Illinois Administrative Code
Title 14 - COMMERCE
Part 130 - REGULATIONS UNDER ILLINOIS SECURITIES LAW OF 1953
Subpart B - DEFINITIONS
Section 130.216 - Definition of "Participates" and "Participation", as Used in Section 2.6 of the Act in Relation to Certain Transactions
Universal Citation: 14 IL Admin Code ยง 130.216
Current through Register Vol. 48, No. 12, March 22, 2024
a) The terms "participates" and "participation" in Section 2.6 of the Act shall not include the interest of a person
1) who is not in privity of contract
with the issuer nor directly or indirectly controlling, controlled by or under
common control with, the issuer, and
2) who has no association with any principal
underwriter of the securities being distributed, and
3) whose function in the distribution is
confined to an undertaking to purchase all or some specified portion of the
securities remaining unsold after the lapse of some specified period of time,
and
4) who purchases the securities
for investment and not with a view to distribution.
b) As used in this Part the term "association" shall include a relationship between two persons under which one:
1) is an affiliate of the other, or
2) has, in common with the other, one or more
partners, officers, directors, trustees, branch managers, or other persons
occupying a similar status or performing similar functions, or
3) has a substantial participation, direct or
indirect, in the profits of the other, or has a substantial financial interest,
by debtor-creditor relationship, stock ownership, contract or otherwise, in the
income or business of the other.
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