Title 15 — Commerce and TradeRelease 119-73
§77xxx Unlawful representations
Title 15 › Chapter CHAPTER 2A— - SECURITIES AND TRUST INDENTURES › Subchapter SUBCHAPTER III— - TRUST INDENTURES › § 77xxx
Summary
When offering, selling, or issuing a security, no one may say or suggest that any action or failure to act by the Commission means the Commission approved the quality or merits of a trustee, a loan contract (indenture), a security, or any related transaction. You also may not say that a filing sent to or reviewed by the Commission is proven true or not misleading just because the Commission acted or did not act.
Full Legal Text
Title 15, §77xxx
Commerce and Trade — Source: USLM XML via OLRC
It shall be unlawful for any person in offering, selling or issuing any security to represent or imply in any manner whatsoever that any action or failure to act by the Commission in the administration of this subchapter means that the Commission has in any way passed upon the merits of, or given approval to, any trustee, indenture or security, or any transaction or transactions therein, or that any such action or failure to act with regard to any statement or report filed with or examined by the Commission pursuant to this subchapter or any rule, regulation, or order thereunder, has the effect of a finding by the Commission that such statement or report is true and accurate on its face or that it is not false or misleading.
Legislative History
Notes & Related Subsidiaries
Editorial Notes
Amendments
1954—Act Aug. 10, 1954, substituted “offering, selling, or issuing” for “issuing or selling”.
Statutory Notes and Related Subsidiaries
Effective Date
of 1954 AmendmentAmendment by act Aug. 10, 1954, effective 60 days after Aug. 10, 1954, see note under section 77b of this title.
Executive Documents
Transfer of Functions
For
Transfer of Functions
of Securities and Exchange Commission, with certain exceptions, to Chairman of such Commission, see Reorg. Plan No. 10 of 1950, §§ 1, 2, eff. May 24, 1950, 15 F.R. 3175, 64 Stat. 1265, set out under section 78d of this title.
Reference
Citations & Metadata
Citation
15 U.S.C. § 77xxx
Title 15 — Commerce and Trade
Last Updated
Apr 6, 2026
Release point: 119-73