17-12a201.   Exempt securities.The following securities are exempt from therequirements ofK.S.A. 17-12a301 through 17-12a306 and 17-12a504,and amendments thereto:

      (1)   A security, including a revenue obligation or a separatesecurity as defined in Rule 131 (17 C.F.R. 230.131) adopted underthe securities act of 1933, issued, insured, or guaranteed by theUnited States; by a state; by a political subdivision of a state;by a public authority, agency, or instrumentality of one or more states; by apolitical subdivision of one or more states; or by aperson controlled or supervised by and acting as an instrumentalityof the United States under authority granted by the congress; or acertificate of deposit for any of the foregoing;

      (2)   a security issued, insured, or guaranteed by a foreigngovernment with which the United States maintains diplomaticrelations, or any of its political subdivisions, if the security isrecognized as a valid obligation by the issuer, insurer, orguarantor;

      (3)   a security issued by and representing or that willrepresent an interest in or a direct obligation of, or beguaranteed by:

      (A)   An international banking institution;

      (B)   a banking institution organized under the laws of theUnited States; a member bank of the federal reserve system; or adepository institution a substantial portion of the business ofwhich consists or will consist of receiving deposits or shareaccounts that are insured to the maximum amount authorized bystatute by the federal deposit insurance corporation, the nationalcredit union share insurance fund, or a successor authorized byfederal law or exercising fiduciary powers that are similar tothose permitted for national banks under the authority of thecomptroller of currency pursuant to section 1 of public law 87-722(12 U.S.C. section 92a); or

      (C)   any other depository institution, unless by rule or order theadministrator proceeds underK.S.A.17-12a204, and amendmentsthereto;

      (4)   a security issued by and representing an interest in, ora debt of, or insured or guaranteed by, an insurance companyauthorized to do business in this state;

      (5)   a security issued or guaranteed by a railroad, othercommon carrier, public utility, or public utility holding companythat is:

      (A)   Regulated in respect to its rates and charges by theUnited States or a state;

      (B)   regulated in respect to the issuance or guarantee of thesecurity by the United States, a state, Canada, or a Canadianprovince or territory; or

      (C)   a public utility holding company registered under thepublic utility holding company act of 1935 or a subsidiary of sucha registered holding company within the meaning of that act;

      (6) (A)   a federal covered security specified in section18(b)(1) of the securities act of 1933 (15 U.S.C. section77r(b)(1)) or by rule adopted under that provision;

      (B)   a security listed or approved for listing on anothersecurities market specified by rule under this act;

      (C)   a put or a call option contract; a warrant; or asubscription right on or with respect to securities described insubsections (A) or (B);

      (D)   an option or similar derivative security on a security oran index of securities or foreign currencies issued by a clearing agencyregistered under the securities exchange act of 1934 andlisted or designated for trading on a national securities exchange,a facility of a national securities exchange, or a facility of anational securities association registered under the securitiesexchange act of 1934;

      (E)   an offer or sale of the underlying security in connectionwith the offer, sale, or exercise of an option or other securitythat was exempt when the option or other security was written orissued; or

      (F)   an option or a derivative security designated by thesecurities and exchange commission under section 9(b) of thesecurities exchange act of 1934 (15 U.S.C. section 78i(b));

      (7)   a security issued by a person organized and operatedexclusively for religious, educational, benevolent, fraternal,charitable, social, athletic, or reformatory purposes, or as achamber of commerce, and not for pecuniary profit, no part of thenet earnings of which inures to the benefit of a privatestockholder or other person, or a security of a company that isexcluded from the definition of an investment company under Section3(c)(10)(B) of the investment company act of 1940 (15 U.S.C.section 80a-3(c)(10)(B)). With respect to the offer or sale of anote, bond, debenture, or other evidence of indebtedness issued bysuch a person, a rule may be adopted under this act limiting theavailability of this exemption by classifying securities, persons,and transactions, imposing different requirements for different classes,specifying with respect to paragraph (B) the scope of theexemption and the grounds for denial or suspension, and requiringan issuer:

      (A)   To file a notice specifying the material terms of theproposed offer or sale and copies of any proposed sales andadvertising literature to be used and provide that the exemptionbecomes effective if the administrator does not disallow theexemption within the period established by the rule;

      (B)   to file a request for exemption authorization for which arule under this act may specify the scope of the exemption, therequirement of an offering statement, the filing of sales andadvertising literature, the filing of consent to service of processcomplying withK.S.A. 17-12a611, and grounds for denial orsuspension ofthe exemption; or

      (C)   to register under K.S.A. 17-12a304;

      (8)   any stock or other security evidencing membershipor ownership in, evidencing the right to patronize, issued in lieu of a cashpatronage dividend by, or representing a debt of a cooperative organized underK.S.A. 17-1601 et seq., and amendments thereto, but the administrator, by ruleor order, may require the filing of a notice and place conditions upon theexemption for sales of securities to persons who are not members within themeaning of K.S.A. 17-1606, and amendments thereto; and

      (9)   an equipment trust certificate with respect to equipmentleased or conditionally sold to a person, if any security issued bythe person would be exempt under this section or would be a federal coveredsecurity under Section 18(b)(1) of the securities act of1933 (15 U.S.C. section 77r(b)(1)).

      History:   L. 2004, ch. 154, § 6; July 1, 2005.