§ 107.800. Financings in the form of Equity Securities.
123 words·~1 min read·
/us/cfr/t13/s§ 107.800·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
(a)You may purchase the Equity Securities of a Small Business. You may not, inadvertently or otherwise:
(1)Become a general partner in any unincorporated business; or
(2)Become jointly or severally liable for any obligations of an unincorporated business.
(b)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). \[61 FR 3189, Jan. 31, 1996, as amended at 74 FR 33915, July 14, 2009\]