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Can I offer equity to investors without violating securities laws in Montana? What are the requirements?

Offering Equity to Investors in Montana

To offer equity to investors in Montana, you must comply with the securities laws of Montana. The Montana Code Annotated (MCA) Title 30, Chapter 10, Parts 1 through 3, outlines the registration and notice filing requirements of broker-dealers, salespersons, investment advisers, and investment adviser representatives [2.1].

Exemptions from Registration

The MCA provides exemptions from registration for certain securities [1.1]. For example, securities issued or guaranteed by the United States, any state, any political subdivision of a state, or any agency or corporate or other instrumentality of one or more of those entities are exempt from registration [1.1]. Additionally, securities issued by and representing an interest in or a debt of or guaranteed by a bank organized under the laws of the United States or a bank, savings institution, or trust company organized and supervised under the laws of any state are exempt from registration [1.1].

Requirements for Exempt Securities

However, certain exempt securities may still be subject to certain requirements. For example, securities issued by any of the entities listed above that are payable solely from payments to be received in respect to property or money used under a lease, sale, or loan arrangement by or for a nongovernmental industrial or commercial enterprise are subject to registration unless the enterprise or any security of which it is the issuer is within any of the exemptions listed in subsections (2) through (15) [1.1].

Conclusion

In summary, to offer equity to investors in Montana, you must comply with the securities laws of Montana. Certain securities may be exempt from registration, but may still be subject to certain requirements. It is recommended that you consult with a legal professional to ensure compliance with Montana securities laws.

Source(s):
Jurisdiction

Montana