Source: https://casetext.com/statute/united-states-code/title-15-commerce-and-trade/chapter-2a-securities-and-trust-indentures/subchapter-i-domestic-securities/section-77d-exempted-transactions
Timestamp: 2020-08-09 18:13:51
Document Index: 298744715

Matched Legal Cases: ['§ 77', '§ 77', '§4', '§203', '§6', '§12', '§30', '§602', '§944', '§201', '§302', '§401', '§76001', '§76001', '§76001', '§76001', '§201', '§401', '§201', '§302', '§201', '§201', '§201', '§201', '§302', '§302', '§926']

Section 77d - Exempted transactions, 15 U.S.C. § 77d | Casetext Search + Citator
15 U.S.C. § 77d
(C) the transaction is conducted through a broker or funding portal that complies with the requirements of section 77d-1(a) of this title; and
(D) the issuer complies with the requirements of section 77d-1(b) of this title.
(3) INFORMATION REQUIREMENT.-In the case of a transaction involving the securities of an issuer that is neither subject to section 78m or 78o(d) of this title, nor exempt from reporting pursuant to section 240.12g3-2(b) of title 17, Code of Federal Regulations, nor a foreign government (as defined in section 230.405 of title 17, Code of Federal Regulations) eligible to register securities under Schedule B, the seller and a prospective purchaser designated by the seller obtain from the issuer, upon request of the seller, and the seller in all cases makes available to a prospective purchaser, the following information (which shall be reasonably current in relation to the date of resale under this section):
(5) BAD ACTOR PROHIBITION.-Neither the seller, nor any person that has been or will be paid (directly or indirectly) remuneration or a commission for their participation in the offer or sale of the securities, including solicitation of purchasers for the seller is subject to an event that would disqualify an issuer or other covered person under Rule 506(d)(1) of Regulation D ( 17 CFR 230.506(d)(1) ) or is subject to a statutory disqualification described under section 78c(a)(39) of this title.
(C) Securities involved in such transaction shall be deemed to be restricted securities within the meaning of Rule 144 ( 17 CFR 230.144 ).
May 27, 1933, ch. 38, title I, §4, 48 Stat. 77; June 6, 1934, ch. 404, title II, §203, 48 Stat. 906; Aug. 10, 1954, ch. 667, title I, §6, 68 Stat. 684; Pub. L. 88-467, §12, Aug. 20, 1964, 78 Stat. 580; Pub. L. 94-29, §30, June 4, 1975, 89 Stat. 169; Pub. L. 96-477, title VI, §602, Oct. 21, 1980, 94 Stat. 2294; Pub. L. 111-203, title IX, §944(a), July 21, 2010, 124 Stat. 1897; Pub. L. 112-106, title II, §201(b), (c), title III, §302(a), title IV, §401(c), Apr. 5, 2012, 126 Stat. 314, 315, 325; Pub. L. 114-94, div. G, title LXXVI, §76001(a), Dec. 4, 2015, 129 Stat. 1787.
REFERENCES IN TEXTSection 201 of the Jumpstart Our Business Startups Act, referred to in subsec. (b), is section 201 of Pub. L. 112-106 which amended this section and enacted provisions set out as a note under this section.Section 78o(a)(1) of this title, referred to in subsec. (c)(1), was in the original "section 15(a)(1) of this title" and was translated as meaning section 15(a)(1) of the Securities Exchange Act of 1934 to reflect the probable intent of Congress. Section 78c(a)(39) of this title, referrred to in subsec. (c)(2)(C), was in the original "section 3(a)(39) of this title" and was translated as meaning section 3(a)(39) of the Securities Exchange Act of 1934 to reflect the probable intent of Congress.
AMENDMENTS2015-Subsec. (a)(7). Pub. L. 114-94, §76001(a)(1), added par. (7). Subsec. (c). Pub. L. 114-94, §76001(a)(2), redesignated subsec. (b) relating to securities offered and sold in compliance with Rule 506 of Regulation D as (c).Subsecs. (d), (e). Pub. L. 114-94, §76001(a)(3), added subsecs. (d) and (e). 2012- Pub. L. 112-106, §201(b)(1), (c) (1), made identical amendments, designating existing provisions as subsec. (a). Subsec. (a)(5). Pub. L. 112-106, §401(c), which directed amendment of this section by substituting "section 77c(b)(1)" for "section 77c(b)" in par. (5), was executed by making the substitution in subsec. (a)(5) to reflect the probable intent of Congress and the amendment by Pub. L. 112-106, §201(b)(1), (c) (1). See above.Subsec. (a)(6). Pub. L. 112-106, §302(a), which directed amendment of this section by adding par. (6) at the end, was executed by making the addition at the end of subsec. (a) to reflect the probable intent of Congress and the amendment by Pub. L. 112-106, §201(b)(1), (c) (1). See above. Subsec. (b). Pub. L. 112-106, §201(c)(2), added subsec. (b) relating to securities offered and sold in compliance with Rule 506 of Regulation D under this subchapter. Pub. L. 112-106, §201(b)(2), added subsec. (b) relating to offers and sales exempt under section 230.506 of title 17, Code of Federal Regulations.2010-Pars. (5), (6). Pub. L. 111-203 redesignated par. (6) as (5) and struck out former par. (5) which related to exemption for certain transactions involving offers or sales of one or more promissory notes directly secured by a first lien on a single parcel of real estate upon which is located a dwelling or other residential or commercial structure, and exemption for certain transactions between entities involving non-assignable contracts to buy or sell the foregoing securities which are to be completed within two years. 1980-Par. (6). Pub. L. 96-477 added par. (6). 1975-Par. (5). Pub. L. 94-29 added par. (5). 1964- Pub. L. 88-467 substituted "shall not apply to-" for "shall not apply to any of the following transactions:" in introductory text.Par. (1). Pub. L. 88-467 reenacted existing first provision of par. (1) and struck out second and third provisions, which are incorporated in pars. (2) and (3)(A) to (C).Par. (2). Pub. L. 88-467 redesignated existing second provision of par. (1) as (2). Former par. (2) redesignated (4).Par. (3). Pub. L. 88-467 redesignated existing third provision of par. (1) as (3), designated the excepted transactions as cls. (A) to (C), inserted in cl. (B) "or such shorter period as the Commission may specify by rules and regulations or order" and inserted sentence relating to the applicable period to transactions referred to in clause (B).Par. (4). Pub. L. 88-467 redesignated former par. (2) as (4) and substituted "over-the-counter market" for "open or counter market".1954-Act Aug. 10, 1954, reduced from 1 year to 40 days the period during which the delivery of a prospectus is required in trading transactions as distinguished from initial distribution of the new securities.1934-Act June 6, 1934, among other changes, repealed par. (3), provisions of which were replaced by section 77c(9), (10) of this title.
EFFECTIVE DATE OF 1975 AMENDMENT Amendment by Pub. L. 94-29 effective June 4, 1975, see section 31(a) of Pub. L. 94-29 set out as a note under section 78b of this title.
EFFECTIVE DATE OF 1964 AMENDMENT Amendment by Pub. L. 88-467 effective Aug. 20, 1964, see section 13 of Pub. L. 88-467 set out as a note under section 78c of this title.
MODIFICATION OF EXEMPTION RULES Pub. L. 112-106, title II, §201(a), Apr. 5, 2012, 126 Stat. 313, provided that:"(1) Not later than 90 days after the date of the enactment of this Act [Apr. 5, 2012], the Securities and Exchange Commission shall revise its rules issued in section 230.506 of title 17, Code of Federal Regulations, to provide that the prohibition against general solicitation or general advertising contained in section 230.502(c) of such title shall not apply to offers and sales of securities made pursuant to section 230.506, provided that all purchasers of the securities are accredited investors. Such rules shall require the issuer to take reasonable steps to verify that purchasers of the securities are accredited investors, using such methods as determined by the Commission. Section 230.506 of title 17, Code of Federal Regulations, as revised pursuant to this section, shall continue to be treated as a regulation issued under section 4(2) of the Securities Act of 1933 ([now] 15 U.S.C. 77d [(a)](2))."(2) Not later than 90 days after the date of enactment of this Act, the Securities and Exchange Commission shall revise subsection (d)(1) of section 230.144A of title 17, Code of Federal Regulations, to provide that securities sold under such revised exemption may be offered to persons other than qualified institutional buyers, including by means of general solicitation or general advertising, provided that securities are sold only to persons that the seller and any person acting on behalf of the seller reasonably believe is a qualified institutional buyer."
RULEMAKING Pub. L. 112-106, title III, §302(c), Apr. 5, 2012, 126 Stat. 320, provided that: "Not later than 270 days after the date of enactment of this Act [Apr. 5, 2012], the Securities and Exchange Commission (in this title [enacting section 77d-1 of this title, amending sections 77d, 77r, 78c, 78l, and 78o of this title, and enacting provisions set out as notes under sections 77d, 77r, 78c, and 78l of this title] referred to as the 'Commission') shall issue such rules as the Commission determines may be necessary or appropriate for the protection of investors to carry out sections 4(6) [probably means "section 4(a)(6)"] and section 4A of the Securities Act of 1933 [ 15 U.S.C. 77d(a)(6), 77d-1 ], as added by this title. In carrying out this section, the Commission shall consult with any securities commission (or any agency or office performing like functions) of the States, any territory of the United States, and the District of Columbia, which seeks to consult with the Commission, and with any applicable national securities association."
DISQUALIFICATION Pub. L. 112-106, title III, §302(d), Apr. 5, 2012, 126 Stat. 320, provided that: "(1) IN GENERAL.-Not later than 270 days after the date of enactment of this Act [Apr. 5, 2012], the [Securities and Exchange] Commission shall, by rule, establish disqualification provisions under which-"(A) an issuer shall not be eligible to offer securities pursuant to section 4(6) [probably means "section 4(a)(6)"] of the Securities Act of 1933 [ 15 U.S.C. 77d(a)(6) ], as added by this title; and "(B) a broker or funding portal shall not be eligible to effect or participate in transactions pursuant to that section 4(6)."(2) INCLUSIONS.-Disqualification provisions required by this subsection shall-"(A) be substantially similar to the provisions of section 230.262 of title 17, Code of Federal Regulations (or any successor thereto); and"(B) disqualify any offering or sale of securities by a person that-"(i) is subject to a final order of a State securities commission (or an agency or officer of a State performing like functions), a State authority that supervises or examines banks, savings associations, or credit unions, a State insurance commission (or an agency or officer of a State performing like functions), an appropriate Federal banking agency, or the National Credit Union Administration, that- "(I) bars the person from- "(aa) association with an entity regulated by such commission, authority, agency, or officer; "(bb) engaging in the business of securities, insurance, or banking; or "(cc) engaging in savings association or credit union activities; or"(II) constitutes a final order based on a violation of any law or regulation that prohibits fraudulent, manipulative, or deceptive conduct within the 10-year period ending on the date of the filing of the offer or sale; or "(ii) has been convicted of any felony or misdemeanor in connection with the purchase or sale of any security or involving the making of any false filing with the Commission."
DISQUALIFYING FELONS AND OTHER "BAD ACTORS" FROM REGULATION D OFFERINGSPub. L. 111-203, title IX, §926, July 21, 2010, 124 Stat. 1851, provided that: "Not later than 1 year after the date of enactment of this Act [July 21, 2010], the Commission shall issue rules for the disqualification of offerings and sales of securities made under section 230.506 of title 17, Code of Federal Regulations, that- "(1) are substantially similar to the provisions of section 230.262 of title 17, Code of Federal Regulations, or any successor thereto; and "(2) disqualify any offering or sale of securities by a person that-"(A) is subject to a final order of a State securities commission (or an agency or officer of a State performing like functions), a State authority that supervises or examines banks, savings associations, or credit unions, a State insurance commission (or an agency or officer of a State performing like functions), an appropriate Federal banking agency, or the National Credit Union Administration, that- "(i) bars the person from- "(I) association with an entity regulated by such commission, authority, agency, or officer; "(II) engaging in the business of securities, insurance, or banking; or "(III) engaging in savings association or credit union activities; or"(ii) constitutes a final order based on a violation of any law or regulation that prohibits fraudulent, manipulative, or deceptive conduct within the 10-year period ending on the date of the filing of the offer or sale; or "(B) has been convicted of any felony or misdemeanor in connection with the purchase or sale of any security or involving the making of any false filing with the Commission." [For definitions of terms used in section 926 of Pub. L. 111-203 set out above, see section 5301 of Title 12, Banks and Banking.]
Section 77d-1 - Requirements with respect to certain small transactions