CITE
15 USC Sec. 80a-3a 01/05/2009
EXPCITE
TITLE 15 - COMMERCE AND TRADE
CHAPTER 2D - INVESTMENT COMPANIES AND ADVISERS
SUBCHAPTER I - INVESTMENT COMPANIES
HEAD
Sec. 80a-3a. Protection of philanthropy under State law
STATUTE
(a) Registration requirements
A security issued by or any interest or participation in any
pooled income fund, collective trust fund, collective investment
fund, or similar fund that is excluded from the definition of an
investment company under section 80a-3(c)(10)(B) of this title, and
the offer or sale thereof, shall be exempt from any statute or
regulation of a State that requires registration or qualification
of securities.
(b) Treatment of charitable organizations
No charitable organization, or any trustee, director, officer,
employee, or volunteer of a charitable organization acting within
the scope of such person's employment or duties, shall be required
to register as, or be subject to regulation as, a dealer, broker,
agent, or investment adviser under the securities laws of any State
because such organization or person buys, holds, sells, or trades
in securities for its own account in its capacity as trustee or
administrator of, or otherwise on behalf of or for the account of
one or more of the following:
(1) a charitable organization;
(2) a fund that is excluded from the definition of an
investment company under section 80a-3(c)(10)(B) of this title;
or
(3) a trust or other donative instrument described in section
80a-3(c)(10)(B) of this title, or the settlors (or potential
settlors) or beneficiaries of any such trusts or other
instruments.
(c) State action
Notwithstanding subsections (a) and (b) of this section, during
the 3-year period beginning on December 8, 1995, a State may enact
a statute that specifically refers to this section and provides
prospectively that this section shall not preempt the laws of that
State referred to in this section.
(d) Definitions
For purposes of this section -
(1) the term "charitable organization" means an organization
described in paragraphs (1) through (5) of section 170(c) or
section 501(c)(3) of title 26;
(2) the term "security" has the same meaning as in section 78c
of this title; and
(3) the term "State" means each of the several States of the
United States, the District of Columbia, the Commonwealth of
Puerto Rico, the Virgin Islands, Guam, American Samoa, and the
Commonwealth of the Northern Mariana Islands.
SOURCE
(Pub. L. 104-62, Sec. 6, Dec. 8, 1995, 109 Stat. 685.)
CODIFICATION
Section was enacted as part of the Philanthropy Protection Act of
1995, and not as part of the Investment Company Act of 1940 which
comprises this subchapter.
EFFECTIVE DATE
Section applicable as defense to any claim in administrative and
judicial actions pending on or commenced after Dec. 8, 1995, that
any person, security, interest, or participation of type described
in Pub. L. 104-62 is subject to the Securities Act of 1933, the
Securities Exchange Act of 1934, the Investment Company Act of
1940, the Investment Advisers Act of 1940, or any State statute or
regulation preempted as provided in this section, except as
specifically provided in such statutes, see section 7 of Pub. L.
104-62, set out as an Effective Date of 1995 Amendment note under
section 77c of this title.