South Carolina Code of Regulations
Chapter 13 - ATTORNEY GENERAL
Article 2 - SECURITIES
Subarticle 3 - REGISTRATION OF SECURITIES AND NOTICE FILING OF FEDERAL COVERED SECURITIES
Section 13-306 - Form and Minimum Provisions for Debt Securities
Universal Citation: SC Code Regs 13-306
Current through Register Vol. 48, 12, December 27, 2024
A. Provisions or terms of an issue of debt securities shall be considered inadequate for the protection of the security holders, and shall be considered grounds for denial of an application for registration under Section 35-1-306(a)(7) which do not as a minimum adequately define the following, either in the security itself or in a trust indenture:
(1) Maturity date which is the date upon
which the principal shall become due and payable. Demand securities, with no
maturity date, will not be accepted.
(2) Interest rate and interest payment
dates.
(3) Assets securing the
issue and the liens thereon, or if none, a statement to that effect.
(4) Conversion feature, if any, including
protection of such feature from dilution.
(5) Position of the issue in the debt
structure of the company, both present and future.
(6) Events of default, including provision
that default in payment either of principal or interest on any one security of
an issue shall constitute a default on the entire issue.
(7) Rights of the security holders in
default, including the right to a list of names and addresses of all holders of
an issue of registered securities in default, if there is no trustee to act for
all holders, and the right of the holders of twenty-five percent (25%) in
principal amount of the issue outstanding to declare the entire issue due and
payable.
(8) Duties of the trustee,
if any.
(9) Call features, if
any.
(10) Denominations in which
issued.
B. The security should be in such form, and bear such descriptive nomenclature, as is customary and recognized in the field of securities.
Disclaimer: These regulations may not be the most recent version. South Carolina may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
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