Okla. Stat. tit. 68, § 68-3931

As used in this act:

1. "Affiliate" means an entity that directly, or indirectly

through one or more intermediaries, controls, or is controlled by,

or is under the common control with another entity. An entity is

controlled by another entity if the controlling entity holds,

directly or indirectly, the majority of voting or ownership interest

in the controlled entity or has control over day-to-day operations

of the controlled entity by contract or by law;

2. "Applicable percentage" means zero percent (0%) for the

first two credit allowance dates, and fifteen percent (15%) for the

next four credit allowance dates;

3. "Capital investment" means any equity investment in a rural

fund by a rural investor which:

a. is acquired after the effective date of this act at

its original issuance solely in exchange for cash,

b. has one hundred percent (100%) of its cash purchase

price used by the rural fund to make qualified

investments in eligible businesses located in this

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state by the third anniversary of the initial credit

allowance date, and

c. is designated by the rural fund as a capital

investment under this act and is certified by the

Department under the provisions of Section 3 of this

act. This shall include any capital investment that

does not meet the provisions of paragraph 1 of

subsection A of Section 3 of this act, if such

investment was a capital investment in the hands of a

prior holder;

4. "Credit allowance date" means the date on which the

Department certifies a rural fund's capital investment and each of

the five anniversary dates of such date thereafter;

5. "Department" means the Oklahoma Department of Commerce;

6. "Eligible business" means a business that, at the time of

the initial qualified investment in the business:

a. has fewer than two hundred fifty employees, and

b. has its principal business operations in the state.

Any business which is classified as an eligible business at the

time of the initial investment in such business by a rural fund

shall remain classified as an eligible business and may receive

follow-on investments from any rural fund, and such follow-on

investments shall be qualified investments even though such business

may not meet the definition of an eligible business at the time of

such follow-on investment;

7. "Principal business operations" means the location where at

least sixty percent (60%) of a business's employees work or where

employees who are paid at least sixty percent (60%) of such

business's payroll work. A business that has agreed to relocate

employees using the proceeds of a qualified investment to establish

its principal business operations in a new location shall be deemed

to have its principal business operations in such new location if it

satisfied the requirements of this paragraph no later than one

hundred eighty (180) days after receiving a qualified investment;

8. "Purchase price" means the amount paid to the rural fund

that issues a capital investment which shall not exceed the amount

of capital investment authority certified under the provisions of

Section 3 of this act;

9. "Qualified investment" means any investment in an eligible

business or any loan to an eligible business with a stated maturity

date of at least one (1) year after the date of issuance, excluding

revolving lines of credit and senior-secured debt unless the chief

executive or similar officer of the eligible business certifies that

the eligible business sought and was denied similar financing from a

depository institution, by a rural fund; provided that, with respect

to any one eligible business, the maximum amount of investments made

in such business by one or more rural funds, on a collective basis

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with all of the businesses' affiliates, with the proceeds of the
eligible business sought and was denied similar financing from a

depository institution, by a rural fund; provided that, with respect

to any one eligible business, the maximum amount of investments made

in such business by one or more rural funds, on a collective basis

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with all of the businesses' affiliates, with the proceeds of the

capital investments, shall be the greater of twenty percent (20%) of

the rural fund's capital investment authority or Six Million Five

Hundred Thousand Dollars ($6,500,000.00), exclusive of investments

made with repaid or redeemed investments or interest or profits

realized thereon;

10. "Rural area" means any county of this state that has a

population of less than seventy-five thousand (75,000) or any city

or town of this state that has a population not to exceed seven

thousand (7,000) according to the 2020 Federal Decennial Census of

the United States;

11. "Rural fund" means an entity certified by the Department

under the provisions of Section 3 of this act;

12. "Rural investor" means an entity that makes a capital

investment in a rural fund;

13. "Senior-secured debt" means any loan that is secured by a

first mortgage on real estate with a loan-to-value ratio of less

than eighty percent (80%); and

14. "State tax liability" means the tax imposed under Section

2355, 2355.1P-4, or 2370 of Title 68 of the Oklahoma Statutes or

Section 624 or 628 of Title 36 of the Oklahoma Statutes. An

insurance company claiming a credit against state premium tax or

retaliatory tax or any other tax imposed by Section 624 or 628 of

Title 36 of the Oklahoma Statutes shall not be required to pay any

additional retaliatory tax under Section 628 of Title 36 of the

Oklahoma Statutes as a result of claiming the credit. The credit

may fully offset any retaliatory tax imposed by Section 628 of Title

36 of the Oklahoma Statutes.