Section 402(a) Exemptions
Under Section 402(a) of the Uniform Securities Act, the following types of securities are exempt from registration requirements:
- 1. U.S. government and municipal securities. Securities (usually bonds) issued or guaranteed by the United States government, a state government, a city or municipality, or any agencies related to these government entities
- 2. Foreign government securities. Securities (usually bonds) issued or guaranteed by a foreign government or its political subdivisions, with which the United States maintains diplomatic relations, as long as the security is recognized as a valid obligation by the issuer or guarantor
- 3. Depository securities. Securities issued or guaranteed by a bank organized under U.S. law or by a bank, savings institution, or trust company organized and supervised under the laws of any state (usually a “Certificate of Deposit” or “CD”)
- 4. Loan association securities. Securities issued or guaranteed by a U.S. savings and loan association or a similar association that is authorized to do business in the state
- 5. Insurance company securities. Securities issued or guaranteed by an insurance company authorized to operate in the state (note: this exemption may not apply to variable annuities)
- 6. Cred
