House Amendment to Senate File 586 S-5104 Amend Senate File 586, as passed by the Senate, as follows: 1 1. Page 12, lines 7 and 8, by striking < section 534.217, 2 subsection 2 > and inserting < section 524.217, subsection 2 > 3 2. Page 52, after line 34 by inserting: 4 < NEW SUBSECTION . 11. A state bank, upon the approval of the 5 superintendent, may invest up to five percent of its aggregate 6 capital in a tax equity financing transaction in which the 7 state bank provides equity financing to fund a project or 8 projects that generate tax credits and the equity-based 9 structure of the transaction permits the transfer of such tax 10 credits to the state bank. A state bank may take a majority 11 financial position, but shall be a passive investor and shall 12 not take a management position, in each such project, subject 13 to the following: 14 a. The state bank shall not participate in the operation of 15 any project or facility resulting from such a transaction or 16 the sale of energy, if any, derived from the project. 17 b. The state bank shall obtain a legal opinion or otherwise 18 demonstrate a good-faith determination that the tax credits 19 are available before engaging in a tax equity financing 20 transaction. 21 c. The tax benefits or other payments the state bank 22 receives from the transaction shall repay the state bank’s 23 investment and provide the expected rate of return at the time 24 of the investment. 25 d. Except as provided under paragraph “c” , the state bank 26 shall not share in any appreciation in value of its interests 27 in the project or in any of the real or personal assets 28 associated with the project. 29 e. The state bank’s total investment in any combination 30 of shares or equity interests of any tax equity financing 31 transactions pursuant to this subsection shall be limited to 32 fifteen percent of its aggregate capital. > 33 3. Page 92, by striking lines 17 through 26. 34 4. Title page, lines 1 and 2, by striking < providing civil 35 -1- SF 586.4168.H (3) 89 md 1/ 2 #1. #2. #3.
penalties, > 1 5. By renumbering as necessary. 2 -2- SF 586.4168.H (3) 89 md 2/ 2