California Code of Regulations
Title 10 - Investment
Chapter 5 - Insurance Commissioner
Subchapter 4 - Insurer Securities Permits
Article 4 - Preorganization, Subscription and Negotiating Permits
Section 2604.01 - Prepermit Activities

Prior to issuance of an appropriate permit promoters may not lawfully do anything in this state which produces an agreement, express or implied, to buy an identified security. People vs. Jacques (1955) 138 Cal. App. 2d 823, 291 Pac. 2d. 124; Ogier vs. Pacific Oil and Gas Development Corporation (1955) 138 Cal. App. 2d 775, 779, 288 Pac. 2d 101. But a business conversation preliminary to any fixed plan is not prohibited. B. C. Turf and Country Club vs. Daugherty (1949), 94 Cal. App. 2d 320, 210 Pac. 2d 760. The promoters themselves and their legal counsel are responsible for determining how far they may go in the talking stage without a permit. Refer to Sections 2602.01 to and including 2602.08, supra, and the statutes and decisions cited; also to any subsequent controlling decisions.