Subscription contracts.
1. No form of subscription contract to sell securities under a solicitation permit shall be used unless the form has been filed with the Commissioner not less than 10 days prior to use and not disapproved by him. The Commissioner shall disapprove any such form found by him, either within or after such 10-day period, to be:
(a) Prolix or unduly complicated as to terms;
(b) In any material part, printed in such a manner as to be difficult to read;
(c) Unfair to the subscriber in its terms; or
(d) Contrary to law or the terms of the solicitation permit.
2. No such disapproval shall be retroactively effective.
3. Every such contract providing for payment of the subscription price in installments shall:
(a) Require payment in full prior to expiration of the permit; and
(b) Provide for the forfeiture, at the option of the corporation, of all payments theretofore made if the subscriber fails to cure all delinquencies of payments thereunder within 45 days after written notice of such delinquencies and of such forfeiture requirement has been mailed by the permit holder to the subscriber at his address last of record with the permit holder.
Last modified: February 27, 2006