Utah Code 61-1-10. Registration by qualification
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(1) Application may be made to register any security by qualification.
Terms Used In Utah Code 61-1-10
- Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
- Broker-dealer: means a person engaged in the business of effecting transactions in securities for the account of others or for the person's own account. See Utah Code 61-1-13
- Contract: A legal written agreement that becomes binding when signed.
- Director: means the director of the division appointed in accordance with Section 61-1-18. See Utah Code 61-1-13
- Division: means the Division of Securities established by Section 61-1-18. See Utah Code 61-1-13
- Fiscal year: The fiscal year is the accounting period for the government. For the federal government, this begins on October 1 and ends on September 30. The fiscal year is designated by the calendar year in which it ends; for example, fiscal year 2006 begins on October 1, 2005 and ends on September 30, 2006.
- Issuer: means a person who issues or proposes to issue a security or has outstanding a security that it has issued. See Utah Code 61-1-13
- Jurisdiction: (1) The legal authority of a court to hear and decide a case. Concurrent jurisdiction exists when two courts have simultaneous responsibility for the same case. (2) The geographic area over which the court has authority to decide cases.
- Litigation: A case, controversy, or lawsuit. Participants (plaintiffs and defendants) in lawsuits are called litigants.
- Nonissuer: means not directly or indirectly for the benefit of the issuer. See Utah Code 61-1-13
- Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
- Person: means :(1)(x)(i) an individual;(1)(x)(ii) a corporation;(1)(x)(iii) a partnership;(1)(x)(iv) a limited liability company;(1)(x)(v) an association;(1)(x)(vi) a joint-stock company;(1)(x)(vii) a joint venture;(1)(x)(viii) a trust where the interests of the beneficiaries are evidenced by a security;(1)(x)(ix) an unincorporated organization;(1)(x)(x) a government; or(1)(x)(xi) a political subdivision of a government. See Utah Code 61-1-13
- Promoter: means a person who, acting alone or in concert with one or more persons, takes initiative in founding or organizing the business or enterprise of a person. See Utah Code 61-1-13
- Property: includes both real and personal property. See Utah Code 68-3-12.5
- purchase: means a contract for purchase of, contract to buy, or acquisition of a security or interest in a security for value. See Utah Code 61-1-13
- record: means information that is:
(1)(aa)(i)(A) inscribed in a tangible medium; or(1)(aa)(i)(B)(1)(aa)(i)(B)(I) stored in an electronic or other medium; and(1)(aa)(i)(B)(II) retrievable in perceivable form. See Utah Code 61-1-13- Security: means a:
(1)(ee)(i)(A) note;(1)(ee)(i)(B) stock;(1)(ee)(i)(C) treasury stock;(1)(ee)(i)(D) bond;(1)(ee)(i)(E) debenture;(1)(ee)(i)(F) evidence of indebtedness;(1)(ee)(i)(G) certificate of interest or participation in a profit-sharing agreement;(1)(ee)(i)(H) collateral-trust certificate;(1)(ee)(i)(I) preorganization certificate or subscription;(1)(ee)(i)(J) transferable share;(1)(ee)(i)(K) investment contract;(1)(ee)(i)(L) burial certificate or burial contract;(1)(ee)(i)(M) voting-trust certificate;(1)(ee)(i)(N) certificate of deposit for a security;(1)(ee)(i)(O) certificate of interest or participation in an oil, gas, or mining title or lease or in payments out of production under such a title or lease;(1)(ee)(i)(P) commodity contract or commodity option;(1)(ee)(i)(Q) interest in a limited liability company;(1)(ee)(i)(R) life settlement interest; or(1)(ee)(i)(S) in general, an interest or instrument commonly known as a "security" or a certificate of interest or participation in, temporary or interim certificate for, receipt for, guarantee of, or warrant or right to subscribe to or purchase an item listed in Subsections (1)(ee)(i)(A) through (R). See Utah Code 61-1-13- Service of process: The service of writs or summonses to the appropriate party.
- State: means a state, territory, or possession of the United States, the District of Columbia, and Puerto Rico. See Utah Code 61-1-13
(2) A registration statement under this section shall contain the following information and be accompanied by the following documents in addition to the information specified in Subsection61-1-11(3) and the consent to service of process required by Section61-1-26 :(2)(a) with respect to the issuer and any significant subsidiary:(2)(a)(i) its name, address, and form of organization;(2)(a)(ii) the state or foreign jurisdiction and date of its organization;(2)(a)(iii) the general character and location of its business;(2)(a)(iv) a description of its physical properties and equipment; and(2)(a)(v) a statement of the general competitive conditions in the industry or business in which it is or will be engaged;(2)(b) with respect to every director and officer of the issuer or person occupying a similar status or performing similar functions:(2)(b)(i) his name, address, and principal occupation for the past five years;(2)(b)(ii) the amount of securities of the issuer held by him as of a specified date within 30 days of the filing of the registration statement;(2)(b)(iii) the amount of the securities covered by the registration statement to which he has indicated his intention to subscribe; and(2)(b)(iv) a description of any material interest in any material transaction with the issuer or any significant subsidiary affected within the past three years or proposed to be affected;(2)(c) with respect to persons covered by Subsection(2)(b) , the remuneration paid during the past 12 months and estimated to be paid during the next 12 months, directly or indirectly, by the issuer, together with all predecessors, parents, subsidiaries, and affiliates, to all those persons in the aggregate;(2)(d) with respect to any person owning of record, or beneficially if known, 10% or more of the outstanding shares of any class of equity security of the issuer, the information specified in Subsection(2)(b) other than the person’s occupation;(2)(e) with respect to every promoter if the issuer was organized within the past three years, the information specified in Subsection(2)(b) , any amount paid to the promoter within that period or intended to be paid to the promoter, and the consideration for any such payment;(2)(f) with respect to any person on whose behalf any part of the offering is to be made in a nonissuer distribution:(2)(f)(i) the person’s name and address;(2)(f)(ii) the amount of securities of the issuer held by the person as of the date of filing of the registration statement;(2)(f)(iii) a description of any material interest in any material transaction with the issuer or any significant subsidiary effected within the past three years or proposed to be effected; and(2)(f)(iv) a statement of the person’s reasons for making the offering;(2)(g) the capitalization and long-term debt, on both a current and pro forma basis, of the issuer and any significant subsidiary, including a description of each security outstanding or being registered or otherwise offered, and a statement of the amount and kind of consideration, whether in the form of cash, physical assets, services, patents, goodwill, or anything else, for which the issuer or any subsidiary has issued any of its securities within the past two years or is obligated to issue any of its securities;(2)(h)(2)(h)(i) the kind and amount of securities to be offered;(2)(h)(ii) the proposed offering price or the method by which it is to be computed;(2)(h)(iii) any variation therefrom at which any proportion of the offering is to be made to any person or class of persons other than the underwriters, with a specification of any such person or class;(2)(h)(iv) the basis upon which the offering is to be made if otherwise than for cash;(2)(h)(v) the estimated aggregate underwriting and selling discounts or commissions and finders’ fees, including separately cash, securities, contracts, or anything else of value to accrue to the underwriters or finders in connection with the offering, or, if the selling discounts or commissions are variable, the basis of determining them and their maximum and minimum amounts;(2)(h)(vi) the estimated amounts of other selling expenses, including legal, engineering, and accounting charges;(2)(h)(vii) the name and address of every underwriter and every recipient of a finder’s fee;(2)(h)(viii) a copy of any underwriting or selling-group agreement under which the distribution is to be made, or the proposed form of any such agreement whose terms have not yet been determined; and(2)(h)(ix) a description of the plan of distribution of any securities which are to be offered otherwise than through an underwriter;(2)(i)(2)(i)(i) the estimated cash proceeds to be received by the issuer from the offering;(2)(i)(ii) the purposes for which the proceeds are to be used by the issuer;(2)(i)(iii) the amount to be used for each purpose;(2)(i)(iv) the order or priority in which the proceeds will be used for the purposes stated;(2)(i)(v) the amounts of any funds to be raised from other sources to achieve the purposes stated and the sources of any such funds; and(2)(i)(vi) if any part of the proceeds is to be used to acquire any property, including goodwill, otherwise than in the ordinary course of business, the names and addresses of the vendors, the purchase price, the names of any persons who have received commissions in connection with the acquisition, and the amounts of any such commissions and any other expense in connection with the acquisition, including the cost of borrowing money to finance the acquisition;(2)(j) a description of any stock options or other security options outstanding, or to be created in connection with the offering, together with the amount of any such option held or to be held by every person required to be named in Subsection(2)(b) ,(d) ,(e) ,(f) , or(h) and by any person who holds or will hold 10% or more in the aggregate of any such options;(2)(k)(2)(k)(i) the dates of, parties to, and general effect concisely stated of, every management or other material contract made or to be made otherwise than in the ordinary course of business if it is to be performed in whole or in part at or after the filing of the registration statement or was made within the past two years, together with a copy of every such contract; and(2)(k)(ii) a description of any pending litigation or proceeding to which the issuer is a party and which materially affects its business or assets, including any such litigation or proceeding known to be contemplated by governmental authorities;(2)(l) a copy of any prospectus, pamphlet, circular, form letter, advertisement, or other sales literature intended as of the effective date to be used in connection with the offering;(2)(m)(2)(m)(i) a specimen copy of the security being registered;(2)(m)(ii) a copy of the issuer’s articles of incorporation, and bylaws, if any, or their substantial equivalents, as currently in effect; and(2)(m)(iii) a copy of any indenture or other instrument covering the security to be registered;(2)(n) a signed or conformed copy of an opinion of counsel as to the legality of the security being registered, with an English translation if it is in a foreign language, which shall state whether the security when sold will be legally issued, fully paid, and nonassessable, and if a debt security, a binding obligation of the issuer;(2)(o) the written consent of any accountant, engineer, appraiser, or other person whose profession gives authority to a statement made by him, if that person is named as having prepared or certified a report or valuation, other than a public and official document or statement, which is used in connection with the registration statement;(2)(p)(2)(p)(i) a balance sheet of the issuer as of a date within four months prior to the filing of the registration statement;(2)(p)(ii) a profit and loss statement and analysis of retained earnings for each of the three fiscal years preceding the date of the balance sheet and for any period between the close of the last fiscal year and the date of the balance sheet, or for the period of the issuer’s and any predecessors’ existence if less than three years; and(2)(p)(iii) if any part of the proceeds of the offering is to be applied to the purchase of any business, the same financial statements which would be required if that business were the registrant; and(2)(q) such additional information or verification of any statement as the division requires by rule or order.(3) A registration statement under this section becomes effective when the division so orders.(4) As a condition of registration under this section, a prospectus containing the information, but not containing copies of contracts or agreements specified in Subsections(2)(a) through(k) and(p) shall be sent or given to each person to whom an offer is made before or concurrently with:(4)(a) the first written offer made to the person, otherwise than by means of a public advertisement, by or for the account of the issuer or any other person on whose behalf the offering is being made, or by any underwriter or broker-dealer who is offering part of an unsold allotment or subscription taken by the person as a participant in the distribution;(4)(b) the confirmation of any sale made by or for the account of any such person;(4)(c) payment pursuant to any such sale; or(4)(d) delivery of the security pursuant to any such sale, whichever occurs first.