Exempt Securities

What this video covers

• Why exempt securities are defined by what the security IS, not how it is sold, and why this distinction matters for exam classification
• The full scope of government securities exemptions, including U.S. Treasury, municipal, agency, and certificate of deposit securities
• Why Canadian government securities skip the diplomatic relations test that applies to all other foreign governments
• The valid obligation requirement that applies even to exempt categories, and why a repudiated bond loses its exemption
• The interest-in-or-debt-of condition for bank, savings and loan, and insurance company securities, and why conduit certificates fail
• Why state credit unions must be organized under the laws of this state, contrasting with the any-state rule for banks
• The variable annuity and variable life insurance exception to the insurance company exemption, and why only fixed products qualify
• The commercial paper trifecta: nine months or less maturity, $50,000 minimum denomination, and top three NRSRO rating category
• The 30-day pre-inception and 60-day post-effective notice requirements for employee benefit plan exemptions
• Why nonprofit securities are exempt from registration but never exempt from anti-fraud enforcement