Senate File 586 H-8270 Amend Senate File 586, as passed by the Senate, as follows: 1 1. Page 52, after line 34 by inserting: 2 < NEW SUBSECTION . 11. A state bank, upon the approval of the 3 superintendent, may invest up to five percent of its aggregate 4 capital in a tax equity financing transaction in which the 5 state bank provides equity financing to fund a project or 6 projects that generate tax credits and the equity-based 7 structure of the transaction permits the transfer of such tax 8 credits to the state bank. A state bank may take a majority 9 financial position, but shall be a passive investor and shall 10 not take a management position, in each such project, subject 11 to the following: 12 a. The state bank shall not participate in the operation of 13 any project or facility resulting from such a transaction or 14 the sale of energy, if any, derived from the project. 15 b. The state bank shall obtain a legal opinion or otherwise 16 demonstrate a good-faith determination that the tax credits 17 are available before engaging in a tax equity financing 18 transaction. 19 c. The tax benefits or other payments the state bank 20 receives from the transaction shall repay the state bank’s 21 investment and provide the expected rate of return at the time 22 of the investment. 23 d. Except as provided under paragraph “c” , the state bank 24 shall not share in any appreciation in value of its interests 25 in the project or in any of the real or personal assets 26 associated with the project. 27 e. The state bank’s total investment in any combination 28 of shares or equity interests of any tax equity financing 29 transactions pursuant to this subsection shall be limited to 30 fifteen percent of its aggregate capital. > 31 2. Page 92, by striking lines 17 through 26. 32 3. Title page, lines 1 and 2, by striking < providing civil 33 penalties, > 34 4. By renumbering as necessary. 35 -1- SF 586.4097 (1) 89 es/rn 1/ 2 #1. #2. #3.