Rule 144 pledged securities

Pledged securities. Rule 144(d)(3)(iv) permits a pledgee, who is allowed to rely on Rule 144 for the resale of the restricted pledged securities, to tack the holding period of an affiliate pledgor onto its holding period following a default by the pledgor under the pledge agreement.

What is Rule 144 of the Securities Act?

Rule 144 provides an exemption and permits the public resale of restricted or control securities if a number of conditions are met, including how long the securities are held, the way in which they are sold, and the amount that can be sold at any one time.

Can you pledge restricted securities?

THESE SECURITIES MAY NOT BE OFFERED, SOLD OR OTHERWISE TRANSFERRED, PLEDGED OR HYPOTHECATED EXCEPT AS PERMITTED UNDER THE ACT AND APPLICABLE STATE SECURITIES LAWS PURSUANT TO REGISTRATION OR AN EXEMPTION THEREFROM.

What is the rule 144 holding period?

The Rule 144 holding period for the resale of restricted securities is six months from the date of sale for securities issued by a reporting issuer or one year from the date of sale for securities issued by a non-reporting issuer.

Are stock options subject to Rule 144?

SEC Rule 144 governs the sale of restricted and controlled securities including the shares resulting from your private company stock options.