H.R.3991 - Small Business Investment Incentive Act of 197996th Congress (1979-1980)
|Sponsor:||Rep. Broyhill, James T. [R-NC-10] (Introduced 05/08/1979)|
|Committees:||House - Commerce|
|Latest Action:||House - 05/08/1979 Referred to House Committee on Interstate and Foreign Commerce. (All Actions)|
This bill has the status Introduced
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Summary: H.R.3991 — 96th Congress (1979-1980)All Information (Except Text)
Introduced in House (05/08/1979)
Small Business Investment Incentive Act of 1979 - Amends the Securities Act of 1933 to include within the private offering exemption from full registration any transaction involving securities bearing a legend stating that such securities may not be sold or transferred except to accredited investors provided all purchasers of such securities are accredited investors or persons the issuer reasonably believes to be accredited investors and there is no general advertising or solicitation in connection with the transaction. Defines the term "accredited investor" to include: (1) banks, insurance companies, investment companies and their subsidiaries, and any fund, trust or account administered by a bank or insurance company; (2) persons designated by regulation of the Securities and Exchange Commission on the basis of expertise or net worth; and (3) persons who rely on the investment advice of a qualified accredited investor.
States that a person engaging in the sale or distribution of restricted securities (securities acquired in a transaction or chain of transactions not involving any public offering) shall not be considered an underwriter if such person has been the beneficial owner for at least five years.
Limits civil liability in connection with the sale of securities in private offerings.
Amends the Investment Company Act of 1940 to grant an exemption from such Act to certain issuers which engage in the business of furnishing capital or providing business ventures and activities, purchasing securities for which no ready market is in existence, or reorganizing companies.
Directs the Securities and Exchange Commission to prescribe necessary rules and regulations within 180 days after the date of enactment of this Act.