Concerning An Escrow Account Held By A Depository Institution On Behalf Of An Issuer Of An Intrastate Offering Of Securities.
The bill 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.