1. No person referred to in NRS 692B.040 (solicitation permit required), after receiving a certificate of authority, if an insurer, or after completing its original organization and financing, if other than an insurer, shall in this state solicit or receive funds in exchange for or grant options with respect to its securities until it has applied to the Commissioner for, and has been granted, a solicitation permit. This section is subject to the same exemptions as are provided by NRS 692B.060 (exemptions).

2. The Commissioner shall issue such a permit unless the Commissioner finds that:

(a) The funds proposed to be secured are inadequate or excessive in amount for the purposes intended;

(b) The proposed securities or the manner of their distribution would be unfair or inequitable to existing or proposed security holders or policyholders of the issuer; or

(c) Other reasonable objections exist as to the proposed financing.

3. Any such permit granted by the Commissioner shall be for such duration, and shall contain such terms and be issued upon such conditions, as the Commissioner may reasonably require for the protection of existing or proposed investors. In the Commissioner’s discretion escrow of funds, or a bond or deposit in lieu thereof, need not be required, and other terms and conditions of the permit may be substantially the same as or materially different from requirements made under this chapter as to solicitation permits for initial financing; but no such permit shall allow sales or promotion expense, for the sale of the securities in excess of the amount reasonably required therefor, and in no event to exceed 15 percent of the proceeds of such sales if and as such funds are actually received.

4. Every person who violates the provisions of subsection 1 is subject to the same penalties prescribed by NRS 692B.040 (solicitation permit required; penalty).

(Added to NRS by 1971, 1797)