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e-CFR data is current as of April 8, 2021


17 CFR--PART 230

View Printed Federal Register page 86 FR 3598 in PDF format.

Amendment(s) published January 14, 2021, in 86 FR 3598

Effective Dates: Mar. 15, 2021

31. Effective March 15, 2021, amend §230.506 by:

a. Revising paragraph (b)(2)(i) and republishing the note to paragraph (b)(2)(i);

b. Amending paragraph (c)(2)(ii)(B)(2) by removing the word “or” from the end of the paragraph;

c. Revising paragraph (c)(2)(ii)(C)(4) by removing the period from the end of paragraph and adding in its place a semicolon;

d. Revising paragraph (c)(2)(ii)(D) by removing the period from the end of the paragraph and adding “; or” in its place;

e. Adding paragraph (c)(2)(ii)(E) before the Instructions to paragraph (c)(2)(ii)(A) through (D) of this section; and

f. Removing the text “(A) through (D) of this section” from the heading to Instructions to paragraph (c)(2)(ii)(A) through (D) of this section, and republishing it.

The revisions and addition read as follows:

§230.506   Exemption for limited offers and sales without regard to dollar amount of offering.

*   *   *   *   *

(b) *  *  *

(2) *  *  *

(i) Limitation on number of purchasers. There are no more than, or the issuer reasonably believes that there are no more than, 35 purchasers of securities from the issuer in offerings under this section in any 90-calendar-day period.

Note 1 to paragraph (b)(2)(i): See §230.501(e) for the calculation of the number of purchasers and §230.502(a) for what may or may not constitute an offering under paragraph (b) of this section.

*   *   *   *   *

(c) *  *  *

(2) *  *  *

(ii) *  *  *

(E) In regard to any person that the issuer previously took reasonable steps to verify as an accredited investor in accordance with this paragraph (c)(2)(ii), so long as the issuer is not aware of information to the contrary, obtaining a written representation from such person at the time of sale that he or she qualifies as an accredited investor. A written representation under this method of verification will satisfy the issuer's obligation to verify the person's accredited investor status for a period of five years from the date the person was previously verified as an accredited investor.

Instructions to paragraph (c)(2)(ii): *  *  *

*   *   *   *   *

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