HB16-1049
Crowdfunding Escrow In Depository Institution
Concerning an escrow account held by a depository institution on behalf of an issuer of an intrastate offering of securities.
Session:
2016 Regular Session
Subject:
Bill Summary
Financial Services & Commerce
The act amends the 'Colorado Crowdfunding Act', enacted in 2015, by:
- Using the defined term 'depository institution' to describe the entity that an issuer must use to set up an escrow account to hold the proceeds of a sale of intrastate securities; and
- Allowing the issuer to terminate the escrow account once the minimum amount of proceeds from the sale of the securities have been deposited into the account.
(Note: This summary applies to this bill as enacted.)