Exempt Securities under the USA

Question 1

Securities issued by the U.S. government and municipalities—including debt issued by government agencies as well as ________ , _________, or school districts

Answer 1

states, counties, or school districts

Question 2

Securities issued by the Canadian government and municipalities—including debt issued by ___________ or ______

Answer 2

provinces or cities

Question 3

Securities issued by other __________ ______________ —provided the U.S. maintains diplomatic relations with the foreign country and the securities being issued are recognized as a valid obligation of the issuer

Answer 3

foreign governments

Question 4

Securities issued by banks, savings institutions, or ______ _____________

Answer 4

trust companies

Question 5

Securities issued by _________ credit unions or industrial loan associations

Answer 5

federal

Question 6

Securities issued by insurance companies (this exemption doesn’t apply to issuing ________ __________)

Answer 6

variable annuities

Question 7

Securities issued by common carriers (___________) and public utility holding companies

Answer 7

railroads

Regulation of common carriers is performed by the Interstate Commerce Commission (ICC), while utility companies are regulated under the Public Utility Holding Company Act of 1935

Question 8

Securities issued by _____________ organizations. This includes religious, educational, fraternal, charitable, social, athletic, trade, and professional associations.

Answer 8

non profit / not-for-profit

Question 9

When are promissory notes, drafts, bills of exchange, or bankers’ acceptance exempt?

Answer 9

1. maturing in no more than nine months
2. issued in denominations of $50,000 or more
3. rated in one of the three highest rating categories by a Nationally Recognized Statistical Rating Organization (NRSRO)

Question 10

Any investment contracts issued in connection with an employees’ ____ ________ , __________ , __________ , and ______ __________ or similar benefit plan if the Administrator is notified in writing at least 30 days before the inception of the plan

Answer 10

stock purchase, savings, pension,
and profit-sharing

Question 11

__________ Covered Securities

Answer 11

Federal

Question 12

Are investment company securities (mutual funds) and securities issued pursuant to Rule 506 (private offering) required to notice file?

Answer 12

Yes

Question 13

Examples of Federal Covered Securities:

Answer 13

Federal Covered Securities:
* Securities listed on a National Exchange (Blue-Chip)
* Securities sold to qualified purchasers under the Investment Company Act of 1940
* Investment company securities
* Securities issued pursuant to Rule 506