N.J. Admin. Code § 13:47A-12A.7

Current through Register Vol. 56, No. 24, December 18, 2024

Section 13:47A-12A.7 - Escrow account

(a) An issuer shall execute an escrow agreement with a bank, savings bank, savings and loan association, or credit union, which institution has a place of business in New Jersey, which provides that:

1. Investor funds obtained pursuant to N.J.S.A. 49:3-50(b)(14) will be deposited in that institution;

2. All offering proceeds will be released to the issuer only when the aggregate capital raised from all investors pursuant to N.J.S.A. 49:3-50(b)(14) is equal to or greater than the minimum offering amount specified in the issuer's business plan as necessary to implement the business plan; and

3. All investor funds will be returned within 60 days to investors if that minimum offering amount is not raised by the time stated in the disclosures required in N.J.A.C. 13:47A-12A.5(a)8.

N.J. Admin. Code § 13:47A-12A.7

Adopted by 48 N.J.R. 1964(a), effective 9/19/2016

Adopted by 49 N.J.R. 2538(b), effective 8/7/2017