15 U.S.C. § 80a–3a | Protection of philanthropy under State law

(a)

Registration requirements

section 80a–3(c)(10)(B) of this titleA 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 , 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)

section 80a–3(c)(10)(B) of this title a fund that is excluded from the definition of an investment company under ; or

(3)

section 80a–3(c)(10)(B) of this title a trust or other donative instrument described in , or the settlors (or potential settlors) or beneficiaries of any such trusts or other instruments.

(c)

State action

December 8, 1995Notwithstanding subsections (a) and (b), during the 3-year period beginning on , 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)

section 501(c)(3) of title 26 the term “charitable organization” means an organization described in paragraphs (1) through (5) of section 170(c) or ;

(2)

section 78c of this title the term “security” has the same meaning as in ; 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.

Pub. L. 104–62, § 6Dec. 8, 1995109 Stat. 685(, , .)

Editorial Notes

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.

Statutory Notes and Related Subsidiaries

Effective Date

Dec. 8, 1995Pub. L. 104–62 section 7 of Pub. L. 104–62 section 77c of this titleSection applicable as defense to any claim in administrative and judicial actions pending on or commenced after , that any person, security, interest, or participation of type described in 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 , set out as an Effective Date of 1995 Amendment note under .