The bank must manage and wind up the portfolio, may handle the investments in several ways, and must send any leftover earnings to the Texas economic development bank fund when winding up is complete.
Sec. 489.221. MANAGEMENT OF INVESTMENT PORTFOLIO; WINDING UP AND FINAL LIQUIDATION. (a) In this section, "product development and small business incubator program investment portfolio" means: (1) the equity positions in the form of stock or other security the bank took, on behalf of the state, in companies that received financing under the product development and small business incubator program; and (2) any other investments made by the bank, on behalf of the state, and associated assets in connection with financing made under the product development and small business incubator program. (b) The bank shall manage and wind up the product development and small business incubator program investment portfolio, including revenues and associated assets from financing and defaults on financing, in a manner that, to the extent feasible, provides for the maximum return on the state's investment. In managing those investments and associated assets through procedures and subject to restrictions that the bank considers appropriate, the bank may acquire, exchange, sell, supervise, manage, or retain any kind of investment or associated assets that a prudent investor, exercising reasonable care, skill, and caution, would acquire or retain in light of the purposes, terms, distribution requirements, and other circumstances then prevailing pertinent to each investment or associated asset. The bank may recover its reasonable and necessary costs incurred in the management of the portfolio, including costs incurred in the retaining of professional or technical advisors, from the earnings on the investments in the portfolio. (c) On completion of the winding up process under Subsection (b), the bank shall deposit any remaining investment earnings to the credit of the Texas economic development bank fund, as required under Sections 489.211 and 489.212. (d) The bank has any power necessary to accomplish the purposes of this section. Added by Acts 2023, 88th Leg., R.S., Ch. 690 (H.B. 1515), Sec. 13, eff. September 1, 2023. SUBCHAPTER E. TEXAS SMALL AND RURAL COMMUNITY SUCCESS FUND