1. (a) An issuer conducting an offering under AS 45.55.175 shall enter into an escrow agreement with an escrow agent located in this state that includes the following terms

   1. (1) all offering proceeds shall be maintained in an account controlled by the escrow agent;
   2. (2) all offering proceeds will be released to the issuer only when the aggregate capital raised from all investors is equal to or greater than the minimum target offering amount; and
   3. (3) if the issuer does not raise the minimum target offering amount by the offering deadline, the escrow agent shall release and return all proceeds directly to investors.
2. (b) The escrow agent may not be affiliated with the issuer, any third-party website operator assisting with the offering, or any officers, directors, controlling persons, or affiliates of the issuer or of any third-party website operator assisting with the offering.

(Eff. 11/26/2016, Register 220)

Authority: AS 45.55.175, AS 45.55.950