Md. Code Regs. 02.02.04.03

Current through Register Vol. 51, No. 12, June 14, 2024

Section 02.02.04.03 - Existing Security Holder Exemption

A. Transactions involving existing security holders pursuant to the Maryland Securities Act, Corporations and Associations Article, § 11-602(11)(ii), Annotated Code of Maryland, shall be deemed exempt transactions if the following conditions are satisfied:

(1) The issuer shall notify the Commissioner in writing at least 5 business days before the offer or sale in this State. The notification shall include the following information:

(a) Name, address, and telephone number of the issuer;

(b) Name, address, telephone number, and CRD number, if applicable, of any entity or individual receiving any commission or remuneration in connection with the offer or sale of the securities; and

(c) A description of the terms of the offering.

(2) The issuer shall pay the filing fee required by the Maryland Securities Act, Corporations and Associations Article, § 11-506(b), Annotated Code of Maryland.

B. The exemption for an offering made pursuant to this exemption shall be effective for 1 year from the date that the notification filing is accepted by the Commissioner. The exemption may be extended for successive 1-year periods by complying with the provisions of §A of this regulation.

Md. Code Regs. 02.02.04.03

Regulations .03 adopted effective April 15, 1991 (18:7 Md. R. 770)