Authority: IC
23-19-2
Affected: IC
23-19-5-1; IC
23-19-6-11
Sec. 5.
(a) Nothing
in this exemption is intended to or should be construed as in any way relieving
issuers or persons acting on behalf of issuers from providing disclosure to
prospective investors adequate to satisfy the antifraud provisions of IC
23-19-5-1.
(b) In view of the:
(1) objective of this section; and
(2) purposes and policies underlying IC
23-19;
the exemption created by this section is not available to any
issuer with respect to any transaction that, although in technical compliance
with this section, is part of a plan or scheme to evade registration or the
conditions or limitations explicitly stated in this section.
(c) Nothing in this section is
intended to relieve broker-dealers or agents from the:
(1) due diligence;
(2) suitability; or
(3) know your customer;
standards or any other requirements of law otherwise
applicable to these persons.
(d) An issuer of a federal covered security
under Section 18(b)(4)(D) of the Securities Act of 1933 (15 U.S.C.
77r(b)(4)(D)) is required to
submit a notice filing, which shall include a Form D, and any other documents
required by the commissioner not later than fifteen (15) days after the first
sale of the federal covered security in this state or the first business day
following the fifteenth day after the first sale of the federal covered
security in this state if the fifteenth day is a holiday or weekend.
(e) Transactions that are exempt under this
section may not be combined with offers and sales exempt under any other rule
or section of IC 23-19; however, nothing in this limitation shall act as an
election. Should, for any reason, the offer and sale fail to comply with all of
the conditions for this exemption, the issuer may claim the availability of any
other applicable exemption.
