§5E-1-4. Definitions


Published: 2015

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WEST VIRGINIA CODE











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WVC 5 E- 1 - 4

§5E-1-4. Definitions.

As used in this article, the following terms have the meanings

ascribed to them in this section, unless the context in which the

term is used clearly requires another meaning or a specific

different definition is provided:

(a) "Authority" means the West Virginia economic development

authority, provided for in article fifteen, chapter thirty-one of

this code.

(b) "Capital base" means equity capital or net worth.

(c) "Certified West Virginia capital company" means:

(1) A West Virginia business development corporation created

pursuant to article fourteen, chapter thirty-one of this code; or

(2) A profit or nonprofit entity organized and existing under

the laws of this state, created for the purpose of making venture

or risk capital available to qualified investments that has been

certified by the authority.

(d) "Qualified investment" means a debt or equity financing of

a West Virginia business, but only if the business is engaged in

one or more of the following activities: Manufacturing;

agricultural production or processing; forestry production or

processing; mineral production or processing, except for

conventional oil and gas exploration; service industry;

transportation; research and development of products or processes

associated with any of the activities previously enumerated above;

tourism; computer software development companies engaged in the creation of computer software; and wholesale or retail distribution

activities within the state. The investment by a West Virginia

capital company in purchases of property to be leased by it, as

lessor, through a capital lease to a West Virginia business lessee

engaged in one of the above enumerated activities is a qualified

investment.

(e) "Qualified West Virginia capital company" means a West

Virginia capital company that has been designated by the authority

as a qualified capital company under the provisions of section six

of this article.

(f) "Small business investment company" means a small business

investment company licensed by the United States small business

investment administration under the federal small business

investment act of 1958, 15 U.S.C. §661, et seq., as amended.

(g) "State" means the state of West Virginia.

(h) "Capital lease" means a lease meeting one or more of the

following criteria:

(1) The lease transfers ownership of the property to the

lessee at the end of the lease term by the lessee's exercise of a

purchase option which is de minimis in amount; or

(2) The lease term is equal to seventy-five percent or more of

the estimated economic life of the leased property. However, if

the beginning of the lease term falls within the last twenty-five

percent of the total estimated economic life of the leased

property, including earlier years of use, this criterion shall not be used; or

(3) Under generally accepted accounting principles, the lessee

cannot treat payments to the capital company as payments under an

operating lease; or

(4) For federal income tax purposes, the parties are required

to treat payments as amortization of principal and interest.

(i) "Economic development and technology advancement center"

or "center" means an economic development and technology

advancement center organized and operating under the laws of this

state which has been designated by the authority as a qualified

economic development and technology advancement center under the

provisions of article twelve-a, chapter eighteen-b of this code.





Note: WV Code updated with legislation passed through the 2015 Regular Session

The WV Code Online is an unofficial copy of the annotated WV Code, provided as a convenience. It has NOT been edited for publication, and is not in any way official or authoritative.