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Rule 506
Securities and Exchange Commission (SEC) Regulation D, Rule 506 provides a federal exemption for private offerings without regard to the dollar amount of the offerings. Sales, other than to accredited investors as defined by Regulation D, Rule 501 of the Securities Act of 1933, are limited to no more than 35 purchasers who either alone or with their purchaser representative have the knowledge and experience to evaluate the merits and risks of the offering. Offers and sales of securities under Rule 506 are also exempt in Kansas.

  • Citation: K.A.R. 81-5-15
  • Filing Requirement: Notice filing on Form D shall be made within 15 days after the first sale of the security in Kansas. Since March 16, 2009, electronic filing of Form D has been mandatory for all Forms D filed with the Securities and Exchange Commission (SEC). See Kansas Form D Bulletin Effective March 16, 2009 for Kansas filing requirements.
  • Filing Fee: Timely filing - The fee is $250 for on-time filing. 
    • Late filing - Unless the fee is reduced for good cause shown, the fee for late filing is the greater of $500 or one-tenth of one percent of the dollar value of the securities that were sold to Kansas residents before the date on which the Form D is filed, not to exceed $5,000.
  • Possible Other Exemption: Please note that under K.A.R. 81-5-15(c), a notice filing may not be required if the security being offered or the transaction is exempt under some other exemption, such as the Limited Offering exemption provided by K.S.A. 17-12a202(14).