409.2-201. The following securities are exempt from the requirementsof sections 409.3-301 to 409.3-306 and 409.5-504:
(1) A security, including a revenue obligation or a separate securityas defined in Rule 131 (17 C.F.R. 230.131) adopted under the Securities Actof 1933, issued, insured, or guaranteed by the United States; by a state;by a political subdivision of a state; by a public authority, agency, orinstrumentality of one or more states; by a political subdivision of one ormore states; or by a person controlled or supervised by and acting as aninstrumentality of the United States under authority granted by theCongress; or a certificate of deposit for any of the foregoing;
(2) A security issued, insured, or guaranteed by a foreign governmentwith which the United States maintains diplomatic relations, or any of itspolitical subdivisions, if the security is recognized as a valid obligationby the issuer, insurer, or guarantor;
(3) A security issued by and representing or that will represent aninterest in or a direct obligation of, or be guaranteed by:
(A) An international banking institution;
(B) A banking institution organized under the laws of the UnitedStates; a member bank of the Federal Reserve System; or a depositoryinstitution a substantial portion of the business of which consists or willconsist of receiving deposits or share accounts that are insured to themaximum amount authorized by statute by the Federal Deposit InsuranceCorporation, the National Credit Union Share Insurance Fund, or a successorauthorized by federal law or exercising fiduciary powers that are similarto those permitted for national banks under the authority of theComptroller of Currency pursuant to Section 1 of Public Law 87-722 (12U.S.C. Section 92a); or
(C) Any other depository institution, or any trust company organizedor chartered under the laws of this state, unless by rule or order thecommissioner proceeds under section 409.2-204;
(4) A security issued by and representing an interest in, or a debtof, or insured or guaranteed by, an insurance company authorized to dobusiness in this state;
(5) A security issued or guaranteed by a railroad, other commoncarrier, public utility, or public utility holding company that is:
(A) Regulated in respect to its rates and charges by the UnitedStates or a state;
(B) Regulated in respect to the issuance or guarantee of the securityby the United States, a state, Canada, or a Canadian province or territory;or
(C) A public utility holding company registered under the PublicUtility Holding Company Act of 1935 or a subsidiary of such a registeredholding company within the meaning of that act;
(6) A federal covered security specified in Section 18(b)(1) of theSecurities Act of 1933 (15 U.S.C. Section 77r(b)(1)) or by rule adoptedunder that provision or a security listed or approved for listing onanother securities market specified by rule under this act; a put or a calloption contract; a warrant; a subscription right on or with respect to suchsecurities; or an option or similar derivative security on a security or anindex of securities or foreign currencies issued by a clearing agencyregistered under the Securities Exchange Act of 1934 and listed ordesignated for trading on a national securities exchange, a facility of anational securities exchange, or a facility of a national securitiesassociation registered under the Securities Exchange Act of 1934 or anoffer or sale, of the underlying security in connection with the offer,sale, or exercise of an option or other security that was exempt when theoption or other security was written or issued; or an option or aderivative security designated by the Securities and Exchange Commissionunder Section 9(b) of the Securities Exchange Act of 1934 (15 U.S.C.Section 78i(b));
(7) A security issued by a person organized and operated exclusivelyfor religious, educational, benevolent, fraternal, charitable, social,athletic, or reformatory purposes, or as a chamber of commerce, and not forpecuniary profit, no part of the net earnings of which inures to thebenefit of a private stockholder or other person, or a security of acompany that is excluded from the definition of an investment company underSection 3(c)(10)(B) of the Investment Company Act of 1940 (15 U.S.C.Section 80a-3(c)(10)(B)); except that with respect to the offer or sale ofa note, bond, debenture, or other evidence of indebtedness issued by such aperson, a rule may be adopted under this act limiting the availability ofthis exemption by classifying securities, persons, and transactions,imposing different requirements for different classes, specifying withrespect to paragraph (B) the scope of the exemption and the grounds fordenial or suspension, and requiring an issuer:
(A) To file a notice specifying the material terms of the proposedoffer or sale and copies of any proposed sales and advertising literatureto be used and provide that the exemption becomes effective if thecommissioner does not disallow the exemption within the period establishedby the rule;
(B) To file a request for exemption authorization for which a ruleunder this act may specify the scope of the exemption, the requirement ofan offering statement, the filing of sales and advertising literature, thefiling of consent to service of process complying with section 409.6-611,and grounds for denial or suspension of the exemption; or
(C) To register under section 409.3-304;
(8) A member's or owner's interest in, or a retention certificate orlike security given in lieu of a cash patronage dividend issued by, acooperative organized and operated as a nonprofit membership cooperativeunder the cooperative laws of a state, but not a member's or owner'sinterest, retention certificate, or like security sold to persons otherthan bona fide members of the cooperative; and
(9) An equipment trust certificate with respect to equipment leasedor conditionally sold to a person, if any security issued by the personwould be exempt under this section or would be a federal covered securityunder Section 18(b)(1) of the Securities Act of 1933 (15 U.S.C. Section77r(b)(1)).
409.2-201. The following securities are exempt from the requirementsof sections 409.3-301 to 409.3-306 and 409.5-504:
(1) A security, including a revenue obligation or a separate securityas defined in Rule 131 (17 C.F.R. 230.131) adopted under the Securities Actof 1933, issued, insured, or guaranteed by the United States; by a state;by a political subdivision of a state; by a public authority, agency, orinstrumentality of one or more states; by a political subdivision of one ormore states; or by a person controlled or supervised by and acting as aninstrumentality of the United States under authority granted by theCongress; or a certificate of deposit for any of the foregoing;
(2) A security issued, insured, or guaranteed by a foreign governmentwith which the United States maintains diplomatic relations, or any of itspolitical subdivisions, if the security is recognized as a valid obligationby the issuer, insurer, or guarantor;
(3) A security issued by and representing or that will represent aninterest in or a direct obligation of, or be guaranteed by:
(A) An international banking institution;
(B) A banking institution organized under the laws of the UnitedStates; a member bank of the Federal Reserve System; or a depositoryinstitution a substantial portion of the business of which consists or willconsist of receiving deposits or share accounts that are insured to themaximum amount authorized by statute by the Federal Deposit InsuranceCorporation, the National Credit Union Share Insurance Fund, or a successorauthorized by federal law or exercising fiduciary powers that are similarto those permitted for national banks under the authority of theComptroller of Currency pursuant to Section 1 of Public Law 87-722 (12U.S.C. Section 92a); or
(C) Any other depository institution, or any trust company organizedor chartered under the laws of this state, unless by rule or order thecommissioner proceeds under section 409.2-204;
(4) A security issued by and representing an interest in, or a debtof, or insured or guaranteed by, an insurance company authorized to dobusiness in this state;
(5) A security issued or guaranteed by a railroad, other commoncarrier, public utility, or public utility holding company that is:
(A) Regulated in respect to its rates and charges by the UnitedStates or a state;
(B) Regulated in respect to the issuance or guarantee of the securityby the United States, a state, Canada, or a Canadian province or territory;or
(C) A public utility holding company registered under the PublicUtility Holding Company Act of 1935 or a subsidiary of such a registeredholding company within the meaning of that act;
(6) A federal covered security specified in Section 18(b)(1) of theSecurities Act of 1933 (15 U.S.C. Section 77r(b)(1)) or by rule adoptedunder that provision or a security listed or approved for listing onanother securities market specified by rule under this act; a put or a calloption contract; a warrant; a subscription right on or with respect to suchsecurities; or an option or similar derivative security on a security or anindex of securities or foreign currencies issued by a clearing agencyregistered under the Securities Exchange Act of 1934 and listed ordesignated for trading on a national securities exchange, a facility of anational securities exchange, or a facility of a national securitiesassociation registered under the Securities Exchange Act of 1934 or anoffer or sale, of the underlying security in connection with the offer,sale, or exercise of an option or other security that was exempt when theoption or other security was written or issued; or an option or aderivative security designated by the Securities and Exchange Commissionunder Section 9(b) of the Securities Exchange Act of 1934 (15 U.S.C.Section 78i(b));
(7) A security issued by a person organized and operated exclusivelyfor religious, educational, benevolent, fraternal, charitable, social,athletic, or reformatory purposes, or as a chamber of commerce, and not forpecuniary profit, no part of the net earnings of which inures to thebenefit of a private stockholder or other person, or a security of acompany that is excluded from the definition of an investment company underSection 3(c)(10)(B) of the Investment Company Act of 1940 (15 U.S.C.Section 80a-3(c)(10)(B)); except that with respect to the offer or sale ofa note, bond, debenture, or other evidence of indebtedness issued by such aperson, a rule may be adopted under this act limiting the availability ofthis exemption by classifying securities, persons, and transactions,imposing different requirements for different classes, specifying withrespect to paragraph (B) the scope of the exemption and the grounds fordenial or suspension, and requiring an issuer:
(A) To file a notice specifying the material terms of the proposedoffer or sale and copies of any proposed sales and advertising literatureto be used and provide that the exemption becomes effective if thecommissioner does not disallow the exemption within the period establishedby the rule;
(B) To file a request for exemption authorization for which a ruleunder this act may specify the scope of the exemption, the requirement ofan offering statement, the filing of sales and advertising literature, thefiling of consent to service of process complying with section 409.6-611,and grounds for denial or suspension of the exemption; or
(C) To register under section 409.3-304;
(8) A member's or owner's interest in, or a retention certificate orlike security given in lieu of a cash patronage dividend issued by, acooperative organized and operated as a nonprofit membership cooperativeunder the cooperative laws of a state, but not a member's or owner'sinterest, retention certificate, or like security sold to persons otherthan bona fide members of the cooperative; and
(9) An equipment trust certificate with respect to equipment leasedor conditionally sold to a person, if any security issued by the personwould be exempt under this section or would be a federal covered securityunder Section 18(b)(1) of the Securities Act of 1933 (15 U.S.C. Section77r(b)(1)).
409.2-201. The following securities are exempt from the requirementsof sections 409.3-301 to 409.3-306 and 409.5-504:
(1) A security, including a revenue obligation or a separate securityas defined in Rule 131 (17 C.F.R. 230.131) adopted under the Securities Actof 1933, issued, insured, or guaranteed by the United States; by a state;by a political subdivision of a state; by a public authority, agency, orinstrumentality of one or more states; by a political subdivision of one ormore states; or by a person controlled or supervised by and acting as aninstrumentality of the United States under authority granted by theCongress; or a certificate of deposit for any of the foregoing;
(2) A security issued, insured, or guaranteed by a foreign governmentwith which the United States maintains diplomatic relations, or any of itspolitical subdivisions, if the security is recognized as a valid obligationby the issuer, insurer, or guarantor;
(3) A security issued by and representing or that will represent aninterest in or a direct obligation of, or be guaranteed by:
(A) An international banking institution;
(B) A banking institution organized under the laws of the UnitedStates; a member bank of the Federal Reserve System; or a depositoryinstitution a substantial portion of the business of which consists or willconsist of receiving deposits or share accounts that are insured to themaximum amount authorized by statute by the Federal Deposit InsuranceCorporation, the National Credit Union Share Insurance Fund, or a successorauthorized by federal law or exercising fiduciary powers that are similarto those permitted for national banks under the authority of theComptroller of Currency pursuant to Section 1 of Public Law 87-722 (12U.S.C. Section 92a); or
(C) Any other depository institution, or any trust company organizedor chartered under the laws of this state, unless by rule or order thecommissioner proceeds under section 409.2-204;
(4) A security issued by and representing an interest in, or a debtof, or insured or guaranteed by, an insurance company authorized to dobusiness in this state;
(5) A security issued or guaranteed by a railroad, other commoncarrier, public utility, or public utility holding company that is:
(A) Regulated in respect to its rates and charges by the UnitedStates or a state;
(B) Regulated in respect to the issuance or guarantee of the securityby the United States, a state, Canada, or a Canadian province or territory;or
(C) A public utility holding company registered under the PublicUtility Holding Company Act of 1935 or a subsidiary of such a registeredholding company within the meaning of that act;
(6) A federal covered security specified in Section 18(b)(1) of theSecurities Act of 1933 (15 U.S.C. Section 77r(b)(1)) or by rule adoptedunder that provision or a security listed or approved for listing onanother securities market specified by rule under this act; a put or a calloption contract; a warrant; a subscription right on or with respect to suchsecurities; or an option or similar derivative security on a security or anindex of securities or foreign currencies issued by a clearing agencyregistered under the Securities Exchange Act of 1934 and listed ordesignated for trading on a national securities exchange, a facility of anational securities exchange, or a facility of a national securitiesassociation registered under the Securities Exchange Act of 1934 or anoffer or sale, of the underlying security in connection with the offer,sale, or exercise of an option or other security that was exempt when theoption or other security was written or issued; or an option or aderivative security designated by the Securities and Exchange Commissionunder Section 9(b) of the Securities Exchange Act of 1934 (15 U.S.C.Section 78i(b));
(7) A security issued by a person organized and operated exclusivelyfor religious, educational, benevolent, fraternal, charitable, social,athletic, or reformatory purposes, or as a chamber of commerce, and not forpecuniary profit, no part of the net earnings of which inures to thebenefit of a private stockholder or other person, or a security of acompany that is excluded from the definition of an investment company underSection 3(c)(10)(B) of the Investment Company Act of 1940 (15 U.S.C.Section 80a-3(c)(10)(B)); except that with respect to the offer or sale ofa note, bond, debenture, or other evidence of indebtedness issued by such aperson, a rule may be adopted under this act limiting the availability ofthis exemption by classifying securities, persons, and transactions,imposing different requirements for different classes, specifying withrespect to paragraph (B) the scope of the exemption and the grounds fordenial or suspension, and requiring an issuer:
(A) To file a notice specifying the material terms of the proposedoffer or sale and copies of any proposed sales and advertising literatureto be used and provide that the exemption becomes effective if thecommissioner does not disallow the exemption within the period establishedby the rule;
(B) To file a request for exemption authorization for which a ruleunder this act may specify the scope of the exemption, the requirement ofan offering statement, the filing of sales and advertising literature, thefiling of consent to service of process complying with section 409.6-611,and grounds for denial or suspension of the exemption; or
(C) To register under section 409.3-304;
(8) A member's or owner's interest in, or a retention certificate orlike security given in lieu of a cash patronage dividend issued by, acooperative organized and operated as a nonprofit membership cooperativeunder the cooperative laws of a state, but not a member's or owner'sinterest, retention certificate, or like security sold to persons otherthan bona fide members of the cooperative; and
(9) An equipment trust certificate with respect to equipment leasedor conditionally sold to a person, if any security issued by the personwould be exempt under this section or would be a federal covered securityunder Section 18(b)(1) of the Securities Act of 1933 (15 U.S.C. Section77r(b)(1)).
