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Corporate Capital Raising

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hummer111

Guest
State VA:
First let me say thank you for providing this service to us! I know you cannot give specific legal advice so here is a hypothetical situation. OK Here is my question.
Suppose the ABC Corp. goes around soliciting private citizens. The goal of this solicitation is to get "equity loans" (for lack of a better term) For example- If the person had a 100K annuity they would sign a contract allowing the ABC Corp. to use it as collateral for obtaining a secured commercial loan. They would of course be paid a set amount of interest for this. Would this be considered the sale of a security? One the one hand the company is paying a return, but on the other hand they are just soliciting loans like every company does. If it is a sale of securities, what would need to be filed to make such a transaction legal?

Thank you so much for your help and wisdom.
 


ALawyer

Senior Member
It would clearly seem to be a solicitation by thee Company of an offer for the sale of securities, and registration under Federal Securities Laws and the State Blue Sky Law may well be required. This sounds like it is preying on seniors and that is scary.
 

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