Series 63 practice questionmediumExempt Securities - Bank and Savings Institution Securities
An agent in State Y is asked to sell bonds issued by a savings and loan association regulated by federal authorities. Under the USA, are these securities exempt from state registration?
- AYes, because securities issued by savings and loan associations are exempt under Section 402(a)(2)✓ Correct answer
- BNo, because only national banks qualify for exemption
- CNo, because the securities are not listed on a national exchange
- DYes, but only if the offering is under $5 million
Explanation
Why A — Yes, because securities issued by savings and loan associations are exempt under Section 402(a)(2)
Securities issued by banks, savings institutions, and trust companies are exempt under USA Section 402(a)(2). The exemption is not limited to national banks or dependent on dollar amount.
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