31A-5-301 - Securities regulation.
31A-5-301. Securities regulation.
(1) (a) Except as provided in Subsections (1)(b) and (c), no security issued by a domesticor nondomestic insurance corporation may be sold in this state by or for the corporation or anyother person unless it is registered under Section 31A-5-302 and otherwise complies with thischapter. Securities that comply with this chapter are not subject to Title 61, Chapter 1.
(b) Securities and transactions exempt under Section 61-1-14 are also exempt under thischapter.
(c) Any exemption under Section 61-1-14 may be revoked by the commissioner for aparticular insurance corporation by an order after a hearing. The order shall explain the reasonsfor the revocation.
(2) (a) No person which is organizing or is acquiring additional funds in this state orelsewhere solely or partly for the purpose of organizing a corporation under this chapter, mayregister or sell its securities in this state, directly or indirectly, unless it obtains an organizationpermit under Section 31A-5-204.
(b) No security may be registered or sold in this state if the person registering or sellingthe security, or any person affiliated with the person, represents that an insurer will be organizedor purchased in this state with the proceeds of the sale, unless the issuer first obtains anorganization permit under Section 31A-5-204.
(3) If a security is issued or sold in violation of this chapter, the transaction is valid andenforceable by an outsider against the corporation or against an insider, and is valid andenforceable by the corporation against an insider.
(4) This section does not apply to securities issued prior to July 1, 1986.
Amended by Chapter 204, 1986 General Session