General Rules and Regulations
Securities Act of 1933
Rule 260 -- Insignificant Deviations from a Term, Condition or Requirement of Regulation A
A failure to comply with a term, condition or requirement
of Regulation A will not result in the loss of the exemption from the requirements
of section 5 of the Securities Act for any offer
or sale to a particular individual or entity, if the person relying on the exemption
the failure to comply did not pertain to a term,
condition or requirement directly intended to protect that particular individual
the failure to comply was insignificant with respect
to the offering as a whole, provided that any failure to comply with paragraphs
(a), (b), (d)(1) and (3) of rule 251 shall be deemed
to be significant to the offering as a whole; and
a good faith and reasonable attempt was made to comply
with all applicable terms, conditions and requirements of Regulation A.
A transaction made in reliance upon Regulation A shall
comply with all applicable terms, conditions and requirements of the regulation.
Where an exemption is established only through reliance upon paragraph (a) of this
section, the failure to comply shall nonetheless be actionable by the Commission
under section 20 of the Act.
This provision provides no relief or protection from
a proceeding under rule 258.
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