Title 808 | Chapter 010 | Regulation 430


808 KAR 10:430.Required filing for oil, gas, and mineral securities offerings relying upon the registration exemption in KRS 292.410(1)(i).

Section 1.

Notice of Claim of Registration Exemption; Filing Requirements. To claim a registration exemption pursuant to KRS 292.410(1)(i) for any security that otherwise has available the securities registration exemption in KRS 292.410(1)(i) and evidences an oil, gas, or mineral interest, a person shall file a Notice of Claim of Exemption with the Office of Financial Institutions. The Notice of Claim of Exemption shall include the following:

(1)

A letter containing:

(a)

A declaration that the KRS 292.410(1)(i) exemption will be relied upon;

(b)

A statement as to which condition in KRS 292.410(1)(i)3 is satisfied;

(c)

A representation that persons who receive commissions, finders fees, or other remuneration in connection with sales of securities are in compliance with KRS 292.330;

(d)

A representation that the seller believes that all the buyers are purchasing for investment;

(e)

A representation that each buyer will sign an appropriate "investment intent" letter, a copy of which shall be included with the claim of exemption, stating in part that the buyer is not taking with a view to distribution;

(f)

A representation that the securities to be issued will bear an appropriate restrictive legend, a copy of which shall be submitted with the claim of exemption;

(g)

A representation that the offerees and purchasers shall have access to information concerning the issuer and any persons significant to the success of the undertaking; and

(h)

A representation that public advertising or solicitation shall not be employed in effecting the proposed transaction.

(2)

A copy of the articles of incorporation, bylaws, limited partnership agreement, or other organizational document which reflects the security holders' rights;

(3)

A prospectus, offering circular or memorandum making full disclosure of material facts, including a discussion of all salient risk factors, unless the document was not prepared, because the transaction satisfies the condition in KRS 292.410(1)(i)3a; and

(4)

Current financial statements of the issuer, which shall be filed with the notice and shall be contained in any disclosure document.

HISTORY: (32 Ky.R. 1500; 1893; eff. 5-5-2006; TAm eff. 11-7-2012; Crt eff. 2-27-2020.)

7-Year Expiration: 2/27/2027

Last Updated: 12/15/2021


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