b'this required step. And there also are many attorneys who will draft the offering documents, but leave it to the issuer to file its own notices. If the Form D is not filed in a timely manner, the safe harbor does not exist and the investment may be at risk, because the presumption will be that you didnt follow the rules. In that case, you could have a bigger burden to prove that you did follow the rest of the rules of the exemption. If you cant prove compliance, the SEC could file an injunction freezing all of the assets of the company and the issuer, and charge you will selling unregistered securities. Defending a charge of the unlicensed or unregistered sale of securities will likely consume all of the assets of the company and could result in a total loss of the investment for the issuer and all of its investors.State Blue Sky Notice Filings for Regulation D, Rule 506 Offerings One of the primary benefits of a federally exempt Regulation D, Rule 506securitiesofferingisthatitgenerallypre-emptsadditionalstate requirementsregardingsuchthingsasadditionalinvestorfinancial qualifications, limits on investment amounts as a percentage of an investors total net worth, or a state securities agencys pre-approval of a securities offering. Most state securities agencies simply require that the issuer send them a copy of the Form D that was filed with the SEC, along with payment of a required filing fee. This is called a Blue Sky notice. ThepurposeoftheseBlueSkynoticefilingsistonotifythestate securities agencies when a security has been sold to one or more or their residents and giving those states information and jurisdiction over the issuer 85'