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Illinois Statutes Chapter 215. Insurance § 5/21. Subscription agreement

Current as of January 01, 2025 | Updated by Findlaw Staff

§ 21. Subscription agreement.

(1) The company and each subscriber shall enter into an agreement for the subscription to the shares of the company and such agreement shall also constitute an agreement between the several subscribers. It shall state:

(a) the price of the shares, terms, time, and medium of payment therefor;

(b) the part of the price that may be used for commission, promotion, organization, and other expenses;

(c) the name of the bank or trust company in this State in which the funds or securities are to be deposited pending the completion of the organization of the company; and

(d) that the total cash or securities received in payment will be returned to the subscribers who have made such payments in the event the organization of the company is not completed.

(2) Subscriptions to shares shall be irrevocable unless subscribers representing 50% or more of the amount subscribed consent to the revocation.

(3) Any subscription agreement may provide for payment in installments but in the case of subscriptions prior to the issuance of a certificate of authority to the company, such installments shall not extend beyond 2 years from the date of the permit of the Director authorizing the solicitation of subscriptions.

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Cite this article: FindLaw.com - Illinois Statutes Chapter 215. Insurance § 5/21. Subscription agreement - last updated January 01, 2025 | https://codes.findlaw.com/il/chapter-215-insurance/il-st-sect-215-5-21/

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