Nebraska Administrative Code
Topic - BANKING AND FINANCE, DEPARTMENT OF
Title 48 - DEPARTMENT OF BANKING AND FINANCE
Chapter 39 - CONDITIONS AND INFORMATION REQUIREMENTS FOR THE SECTION 8-1111(24) CROWDFUNDING EXEMPTION
Section 48-39-010 - ESCROW AGREEMENT

Universal Citation: 48 NE Admin Rules and Regs ch 39 ยง 010

Current through March 20, 2024

All funds received from investors shall be deposited into a bank, regulated trust company, savings bank, savings and loan association or a credit union authorized to do business in Nebraska ("financial institution", collectively) in accordance with the terms of an escrow agreement.

010.01 The financial institution shall not be affiliated with the issuer, any portal operator assisting with the offering, or any officers, director, managing member, or affiliate of the issuer or any portal operator assisting with the offering.

010.02 The escrow agreement shall provide as follows:

010.02A The investor funds will be deposited into an escrow account with the financial institution acting as escrow agent;

010.02B For each investment, the issuer shall provide to the financial institution a copy of the subscription agreement with the names, addresses and respective amounts paid by each investor whose funds comprise each deposit;

010.02C The issuer must raise the minimum offering amount as stated in the disclosure document before the financial institution may release the offering proceeds to the issuer. Such proceeds shall be released to the issuer upon joint written notice from the issuer and the portal operator that the minimum offering amount has been met; and

010.02D If the issuer does not raise the minimum offering amount by the offering deadline, the financial institution shall return all subscription funds, plus any interest earned on the subscription funds, to the investors.

010.02E The escrow agent shall notify the Director in writing no later than five days after the release of proceeds to the issuer, or the return of proceeds to the investors.

010.03 The financial institution may contract with the issuer to collect reasonable fees for its escrow services regardless of whether the minimum target offering amount is reached.

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