New Mexico Statement or Legend on Stock Certificate - Notice of Restriction on Transfer - Stock not Registered - Intrastate Exemption

• Category: Corporations - Shareholders and Stock
• State: Multi-State
• Control #: US-1057BG
• Format: Word; Rich Text

Description

A Legend is a statement on a stock certificate noting restrictions on the transfer of the stock, often due to SEC requirements for unregistered securities. The Securities Act of 1933 regulates the initial sale of securities to the public. Some securities are exempt from coverage of the Act. Certain stock issue transactions are also exempt (i.e., exempt from registration with the Securities and Exchange Commission). The most common exempt transaction that close corporations take advantage of is the intrastate offering. To qualify for this exemption, both the investors and the issuer must all be residents of the same state. The issuer must also meet the following requirements: • 80% of its assets must be located in the state; • 80% of its income must be earned from operations within the state; and • 80% of the proceeds from the sale must be used on operations within the state. Also, for nine months after the issuance, the stock can only be sold to state residents. A New Mexico Statement or Legend on a Stock Certificate — Notice of Restrictiotransfereefe— - Stock not Registered — Intrastate Exemption refers to a specific indicator or statement that may be present on a stock certificate issued in the state of New Mexico. This statement informs the holder of the stock of certain restrictions and exemptions associated with the transfer and registration of the stock. The purpose of this statement is to provide legal information and protect the interests of both the company issuing the stock and the stockholders themselves. It ensures compliance with the state's securities laws and regulations, particularly when it comes to the sale and transfer of securities within the state. Keywords: New Mexico, statement, legend, stock certificate, notice of restriction, transfer restriction, stock not registered, intrastate exemption, securities laws, regulations, compliance. Different types of New Mexico Statements or Legends on Stock Certificate — Notice of Restriction on Transfer — Stock noRegisteredre— - Intrastate Exemption may include: 1. "New Mexico State Transfer Restriction": This type of legend indicates that the stock certificate is subject to specific transfer restrictions imposed by the state of New Mexico. It requires the stockholder to abide by certain rules and regulations when transferring the shares. 2. "Stock Not Registered in New Mexico": This legend signifies that the stock represented on the certificate is not registered with the state of New Mexico. It explains that the securities may not be sold or transferred unless they qualify for a specific intrastate exemption. 3. "Intrastate Exemption — New Mexico Securities Act": This statement indicates that the stock is exempt from federal registration requirements under an intrastate exemption provided by the New Mexico Securities Act. The stockholder may only transfer the security within the state boundaries, adhering to the applicable state regulations. 4. "Notice of Restriction on Transfer — Consult Legal Counsel": This legend serves as a reminder to the stockholder that they should consult with legal counsel before attempting to transfer or sell the stock. It emphasizes the importance of understanding the full implications and legal requirements associated with the stock transfer process. These variations of the New Mexico Statement or Legend on Stock Certificate — Notice of Restriction on Transfer — Stock noRegisteredre— - Intrastate Exemption ensure that both the stockholders and the issuing company are aware of the limitations and obligations associated with transferring securities within the state of New Mexico. It helps maintain transparency, regulatory compliance, and the efficient functioning of the state's securities market.

A New Mexico Statement or Legend on a Stock Certificate — Notice of Restrictiotransfereefe— - Stock not Registered — Intrastate Exemption refers to a specific indicator or statement that may be present on a stock certificate issued in the state of New Mexico. This statement informs the holder of the stock of certain restrictions and exemptions associated with the transfer and registration of the stock. The purpose of this statement is to provide legal information and protect the interests of both the company issuing the stock and the stockholders themselves. It ensures compliance with the state's securities laws and regulations, particularly when it comes to the sale and transfer of securities within the state. Keywords: New Mexico, statement, legend, stock certificate, notice of restriction, transfer restriction, stock not registered, intrastate exemption, securities laws, regulations, compliance. Different types of New Mexico Statements or Legends on Stock Certificate — Notice of Restriction on Transfer — Stock noRegisteredre— - Intrastate Exemption may include: 1. "New Mexico State Transfer Restriction": This type of legend indicates that the stock certificate is subject to specific transfer restrictions imposed by the state of New Mexico. It requires the stockholder to abide by certain rules and regulations when transferring the shares. 2. "Stock Not Registered in New Mexico": This legend signifies that the stock represented on the certificate is not registered with the state of New Mexico. It explains that the securities may not be sold or transferred unless they qualify for a specific intrastate exemption. 3. "Intrastate Exemption — New Mexico Securities Act": This statement indicates that the stock is exempt from federal registration requirements under an intrastate exemption provided by the New Mexico Securities Act. The stockholder may only transfer the security within the state boundaries, adhering to the applicable state regulations. 4. "Notice of Restriction on Transfer — Consult Legal Counsel": This legend serves as a reminder to the stockholder that they should consult with legal counsel before attempting to transfer or sell the stock. It emphasizes the importance of understanding the full implications and legal requirements associated with the stock transfer process. These variations of the New Mexico Statement or Legend on Stock Certificate — Notice of Restriction on Transfer — Stock noRegisteredre— - Intrastate Exemption ensure that both the stockholders and the issuing company are aware of the limitations and obligations associated with transferring securities within the state of New Mexico. It helps maintain transparency, regulatory compliance, and the efficient functioning of the state's securities market.