S.C. Code Regs. § § 13-306

Current through Register Vol. 48, No. 11, November 22, 2024

Section 13-306 - Form and Minimum Provisions for Debt Securities

A. Provisions or terms of an issue of debt securities shall be considered inadequate for the protection of the security holders, and shall be considered grounds for denial of an application for registration under Section 35-1-306(a)(7) which do not as a minimum adequately define the following, either in the security itself or in a trust indenture:

(1) Maturity date which is the date upon which the principal shall become due and payable. Demand securities, with no maturity date, will not be accepted.

(2) Interest rate and interest payment dates.

(3) Assets securing the issue and the liens thereon, or if none, a statement to that effect.

(4) Conversion feature, if any, including protection of such feature from dilution.

(5) Position of the issue in the debt structure of the company, both present and future.

(6) Events of default, including provision that default in payment either of principal or interest on any one security of an issue shall constitute a default on the entire issue.

(7) Rights of the security holders in default, including the right to a list of names and addresses of all holders of an issue of registered securities in default, if there is no trustee to act for all holders, and the right of the holders of twenty-five percent (25%) in principal amount of the issue outstanding to declare the entire issue due and payable.

(8) Duties of the trustee, if any.

(9) Call features, if any.

(10) Denominations in which issued.

B. The security should be in such form, and bear such descriptive nomenclature, as is customary and recognized in the field of securities.

S.C. Code Regs. § 13-306

Added by State Register Volume 30, Issue No. 6, eff June 23, 2006.