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1994 SESSION

LD0572346
HOUSE BILL NO. 1213
Offered January 25, 1994
A BILL to amend and reenact § 13.1-514.1 of the Code of Virginia, relating to the Securities Act; exemption of certain securities; indication of interest.
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Patrons--McClure, Callahan, Deeds, Forbes, Hargrove, Harris, Keating, Murphy, Plum, Puller, Robinson, Scott, Shuler, Watkins and Woodrum; Senators: Calhoun, Howell, Trumbo and Waddell
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Referred to Committee on Corporations, Insurance and Banking
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Be it enacted by the General Assembly of Virginia:

1. That § 13.1-514.1 of the Code of Virginia is amended and reenacted as follows:

§ 13.1-514.1. Exemption of certain securities by order of Commission.

A. The Commission may by order exempt from the other provisions of this chapter any security that the Commission finds:

1. Is to be offered and sold as part of a community undertaking to attract new business or industry to the community, or to establish or continue financial assistance to an existing business or industry in the community.

2. Is sponsored by the local chamber of commerce, by a local industrial development corporation or by other groups of representative local businessmen, and

3. Is to be sold mainly to persons interested in the development of the community by salesmen who receive no compensation for offering and selling the security.

B. The Commission may also exempt any security it finds that is to be offered and sold by any person organized and operated not for private profit but exclusively for religious, educational, benevolent, charitable, fraternal, social, athletic or reformatory purposes, or as a chamber of commerce or trade or professional association.

C. The Commission shall exempt any offer, but not a sale, of a security from the security registration requirements of this chapter made by or on behalf of an issuer for the sole purpose of soliciting an indication of interest in receiving a prospectus (or its equivalent) for such a security. Such offer to be exempt from such requirement shall only be made in accordance with the provisions of the national pilot project of the North American Securities Administrators Association relating to the solicitations of interest prior to the filing of the registration statement as implemented by the Commission. The written documents, broadcasts and oral representations related to solicitation of an indication of interest made to potential investors are subject to the anti-fraud provisions of this chapter and the Federal securities laws.

By August 15, 1994, the Commission shall implement the national pilot project of the North American Securities Administrators Association relating to the solicitations of interest prior to the filing of the registration statement.

The provisions of this subsection shall expire on July 1, 1997.