51A-17-2.2. Passive investor defined.

For purposes of this chapter, the term, passive investor, means a person that:

(1)    Does not have the power to elect a majority of key individuals or executive officers, managers, directors, trustees, or other persons exercising managerial authority of a licensee or controlling person;

(2)    Is not employed by and does not have any managerial duties of the licensee or controlling person;

(3)    Does not have the power to exercise, directly or indirectly, a controlling influence over the management or policies of a licensee or controlling person; and

(4)    Either:

(a)    Attests to subdivisions (1), (2), and (3), in a form and in a medium prescribed by the director; or

(b)    Commits to the passivity characteristics of subdivisions (1), (2), and (3) in a written document.

Source: SL 2022, ch 178, § 3.