Series 63: 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:

1. 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. 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. 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. 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. 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. 6. Cred