Exemption from State Securities Registration

General

It is unlawful for any district to issue bonds or for any other person to make a distribution of such bonds unless they are first registered with the securities commissioner under section 11-59-108, C.R.S. or unless the issuance of bonds is exempted under section 11-59-110, C.R.S.

Claims for exemption must be filed at least five days (not business days) prior to the first sale of such bonds (Section 11-59-110(2), C.R.S.).

Procedure for Private Placements

In the case of a private placement without disclosure documents, the exemption form is to be submitted to the state division of securities indicating an expected issue date along with a substantially final resoluton (and indenture, if applicable). Upon issuance and delivery, the final resolution (and indenture) is to be accompanied by a copy of the approved exemption form on which the final issue date is noted. Procedures may vary by state, and the description above applies only to one particular state, intentionally not identified by the author.

Entities Subject to Exemption Form

Entities subject to exemption include special districts, municipal general improvement districts, municipal special improvement districts, county local improvement districts and county public improvement districts (Section 11-59-103, C.R.S.).  Parks and recreation districts are special districts (Section 32-1-103(14), C.R.S.).  No exemption filing is needed for business improvement districts.

Related Entries

State Securities Laws

Miscellaneous District Financing Rules (Form DLG-32)

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