§ 1201 Bank Security Sale Permits

• •Banks must get a permit before offering or selling any security they issue.
• •The permit comes from the state commissioner.
• •The rule applies only to banks organized under this state’s laws.

A local bank wants to sell bonds it created to its customers.

If the bank hasn’t gotten a permit from the commissioner, it must not offer or sell those bonds. Doing so would break the law.