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Can you summarize 3 AKAC 08.215?
Registration and Notice of Securities > Loans and other material affiliated transactions.
Short Summary
This legal document, part of the Alaska Administrative Code, pertains to loans and other material affiliated transactions made by issuers of securities. The document states that the offer or sale of securities may be disallowed unless the issuer has at least two independent directors on its board. It also outlines specific exemptions for loans or loan guarantees made for certain purposes, such as travel expenses or the purchase of securities by officers, directors, and employees. The document further requires that existing loans be repaid before the offering, unless repayment is made under appropriate amortization schedules or a portion of the offering is made on behalf of a promoter who agrees to repay the loan. Additionally, the document addresses material transactions with promoters, stating that they must be disclosed in the prospectus and approved by independent directors. The issuer is also required to disclose any loans or material transactions with promoters and their terms in the prospectus or offering document. The document emphasizes the importance of due diligence by the issuer and its officers and directors in demonstrating a reasonable basis for representations made. It also highlights the need for at least two independent directors without an interest in the transaction to ratify loans and material transactions. The administrator has discretionary power to waive certain provisions upon the issuer’s petition or as part of a coordinated review with other regulatory jurisdictions.
Whom does it apply to?
Issuers of securities
What does it govern?
Loans and other material affiliated transactions
What are exemptions?
Loans or loan guarantees made for specific purposes and approved by a majority of independent directors without an interest in the transactions
What are the Penalties?
Not specified
Jurisdiction
Alaska