Montgomery Maryland Statement or Legend on Stock Certificate - Notice of Restriction on Transfer - Stock not Registered - Intrastate Exemption

• Category: Corporations - Shareholders and Stock
• State: Multi-State
• County: Montgomery
• 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. Montgomery Maryland Statement or Legend on Stock Certificate — Notice of Restrictiotransfereefe— - Stock not Registered — Intrastate Exemption The Montgomery Maryland Statement or Legend on a stock certificate refers to a notice of restriction on the transfer of stock within Montgomery County, Maryland. This statement is commonly found on stock certificates issued by companies incorporated in Montgomery County. The purpose of this statement is to inform the holder of the stock certificate that the stock being held is not registered for unrestricted transfer, indicating that certain limitations or restrictions apply to the ability to sell, transfer, or exchange the stock. The specific details and language of the Montgomery Maryland Statement or Legend may vary, but typically it includes information regarding the restrictions on transfer, the reason for the restriction, and any applicable exemptions that allow intrastate (within the state) transfers. One common type of restriction included in this statement is the "Notice of Restriction on Transfer." This notice highlights that the transfer of the stock is subject to certain restrictions imposed by Montgomery County authorities or regulatory bodies. Another type of statement or legend that may be included is the "Stock not Registered" indication. This indicates that the stock in question has not been registered under federal securities laws or regulations, further emphasizing the need for caution and compliance with the specified restrictions. Additionally, the term "Intrastate Exemption" may be mentioned in the statement. This implies that there are exemptions or exceptions to the restriction on transfer, allowing limited sales, transfers, or exchanges of the stock to occur within the geographical boundaries of Montgomery County. These exemptions could be linked to specific rules, laws, or regulations governing the county's intrastate securities transactions. In summary, the Montgomery Maryland Statement or Legend on Stock Certificate — Notice of Restrictiotransfereefe— - Stock not Registered — Intrastate Exemption serves as a disclosure and warning to the holder of the stock certificate that their ability to transfer the stock within Montgomery County is limited due to restrictions imposed by the county or lack of federal registration. It is important for shareholders to familiarize themselves with the specific language and restrictions mentioned in this statement to ensure compliance with applicable regulations and to make informed decisions when dealing with their stock holdings.

Montgomery Maryland Statement or Legend on Stock Certificate — Notice of Restrictiotransfereefe— - Stock not Registered — Intrastate Exemption The Montgomery Maryland Statement or Legend on a stock certificate refers to a notice of restriction on the transfer of stock within Montgomery County, Maryland. This statement is commonly found on stock certificates issued by companies incorporated in Montgomery County. The purpose of this statement is to inform the holder of the stock certificate that the stock being held is not registered for unrestricted transfer, indicating that certain limitations or restrictions apply to the ability to sell, transfer, or exchange the stock. The specific details and language of the Montgomery Maryland Statement or Legend may vary, but typically it includes information regarding the restrictions on transfer, the reason for the restriction, and any applicable exemptions that allow intrastate (within the state) transfers. One common type of restriction included in this statement is the "Notice of Restriction on Transfer." This notice highlights that the transfer of the stock is subject to certain restrictions imposed by Montgomery County authorities or regulatory bodies. Another type of statement or legend that may be included is the "Stock not Registered" indication. This indicates that the stock in question has not been registered under federal securities laws or regulations, further emphasizing the need for caution and compliance with the specified restrictions. Additionally, the term "Intrastate Exemption" may be mentioned in the statement. This implies that there are exemptions or exceptions to the restriction on transfer, allowing limited sales, transfers, or exchanges of the stock to occur within the geographical boundaries of Montgomery County. These exemptions could be linked to specific rules, laws, or regulations governing the county's intrastate securities transactions. In summary, the Montgomery Maryland Statement or Legend on Stock Certificate — Notice of Restrictiotransfereefe— - Stock not Registered — Intrastate Exemption serves as a disclosure and warning to the holder of the stock certificate that their ability to transfer the stock within Montgomery County is limited due to restrictions imposed by the county or lack of federal registration. It is important for shareholders to familiarize themselves with the specific language and restrictions mentioned in this statement to ensure compliance with applicable regulations and to make informed decisions when dealing with their stock holdings.