Details for guarantee-based security and registration

Section 36b-64 refers to section 36b-61(2)(C): conditional or unconditional guarantees of income, or promises to refund the price or repurchase supplied items if the purchaser-investor is dissatisfied. This route allows an authorized surety's bond or a trust account with a licensed and insured bank or other depository institution located in Connecticut. The minimum is $50,000, with a greater amount available at the Commissioner's direction.

A separate provision, section 36b-62(c)(2), addresses inadequate financial arrangements to fulfill the business-opportunity agreement. The Commissioner may require escrow or impoundment until the obligations are fulfilled or, at the seller's option, a surety bond under the applicable regulation or order. Do not assume a section 36b-64 purchase automatically satisfies a different escrow direction; obtain the actual accepted condition and amount.

Section 36b-63(a) requires disclosure at least ten business days before the earlier of the purchaser-investor signing the contract or the seller or designated recipient receiving money or another thing of value. Its required Connecticut cover states that the State does not approve or verify the opportunity. A NASAA or FTC-format document must still meet the State cover and additional-information requirements described in subsection (b).

Registration becomes effective on the Commissioner's order under section 36b-62(c)(1). A completed provider application or issued bond is not that order. Coordinate the required undertaking, registration documents and disclosure timing before treating the offering as ready.