§485-18  Escrow of certain securities.  (a)  As a condition to registration of any securities under this chapter, the commissioner of securities may, in the commissioner's discretion, by order, require that any securities issued for, or which are intended to be issued for, any option, lease, assignment, patent right, copyright, trademark, process, formula, good will, going concern value, organization, or promotion fees or expenses, or other intangible assets, or issued or intended to be issued in payment for property shall be delivered in escrow to the commissioner or other depository satisfactory to the commissioner under an escrow agreement that the owners of the securities shall not be entitled to sell or transfer the securities without the consent of the commissioner, that the owners thereof shall not be entitled to withdraw the securities from escrow until all other securities holders who have paid for their securities in cash have been paid dividends or interest aggregating not less than six per cent, shown to the satisfaction of the commissioner to have been actually earned and paid, and that in case of dissolution or insolvency during the time the securities are held in escrow, the owners thereof shall not participate in any distribution of assets unless and until after the owners of all other securities have been paid in full.

     (b)  As a condition to registration of any securities under this chapter, the commissioner may, in the commissioner's discretion, require that all treasury stock of the issuer or other securities issued and thereafter acquired by the issuer, be delivered in escrow to the commissioner or other depository satisfactory to the commissioner, subject to such terms and conditions as to release from escrow as the commissioner deems necessary in the circumstances. [L 1957, c 314, pt of §1; Supp, §199-14; HRS §485-18; gen ch 1985]

 

Case Notes

 

  Exemption not specified in indictment.  33 H. 180.