Series 66: Section 402(a) Exemptions

Section 402(a) Exemptions

Under Section 402(a) of the Uniform Securities Act, the following types of securities are exempt from registration requirements:

• • 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
• • 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
• • 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 CD)
• • 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
• • 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)
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