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Programme limit: Difference between revisions
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{{a|contract|{{stupidbanker}}}}On the question of “why you don’t mess around with the [[Securities Act of 1933]]”, here is a choice little titbit. | Ordinarily — and as we will see, here, “ordinarily”, in the sense of “as long as you are not in America”, is an important caveat — the programme limit inserted in an [[Medium term note|MTN programme]] is a mere bagatelle: an arbitrary number included only out of a time-honoured sense of it being the right thing to do, since generations of legal eagles before us have always done it — that being the most compelling reason any legal eagle ever does anything.{{a|contract|{{stupidbanker}}}} | ||
Outside, it’s America | |||
“Ordinarily” doesn’t count for anything if your programme is an SEC-registered [[shelf]], however. In that case, your programme limit could not be ''less'' of a bagatelle. Inattention to it may bankrupt you. On the question of “why you don’t mess around with the [[Securities Act of 1933]]”, here is a choice little titbit. | |||
{{quote|Violations of the registration provisions of Section 5 of the [[Securities Act of 1933]] provide the purchaser a right to [[rescind]] the transaction within one-year under Sections 12(a)(1) and 14. }} | {{quote|Violations of the registration provisions of Section 5 of the [[Securities Act of 1933]] provide the purchaser a right to [[rescind]] the transaction within one-year under Sections 12(a)(1) and 14. }} | ||
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If you accidentally overissue structured notes linked to the VIX index to the tune of — ooh, $15 billion — and then the VIX index tanks ... Well, good luck explaining that on your next quarterly call. | If you accidentally overissue structured notes linked to the VIX index to the tune of — ooh, $15 billion — and then the VIX index tanks ... Well, good luck explaining that on your next quarterly call. | ||
We are partly sympathetic to ''Das Blau Adler'': this is an absurd, draconian and utterly unjust outcome — but on the other hand, rules is rules; that’s the first thing any American Securities lawyer learns, right? Section 5 of the [[Securities Act of 1933]]: it’s on like about page 4<ref>Of course it isn’t page 4. There are hundreds and hundreds of definitions and preliminaries, but you get my point right?</ref> | We are partly sympathetic to ''Das Blau Adler'': this is an absurd, draconian and utterly unjust outcome — but on the other hand, rules is rules; that’s the first thing any American Securities lawyer learns, right? Section 5 of the [[Securities Act of 1933]]: it’s on like about page 4.<ref>Of course it isn’t page 4. There are hundreds and hundreds of definitions and preliminaries, but you get my point right?</ref> | ||
{{sa}} | {{sa}} | ||
*[[Roll of honour]] | *[[Roll of honour]] | ||
{{ref}} | {{ref}} | ||
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