502.304 - SECURITIES REGISTRATION BY QUALIFICATION.

        502.304  SECURITIES REGISTRATION BY QUALIFICATION.         1.  Registration permitted.  A security may be registered by      qualification under this section.         2.  Required records.  A registration statement under this      section must contain the information or records specified in section      502.305, a consent to service of process complying with section      502.611, and, if required by rule adopted under this chapter, all of      the following information or records:         a.  With respect to the issuer and any significant subsidiary,      its name, address, and form of organization; the state or foreign      jurisdiction and date of its organization; the general character and      location of its business; a description of its physical properties      and equipment; and a statement of the general competitive conditions      in the industry or business in which it is or will be engaged.         b.  With respect to each director and officer of the issuer,      and other person having a similar status or performing similar      functions, the person's name, address, and principal occupation for      the previous five years; the amount of securities of the issuer held      by the person as of the thirtieth day before the filing of the      registration statement; the amount of the securities covered by the      registration statement to which the person has indicated an intention      to subscribe; and a description of any material interest of the      person in any material transaction with the issuer or a significant      subsidiary effected within the previous three years or proposed to be      effected.         c.  With respect to persons covered by paragraph "b", the      aggregate sum of the remuneration paid to those persons during the      previous twelve months and estimated to be paid during the next      twelve months, directly or indirectly, by the issuer, and all      predecessors, parents, subsidiaries, and affiliates of the issuer.         d.  With respect to a person owning of record or owning      beneficially, if known, ten percent or more of the outstanding shares      of any class of equity security of the issuer, the information      specified in paragraph "b" other than the person's occupation.         e.  With respect to a promoter, if the issuer was organized      within the previous three years, the information or records specified      in paragraph "b", any amount paid to the promoter within that      period or intended to be paid to the promoter, and the consideration      for the payment.         f.  With respect to a person on whose behalf any part of the      offering is to be made in a nonissuer distribution, the person's name      and address; the amount of securities of the issuer held by the      person as of the date of the filing of the registration statement; a      description of any material interest of the person in any material      transaction with the issuer or any significant subsidiary effected      within the previous three years or proposed to be effected; and a      statement of the reasons for making the offering.         g.  The capitalization and long-term debt, on both a current      and pro forma basis, of the issuer and any significant subsidiary,      including a description of each security outstanding or being      registered or otherwise offered, and a statement of the amount and      kind of consideration, whether in the form of cash, physical assets,      services, patents, goodwill, or anything else of value, for which the      issuer or any subsidiary has issued its securities within the      previous two years or is obligated to issue its securities.         h.  The kind and amount of securities to be offered; the      proposed offering price or the method by which it is to be computed;      any variation at which a proportion of the offering is to be made to      a person or class of persons other than the underwriters, with a      specification of the person or class; the basis on which the offering      is to be made if otherwise than for cash; the estimated aggregate      underwriting and selling discounts or commissions and finders' fees,      including separately cash, securities, contracts, or anything else of      value to accrue to the underwriters or finders in connection with the      offering or, if the selling discounts or commissions are variable,      the basis of determining them and their maximum and minimum amounts;      the estimated amounts of other selling expenses, including legal,      engineering, and accounting charges; the name and address of each      underwriter and each recipient of a finder's fee; a copy of any      underwriting or selling group agreement under which the distribution      is to be made or the proposed form of any such agreement whose terms      have not yet been determined; and a description of the plan of      distribution of any securities that are to be offered otherwise than      through an underwriter.         i.  The estimated monetary proceeds to be received by the      issuer from the offering; the purposes for which the proceeds are to      be used by the issuer; the estimated amount to be used for each      purpose; the order or priority in which the proceeds will be used for      the purposes stated; the amounts of any funds to be raised from other      sources to achieve the purposes stated; the sources of the funds;      and, if a part of the proceeds is to be used to acquire property,      including goodwill, otherwise than in the ordinary course of      business, the names and addresses of the vendors, the purchase price,      the names of any persons that have received commissions in connection      with the acquisition, and the amounts of the commissions and other      expenses in connection with the acquisition, including the cost of      borrowing money to finance the acquisition.         j.  A description of any stock options or other security      options outstanding, or to be created in connection with the      offering, and the amount of those options held or to be held by each      person required to be named in paragraph "b", "d", "e",      "f", or "h" and by any person that holds or will hold ten      percent or more in the aggregate of those options.         k.  The dates of, parties to, and general effect concisely      stated of each managerial or other material contract made or to be      made otherwise than in the ordinary course of business to be      performed in whole or in part at or after the filing of the      registration statement or that was made within the previous two      years, and a copy of the contract.         l.  A description of any pending litigation, action, or      proceeding to which the issuer is a party and that materially affects      its business or assets, and any litigation, action, or proceeding      known to be contemplated by governmental authorities.         m.  A copy of any prospectus, pamphlet, circular, form letter,      advertisement, or other sales literature intended as of the effective      date to be used in connection with the offering and any solicitation      of interest used in compliance with section 502.202, subsection 17,      paragraph "b".         n.  A specimen or copy of the security being registered,      unless the security is uncertificated; a copy of the issuer's      articles of incorporation and bylaws or their substantial      equivalents, in effect; and a copy of any indenture or other      instrument covering the security to be registered.         o.  A signed or conformed copy of an opinion of counsel      concerning the legality of the security being registered, with an      English translation if it is in a language other than English, which      states whether the security when sold will be validly issued, fully      paid, and nonassessable and, if a debt security, a binding obligation      of the issuer.         p.  A signed or conformed copy of a consent of any accountant,      engineer, appraiser, or other person whose profession gives authority      for a statement made by the person, if the person is named as having      prepared or certified a report or valuation, other than an official      record, that is public, which is used in connection with the      registration statement.         q.  A balance sheet of the issuer as of a date within four      months before the filing of the registration statement; a statement      of income and a statement of cash flows for each of the three fiscal      years preceding the date of the balance sheet and for any period      between the close of the immediately previous fiscal year and the      date of the balance sheet, or for the period of the issuer's and any      predecessor's existence if less than three years; and, if any part of      the proceeds of the offering is to be applied to the purchase of a      business, the financial statements that would be required if that      business were the registrant.         r.  Any additional information or records required by rule      adopted or order issued under this chapter.         2A.  Reports and examinations.  The administrator may by rule      or order require as a condition of registration by qualification, and      at the expense of the applicant or registrant, that a report by an      accountant, engineer, appraiser, or other professional person be      filed.  The administrator may also designate one or more employees of      the securities and regulated industries bureau to make an examination      of the business and records of an issuer of securities for which a      registration statement has been filed by qualification, at the      expense of the applicant or registrant.         3.  Conditions for effectiveness of registration statement.  A      registration statement under this section becomes effective thirty      days, or any shorter period provided by rule adopted or order issued      under this chapter, after the date the registration statement or the      last amendment other than a price amendment is filed, if any of the      following applies:         a.  A stop order is not in effect and a proceeding is not      pending under section 502.306.         b.  The administrator has not issued an order under section      502.306 delaying effectiveness.         c.  The applicant or registrant has not requested that      effectiveness be delayed.         4.  Delay of effectiveness of registration statement.  The      administrator may delay effectiveness once for not more than ninety      days if the administrator determines the registration statement is      not complete in all material respects and promptly notifies the      applicant or registrant of that determination.  The administrator may      also delay effectiveness for a further period of not more than thirty      days if the administrator determines that the delay is necessary or      appropriate.         5.  Prospectus distribution may be required.  A rule adopted      or order issued under this chapter may require as a condition of      registration under this section that a prospectus containing a      specified part of the information or record specified in subsection 2      be sent or given to each person to whom an offer is made, before or      concurrently, with the earliest of any of the following:         a.  The first offer made in a record to the person otherwise      than by means of a public advertisement, by or for the account of the      issuer or another person on whose behalf the offering is being made      or by an underwriter or broker-dealer that is offering part of an      unsold allotment or subscription taken by the person as a participant      in the distribution.         b.  The confirmation of a sale made by or for the account of      the person.         c.  Payment pursuant to such a sale.         d.  Delivery of the security pursuant to such a sale.  
        &nbsb>Section History: Early Form
         [SS15, § 1920-u15; C24, 27, § 8562; C31, 35, § 8581-c13; C39, §      8581.14; C46, 50, 54, 58, 62, 66, 71, 73, 75, § 502.14; C77, 79,      81, § 502.304] 
         Section History: Recent Form
         83 Acts, ch 169, § 12, 13; 91 Acts, ch 40, §24--30; 94 Acts, ch      1031, §15; 96 Acts, ch 1025, § 9--12; 97 Acts, ch 114, §12; 98 Acts,      ch 1106, §7--12, 24; 99 Acts, ch 166, §3, 4; 2000 Acts, ch 1147, §16;      2001 Acts, ch 16, §6, 37; 2001 Acts, ch 118, §6--8; 2002 Acts, ch      1111, §4; 2004 Acts, ch 1161, §12, 68; 2006 Acts, ch 1117, §8         Referred to in § 502.201, 502.202, 502.203, 502.204, 502.305,      502.307, 502.607