(1) No association shall sell, offer for sale, negotiate for the sale of or take subscriptions for, or issue any of its permanent stock until it has first applied for and secured from the commissioner a permit authorizing it so to do. Such application shall be in writing, verified, and filed with the commissioner. In such application, the association shall set forth the names and addresses of its officers, the location of its office, an itemized account of its financial condition, the amount and character of its stock and shares, a copy of any prospectus or advertisement or other description of its stock to be distributed or published, a copy of all minutes of any proceedings of its directors, shareholders, or stockholders relating to or affecting the issue of such stock, and such additional information concerning the association, its condition, and its affairs as the commissioner may require. Upon the filing of such application, it shall be the duty of the commissioner to examine it and the other papers and documents filed therewith. (2) If the commissioner finds that the proposed issue of stock will not mislead the public as to the nature of the investment or will not work a fraud upon the purchaser of the stock, the commissioner shall issue to the association a permit authorizing it to issue and dispose of its stock in the amounts provided by the commissioner in the permit; otherwise, the commissioner shall deny the application and notify the association in writing of the commissioner's decision. (3) Every permit must state in bold type that the issuance of the permit is permissive only and does not constitute a recommendation or endorsement of the stock permitted to be issued. The commissioner may require the impoundment of the proceeds from the sale of stock, limit the expense in connection with the sale of stock, and impose any other conditions as the commissioner deems reasonable and necessary or advisable to ensure that the proceeds from the sale of stock are disposed in the manner and for the purposes provided in the permit. The commissioner may amend, alter, or revoke any permit issued by the commissioner or temporarily suspend the rights of an association under its permit. The commissioner may establish rules that are reasonable or necessary to carry out this section.
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