17 CFR 230.507 : Commodity And Securities Exchanges (§ 1.1 To Parts 451-499) — (§ 200.1 To § 239.900) — Securities And Exchange Commission (§ 200.1 To § 239.900) — General Rules And Regulations, Securities Act Of 1933 (Subjgrp 35 To § 230.1001) — Regulation D - Rules Governing The Limited Offer And Sale Of Securities Without Registration Under The Securities Act Of 1933 (§ 230.500 To § 230.508) — Disqualifying provision relating to exemptions under §§ 230.504, 230.505 and 230.506.

(a) No exemption under § 230.505, § 230.505 or § 230.506 shall be available for an issuer if such issuer, any of its predecessors or affiliates have been subject to any order, judgment, or decree of any court of competent jurisdiction temporarily, preliminary or permanently enjoining such person for failure to comply with § 230.503.

(b) Paragraph (a) of this section shall not apply if the Commission determines, upon a showing of good cause, that it is not necessary under the circumstances that the exemption be denied.