Series 63 practice questioneasymunicipal securities - state and federal exemption overlap
Which of the following municipal securities is NOT exempt from registration under the Uniform Securities Act in State A?
- AGeneral obligation bonds issued by a city in State B
- BRevenue bonds issued by State A's own highway commission
- CRevenue bonds issued by a city within State A
- DIndustrial development bonds issued by a county in State B for a private corporation✓ Correct answer
Explanation
Why D — Industrial development bonds issued by a county in State B for a private corporation
Under the USA, municipal securities issued by a state or its political subdivisions are generally exempt (Section 402(a)(1)), but industrial development bonds for private benefit may NOT be exempt in all states, especially if the issuer is in another state and the proceeds benefit a private business. Choices A, B, and C are exempt.
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