Why wasn't there a 506(a)?

2 Replies

Rule 506 under Reg D was split into 506(b) and 506(c). Anyone know why they didn't call them 506(a) and 506(b)? 

@Shafi Noss

Here's the statute: 

https://www.ecfr.gov/cgi-bin/text-idx?SID=0a94ea1a8a9ecce212ec25025efed3af&node=17:3.0.1.1.12.0.46.181&rgn=div8

In essence, Section 506(a) states that there are certain exemptions that apply if you meet the requirements under Section 506(b) and 506(c). That's the only reason. :)

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