Arizona Laws 44-1876. Escrow of certain securities; restrictive sales agreement
A. Except as provided in section 44-1901, as a condition to registration of securities under this chapter, the commission may in its discretion by order require that securities issued for or which are intended to be issued for a patent right, copyright, trademark, process, formula, goodwill, option, lease, assignment, service, or other intangible asset, or for fees or expenses in connection with the promotion or organization of the issuer, shall be subject to a restrictive sales agreement or shall be deposited in escrow in some depository satisfactory to the commission under an escrow agreement subject to the orders of the commission as to withdrawal or termination, and whereby the owners of the securities shall not be entitled to sell or transfer the securities without the consent of the commission. Any security that is subject to a restrictive sales agreement shall have a legend on the back of the security that states that the security is subject to a restrictive sales agreement.
Terms Used In Arizona Laws 44-1876
- Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
- Escrow: Money given to a third party to be held for payment until certain conditions are met.
- Issuer: means any person who issues or proposes to issue any security, except:
(a) With respect to certificates of deposit, voting-trust certificates, collateral-trust certificates, certificates of interest or shares in an unincorporated investment trust, whether or not of the fixed, restricted management or unit type, issuer means the person or persons performing the acts and assuming the duties of depositor or manager pursuant to the provisions of the trust or other agreement or instrument under which such securities are issued. See Arizona Laws 44-1801
- Lease: A contract transferring the use of property or occupancy of land, space, structures, or equipment in consideration of a payment (e.g., rent). Source: OCC
- Process: means a citation, writ or summons issued in the course of judicial proceedings. See Arizona Laws 1-215
- sell: means a sale or any other disposition of a security or interest in a security for value and includes a contract to make such sale or disposition. See Arizona Laws 44-1801
B. In the event of dissolution or insolvency of the issuer during the time such securities are held in escrow, the owners of the securities shall not participate in any distribution of assets until after the owners of all other securities have been paid in full.