Before the secretary approves the use of STAR bonds to finance
any special bond project, the applicant shall provide the secretary with
evidence that the applicant has with due diligence explored the background and
financial viability of the principals. If any principal has been convicted of a
felony or a misdemeanor involving moral turpitude or business or financial
improprieties, or is now or has ever been charged with or convicted of any
civil or criminal offense relating to the conduct of the business of the
principal or the issuance, sale, or solicitation for sale of any type of
security, the applicant shall disclose this information.
