SB 245: "An Act relating to investments of the permanent fund involving equity interests in and debt obligations secured by mortgages on real estate; and providing for an effective date."
00SENATE BILL NO. 245 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 THESE INVESTMENTS ARE MADE 09 (A) IN A CORPORATION, PARTNERSHIP, TRUST, OR 10 OTHER ENTITY IN WHICH, AT THE CONCLUSION OF EACH 11 INVESTMENT TRANSACTION, AT LEAST 60 PERCENT OF THE 12 BENEFICIAL OWNERSHIP INTERESTS ARE HELD BY OTHER 13 INSTITUTIONAL INVESTORS, AND WHICH IS ORGANIZED AND 14 OPERATED FOR THE PURPOSE OF MAKING REAL ESTATE
01 INVESTMENTS BY A BANK, INSURANCE COMPANY, OR OTHER 02 MANAGER OF INSTITUTIONAL FUNDS THAT HAS HAD AT LEAST 03 FIVE YEARS OF EXPERIENCE IN THE MANAGEMENT OF REAL 04 ESTATE INVESTMENTS OF INSTITUTIONAL INVESTORS; OR 05 (B) WITH CORPORATIONS, PARTNERSHIPS, TRUSTS, OR 06 ENTITIES IN WHICH, AT THE CONCLUSION OF EACH INVESTMENT 07 TRANSACTION, AT LEAST 60 PERCENT OF THE BENEFICIAL 08 OWNERSHIP INTERESTS IN THE CO-INVESTING ENTITY OR ENTITIES 09 AS A WHOLE ARE HELD BY INSTITUTIONAL INVESTORS, AND IF 10 (i) AT THE TIME OF INVESTMENT THE FUND 11 HAS NO MORE THAN A 40 PERCENT BENEFICIAL OWNERSHIP 12 INTEREST IN THE REAL ESTATE INVESTED IN AS A WHOLE; 13 (ii) THE RIGHTS AND OBLIGATIONS OF THE 14 FUND ARE SUBSTANTIALLY SIMILAR TO THOSE OF THE 15 OTHER INSTITUTIONAL INVESTORS, EXCEPT FOR THE 16 PERCENTAGE INTEREST IN THE PROPERTY; AND 17 (iii) THE PROPERTY IS MANAGED AND 18 OPERATED BY AN ENTITY THAT HAS HAD AT LEAST FIVE 19 YEARS OF EXPERIENCE IN THE MANAGEMENT OF REAL 20 ESTATE INVESTMENTS OF INSTITUTIONAL INVESTORS]; 21 * Sec. 2. This Act takes effect immediately under AS 01.10.070(c).