Georgia House of Representatives - 1995/1996 Sessions

HB 1078 - Business development corpora- tions; interest on loans

Page Numbers - 1

1. Watts  26th            2. Barnes  33rd            3. Bates  179th
4. Hart  116th            5. Smith  109th            6. Sauder  29th


House Comm: B&B        /                Senate Comm: B&FI       /                                   
House Vote: Yeas 107   Nays 0           Senate Vote: Yeas 47  Nays 0                                
              ----------------------------------------                                              
               House          Action         Senate                                                 
              ----------------------------------------                                              
              3/17/95  Read 1st Time         2/29/96                                                
              1/8/96   Read 2nd Time         3/6/96                                                 
              2/19/96  Favorably Reported    3/5/96                                                 
              Sub      Committee Amend/Sub                                                          
              2/28/96  Read 3rd Time         3/12/96                                                
              2/28/96  Passed/Adopted        3/12/96                                                
              CS       Comm/Floor Amend/Sub                                                         
              3/22/96  Sent to Governor                                                             
              4/9/96   Signed by Governor                                                           
              830      Act/Veto Number                                                              
              7/1/96   Effective Date                                                               
              ----------------------------------------                                              
                                                                                                    
Code Sections amended: 7-1-747                                                                      


HB 1078                                           LC 24 0447S






                        A BILL TO BE ENTITLED
                               AN ACT


  1- 1  To amend Code Section 7-1-747 of the Official Code of
  1- 2  Georgia Annotated, relating to loans by members of business
  1- 3  development corporations, so as to clarify the intention of
  1- 4  the General Assembly; to provide that loans to business
  1- 5  development corporations by members may bear interest at a
  1- 6  rate of interest to be negotiated between said  business
  1- 7  development corporations and their members; to repeal
  1- 8  conflicting laws; and for other purposes.

  1- 9       BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:

                         SECTION 1.

  1-10  Code Section 7-1-747 of the Official Code of Georgia
  1-11  Annotated, relating to loans by members of business
  1-12  development corporations, is amended by striking paragraph
  1-13  (e) and inserting in lieu thereof a new paragraph (e) to
  1-14  read as follows:

  1-15    "(e) All member loans to the corporation shall be
  1-16    evidenced by bonds, debentures, notes, or other evidences
  1-17    of indebtedness of the corporation, which shall be freely
  1-18    transferable at all times and which shall bear interest at
  1-19    a rate of interest determined by the board of directors to
  1-20    be the prime rate prevailing at the date of issuance
  1-21    thereof on unsecured commercial loans plus one-fourth of 1
  1-22    percent or less."

                         SECTION 2.

  1-23  All laws and parts of laws in conflict with this Act are
  1-24  repealed.










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