Section 710IAC4-2-5. Section 18(b)(4)(D), federal covered security notice filing requirement

   (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. (Securities Division; 710 IAC 4-2-5; filed Jun 28, 2010, 2:36 p.m.: 20100728-IR-710100044FRA; readopted filed May 12, 2016, 1:47 p.m.: 20160608-IR-710160136RFA)