669

No investment company shall be registered or, if registered, make a public offering of securities of which such company is the issuer, unless:(1) Such company has a net worth of at least [one hundred thousand dollars] $100,000, or(2) provision is made in connection with and as a condition of the registration of such company which in the opinion of the Secretary adequately insures:(A) That after the effective date of such registration statement such company will not issue any security or receive any proceeds of any subscription for any such security until firm agreements have been made with such company by not more than twenty-five (25) responsible persons to purchase from it securities to be issued by it for an aggregate net amount which plus the then net worth of the company, if any, will equal at least [one hundred thousand dollars] $100,000;(B) that said aggregate net amount will be paid in to such company before any subscriptions for such securities will be accepted from any persons in excess of twenty-five (25), and(C) that arrangements will be made whereby any proceeds so paid in, as well as any sales commissions, will be refunded to any subscriber on demand without any

ersons in excess of twenty-five (25), and(C) that arrangements will be made whereby any proceeds so paid in, as well as any sales commissions, will be refunded to any subscriber on demand without any deduction, in the event that the net proceeds so received by the company do not result in the company’s having a net worth of at least [one hundred thousand dollars] $100,000 within ninety (90) days after the certificate of registration is issued.At any time after the occurrence of the event specified in clause (C) of subsection (2) of this section the Secretary may suspend or revoke the registration of such company under this chapter. History —Oct. 19, 1954, No. 6, p. 220, § 9, eff. Jan. 1, 1955.