What regulations govern the issuance of collateralized debt obligations?

In Kansas, alternative investments like collateralized debt obligations (CDOs) are subject to the Alternative Investment Securities Act (AISA) and the regulations set forth by the Kansas Office of the Securities Commissioner. Under AISA, CDOs must be registered with the state prior to issuance and must be accompanied by a disclosure document that provides information about the issuer, risks involved, and background of the CDO. Additionally, CDOs may only be issued to qualified buyers, meaning those who meet certain financial requirements such as income, net worth, or experience in the securities market. Issuers must also comply with the requirements of the federal Securities Act of 1933 and the Securities Exchange Act of 1934 in order to register the CDO. Finally, CDO issuers must provide a prospectus, which is a detailed document that outlines the offering terms, investment objectives, risks, and other important information regarding the CDO. Furthermore, the prospectus must include financial statements and a statement of material fact. The information provided must be accurate and complete in order for the CDO to be eligible for sale in Kansas.

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What regulations govern the issuance of collateralized debt obligations?

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