§ 25147 Contract Preservation Requirement

• •The commissioner can set rules about how certain securities are sold.
• •Those rules can require a specific contract form for the sale.
• •A signed copy of each contract must be kept for up to three years.

A small business wants to sell investment notes to the public. The commissioner orders them to use a particular subscription agreement and to keep a signed copy of each agreement for three years.

Because of the commissioner’s order, the business must not use any other contract and must store the signed agreements for the set time, otherwise they could be breaking the rule.