00CS FOR SENATE BILL NO. 245(STA)                                                                                         
01 "An Act relating to investments of the permanent fund involving equity interests                                        
02 in and debt obligations secured by mortgages on real estate; and providing for                                          
03 an effective date."                                                                                                     
04 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                                
05    * Section 1.  AS 37.13.120(g)(16) is amended to read:                                                                
06   (16)  equity interests in, and debt obligations secured by mortgages                                                 
07 granting a first lien on, real estate improved by completed and substantially rented                                    
08 buildings and located in the United States [,] if the total value held by the fund in                                  
09 each investment does not exceed $50,000,000, and, if the total value held by the                                        
10 fund in each investment exceeds $50,000,000, these investments are made                                                
11    (A)  in a corporation, partnership, trust, or other entity in which,                                               
12 at the conclusion of each investment transaction, at least 33 [60] percent of the                                     
13 beneficial ownership interests are held by other institutional investors, and                                           
14 which is organized and operated for the purpose of making real estate                                                   

01 investments by a bank, insurance company, or other manager of institutional                                             
02 funds that has had at least five years of experience in the management of real                                          
03 estate investments of institutional investors; or                                                                       
04   (B)  with corporations, partnerships, trusts, or entities in which,                                                 
05 at the conclusion of each investment transaction, at least 33 [60] percent of the                                     
06 beneficial ownership interests in the co-investing entity or entities as a whole                                        
07 are held by institutional investors, and if                                                                             
08   (i)  at the time of investment the fund has no more than                                                           
09 a 67 [40] percent beneficial ownership interest in the real estate                                                    
10 invested in as a whole;                                                                                                 
11   (ii)  the rights and obligations of the fund are                                                                   
12 substantially similar to those of the other institutional investors, except                                             
13 for the percentage interest in the property; and                                                                        
14   (iii)  the property is managed and operated by an entity                                                           
15 that has had at least five years of experience in the management of real                                                
16 estate investments of institutional investors;                                                                          
17    * Sec. 2.  This Act takes effect immediately under AS 01.10.070(c).