Corporate & Securities Law

By Jim Hamilton

North Dakota Updates Form D Rule 506 Policy

*The updated parts are underlined:

Issuers intending to make an offering under Rule 506 of federal Regulation D must file Temporary Form D (including the state appendix), a Form U-2, Uniform Consent to Service of Process, and fee within 15 days after the first sale of the securities in North Dakota. A late fee is required if the filing is not made within the 15-day period. An original signature is not required for Parts D and E of Form D. A copy of Form D is permitted. Neither a Form U-2 nor the appendix is required if filing the newly adopted Form D. Make a check payable to the NORTH DAKOTA SECURITIES DEPARTMENT.

Renewal, commission and amendment . There is no renewal provision. The documents and fee for the original filing must be resubmitted if the offering extends beyond the one year period, except for the Form U-2 that may be incorporated by reference. No commission or remuneration may be paid for soliciting any prospective buyer in North Dakota except for a commission paid to a North Dakota-registered broker-dealer or agent. An amendment must be filed to reflect an issuer's name change if the change occurs while the filing is in active status.

See bottom of this webpage: http://www.ndsecurities.com/registrations/default.asp

Full post as published by Jim Hamilton's World of Securities Regulation on August 13, 2009 (boomark / email).