§80a–3a — Title 15 Commerce and Trade | U.S. Code

Summary

Prevents states from making certain pooled funds or the securities they issue register or qualify under state securities rules. It also says charities and people working for them do not have to register as dealers, brokers, agents, or investment advisers under state law when they buy, hold, sell, or trade securities for a charity, for specific excluded pooled funds (like pooled income, collective trust, or collective investment funds), or for certain donor trusts and their creators or beneficiaries. For the 3-year period starting on December 8, 1995, a State could pass a law saying this federal rule will not override that State’s laws, if the State law names this rule and says so going forward. Charitable organization: groups described in section 170(c)(1)–(5) or section 501(c)(3) of title 26. Security: has the meaning given in section 78c of this title. State: each of the several States, the District of Columbia, Puerto Rico, the Virgin Islands, Guam, American Samoa, and the Commonwealth of the Northern Mariana Islands.

Title 15, §80a–3a

Commerce and Trade — Source: USLM XML via OLRC

(a)A security issued by or any interest or participation in any pooled income fund, collective trust fund, collective investment fund, or similar fund that is excluded from the definition of an investment company under section 80a–3(c)(10)(B) of this title, and the offer or sale thereof, shall be exempt from any statute or regulation of a State that requires registration or qualification of securities.

(b)No charitable organization, or any trustee, director, officer, employee, or volunteer of a charitable organization acting within the scope of such person’s employment or duties, shall be required to register as, or be subject to regulation as, a dealer, broker, agent, or investment adviser under the securities laws of any State because such organization or person buys, holds, sells, or trades in securities for its own account in its capacity as trustee or administrator of, or otherwise on behalf of or for the account of one or more of the following:

(1)a charitable organization;

(2)a fund that is excluded from the definition of an investment company under section 80a–3(c)(10)(B) of this title; or

(3)a trust or other donative instrument described in section 80a–3(c)(10)(B) of this title, or the settlors (or potential settlors) or beneficiaries of any such trusts or other instruments.

(c)Notwithstanding subsections (a) and (b), during the 3-year period beginning on December 8, 1995, a State may enact a statute that specifically refers to this section and provides prospectively that this section shall not preempt the laws of that State referred to in this section.

(d)For purposes of this section—

(1)the term “charitable organization” means an organization described in paragraphs (1) through (5) of section 170(c) or section 501(c)(3) of title 26;

(2)the term “security” has the same meaning as in section 78c of this title; and

(3)the term “State” means each of the several States of the United States, the District of Columbia, the Commonwealth of Puerto Rico, the Virgin Islands, Guam, American Samoa, and the Commonwealth of the Northern Mariana Islands.

Notes & Related Subsidiaries

Editorial Notes

Codification Section was enacted as part of the Philanthropy Protection Act of 1995, and not as part of the Investment Company Act of 1940 which comprises this subchapter.

Statutory Notes and Related Subsidiaries

Effective Date

Section applicable as defense to any claim in administrative and judicial actions pending on or commenced after Dec. 8, 1995, that any person, security, interest, or participation of type described in Pub. L. 104–62 is subject to the Securities Act of 1933, the Securities Exchange Act of 1934, the Investment Company Act of 1940, the Investment Advisers Act of 1940, or any State statute or regulation preempted as provided in this section, except as specifically provided in such statutes, see section 7 of Pub. L. 104–62, set out as an

Effective Date

of 1995 Amendment note under section 77c of this title.

§80a–3a Protection of philanthropy under State law

Summary

Title 15, §80a–3a

Notes & Related Subsidiaries

Editorial Notes

Statutory Notes and Related Subsidiaries

Effective Date

Effective Date

Citations & Metadata