Section 830-X-4-.11 - Escrow Of Proceeds (Alabama Administrative Code)

§ 830-X-4-.11. Escrow Of Proceeds

(1) As a condition to registration, where the offering is on a "best efforts" basis, the success of the venture is dependent on the proceeds of the offering or the issuer is in a promotional or developmental phase, the Commission may require that all or part of the proceeds from the sale of securities be escrowed until the issuer deposits a specified minimum amount from the sale of such securities within a specified period of time to accomplish the purposes of the offering and/or until certain stipulated requirements are met. The escrow agreement shall be in the form suitable to the Commission.

(2) The escrow agent shall be a commercial bank or trust company. Checks, drafts and money orders for the purchase of securities shall be made payable to the escrow agent. If a broker/dealer is acting as underwriter or selling agent for the issuer, payments may be made to such broker/dealer who shall promptly make remittance to the escrow agent.

Author:

(Filed September 30, 1982. Readopted: Filed November 9, 1983.)

Statutory Authority: Code of Ala. 1975, § 8-6-23.

Disclaimer: This content is regularly reviewed to ensure the information is current and accurate. However, Section 830-X-4-.11 Escrow Of Proceeds may have been updated since our last review. For the latest version of all legislation, please check the official resources.

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