Nevada § 231A.300 - Decertification of qualified equity investment or impact qualified equity investment: Circumstances; limitations on distribution and payment on securities by qualified community development entity or impact qualified community development entity; notice requirements

§ 231A.300. Decertification of qualified equity investment or impact qualified equity investment: Circumstances; limitations on distribution and payment on securities by qualified community development entity or impact qualified community development entity; notice requirements

1. Once certified under subsection 3 of NRS 231A.230 , a qualified equity investment or impact qualified equity investment may not be decertified

unless all the requirements of subsection 2 have been met. Until all qualified equity investments or impact qualified equity investments issued

by a qualified community development entity or impact qualified community development

entity are decertified under this section, the qualified community development entity

or impact qualified community development entity is not entitled to distribute to

its equity holders or make cash payments on long-term debt securities that have been

designated as qualified equity investments or impact qualified equity investments

in an amount that exceeds the sum of: (a) The cumulative operating income, as defined by regulations adopted under section 45D of the Internal Revenue Code of 1986 , 26 U.S.C. § 45D , earned by the qualified community development entity or impact qualified community

development entity since issuance of the qualified equity investment or impact qualified

equity investment before giving effect to any interest expense from the long-term

debt securities designated as qualified equity investments or impact qualified equity

investments; and (b) Fifty percent of the purchase price of the qualified equity investments or impact

qualified equity investments issued by the qualified community development entity

or impact qualified community development entity. 2. To be decertified, a qualified equity investment or impact qualified equity investment

must: (a) Be beyond its seventh credit allowance date; (b) Have been in compliance with NRS 231A.250 through its seventh credit allowance date, including coming into compliance during

any cure period allowed pursuant to NRS 231A.260 ; and (c) Have had its proceeds invested in qualified active low-income community investments

such that the total qualified active low-income community investments made, cumulatively

including reinvestments, exceeds 150 percent of its qualified equity investment or

impact qualified equity investment. 3. A qualified community development entity or impact qualified community development

entity that seeks to have a qualified equity investment or impact qualified equity

investment decertified pursuant to this section must send notice to the Department

of its request for decertification together with evidence supporting the request. The provisions of paragraph (b) of subsection 2 shall be deemed to be met if no

recapture action has been commenced by the Department as of the seventh credit allowance

date. The Department shall respond to such a request within 30 days after receiving the

request. Such a request must not be unreasonably denied. If the request is denied for any reason, the burden of proof is on the Department

in any subsequent administrative or legal proceeding.