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Can you summarize ORAR 441-205-0120?
DENIAL, SUSPENSION, OR REVOCATION OF LICENSE > Transmission or Maintenance of Payments Received in Connection With Underwritings
Short Summary
This document governs the transmission or maintenance of payments received in connection with underwritings. It applies to broker-dealers participating in any distribution of securities, except for firm commitment underwritings. The document states that it is considered a fraudulent, deceptive, or manipulative act or practice for a broker-dealer to accept any part of the sale price of a security being distributed unless certain conditions are met. These conditions include promptly transmitting the money or consideration received to the entitled persons, or if the distribution is made on certain bases, promptly depositing the funds in a separate bank account as agent or trustee, or transmitting all funds to an escrow agent. The document does not specify any penalties for non-compliance. The statutory authority for this document is ORS 59, and it implements ORS 59.205(2).
Whom does it apply to?
Broker-dealers participating in any distribution of securities, other than a firm commitment underwriting
What does it govern?
Transmission or Maintenance of Payments Received in Connection With Underwritings
What are exemptions?
No exemptions are mentioned.
What are the Penalties?
Not specified.
Jurisdiction
Oregon