Ill. Admin. Code tit. 50, § 913.80 - Escrow Requirements
If application is made to the Director for a Permit authorizing the applicant to sell to the public shares of stock of an issue subject to this Part, and it shall appear to the Director that shares of stock of the issuer have, within the five (5) years next preceding the date of the application for such Permit, been issued or sold by the issuer or a controlling person for a consideration at a price less than the proposed public offering price, then the Director may for the protection of the prospective purchasers of the shares proposed to be offered, require that the shares issued for such consideration and help by officers and directors and holders of 10% of outstanding stock be delivered to a bank or trust company in this State authorized to accept and execute trusts, under an escrow agreement providing that the owners of the shares so escrowed shall not, in case of dissolution or insolvency of the issuer, participate in its assets until after the owners of all the shares of the issuer (other than those escrowed) shall have received an amount per share equal to the public offering price of the proposed offering. Such escrow agreement shall remain in force until the first to occur of the following:
Notes
Amended at 7 Ill. Reg. 6946, effective May 18, 1983
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