Salt Lake Telegram | 1921-07-03 | Page 26 | Buying of Stocks on Payments is Regulated

BUYING OF STOCK STOC ON PAYMENTS IS REGULATED Pennsylvania Brokers Are e Studying Bill Recently Recently- Signed by Governor U PHILADELPHIA Jul July 2 Firma 2 Firms which chich have havo developed de soiling selling of or lI securities on th Instalment nt or p partial pa payment plan are studying bill No Na 0 86 passed In the the- recent recen session of or tho the Pennsylvania legislature ant ami I n by Governor Go Sproul a g few tow a ago o. o It 1 Is designed to r regulate this variety of nf stock and bond bonit selling and place It un Un- Un dot der the tho Jurl Jurisdiction of th the state etalo t banking I commissioner There 1 U lit some difference of opinion a ai 4 to the tire exact manner In lh i t t will operate The bill provides ro for the licensing anil an anit regulation of oC corporations corporation partnerships as associations as- as and individuals engaged In lh tine business business of receiving payments or contri i to be held or us Used d in any accumulation or Investment or of I Issuing negotiating offering for sale or certificates securities contracts or 01 other chose In actions evidenced b by writing on th time the partial payment or instalment planor plan or of anum assuming In fixed obligations obligation atlon or Issuing In connection x OJ contract contra ball u upon on payments being being- made upon instalment ment or t single Ingle payments under all nil or part of the total amount r received cel 1 Is b to be r repaid at st some future time tinne with or without profit and ld Imposing penalties Applications Application for tor a n license licens to sell lIell lI securities on an instalment or partial payment pa D must roust bo be made mad to the commissioner o ot of bankIng bankIng bankIng bank- bank Ing and before a license shall be lu issued 1 by the tire commissioner he shall make or cause cau to be bo made mado an investigation of ot the condition condi condl- tion lIon arid and affairs of th the applicant and UK its general plan of ot operation i i In obtaining a license the tire applicant must deposit with the tho commissioner cash or approved b by the commissioner loner with a n clear I market et value of as security for ful fui fulfillment of contracts with persons nl to whom stocks flock or or bonds are sold In addition the iho I commissioner may require setting apart of ofa a fund equal to not Ifs If's less than 10 Q per cent I of ot amount designate in all contracts contract n 0 i Annual reports of ot financial condition mutt b be mado made to the tho commissioner u and I tine tl th commissioner r shall have the same lame powers to for forthe I the th supervision and examination of ot any cor corporation col coi or p person r on licensed lIcen d under tho the Pt PW visions vision of ot this act as 13 are aro now or 1011 may hereafter hereafter here here- after be vested In him by la law for tor the supervIsion supervision super super- r vision lIlon and anI examination of banks trust companies companies com corn panics and other financial institutions The new law goes gOtS Into effect October J Jand 3 and penalties ar are Imposed for with its Iti provisions J