Or. Admin. Code § 441-205-0120

Current through Register Vol. 64, No. 1, January 1, 2025

Section 441-205-0120 - Transmission or Maintenance of Payments Received in Connection With Underwritings

It shall constitute a "Fraudulent, Deceptive, or Manipulative Act or Practice," as used in these rules, for any broker-dealer participating in any distribution of securities, other than a firm commitment underwriting, to accept any part of the sale price of any security being distributed unless:

(1) The money or other consideration received is promptly transmitted to the persons entitled thereto; or

(2) If the distribution is being made on an "all-or-none" basis, or subject to an order of the Director under ORS 59.085(3)(b), or on any other basis which contemplates that payment is not to be made to the person on whose behalf the distribution is being made until some further event or contingency occurs:

(a) The money or other consideration received is promptly deposited in a separate bank account, as agent or trustee for the persons who have the beneficial interests therein, until the appropriate event or contingency has occurred, and then the funds are promptly transmitted or returned to the persons entitled thereto; or

(b) All such funds are promptly transmitted to an escrow agent who has agreed in writing to hold all such funds in escrow for the persons who have the beneficial interests therein and to transmit or return such funds directly to the persons entitled thereto when the appropriate event or contingency has occurred.

Or. Admin. Code § 441-205-0120

CC 12, f. 7-12-73, ef. 9-1-73, Renumbered from 815-030-0205.2-11 and 815-030-0170

Stat. Auth.: ORS 59

Stats. Implemented: ORS 59.205(2)