§107.800. Financings in the form of Equity Securities.
13 C.F.R. § 107.800
You may purchase the Equity Securities of a Small Business. You may not, inadvertently or otherwise:
Become a general partner in any unincorporated business; or
Become jointly or severally liable for any obligations of an unincorporated business.
Definition. Equity Securities means stock of any class in a corporation, stock options, warrants, limited partnership interests in a limited partnership, membership interests in a limited liability company, or joint venture interests. If the Financing agreement contains debt-type acceleration provisions or includes redemption provisions, other than those permitted under § 107.850, the security will be considered a Debt Security for purposes of § 107.855 and § 107.1150(c)(1).
Notes, amendments, and revision history
Amendments
[61 FR 3189, Jan. 31, 1996, as amended at 74 FR 33915, July 14, 2009]
Authority
Authority: 15 U.S.C. 662, 681-687, 687b-h, 687k-m.
Source
Source: 61 FR 3189, Jan. 31, 1996, unless otherwise noted.
Amendments
[61 FR 3189, Jan. 31, 1996, as amended at 74 FR 33915, July 14, 2009]