Colorado § 11-42-112 Requirements for sale of permanent stock

Colorado Statutes

§ 11-42-112 — Requirements for sale of permanent stock

Colorado·Title 11 Financial·Art. Shares and Stock

(1)No association shall sell, offer for sale, negotiate for the sale of or take subscriptions for, or issue any of its permanent stock until it has first applied for and secured from the commissioner a permit authorizing it so to do. Such application shall be in writing, verified, and filed with the commissioner. In such application, the association shall set forth the names and addresses of its officers, the location of its office, an itemized account of its financial condition, the amount and character of its stock and shares, a copy of any prospectus or advertisement or other description of its stock to be distributed or published, a copy of all minutes of any proceedings of its directors, shareholders, or stockholders relating to or affecting the issue of such stock, and suc

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(1) No association
shall sell, offer for sale, negotiate for the sale of or take subscriptions for, or issue
any of its permanent stock until it has first applied for and secured from the
commissioner a permit authorizing it so to do. Such application shall be in writing,
verified, and filed with the commissioner. In such application, the association shall
set forth the names and addresses of its officers, the location of its office, an
itemized account of its financial condition, the amount and character of its stock
and shares, a copy of any prospectus or advertisement or other description of its
stock to be distributed or published, a copy of all minutes of any proceedings of its
directors, shareholders, or stockholders relating to or affecting the issue of such
stock, and such additional information concerning the association, its condition, and
its affairs as the commissioner may require. Upon the filing of such application, it
shall be the duty of the commissioner to examine it and the other papers and
documents filed therewith.

(2) If the commissioner finds that the proposed issue of stock will not
mislead the public as to the nature of the investment or will not work a fraud upon
the purchaser of the stock, the commissioner shall issue to the association a permit
authorizing it to issue and dispose of its stock in the amounts provided by the
commissioner in the permit; otherwise, the commissioner shall deny the application
and notify the association in writing of the commissioner's decision.

(3) Every permit must state in bold-faced type that the issuance of the
permit is permissive only and does not constitute a recommendation or
endorsement of the stock permitted to be issued. The commissioner may require
the impoundment of the proceeds from the sale of stock, limit the expense in
connection with the sale of stock, and impose any other conditions as the
commissioner deems reasonable and necessary or advisable to ensure that the
proceeds from the sale of stock are disposed of in the manner and for the purposes
provided in the permit. The commissioner may amend, alter, or revoke any permit
issued by the commissioner or temporarily suspend the rights of an association
under its permit. The commissioner may establish rules that are reasonable or
necessary to carry out this section.

Colorado § 11-42-112 (Requirements for sale of permanent stock) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Legislative History

Source: L. 33: p. 318, � 2. CSA: C. 25, � 26. CRS 53: � 122-3-12. C.R.S. 1963: � 122-3-12. L. 2024: (2) and (3) amended, (HB 24-1381), ch. 350, p. 2378, � 38, effective August 7.