§ 78A-16. Exempt securities.
Article 3.
Exemptions.
§ 78A‑16. Exemptsecurities.
The following securities areexempted from G.S. 78A‑24 and 78A‑49(d):
(1) Any security(including a revenue obligation) issued or guaranteed by the United States, anystate, any political subdivision of a state, or any agency or corporate orother instrumentality of one or more of the foregoing; or any certificate ofdeposit for any of the foregoing;
(2) Any security issuedor guaranteed by Canada, any Canadian province, any political subdivision ofany such province, any agency of one or more of the foregoing, or any otherforeign government with which the United States currently maintains diplomaticrelations, if the security is recognized as a valid obligation by the issuer orguarantor;
(3) Any security issuedby and representing an interest in or a debt of, or guaranteed by, any bankorganized under the laws of the United States, or any bank, savingsinstitution, or trust company organized and supervised under the laws of anystate;
(4) Any security issuedby and representing an interest in or a debt of, or guaranteed by, any federalsavings and loan association, or any building and loan or similar associationorganized under the laws of any state and authorized to do business in thisState;
(5) Any security issuedby and representing an interest in or a debt of, or guaranteed by, anyinsurance company organized under the laws of any state and authorized to dobusiness in this State; but this exemption does not apply to an annuitycontract, investment contract, or similar security under which the promisedpayments are not fixed in dollars but are substantially dependent upon theinvestment results of a segregated fund or account invested in securitiesunless the issuing or delivering company has satisfied the Commissioner ofInsurance that it is in compliance with G.S. 58‑7‑95;
(6) Any security issuedor guaranteed by any federal credit union or any credit union, industrial loanassociation, or similar association organized and supervised under the laws ofthis State;
(7) Any security issuedor guaranteed by any railroad, other common carrier, public utility, or holdingcompany of one of the foregoing which is (i) subject to the jurisdiction of theInterstate Commerce Commission; (ii) a registered holding company under thePublic Utility Holding Company Act of 1935 or a subsidiary of such a companywithin the meaning of that act; (iii) regulated in respect of its rates andcharges by a governmental authority of the United States or any state; or (iv)regulated in respect of the issuance or guarantee of the security by agovernmental authority of the United States, any state, Canada, or any Canadianprovince;
(8) Repealed by SessionLaws 2001, c. 149, s. 1.
(9) Any security issuedby any person organized and operated not for private profit but exclusively forreligious, educational, benevolent, charitable, fraternal, social, athletic, orreformatory purposes, or as a chamber of commerce or trade or professionalassociation provided, however, that the Administrator may by rule or orderimpose conditions upon this exemption either generally or in relation tospecific securities or transactions;
(10) Any commercial paperwhich arises out of a current transaction or the proceeds of which have been orare to be used for current transactions, and which evidences an obligation topay cash within nine months of the date of issuance, exclusive of days ofgrace, or any renewal of such paper which is likewise limited, or any guaranteeof such paper or of any such renewal;
(11) Any interest in anemployees' stock or equity purchase, option, savings, pension, profit‑sharingor other similar benefit plan;
(12) Any bond or notesecured by lien on vessels shown by policies of marine insurance taken out inresponsible companies to be of value, after deducting any and all otherindebtedness secured by prior lien, of not less than one hundred twenty‑fivepercent (125%) of the par amount of such bonds or notes;
(13) Any capital stockissued by a professional corporation organized pursuant to the provisions ofthe Professional Corporation Act, Chapter 55B;
(14) Any security issuedby (i) any mutual association or agricultural marketing association organizedor domesticated and existing under Subchapter IV or Subchapter V, respectively,of Chapter 54 of the General Statutes of North Carolina; or (ii) any electricor telephone membership corporation organized or domesticated and existingunder Chapter 117 of the General Statutes of North Carolina.
(15) Any security listedor approved for listing upon notice of issuance on an exchange registered withthe United States Securities and Exchange Commission or quoted or approved forquotation upon notice of issuance on an automated quotation system operated bya national securities association registered with the United States Securitiesand Exchange Commission, provided such security or class of securities,exchange or system is approved by rule of the Administrator; any other securityof the same issuer which is of senior or substantially equal rank; any securitycalled for by subscription rights or warrants so listed or approved; or anywarrant or right to purchase or subscribe to any of the foregoing. (1925, c. 190, s. 3; 1927, c.149, s. 3; 1931, c. 243, s. 5; 1955, c. 436, s. 2; 1967, c. 1233, s. 1; 1973,c. 1380; 1981, c. 624, s. 1; 1983, c. 817, ss. 4, 5; 1989 (Reg. Sess., 1990) c.803, s. 1; 2001‑149, s. 1; 2001‑201, s. 7.)