South Dakota Rule 144 Seller's Representation Letter Non-Affiliate

• Category: Letters - Seller's Representation
• State: Multi-State
• Control #: US-1044BG
• Format: Word; Rich Text

Description

When you acquire restricted securities or hold control securities, you must find an exemption from the SEC's registration requirements to sell them in a public marketplace. Rule 144 allows public resale of restricted and control securities if a number of conditions are met. Restricted securities are securities acquired in unregistered, private sales from the issuing company or from an affiliate of the issuer. Investors typically receive restricted securities through private placement offerings, Regulation D offerings, employee stock benefit plans, as compensation for professional services, or in exchange for providing "seed money" or start-up capital to the company An affiliate is a person, such as an executive officer, a director or large shareholder, in a relationship of control with the issuer. Control means the power to direct the management and policies of the company in question, whether through the ownership of voting securities, by contract, or otherwise. If you buy securities from a controlling person or "affiliate," you take restricted securities. Attorneys, transfer agents and brokers must be certain that all of the conditions of Rule 144 are met prior to taking action to remove a restrictive legend, but only the Seller can ensure that all the conditions are present at the actual time of sale. In order to protect themselves in issuing opinion letters and removing legends, transfer agents and most attorneys now require a letter from the Seller making certain representations and affirmations regarding their eligibility to rely on Rule 144 in the sale of their securities. This letter is commonly referred to as a Seller's Representation Letter. South Dakota Rule 144 Sellers Representation Letter Non-Affiliate is a legal document required when selling restricted securities, often issued by individuals or entities who are not affiliated with the issuing company. This letter serves as a representation of the seller's intention to comply with the provisions of Rule 144 under the Securities Act of 1933. Keywords: South Dakota, Rule 144, Seller's Representation Letter, Non-Affiliate, restricted securities, securities, issuing company, provisions, Securities Act of 1933. There are no distinct types of South Dakota Rule 144 Sellers Representation Letter Non-Affiliate as the content generally follows a standard format. However, different variations might exist depending on specific details such as the nature of the securities, the parties involved, and other relevant factors.

South Dakota Rule 144 Sellers Representation Letter Non-Affiliate is a legal document required when selling restricted securities, often issued by individuals or entities who are not affiliated with the issuing company. This letter serves as a representation of the seller's intention to comply with the provisions of Rule 144 under the Securities Act of 1933. Keywords: South Dakota, Rule 144, Seller's Representation Letter, Non-Affiliate, restricted securities, securities, issuing company, provisions, Securities Act of 1933. There are no distinct types of South Dakota Rule 144 Sellers Representation Letter Non-Affiliate as the content generally follows a standard format. However, different variations might exist depending on specific details such as the nature of the securities, the parties involved, and other relevant factors.