Alabama § 27-27-14 - Solicitation Permit for Subsequent Financing.
Full text of Alabama Code of Alabama § 27-27-14 — Solicitation Permit for Subsequent Financing., with citation guidance and answers to common questions.
§ 27-27-14. Solicitation Permit for Subsequent Financing.
(a) No insurer, or insurance holding corporation, or stock corporation for financing operations of a mutual insurer, or attorney-in-fact corporation, or a reciprocal insurer, or any other type of organization existing for the same purpose, after:
(1) It has received a certificate of authority, if an insurer, in this or any other state; or
(2) It has completed its initial organization and financing, if a corporation, syndicate, or other organization other than an insurer, shall in this state solicit or receive funds in exchange for its securities, other than when combining and selling, for the account of its stockholders entitled thereto, fractional shares to which they become entitled through a stock dividend to existing stockholders until it has applied to the commissioner for, and has been granted, a solicitation permit.
(b) The commissioner shall issue such a permit unless he finds:
(1) That the funds proposed to be secured are excessive in amount for the purposes intended;
(2) That the proposed securities or the manner of their distribution are inequitable; or
(3) That the offering or issuance of the securities would be unfair to existing or prospective holders of securities of the same insurer, corporation, syndicate, or organization.
(c) Any such solicitation 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 specify or require for the protection of existing or proposed policyholders or investors.
(d) This section is supplemental to other laws of this state applicable to the sale of securities.
Frequently Asked Questions About Alabama § 27-27-14
What does Code of Alabama § 27-27-14 cover?
Section 27-27-14 ("Solicitation Permit for Subsequent Financing.") is part of the Code of Alabama, the codified statutory law of Alabama. It sets out the legal rule or procedure described in the text above. Statutes are amended regularly, so always verify against the official source.
How do I cite Alabama § 27-27-14?
A common citation format is "Code of Alabama § 27-27-14" (Alabama). Legal writing may require the code abbreviation, section number, and year or edition. Match the style required by your court, professor, or publisher.
Is this the official text of Alabama law?
No. This page is for research and education and may not include the most recent amendments. For official current law, check the Alabama official source linked on this page or consult a licensed Alabama attorney.
How does Alabama § 27-27-14 apply to my situation?
Statutes are interpreted in context, and application depends on your specific facts. Only a licensed attorney in Alabama can advise on how this section applies to you. Contact your state or local bar association for a referral.
Sources & Verification
Not legal advice. Verify against the official source and consult a licensed attorney in Alabama.