44-1272

44-1272. Telephone seller; registration; late
filing penalty

A. A seller shall file a verified registration statement with the secretary of
state before the seller solicits any consumer from a location in this state or any
consumer located in this state. Each principal of the seller shall sign the registration
statement, have the signature notarized and file the statement with the secretary of
state along with the annual registration fee prescribed by section 44-1275. The
registration statement expires on June 30 of each year and shall be annually renewed by
completing a new registration statement within thirty days before expiration. If a seller
is delinquent in filing its annual registration statement, the secretary of state may
assess a late filing penalty when the seller submits its annual registration statement.

B. If, before the expiration of a seller's annual registration, there is a change
in any of the information required by subsection C of this section, within ten days of
the change the seller shall file a supplemental statement with the secretary of state,
except that a seller shall only update quarterly any changes in solicitors hired by the
seller.

C. Each registration statement shall contain all of the following information:

1. The true legal name of the seller.

2. The name under which the seller is doing business or intends to do business.

3. The seller's business form and state of organization.

4. If the seller is a corporation or limited liability company, a copy of its
articles of incorporation and bylaws and amendments to the bylaws. If the seller is a
partnership or limited liability partnership, a copy of the partnership agreement. If
the seller is operating under a fictitious business name, the location where the
fictitious name has been registered.

5. The complete street address of the physical location of the principal place of
business of the seller, the complete street address of all other locations from which the
seller will be conducting business and all telephone numbers for telephones at these
locations.

6. For each principal and manager, the true legal name, residence address,
telephone number and date of birth and a clear and legible copy of the current driver
license or valid government issued photo identification card. A seller is not required to
submit the information required in this section for the seller's employees.

7. For each manager, the address of the business location for which the manager is
responsible.

8. For each solicitor, the solicitor's true legal name, business address and
telephone number and, for each principal and manager of a solicitor, the true legal name,
residence address, telephone number and date of birth and a clear and legible copy of the
current driver license or valid government issued photo identification card. A solicitor
is not required to submit the information required in this section for the solicitor's
employees.

9. The name and address of the seller's agent in this state who is authorized to
receive service of process in this state.

10. A copy of the bond filed with the state treasurer pursuant to section 44-1274.

11. Whether a principal or manager:

(a) Has been convicted or pleaded no contest to a felony or misdemeanor involving
moral turpitude or a violation of this article.

(b) Has been held liable in a civil action, either by final judgment or by entry of
a stipulated judgment, if the civil action alleged fraud, embezzlement, racketeering,
fraudulent conversion or misappropriation of property or a violation of this article or
the use of untrue or misleading representations in an attempt to sell or dispose of real
or personal property or the use of unfair, unlawful or deceptive business practices.

(c) Is subject to a currently effective injunction or restrictive order relating to
a business activity as a result of an action brought by a public agency or department,
including an action affecting a vocational license. The statement shall include the name
of the court, the date of the conviction, the judgment, order or injunction and, if
applicable, the name of the governmental agency that filed the action resulting in the
conviction, judgment, order or injunction.

12. A copy of any:

(a) Script, outline or presentation the seller will require or suggest that a
solicitor use, except that if the seller does not require or suggest a script, outline or
presentation, a statement that no such document is required or suggested.

(b) Sales information and literature provided by the seller to a solicitor or
described by the seller for use by the solicitor, including scripts, outlines,
presentations, information on how to conduct telephone sales, sample instructions, sample
closings, product information and contest or premium award information.

D. If a seller expressly represents or implies to any consumer, directly or through
a solicitor, that the consumer is or may be eligible to receive any premium, the seller
shall submit with the registration statement another statement setting forth for each
premium mentioned:

1. A description of the premium.

2. The value or worth of the premium and the basis for the valuation.

3. All terms and conditions a consumer must satisfy in order to receive the
premium.

4. The odds of being able to receive the premium, and if the odds are not
calculable in advance, the factors used in calculating the odds.

5. If the consumer will receive fewer than all of the premiums described by the
seller:

(a) The manner in which the seller decides which premium the consumer will receive.

(b) The odds of being able to receive each premium, and if the odds are not
calculable in advance, the factors used in calculating the odds.

(c) The name and address of each person who within the past twelve months has
received the premium having the greatest value and the premium with the smallest odds of
being received.

E. If the seller expressly represents or implies to any consumer, directly or
through a solicitor, that the seller can or may be able to make a loan, arrange a loan,
assist in arranging a loan or assist in providing information that may lead to obtaining
a loan, the seller shall submit with the registration statement another statement setting
forth:

1. For the previous twenty-four months, the names and addresses of any person who
lent money to:

(a) Consumers who responded to the solicitations of the seller's predecessor or the
seller's officers or owners or those persons having present management responsibilities
or to companies with which they were associated.

(b) The seller's predecessor or the seller's officers or owners or those persons
having present management responsibilities or to those companies with which they were
associated for them to lend to consumers who responded to solicitations.

2. For the twelve months after the date of the registration, the names and
addresses of all persons who informed the seller that they may be able to lend money to
consumers solicited by the seller or to the seller for the seller to lend to consumers
who respond to the seller's representations that the seller can make a loan, arrange a
loan, assist in arranging a loan or assist in providing information that can lead to
obtaining a loan.

3. Copies of all contracts between the seller and lenders or prospective lenders
who may lend money:

(a) To the seller to lend to consumers who, in conjunction with the seller's
business, respond to the seller's representations that the seller can make a loan,
arrange a loan, assist in arranging a loan or assist in providing information that can
lead to obtaining a loan.

(b) Directly to consumers to whom the seller may represent that it can arrange or
assist in providing information that can lead to obtaining a loan.

F. If any change is made to any script, outline, presentation, sales information or
literature to be used by a seller during any solicitation, the seller shall submit the
new or revised material before it is used.

G. Compliance with the registration and filing requirements of this article by a
seller does not constitute an approval or endorsement by this state of the seller's
registration documents or conduct.