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Effective Date
Practical Law Glossary Item 4-382-3432 (Approx. 3 pages)
Glossary
Effective Date
This term has a number of meanings. In the context of:
- Bankruptcy: The date on which the obligations, duties and rights under a plan of reorganization take effect. It generally occurs after the bankruptcy court confirms the plan. Often there are one or more conditions precedent before the effective date can occur, such as the condition that the debtor obtain adequate exit financing.
- Securities and capital markets: The date sales of securities to the public under a Securities Act registration statement can begin or the date on which an Exchange Act registration statement becomes effective. Depending on the status of the issuer under the federal securities laws and the type of registration statement, this is the date:
- of the SEC order declaring the registration statement effective;
- the registration statement is filed and becomes automatically effective under Rule 462(e) under the Securities Act;
- 20 days after the registration statement is filed, when it becomes automatically effective under Section 8(a) of the Securities Act; or
- 60 days after the initial filing of a registration statement under Section 12(g) of the Exchange Act.
For more information on the securities registration process, see Practice Note, Registration Process: Overview. For information on automatically effective registration statements, see Practice Note, Benefits of Being a WKSI.
For information on the provisions of the Securities Act concerning timing for offers, sales, delivery of securities and delivery of prospectuses by issuers, underwriters, brokers or dealers to the purchasers of the offered securities, see Registration and Prospectus Delivery Requirements Under the Securities Act: Chart.