COMPILED CODE - Iowa Legislature - State of Iowa

359
Tit. XVII, Ch. 5. INVESTMENT COMPANIES. §§ 5424-al-5427.
72 greater number than twenty-five provided no solicitation is made to
73 the public for the disposal of said interest or units.
[S. S., '15, § 1920-ul ; 39 G. A., ch. 189, §§ 2, 7.]
SEC. 5424-al. Refusal or cancellation of permits.
1 The secretary of state under sections fifty-four hundred twenty-
2 three, fifty-four hundred twenty-four, fifty-four hundred twenty-eight
3 and fifty-four hundred thirty-three of the compiled code shall have
4 the right to refuse or cancel a permit where he finds from his examina-
5 tion that the applicant is not of good business repute, or that the pro-
6 posed plan of business, or of selling the security is unfair, unjust, or
7 inequitable, or finds that the securities the dealer, issuer, agent or
8 broker proposes to sell are likely to work a fraud upon the purchaser
9 thereof, such refusal, or cancellation, to be subject to the same right
10 of appeal as herein provided in other cases.
[39 G. A., ch. 189, § 6.]
SEC. 5437. Accounts—how kept—open to inspection and examination—fee.
1 The general accounts of every person, firm, association, company
2 or corporation doing business in this state pursuant to the provisions
3 of this chapter shall be kept in a businesslike and intelligent manner
4 and in sufficient detail that the secretary of state can ascertain at any
5 time upon inspection and examination its financial condition, and any
6 person, firm, association, company or corporation engaged in the busi-
7 ness of buying or selling stocks, bonds or other securities and subject
8 to the provisions of this chapter, shall keep its books of account dur-
9 ing business hours, except Sundays and legal holidays, open to its
10 members, stockholders and investors and to the secretary of state or
11 his duly authorized agents or representatives, and the said secretary
12 of state shall have the right to make an examination and inspection
13 of the books, accounts and financial condition of any such person,
14 firm, association, company or corporation engaged in the business of
15 dealing in stocks, bonds and other securities pursuant to the provisions
16 of this chapter. The right, powers and privileges of the secretary of
17 state in connection with such examination shall be the same as is now
18 provided with reference to examination of state and savings banks,
19 and such person, firm, association, company or corporation so exam-
20 ined shall pay a fee to the secretary of state for each of such examina-
21 tions not to exceed ten dollars per day, or fraction thereof, spent by
22 said secretary of state or his duly authorized representative while
23 absent from the seat of government in making such examination, and
24 shall further pay the actual traveling and hotel expenses of said exam-
25 iner. Upon failure or refusal of any person, firm, association, com-
26 pany or corporation to pay the fees herein required, upon the demand
27 of the secretary of state or his duly authorized representative, the
28 secretary of state may suspend its right to sell, offer or negotiate for
29 sale any of its stocks, bonds or other securities in this state until such
30 fee or fees are paid.
[S. S., '15, § 1920-ulO ; 39 G. A., ch. 189, § 3.]