10-2260

10-2260. Approval of articles of
incorporation; incorporation

A. The articles of incorporation required by this chapter shall be filed with the
superintendent of financial institutions. Within sixty days after the receipt of the
articles of incorporation, the superintendent shall approve or disapprove the articles of
incorporation.

B. If the superintendent disapproves the articles, the superintendent shall
promptly give notice of the disapproval to the incorporators, stating in detail the
reason for his action. Upon remedying the defect or defects, the incorporators may, in
the same manner, refile the articles.

C. If the superintendent finds that the articles of incorporation are in the form
prescribed by this chapter or have been made to conform with this chapter, the
superintendent shall conduct any investigation deemed necessary to ascertain from the
best sources of information available:

1. Whether the name of the proposed corporation is likely to mislead the public as
to its character or purposes.

2. Whether the convenience and advantage of the public will be served by the
proposed corporation.

3. Whether the economic condition of the area in which the corporation may be
expected to do most of its business affords reasonable promise of adequate support for
the activities of such corporation.

4. Whether the responsibility, character and general fitness for the business of
the incorporators, directors and officers named in the articles are such as to command
confidence and to warrant the belief that the business of the proposed corporation will
be honestly and efficiently conducted, in accordance with the intent and purpose of this
chapter.

D. If the superintendent finds, on the basis of the facts disclosed by the
superintendent's investigation, that the proposed incorporation meets all the
requirements of this chapter, the superintendent shall endorse approval on the articles
of incorporation and the articles may then be filed with the corporation commission. The
corporation commission shall not issue a certificate of incorporation to a business
development corporation without the approval by the superintendent endorsed on the
articles of incorporation.

E. If the superintendent finds, on the basis of the facts disclosed by the
superintendent's investigation, that the proposed incorporation does not meet all the
requirements of this chapter, the superintendent shall disapprove the articles and return
them to the incorporators stating in detail the reasons for doing so.