Pennsylvania Administrative Code

§ 203.189. Isolated transaction exemption. (a) General. Under section 203(r) of the act (70 P.S. § 1-203(r)), the Department finds that it is not necessary or appropriate for the protection of investors to require registration under section 201 of the act (70 P.S. § 1-201) for th…

§ 203.190. Certain Internet offers exempt. (a) Under section 203(r) of the act (70 P.S. § 1-203(r)), the Department finds it not necessary or appropriate for the protection of investors to require registration under section 201 of the act (70 P.S. § 1-201) for offers of securitie…

§ 203.191. Rule 505 offerings. (a) Filing requirement. The notice required under section 203(s)(i) of the act (70 P.S. § 1-203(s)(i)) shall be filed with the Department within the time period specified on Form E as set forth in § 203.041 (relating to limited offerings). (b) Integ…

§ 203.192. Rule 801 and 802 offerings exempt. Under section 203(r) of the act (70 P.S. § 1-203(r)), the Department finds it not necessary or appropriate for the protection of investors to require registration under section 201 of the act (70 P.S. § 1-201) for the offer and sale o…

§ 203.201. Accredited investor exemption. (a) Filing requirement. The notice required under section 203(t)(ii) of the act (70 P.S. § 1-203(t)(ii)) shall be filed with the Department within the time period specified on Form E as set forth in § 203.041 (relating to limited offering…

§ 203.202. Certain transactions with persons from Canada exempt. Under section 203(r) of the act (70 P.S. § 1-203(r)), the Department finds it not necessary or appropriate for the protection of investors to require registration under section 201 of the act (70 P.S. § 1-201) for t…

§ 203.203. Certain Rule 144A exchange transactions exempt. Under section 203(r) of the act (70 P.S. § 1-203(r)), the Department finds that it is not necessary or appropriate for the protection of investors to require registration under section 201 of the act (70 P.S. § 1-201) for…

§ 204.010. Increasing the number of purchasers and offerees. (a) Increases in purchasers and offerees. Under section 204(a) of the act (70 P.S. § 1-204(a)), the number of purchasers and offerees permitted under section 203(d) and (e) of the act (70 P.S. § 1-203(d) and (e)), respe…

§ 204.011. Waivers of the 12-month holding period. (a) Automatic waiver. Under section 204(a) of the act (70 P.S. § 1-204(a)), the restriction under section 203(d)(i) of the act (70 P.S. § 1-203(d)(i)) not to sell securities purchased under that section for 12 months after the da…

§ 204.012. Waivers for pre-effective offers under section 203(h). Under section 204(a) of the act (70 P.S. § 1-204(a)), the Department waives the requirement in section 203(h) of the act (70 P.S. § 1-203(h)) that a registration statement, including a prospectus, be filed with the…

§ 205.021. Registration by coordination. (a) Except as specified in subsection (b), registration by coordination may be initiated by filing with the Department within the specified time period: (1) A registration statement and other materials required under section 205 of the act…

§ 205.040. Series of unit investment trusts as separate issuers. To comply with the requirements of sections 201 and 211(a) of the act (70 P.S. § § 1-201 and 1-211(a)), each series underlying a unit investment trust, as that person is classified in the Investment Company Act of 1…

§ 206.010. Registration by qualification. (a) Except as specified in subsection (b), registration by qualification shall be initiated by filing all of the following with the Department: (1) A registration statement and other materials required under section 206(b)(1)—(16) of the …

§ 206.041. Use of preliminary prospectuses prohibited. If a registration statement has been filed under section 206 of the act (70 P. S. § 1-206) in reliance on section 3(a)(11) of the Securities Act of 1933 (15 U.S.C.A. § 77c(a)11) and the rules and regulations adopted thereunde…

§ 207.050. Reports by engineers, appraisers and others. (a) The Department may, under section 207(e) of the act (70 P.S. § 1-207(e)), require as a condition of registration that the issuer or other person seeking to register securities for sale submit a technical report. (1) The …

§ 207.071. Escrow of promotional securities. (a) The Department will, if it considers necessary for the protection of investors, or in the public interest, and subject to the limitation of section 207(g) of the act (70 P.S. § 1-207(g)), require as a condition to the registration …

§ 207.072. Escrow of proceeds. (a) The Department, if it considers it necessary for the protection of investors, and subject to the limitation of section 207(g) of the act (70 P.S. § 1-207(g)), may require as a condition to the registration of securities, whether to be sold by th…

§ 207.091. Subscription contracts. With respect to securities proposed to be sold under one of the following registration statements, a copy of a subscription or sale contract proposed to be used shall be filed with the Department, as an exhibit, before its use in this Commonweal…

§ 207.101. Effective period of registration statement. (a) A registration statement that is effective under section 205(c) of the act (70 P.S. § 1-205(c)) shall continue in effect until the earliest of the following events: (1) Twelve months after the effective date of the regist…

§ 207.130. Notice to purchasers under section 207(m). (a) This section applies to offerings of securities which are registered under section 206 of the act (70 P.S. § 1-206) and to securities transactions which are exempt from registration under section 203(d) and (p) of the act …

§ 208.010. Denial for abandonment. (a) General rule. The Department may deny as abandoned an application for registration of securities which has been on file with the Department for a minimum of 12 consecutive months if the applicant failed to do any of the following: (1) Respon…

§ 209.010. Required records; report on sales of securities and use ofproceeds. (a) An issuer who sells securities for his own account, directly or through an underwriter, in an offering registered or required to be registered under section 205 or 206 of the act (70 P.S. § § 1-205…

PRELIMINARY PROVISIONS § 21.1. Financial information submitted by institutions to the Federal supervisory authorities. All banking institutions which are required by the Securities Exchange Act of 1934, as amended (15 U.S.C.A. § 78(a) et seq.), to furnish the Federal supervisory …

§ 21.11. Authority to provide messenger service. An institution may utilize the services of an independent armored car or similar transportation service, which is duly licensed as an express company, for the purpose of picking up deposits or other valuables at the customer’s plac…

§ 21.12. Agreements. Messenger service may be furnished only pursuant to a written agreement between the messenger service company and the institution’s customer, under which agreement the messenger becomes the agent of the customer of the institution. The agreement shall further…

§ 21.13. Advertisements. Advertising material employed shall not include any reference to messenger service utilized by the institution. Neither shall the transportation service make reference to its employment by or relationship with the institution by any type of advertising, i…

§ 21.14. Insurance. The carrier shall maintain insurance coverage which the institution shall determine to be sufficient for the protection of the institution’s customers. Such insurance coverage must be commensurate with the value of the assets transported, but, in no event, be …

§ 21.2. Unscheduled closing. (a) In the event of an emergency resulting from civil strife, either actual or threatened, in the vicinity of one or more of the offices of the institution, or from fire, abnormal weather conditions, power failure, or impairment of bank facilities, an…

BONDS AND SURETYSHIP § 21.21. Subsidiary corporations. An institution may guarantee the actions of a subsidiary corporation, as defined in the Securities Exchange Act of 1934 (15 U.S.C. § 78a et seq. (1971)), to the extent that it could assume similar and direct liabilities in it…

§ 21.3. Saturday banking hours. (a) The term ‘‘banking day’’ when used in this section means that part of any day on which a bank is open to the public for carrying on substantially all of its banking functions. (b) All banks engaged in or contemplating Saturday banking hours mus…

FUTURES AND PRECIOUS METALS § 21.31. Commodity futures and gold and silver transactions. (a) An institution may enter into transactions involving commodity futures or gold or silver coin or bullion solely on behalf of customers, upon formal written agreements with customers to pu…

§ 21.4. Accretion of discount on securities. In order to conform to the reporting requirements of the Securities Exchange Act of 1934 (15 U.S.C. § 78c et seq. (1971)), State banking institutions shall be permitted to accrete discount, by increasing book value not in excess of par…

ACCEPTANCES § 21.41. Acceptances. An institution may accept drafts drawn upon it, under the provisions set forth in section 308(a) of the Banking Code of 1965 (7 P. S. § 308(a)), having not more than 270 days sight to run from the time of acceptance. Source The provisions of this…

CONTROL § 21.51. Executive officer. (a) For purposes of sections 1414 and 1415 of the Banking Code of 1965 (7 P. S. § § 1414 and 1415), an ‘‘executive officer’’ of an institution or affiliate is defined as a person who participates or has authority to participate in major policym…

§ 21.6. Irregularities. (a) It is necessary that the Department investigate all irregularities to determine whether criminal proceedings should be instituted. Irregularities are to be reported to the Department immediately upon discovery. (b) Any irregularity which involves a vio…

§ 210.010. Retroactive registration. (a) Either of the following may apply to the Department on Form 210 in accordance with the General Instructions to register the securities retroactive to the date of the initial registration or to amend the notice filing retroactive to the dat…

§ 211.010. Notice filings for Federally covered securities. (a) 211(a) notice. The notices required under section 211(a) of the act (70 P.S. § 211(a)) to be filed by an open-end or closed-end investment company, unit investment trust or face amount certificate company, as those p…

§ 27.1. Definition of ‘‘leeway investments.’’ As used in this chapter, the term ‘‘leeway investments’’ may include bonds, notes, debentures or capital stock.

§ 27.2. Purchase of leeway investments. An institution may make leeway investments in corporations formed to promote the public welfare and community development, expand the economy or provide for social reform.

§ 27.3. Limitations on leeway investments. (a) A bank or bank and trust company: (1) Shall limit its leeway investments in one corporation to 2.0% of the institution’s capital and surplus at the time of acquisition of the investments. (2) Shall limit its aggregate total of leeway…

§ 27.4. Records. Leeway investments shall be identified on the general books of the institution as ‘‘Leeway Investments’’ and in the absence of default or bankruptcy will be permitted to be carried on the institution’s books at amortized acquisition costs.

§ 28.1. Permissible activities. A corporation qualifying under section 504(b)(xiii) of the Banking Code (7 P. S. § 504(b)(xiii)) may engage, either separately or in conjunction with others, in the following activities, in addition to activities otherwise permitted by statute or a…

§ 28.2. Nonlimitation. This chapter may not be construed to limit or restrict an otherwise permissible activity or investment of a savings bank or its subsidiaries or affiliates.

§ 29.1. Borrowings on account of sale of participations. The sale of a participation in an item such as certificates of deposit, commercial loan pools, collateral loan pools and Treasury notes, including securities, shall constitute money borrowed if either the selling institutio…

§ 29.2. Treasury Tax and Loan Account. Funds made available to an institution by the United States Treasury as a note option under the provisions of the Tax and Loan Account Law, 91 Stat. 1227 (1977) are defined as ‘‘Other Liabilities’’ and does not constitute borrowing of money.…

§ 29.3. Borrowings from affiliates. Borrowings by an institution owned or controlled by a bank holding company from the bank holding company and other bank or nonbank subsidiaries of the bank holding company does not constitute borrowing of money. The borrowings shall be made in …

§ 30.1. Definitions. The following words and terms, when used in this chapter, have the following meanings, unless the context clearly indicates otherwise: Commercial bank—A bank, a bank and trust company, or a national bank. Draft—A negotiable instrument which is an order to pay…