Minnesota Administrative Rules
Agency 120 - Commerce Department
Chapter 2876 - REGULATING SECURITIES
Part 2876.4110 - RECEIPT OF MONEY FROM SALES
Universal Citation: MN Rules 2876.4110
Current through Register Vol. 49, No. 13, September 23, 2024
No broker-dealer or agent participating in any distribution of securities, other than a firm commitment distribution of securities, shall accept any part of the sale price of any security being distributed unless:
A. the money or other consideration received is promptly transmitted to the persons entitled thereto; or
B. if the distribution is being made on an all-or-none basis, or on any other basis that 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:
(1) the money or other consideration received
is promptly deposited in a separate bank account, with the broker-dealer or
agent as agent or trustee for the persons who have the beneficial interest
therein, and remains in the bank account until the appropriate event or
contingency has occurred, at which time the funds are promptly transmitted or
returned to the persons entitled thereto; or
(2) all such funds are promptly transmitted
to a bank that has agreed in writing to hold all such funds in escrow for the
persons who have the beneficial interests therein, and all such funds are
transmitted or returned directly to the persons entitled thereto when the
appropriate event or contingency has occurred.
Statutory Authority: MS s 45.023; 80A.82
Disclaimer: These regulations may not be the most recent version. Minnesota may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
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