H
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.
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.