorized
officer, to the department of economic development. It shall state the
amount of all uninvested capital, whether distributions of equity or
funds not invested in qualified investments, and it shall contain other
such information as may be required by the director of the department of
economic development.

2. Upon the receipt of such returns, the director of the department of
economic development shall verify the same and certify the amount of tax
due from the various funds to the director of revenue within sixty days
from the date of the return. The director of revenue shall send each
qualified fund a notice of tax due within thirty days of the date of
certification by the department of economic development. The qualified
fund shall pay the tax as provided in the notice within thirty days of
the date of such notice. (L. 1986 S.B. 591 § 9)

Effective 5-30-86

Except as otherwise specifically provided in sections 348.300 to
348.318*, interest and penalty provisions and procedural matters under
the provisions of sections 348.300 to 348.318* shall be determined
pursuant to and in the manner prescribed in the following sections of the
revised statutes of Missouri, the state income tax law, governing similar
procedures thereunder: sections 143.271 to 143.301, 143.511, 143.551 to
143.571, 143.611 to 143.751, 143.771, 143.791 to 143.861, 143.881 to
143.971, and 143.986, RSMo. (L. 1986 S.B. 591 § 10)

Effective 5-30-86

*Words "this act" appear in original rolls. S.B. 591 (1986) also contains
§§ 100.310 and 100.390.

As used in sections 348.400 to 348.415, the following terms mean:

(1) "Agricultural business development loan", a loan for the acquisition,
construction, improvement, or rehabilitation of agricultural property;

(2) "Agricultural product", an agricultural, horticultural, viticultural,
or vegetable product, growing of grapes that will be processed into wine,
bees, honey, fish or other aquacultural product, planting seed,
livestock, a livestock product, a forestry product, poultry or a poultry
product, either in its natural or processed state, that has been
produced, processed, or otherwise had value added to it in this state;

(3) "Agricultural property", any land and easements and real and personal
property, including, but not limited to, buildings, structures,
improvements, and equipment which is used in Missouri by Missouri
residents or Missouri-based businesses for the purpose of processing,
manufacturing, marketing, exporting or adding value to an agricultural
product. Agricultural property also includes any land and easements and
real and personal property, including, but not limited to, buildings,
structures, improvements, equipment and plant stock used for the growing
of grapes which will be processed into wine;

(4) "Authority", the Missouri agricultural and small business development
authority;

(5) "Eligible borrower", as defined in section 348.015;

(6) "Eligible lender", lender as defined in section 348.015;

(7) "Fund", the agricultural product utilization and business development
loan guarantee fund or the agricultural product utilization grant fund;

(8) "Grant fund" the agricultural product utilization grant fund;

(9) "Program fund", the agricultural product utilization and business
development loan program fund. (L. 1997 H.B. 557, A.L. 1998 H.B. 950)

1. In addition to the duties and powers established in sections
348.005 to 348.225, the authority shall develop and implement an
agricultural business development loan guarantee program as provided in
sections 348.400 to 348.415. The authority shall promulgate only those
rules that are necessary to carry out the stated purposes of sections
348.400 to 348.415. The rules promulgated pursuant to this section shall
encourage maximum involvement and participation by lenders and financial
institutions in the loan guarantee program. The authority shall implement
the loan guarantee program, and may employ such persons as necessary,
within the limits of appropriations for that purpose, to administer the
loan guarantee program.

2. Any rule or portion of a rule promulgated pursuant to the authority of
sections 348.400 to 348.415 shall become effective only if it has been
promulgated in compliance with the provisions of chapter 536, RSMo, as it
may be amended from time to time.

3. The authority may reject any application for guaranty pursuant to
sections 348.400 to 348.415. (L. 1997 H.B. 557)

*Rulemaking authority, effective when, null and void, when, see RSMo
348.426.

1. The authority, upon application, may issue certificates of
guaranty covering a first loss guarantee up to but not more than fifty
percent of the loan on a declining principal basis for loans to eligible
borrowers, executing a note or other evidence of a loan made for the
purpose of an agricultural business development loan, but not to exceed
the amount of two hundred fifty thousand dollars for any eligible
borrower and to pay from the fund to an eligible lender up to fifty
percent of the amount on a declining principal basis of any loss on any
guaranteed loan made pursuant to the provisions of sections 348.400 to
348.415, in the event of default on the loan. Upon payment on the
guarantee, the authority shall be subrogated to all the rights of the
eligible lender.

2. The authority shall charge for each guaranteed loan a one-time
participation fee of one percent which shall be collected by the eligible
lender at the time of closing and paid to the authority. In addition, the
authority may charge a special loan guarantee fee of up to one percent
per annum of the outstanding principal which shall be collected from the
eligible borrower by the eligible lender and paid to the authority.

3. All moneys paid to satisfy a defaulted guaranteed loan shall only be
paid out of the fund.

4. The total outstanding guaranteed loans shall at no time exceed an
amount which, according to sound actuarial judgment, would allow
immediate redemption of twenty percent of the outstanding loans
guaranteed by the fund at any one time. (L. 1997 H.B. 557, A.L. 1999 H.B.
888, A.L. 2004 S.B. 740, et al.)

1. The authority shall develop and implement agricultural
products utilization grants as provided in this section.

2. The authority may reject any application for grants pursuant to this
section.

3. The authority shall make grants, and may make loans or guaranteed
loans from the grant fund to persons for the creation, development and
operation, for up to three years from the time of application approval,
of rural agricultural businesses whose projects add value to agricultural
products and aid the economy of a rural community.

4. The authority may, upon the provision of a fee by the requesting
person in an amount to be determined by the authority, provide for a
feasibility study of the person's rural agricultural business concept.

5. Upon a determination by the authority that such concept is feasible
and upon the provision of a fee by the requesting person, in an amount to
be determined by the authority, the authority may then provide for a
marketing study. Such marketing study shall be designed to determine
whether such concept may be operated profitably.

6. Upon a determination by the authority that the concept may be operated
profitably, the authority may provide for legal assistance to set up the
business. Such legal assistance shall include, but not be limited to,
providing advice and assistance on the form of business entity, the
availability of tax credits and other assistance for which the business
may qualify as well as helping the person apply for such assistance.

7. The authority may provide or facilitate loans or guaranteed loans for
the business including, but not limited to, loans from the United States
Department of Agriculture Rural Development Program, subject to
availability. Such financial assistance may only be provided to feasible
projects, and for an amount that is the least amount necessary to cause
the project to occur, as determined by the authority. The authority may
structure the financial assistance in a way that facilitates the project,
but also provides for a compensatory return on investment or loan payment
to the authority, based on the risk of the project.

8. The authority may provide for consulting services in the building of
the physical facilities of the business.

9. The authority may provide for consulting services in the operation of
the business.

10. The authority may provide for such services through employees of the
state or by contracting with private entities.

11. The authority may consider the following in making the decision:

(1) The applicant's commitment to the project through the applicant's
risk;

(2) Community involvement and support;

(3) The phase the project is in on an annual basis;

(4) The leaders and consultants chosen to direct the project;

(5) The amount needed for the project to achieve the bankable stage; and

(6) The projects planning for long-term success through feasibility
studies, marketing plans and business plans.

12. The department of agriculture, the department of natural resources,
the department of economic development and the University of Missouri may
provide such assistance as is necessary for the implementation and
operation of this section. The authority may consult with other state and
federal agencies as is necessary.

13. The authority may charge fees for the provision of any service
pursuant to this section.

14. The authority may adopt rules to implement the provisions of this
section.

15. Any rule or portion of a rule, as that term is defined in section
536.010, RSMo, that is created under the authority delegated in sections
348.005 to 348.180 shall become effective only if it complies with and is
subject to all of the provisions of chapter 536, RSMo, and, if
applicable, section 536.028, RSMo. All rulemaking authority delegated
prior to August 28, 1999, is of no force and effect and repealed. Nothing
in this section shall be interpreted to repeal or affect the validity of
any rule filed or adopted prior to August 28, 1999, if it fully complied
with all applicable provisions of law. This section and chapter 536,
RSMo, are nonseverable and if any of the powers vested with the general
assembly pursuant to chapter 536, RSMo, to review, to delay the effective
date or to disapprove and annul a rule are subsequently held
unconstitutional, then the grant of rulemaking authority and any rule
proposed or adopted after August 28, 1999, shall be invalid and void. (L.
1997 H.B. 557, A.L. 1999 H.B. 888)

Effective 7-2-99

1. There is hereby established in the state treasury the
"Agricultural Product Utilization Grant Fund". The fund shall consist of
money appropriated to it by the general assembly and investment income on
the fund. Notwithstanding the provisions of section 33.080, RSMo, no
portion of the fund shall be transferred to the general revenue fund.

2. The fund shall be administered by the authority.

3. The general assembly may appropriate moneys not to exceed three
million dollars annually. In any given year, at least ten percent of the
appropriation shall be awarded to grant requests of twenty-five thousand
dollars or less. No single rural agricultural business concept shall
receive more than two hundred thousand dollars in grant awards from the
authority.

4. Moneys in the fund may be invested by the state treasurer, and any
income therefrom shall be deposited to the credit of the fund. (L. 1997
H.B. 557, A.L. 1999 H.B. 888)

Effective 7-2-99

1. There is hereby established in the state treasury the
"Agricultural Product Utilization and Business Development Loan Guarantee
Fund". The fund shall consist of money appropriated to it by the general
assembly, charges, gifts, grants, bequests from federal, private or other
sources, and investment income on the fund. Notwithstanding the
provisions of section 33.080, RSMo, no portion of the fund shall be
transferred to the general revenue fund.

2. All moneys received by the authority for payments made on previously
defaulted guaranteed loans shall be paid promptly into the state treasury
and deposited in the fund.

3. The fund shall be administered by the authority.

4. Beginning with fiscal year 1997-98, the general assembly may
appropriate moneys not to exceed two and one-half million dollars for the
establishment and initial funding of the fund.

5. Moneys in the fund, both unobligated and obligated as a reserve, which
in the judgment of the authority are not currently needed for payments of
defaults of guaranteed loans, may be invested by the state treasurer, and
any income therefrom shall be deposited to the credit of the fund. (L.
1997 H.B. 557)

1. There is hereby created in the state treasury the
"Agricultural Product Utilization Business Development Loan Program
Fund". The fund shall consist of money appropriated to it by the general
assembly and investment income on the fund. Notwithstanding the
provisions of section 33.080, RSMo, no portion of the fund shall be
transferred to the general revenue fund. The money in the program fund
shall be used, upon appropriation, for purposes established pursuant to
sections 348.400 to 348.415 and for no other purpose. Moneys necessary
for this program may be transferred to this program fund from the fund
established pursuant to section 348.408.

2. For purposes of this section, the department of agriculture shall, as
part of the program administration, establish market promotion activities
that assist grant recipients and loan applicants in the planning and
marketing of value-added products. The department of agriculture is
specifically authorized to employ qualified individuals to fulfill such
duties.

3. The department of agriculture shall promote products derived from
development facilities and renewable fuel production facilities as
defined in section 348.430. (L. 1997 H.B. 557, A.L. 1999 H.B. 888)

Effective 7-2-99

1. Eligible borrowers:

(1) Shall use the proceeds of the agricultural business development loan
to acquire agricultural property; and

(2) May not finance more than ninety percent of the anticipated cost of
the project through the agricultural business development loan.

2. The project shall have opportunities to succeed in the development,
expansion and operation of businesses involved in adding value to,
marketing, exporting, processing, or manufacturing agricultural products
that will benefit the state economically and socially through direct or
indirect job creation or job retention.

3. The authority shall promulgate rules establishing eligibility pursuant
to the provisions of sections 348.400 to 348.415, taking into
consideration:

(1) The eligible borrower's ability to repay the agricultural business
development loan;

(2) The general economic conditions of the area in which the agricultural
property will be located;

(3) The prospect of success of the particular project for which the loan
is sought; and

(4) Such other factors as the authority may establish.

4. The authority may promulgate rules to provide for:

(1) The requirement or nonrequirement of security or endorsement and the
nature thereof;

(2) The manner and time or repayment of the principal and interest;

(3) The maximum rate of interest;

(4) The right of the eligible borrower to accelerate payments without
penalty;

(5) The amount of the guaranty charge;

(6) The effective period of the guaranty;

(7) The percent of the agricultural business development loan, not to
exceed fifty percent, covered by the guaranty;

(8) The assignability of agricultural business development loans by the
eligible lender;

(9) Procedures in the event of default on an agricultural business
development loan;

(10) The due diligence effort on the part of eligible lenders for
collection of guaranteed loans;

(11) Collection assistance to be provided to eligible lenders; and

(12) The extension of the guaranty in consideration of duty in the armed
forces, unemployment, natural disasters, or other hardships. (L. 1997
H.B. 557, A.L. 2004 S.B. 740, et al.)

*Rulemaking authority, effective when, null and void, when, see RSMo
348.426.

1. The executive director of the authority shall act for the
authority except that the appeal of the executive director's decisions
shall be to the authority.

2. The executive director of the authority shall be paid on a level to be
determined by the authority but not to exceed that of a division director
of the department of agriculture.

3. The authority shall not provide services or funds for any project not
located in this state. (L. 1999 H.B. 888)

Effective 7-2-99

The authority, by rule, shall determine the policy of
collections and recovery of agricultural business development loans,
including the use of private collection agencies. The authority may
institute action to recover any amount due the state in any loan
transaction, use private collection agencies, or otherwise carry out the
policy of the authority. The eligible lender making the original loan
shall cooperate with the authority in the collection of the agricultural
business development loan and shall use its regular collection procedures
before any action taken by the authority. (L. 1997 H.B. 557)

*Rulemaking authority, effective when, null and void, when, see RSMo
348.426.

Any rule or portion of a rule promulgated pursuant to this bill*
shall become effective only as provided pursuant to chapter 536, RSMo,
including but not limited to section 536.028, RSMo, if applicable, after
August 28, 1997. All rulemaking authority delegated prior to August 28,
1997, is of no force and effect and repealed. The provisions of this
section are nonseverable and if any of the powers vested with the general
assembly pursuant to section 536.028, RSMo, if applicable, to review, to
delay the effective date, or to disapprove and annul a rule or portion of
a rule are held unconstitutional or invalid, the purported grant of
rulemaking authority and any rule so proposed and contained in the order
of rulemaking shall be invalid and void. (L. 1997 H.B. 557 § 2)

*"This bill" (H.B. 557, 1997) contains numerous sections. Consult
Disposition of Sections table for definitive listing.

1. The tax credit created in this section shall be known as the
"Agricultural Product Utilization Contributor Tax Credit".

2. As used in this section, the following terms mean:

(1) "Authority", the agriculture and small business development authority
as provided in this chapter;

(2) "Contributor", an individual, partnership, corporation, trust,
limited liability company, entity or person that contributes cash funds
to the authority;

(3) "Development facility", a facility producing either a good derived
from an agricultural commodity or using a process to produce a good
derived from an agricultural product;

(4) "Eligible new generation cooperative", a nonprofit cooperative
association formed pursuant to chapter 274, RSMo, or incorporated
pursuant to chapter 357, RSMo, for the purpose of operating a development
facility or a renewable fuel production facility;

(5) "Eligible new generation processing entity", a partnership,
corporation, cooperative, or limited liability company organized or
incorporated pursuant to the laws of this state consisting of not less
than twelve members, approved by the authority, for the purpose of owning
or operating within this state a development facility or a renewable fuel
production facility in which producer members:

(a) Hold a majority of the governance or voting rights of the entity and
any governing committee;

(b) Control the hiring and firing of management; and

(c) Deliver agricultural commodities or products to the entity for
processing, unless processing is required by multiple entities;

(6) "Renewable fuel production facility", a facility producing an energy
source which is derived from a renewable, domestically grown, organic
compound capable of powering machinery, including an engine or power
plant, and any by-product derived from such energy source.

3. For all tax years beginning on or after January 1, 1999, a contributor
who contributes funds to the authority may receive a credit against the
tax or estimated quarterly tax otherwise due pursuant to chapter 143,
RSMo, other than taxes withheld pursuant to sections 143.191 to 143.265,
RSMo, chapter 148, RSMo, chapter 147, RSMo, in an amount of up to one
hundred percent of such contribution. Tax credits claimed in a taxable
year may be done so on a quarterly basis and applied to the estimated
quarterly tax pursuant to this subsection. If a quarterly tax credit
claim or series of claims contributes to causing an overpayment of taxes
for a taxable year, such overpayment shall not be refunded but shall be
applied to the next taxable year. The awarding of such credit shall be at
the approval of the authority, based on the least amount of credits
necessary to provide incentive for the contributions. A contributor that
receives tax credits for a contribution to the authority shall receive no
other consideration or compensation for such contribution, other than a
federal tax deduction, if applicable, and goodwill.

4. A contributor shall submit to the authority an application for the tax
credit authorized by this section on a form provided by the authority. If
the contributor meets all criteria prescribed by this section and the
authority, the authority shall issue a tax credit certificate in the
appropriate amount. Tax credits issued pursuant to this section may be
claimed in the taxable year in which the contributor contributes funds to
the authority. For all fiscal years beginning on or after July 1, 2004,
tax credits allowed pursuant to this section may be carried back to any
of the contributor's three prior tax years and may be carried forward to
any of the contributor's five subsequent taxable years. Tax credits
issued pursuant to this section may be assigned, transferred or sold and
the new owner of the tax credit shall have the same rights in the credit
as the contributor. Whenever a certificate of tax credit is assigned,
transferred, sold or otherwise conveyed, a notarized endorsement shall be
filed with the authority specifying the name and address of the new owner
of the tax credit or the value of the credit.

5. The funds derived from contributions in this section shall be used for
financial assistance or technical assistance for the purposes provided in
section 348.407 to rural agricultural business concepts as approved by
the authority. The authority may provide or facilitate loans, equity
investments, or guaranteed loans for rural agricultural business
concepts, but limited to two million dollars per project or the net state
economic impact, whichever is less. Loans, equity investments or
guaranteed loans may only be provided to feasible projects, and for an
amount that is the least amount necessary to cause the project to occur,
as determined by the authority. The authority may structure the loans,
equity investments or guaranteed loans in a way that facilitates the
project, but also provides for a compensatory return on investment or
loan payment to the authority, based on the risk of the project.

6. In any given year, at least ten percent of the funds granted to rural
agricultural business concepts shall be awarded to grant requests of
twenty-five thousand dollars or less. No single rural agricultural
business concept shall receive more than two hundred thousand dollars in
grant awards from the authority. Agricultural businesses owned by
minority members or women shall be given consideration in the allocation
of funds. (L. 1999 H.B. 888 § 1, A.L. 2002 H.B. 1348, A.L. 2004 H.B. 1182
merged with S.B. 740, et al., A.L. 2005 S.B. 355)

Expires 12-31-10

CROSS REFERENCE: Tax Credit Accountability Act of 2004, additional
requirements, RSMo 135.800 to 135.830

1. The tax credit created in this section shall be known as the
"New Generation Cooperative Incentive Tax Credit".

2. As used in this section, the following terms mean:

(1) "Authority", the agriculture and small business development authority
as provided in this chapter;

(2) "Development facility", a facility producing either a good derived
from an agricultural commodity or using a process to produce a good
derived from an agricultural product;

(3) "Eligible new generation cooperative", a nonprofit cooperative
association formed pursuant to chapter 274, RSMo, or incorporated
pursuant to chapter 357, RSMo, for the purpose of operating a development
facility or a renewable fuel production facility and approved by the
authority;

(4) "Eligible new generation processing entity", a partnership,
corporation, cooperative, or limited liability company organized or
incorporated pursuant to the laws of this state consisting of not less
than twelve members, approved by the authority, for the purpose of owning
or operating within this state a development facility or a renewable fuel
production facility in which producer members:

(a) Hold a majority of the governance or voting rights of the entity and
any governing committee;

(b) Control the hiring and firing of management; and

(c) Deliver agricultural commodities or products to the entity for
processing, unless processing is required by multiple entities;

(5) "Employee-qualified capital project", an eligible new generation
cooperative with capital costs greater than fifteen million dollars which
will employ at least sixty employees;

(6) "Large capital project", an eligible new generation cooperative with
capital costs greater than one million dollars;

(7) "Producer member", a person, partnership, corporation, trust or
limited liability company whose main purpose is agricultural production
that invests cash funds to an eligible new generation cooperative or
eligible new generation processing entity;

(8) "Renewable fuel production facility", a facility producing an energy
source which is derived from a renewable, domestically grown, organic
compound capable of powering machinery, including an engine or power
plant, and any by-product derived from such energy source;

(9) "Small capital project", an eligible new generation cooperative with
capital costs of no more than one million dollars.

3. Beginning tax year 1999, and ending December 31, 2002, any producer
member who invests cash funds in an eligible new generation cooperative
or eligible new generation processing entity may receive a credit against
the tax or estimated quarterly tax otherwise due pursuant to chapter 143,
RSMo, other than taxes withheld pursuant to sections 143.191 to 143.265,
RSMo, or chapter 148, RSMo, chapter 147, RSMo, in an amount equal to the
lesser of fifty percent of such producer member's investment or fifteen
thousand dollars.

4. For all tax years beginning on or after January 1, 2003, any producer
member who invests cash funds in an eligible new generation cooperative
or eligible new generation processing entity may receive a credit against
the tax or estimated quarterly tax otherwise due pursuant to chapter 143,
RSMo, other than taxes withheld pursuant to sections 143.191 to 143.265,
RSMo, chapter 147, RSMo, or chapter 148, RSMo, in an amount equal to the
lesser of fifty percent of such producer member's investment or fifteen
thousand dollars. Tax credits claimed in a taxable year may be done so on
a quarterly basis and applied to the estimated quarterly tax pursuant to
subsection 3 of this section. If a quarterly tax credit claim or series
of claims contributes to causing an overpayment of taxes for a taxable
year, such overpayment shall not be refunded but shall be applied to the
next taxable year.

5. A producer member shall submit to the authority an application for the
tax credit authorized by this section on a form provided by the
authority. If the producer member meets all criteria prescribed by this
section and is approved by the authority, the authority shall issue a tax
credit certificate in the appropriate amount. Tax credits issued pursuant
to this section may be carried back to any of the producer member's three
prior taxable years and carried forward to any of the producer member's
five subsequent taxable years regardless of the type of tax liability to
which such credits are applied as authorized pursuant to subsection 3 of
this section. Tax credits issued pursuant to this section may be
assigned, transferred, sold or otherwise conveyed and the new owner of
the tax credit shall have the same rights in the credit as the producer
member. Whenever a certificate of tax credit is assigned, transferred,
sold or otherwise conveyed, a notarized endorsement shall be filed with
the authority specifying the name and address of the new owner of the tax
credit or the value of the credit.

6. Ten percent of the tax credits authorized pursuant to this section
initially shall be offered in any fiscal year to small capital projects.
If any portion of the ten percent of tax credits offered to small capital
costs projects is unused in any calendar year, then the unused portion of
tax credits may be offered to employee-qualified capital projects and
large capital projects. If the authority receives more applications for
tax credits for small capital projects than tax credits are authorized
therefor, then the authority, by rule, shall determine the method of
distribution of tax credits authorized for small capital projects.

7. Ninety percent of the tax credits authorized pursuant to this section
initially shall be offered in any fiscal year to employee-qualified
capital projects and large capital projects. If any portion of the ninety
percent of tax credits offered to employee-qualified capital projects and
large capital costs projects is unused in any fiscal year, then the
unused portion of tax credits may be offered to small capital projects.
The maximum tax credit allowed per employee-qualified capital project is
three million dollars and the maximum tax credit allowed per large
capital project is one million five hundred thousand dollars. If the
authority approves the maximum tax credit allowed for any
employee-qualified capital project or any large capital project, then the
authority, by rule, shall determine the method of distribution of such
maximum tax credit. In addition, if the authority receives more tax
credit applications for employee-qualified capital projects and large
capital projects than the amount of tax credits authorized therefor, then
the authority, by rule, shall determine the method of distribution of tax
credits authorized for employee-qualified capital projects and large
capital projects. (L. 1999 H.B. 888 § 2, A.L. 2001 S.B. 462, A.L. 2002
H.B. 1348, A.L. 2004 H.B. 1182 merged with S.B. 740, et al.)

Effective 6-23-04 (H.B. 1182) 8-28-04 (S.B. 740, et al.)

Expires 12-31-10

CROSS REFERENCE: Tax Credit Accountability Act of 2004, additional
requirements, RSMo 135.800 to 135.830

1. The aggregate of tax credits issued per fiscal year pursuant
to sections 348.430 and 348.432 shall not exceed six million dollars.

2. Upon July 2, 1999, and ending June 30, 2000, tax credits shall be
issued pursuant to section 348.430, except that, the authority shall
allocate no more than three million dollars to fund section 348.432 in
fiscal year 2000. Beginning in fiscal year 2001 and each subsequent year,
tax credits shall be issued pursuant to section 348.432.

3. Beginning the first day of May of each fiscal year following
implementation of section 348.432, the authority may determine the extent
of tax credits, pursuant to section 348.432, that will be utilized in
each fiscal year. If the authority determines that:

(1) Less than six million dollars for a fiscal year is to be utilized in
tax credits pursuant to section 348.432; and

(2) The assets available to the authority, pursuant to section 348.430,
do not exceed twelve million dollars;

then, the authority may offer the remaining authorized tax credits be
issued pursuant to section 348.430. (L. 1999 H.B. 888 § 3)

Effective 7-2-99

Expires 12-31-10

The provisions of sections 348.430 to 348.436 shall expire
December 31, 2010. (L. 1999 H.B. 888 § 4)

Effective 7-2-99

Expires 12-31-10

The department of natural resources, the department of economic
development and the department of agriculture may provide to an eligible
new generation cooperative any technical support necessary to assist in
the operation of the facility or the marketing of its products. (L. 1999
H.B. 888 § 5)

Effective 7-2-99

The tax credits issued in sections 348.430 to 348.439 by the
Missouri agricultural and small business development authority shall be
subject to oversight provisions. Effective January 1, 2000,
notwithstanding the provisions of section 32.057, RSMo, the authority
shall annually report to the office of administration, president pro tem
of the senate, the speaker of the house of representatives, and the joint
committee on economic development regarding the tax credits authorized
pursuant to sections 348.430 to 348.439 which were issued in the previous
fiscal year. The report shall contain, but not be limited to, the
aggregate number and dollar amount of tax credits issued by the
authority, the number and dollar amount of tax credits claimed by
taxpayers, and the number and dollar amount of tax credits unclaimed by
taxpayers as well as the number of years allowed for claims to be made.
This report shall be delivered no later than November of each year. (L.
1999 H.B. 888 § 6)

Effective 7-2-99

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