§3904 — Title 15 Commerce and Trade | U.S. Code

Summary

Members’ ownership shares in a risk retention group are treated as exempt securities for purposes of section 5 of the Securities Act of 1933 and section 12 of the Securities Exchange Act of 1934, and they are treated as securities for purposes of section 17 of the Securities Act of 1933 and section 10 of the Securities Exchange Act of 1934. A risk retention group is not an investment company under the Investment Company Act of 1940, and members’ ownership shares are not considered securities under any State blue sky law.

Title 15, §3904

Commerce and Trade — Source: USLM XML via OLRC

(a)The ownership interests of members in a risk retention group shall be—

(1)considered to be exempted securities for purposes of section 5 of the Securities Act of 1933 [15 U.S.C. 77e] and for purposes of section 12 of the Securities Exchange Act of 1934 [15 U.S.C. 78l]; and

(2)considered to be securities for purposes of the provisions of section 17 of the Securities Act of 1933 [15 U.S.C. 77q] and the provisions of section 10 of the Securities Exchange Act of 1934 [15 U.S.C. 78j].

(b)A risk retention group shall not be considered to be an investment company for purposes of the Investment Company Act of 1940 (15 U.S.C. 80a–1 et seq.).

(c)The ownership interests of members in a risk retention group shall not be considered securities for purposes of any State blue sky law.

Notes & Related Subsidiaries

Editorial Notes

References in Text

The Investment Company Act of 1940, referred to in subsec. (b), is title I of act Aug. 22, 1940, ch. 686, 54 Stat. 789, which is classified generally to subchapter I (§ 80a–1 et seq.) of chapter 2D of this title. For complete classification of this Act to the Code, see section 80a–51 of this title and Tables.

§3904 Securities laws

Summary

Title 15, §3904

Notes & Related Subsidiaries

Editorial Notes

References in Text

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