The following securities are exempted from sections 502.201 and 502.602:
1. Any security, including a revenue obligation, issued or guaranteed by the United States, any state, any political subdivision of a state, or any agency or corporate or other instrumentality of one or more of the foregoing; or any certificate of deposit for any of the foregoing. However, this exemption shall not include any revenue obligation payable from payments to be made in respect of property or money used under a lease, sale or loan arrangement by or for a nongovernmental industrial or commercial enterprise, unless such payments are or will be made or unconditionally guaranteed by a person whose securities are exempt from registration under this chapter by (a) subsection 7, 8, or 17, or (b) subsection 9, provided the issuer first files with the administrator a written notice specifying the terms of the offer and the administrator does not by order disallow the exemption within fifteen days thereafter.
2. Any security issued or guaranteed by Canada, any Canadian province, any political subdivision of any such province, any agency or corporate or other instrumentality of one or more of the foregoing, or any other foreign government with which the United States currently maintains diplomatic relations, if the security is recognized as a valid obligation by the issuer or guarantor.
3. Any security issued by and representing an interest in or a debt of, or guaranteed by, any bank organized under the laws of the United States, or any bank or trust company organized and supervised under the laws of this state.
4. Any security issued by and representing an interest in or a debt of, or guaranteed by, any federal savings and loan association, or any savings and loan or similar association organized and supervised under the laws of this state.
5. Any security issued by and representing an interest in or a debt of, or guaranteed by, any insurance company organized under the laws of this state and authorized to do business in this state.
6. Any security issued or guaranteed by any federal credit union or any credit union or similar association organized and supervised under the laws of this state.
7. Any security issued or guaranteed by a public utility or holding company which is any of the following:
a. A registered holding company under the Public Utility Holding Company Act of 1935 or a subsidiary of such a company within the meaning of that Act.
b. Regulated in respect of its rates and charges by a governmental authority of the United States or any state.
c. Regulated in respect of the issuance or guarantee of the security by a governmental authority of the United States, any state, Canada, or any Canadian province.
8. Any security listed or approved for listing upon notice of issuance on the New York Stock Exchange, the American Stock Exchange, or any other national securities exchange registered under the Securities Exchange Act of 1934 and designated by rule of the administrator; any other security of the same issuer which is of senior or substantially equal rank; any security called for by subscription rights or warrants so listed or approved; or any warrant or right to purchase or subscribe to any of the foregoing.
9. Any security issued by any person organized and operated not for private profit but exclusively for religious, educational, benevolent, charitable, fraternal, social, athletic or reformatory purposes, or as a chamber of commerce or trade or professional association; provided the issuer first files with the administrator a written notice specifying the terms of the offer and the administrator does not by order disallow the exemption within fifteen days thereafter.
10. Commercial paper which is a promissory note, draft, bill of exchange, or banker's acceptance which satisfies the following criteria:
a. It evidences an obligation to pay cash within nine months after the date of issuance, exclusive of days of grace.
b. It is issued in denominations of at least fifty thousand dollars.
c. It receives a rating in one of the three highest rating categories from a nationally recognized statistical rating organization.
The exemption under this subsection applies to a renewal of an obligation under this subsection which is likewise limited, and to a guarantee of such an obligation or of a renewal.
11. A security issued in connection with an employee stock purchase, option, savings, pension, profit sharing or similar benefit plan.
12. A stock or similar security, including a patronage refund certificate, issued by:
a. A cooperative housing corporation described in paragraph 1 of subsection "b" of section 216, of the Internal Revenue Code, if its activities are limited to the ownership, leasing, management, or construction of residential properties for its members, and activities incidental thereto; or
b. A mutual or cooperative organization, including a cooperative association organized in good faith under and for any of the purposes enumerated in chapters 497, 498, 499, and 501 that deals in commodities or supplies goods or services in transactions primarily with and for the benefit of its members, if:
(1) Such stock or similar security is part of a class issuable only to persons who deal in commodities with, or obtain goods or services from, the issuer;
(2) Such stock or similar security is transferable only to the issuer or a successor in interest of the transferor who qualifies for membership in such mutual or cooperative organization; and
(3) No dividends other than patronage refunds are payable to holders of such stock or similar security except on a complete or partial liquidation.
13. A security issued by an agricultural cooperative association, provided the following conditions are satisfied:
a. A commission or remuneration must not be paid or provided either directly or indirectly for the sale, except as permitted by the administrator by rule or by order issued upon written application showing good cause for allowance of a commission or other remuneration.
b. If the securities to be issued are notes or other evidences of indebtedness and are issued after July 1, 1991, the issuer must file with the administrator a written notice specifying the name of the issuer, the date of the issuer's organization, the name of a contact person, a copy of the issuer's current audited financial statement, the types of security or securities to be offered, and the class of persons to whom the offer will be made in accordance with such rules as prescribed by the administrator.
14. Any security issued by a corporation formed under chapter 496B.
15. Any security issued by the agricultural development authority under chapter 175.
16. Any security representing a membership camping contract which is registered pursuant to section 557B.2 or exempt under section 557B.4.
17. On or after January 1, 1989, a security designated or approved for designation upon notice of issuance on the national association of securities dealers automated quotations--national market system (NASDAQ/NMS); any other security of the same issuer which is of senior or substantially equal rank; a security called for by subscription rights or warrants designated or approved for designation upon notice of issuance on the NASDAQ/NMS; or a warrant or right to purchase or subscribe to any of the foregoing categories in this subsection.
18. Any security representing a time-share interval as defined in section 557A.2.
19. A viatical settlement contract, or fractional or pooled interest in such contract, provided any of the following conditions are satisfied:
a. The assignment, transfer, sale, devise, or bequest of a death benefit of a life insurance policy or contract, is made by the viator to an insurance company as provided under Title 13, subtitle 1.
b. The assignment, transfer, sale, devise, or bequest of a life insurance policy or contract, for any value less than the expected death benefit, is made by the viator to a family member or other person who enters into no more than one such agreement in a calendar year.
c. A life insurance policy or contract is assigned to a bank, savings bank, savings and loan association, credit union, or other licensed lending institution as collateral for a loan.
d. Accelerated benefits are exercised as provided in the life insurance policy or contract and consistent with applicable law.
[SS15, § 1920-u1; C24, 27, § 8526; C31, 35, § 8581-c4; C39, § 8581.04; C46, 50, 54, 58, 62, § 502.4; C66, 71, 73, 75, § 496B.18, 502.4; C77, 79, § 496B.18, 502.202; C81, § 502.202]
83 Acts, ch 95, § 1, 2; 83 Acts, ch 169, § 3; 87 Acts, ch 181, § 2; 88 Acts, ch 1020, § 1; 91 Acts, ch 40, §6-9; 91 Acts, ch 230, §6, 7; 96 Acts, ch 1025, § 2, 3; 97 Acts, ch 114, §6; 98 Acts, ch 1119, §2; 99 Acts, ch 134, §4; 99 Acts, ch 166, §1
Referred to in § 502.102, 502.201, 502.203, 502.204, 502.602, 502.608, 536A.22, 557B.14
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