Kentucky Revised Statutes Title XXV. Business and Financial Institutions § 292.415.Claim of exemption; effect of failure to file

(1) Before any security may be issued as an exempt security under KRS 292.400(9) or (12), a claim of exemption must first be filed with the commissioner and the commissioner by order shall not have determined that the exemption is unavailable within the next ten (10) full business days. A claim of exemption filed under this section shall be in such form and contain such information as the commissioner by rule or order requires and each offering shall be effective for a maximum of twelve (12) consecutive months unless the commissioner by rule or order extends such period of time, not to exceed five (5) years.

(2) The issuer may make offers, but not sales, before and during the ten (10) business day period required by subsection (1) of this section, if:

(3) The commissioner may issue a stop order denying effectiveness to, or suspending or revoking the effectiveness of an exemption, if the commissioner finds that the order is in the public interest and that any security has been or is about to be offered or sold in violation of this section. If the commissioner finds it appropriate in the public interest or necessary for the protection of investors, the commissioner may order any issuer in violation of this section to make an offer of rescission.

(4) Failure by any person to file a claim of exemption under this section shall not give rise to a private right of action under KRS 292.330(1), 292.340, or 292.480 which would not otherwise be available under the provisions of this chapter.

(5) Any person who fails to file a claim of exemption under this section, unless he or she does so intentionally, shall not be subject to KRS 292.991.