356-A:7 Inquiry and Examination. –
I. Upon receipt of an application for registration in proper form, the attorney general shall forthwith initiate such examination as he shall deem necessary to determine:
(a) That the subdivider can convey or can reasonably be expected to be able to convey or cause to be conveyed the interest in subdivided lands offered for disposition if the purchaser complies with the terms of the offer and, when appropriate, that release clauses, conveyances in trust or other safeguards have been provided;
(b) That there is reasonable assurance that all proposed improvements will be completed as represented. Reasonable assurance includes, but is not limited to, institutional financing in the form of a revolving line of credit in an amount equal to one-fourth of the total cost of constructing the residential units being registered, so long as (i) the loan documents provide (a) that funds may be re-advanced during the term of the loan to construct the residential units, and (b) that the institutional lender shall notify the attorney general in the event that the revolving line of credit is cancelled and (ii) in addition to the funds allocated to residential unit construction, the applicant shall provide evidence of adequate funds to complete any infrastructure, such as roads and utilities, necessary to service the units being registered. This subparagraph shall not prohibit the attorney general from finding other forms of financing to provide reasonable assurance. If the attorney general determines that a revolving line of credit has been cancelled, or is no longer adequate to pay for the cost of constructing the units that have been registered, the attorney general may issue a temporary cease and desist order pursuant to RSA 356-A:12;
(c) That the general promotional plan is not false or misleading and complies with the standards prescribed by the attorney general in his rules and affords full and fair disclosure;
(d) Whether the subdivider has not, or if a corporation its officers, directors, and principals have not, been convicted of a crime involving land dispositions or any aspects of the land sales business or any other felony in this state, the United States, or any other state or foreign country within the past 10 years and has not been subject to any injunction or administrative order within the past 10 years restraining a false or misleading promotional plan involving land dispositions;
(e) That the public offering statement requirements of this chapter have been satisfied.
II. All reasonable expenses incurred by the attorney general in carrying out the examination required by paragraph I shall be paid by the subdivider and no order registering the subdivided lands shall be entered until such expenses have been fully paid.
Source. 1970, 55:1. 1977, 469:16. 1985, 300:7, I, b. 2015, 256:4, eff. Jan. 1, 2016.