CITE

    15 USC Sec. 77r-1                                           01/08/2008

EXPCITE

    TITLE 15 - COMMERCE AND TRADE
    CHAPTER 2A - SECURITIES AND TRUST INDENTURES
    SUBCHAPTER I - DOMESTIC SECURITIES

HEAD

    Sec. 77r-1. Preemption of State law

STATUTE

    (a) Authority to purchase, hold, and invest in securities;
      securities considered as obligations of United States
      (1) Any person, trust, corporation, partnership, association,
    business trust, or business entity created pursuant to or existing
    under the laws of the United States or any State shall be
    authorized to purchase, hold, and invest in securities that are -
        (A) offered and sold pursuant to section 77d(5) of this title,
        (B) mortgage related securities (as that term is defined in
      section 78c(a)(41) of this title),
        (C) small business related securities (as defined in section
      78c(a)(53) of this title), or
        (D) securities issued or guaranteed by the Federal Home Loan
      Mortgage Corporation or the Federal National Mortgage
      Association,
    to the same extent that such person, trust, corporation,
    partnership, association, business trust, or business entity is
    authorized under any applicable law to purchase, hold or invest in
    obligations issued by or guaranteed as to principal and interest by
    the United States or any agency or instrumentality thereof.
      (2) Where State law limits the purchase, holding, or investment
    in obligations issued by the United States by such a person, trust,
    corporation, partnership, association, business trust, or business
    entity, such securities that are -
        (A) offered and sold pursuant to section 77d(5) of this title,
        (B) mortgage related securities (as that term is defined in
      section 78c(a)(41) of this title),
        (C) small business related securities (as defined in section
      78c(a)(53) of this title), or
        (D) securities issued or guaranteed by the Federal Home Loan
      Mortgage Corporation or the Federal National Mortgage
      Association,
    shall be considered to be obligations issued by the United States
    for purposes of the limitation.
    (b) Exception; validity of contracts under prior law
      The provisions of subsection (a) of this section shall not apply
    with respect to a particular person, trust, corporation,
    partnership, association, business trust, or business entity or
    class thereof in any State that, prior to the expiration of seven
    years after October 3, 1984, enacts a statute that specifically
    refers to this section and either prohibits or provides for a more
    limited authority to purchase, hold, or invest in such securities
    by any person, trust, corporation, partnership, association,
    business trust, or business entity or class thereof than is
    provided in subsection (a) of this section. The enactment by any
    State of any statute of the type described in the preceding
    sentence shall not affect the validity of any contractual
    commitment to purchase, hold, or invest that was made prior thereto
    and shall not require the sale or other disposition of any
    securities acquired prior thereto.
    (c) Registration and qualification requirements; exemption;
      subsequent enactment by State
      Any securities that are offered and sold pursuant to section
    77d(5) of this title, that are mortgage related securities (as that
    term is defined in section 78c(a)(41) of this title), or that are
    small business related securities (as defined in section 78c(a)(53)
    of this title) shall be exempt from any law of any State with
    respect to or requiring registration or qualification of securities
    or real estate to the same extent as any obligation issued by or
    guaranteed as to principal and interest by the United States or any
    agency or instrumentality thereof. Any State may, prior to the
    expiration of seven years after October 3, 1984, enact a statute
    that specifically refers to this section and requires registration
    or qualification of any such security on terms that differ from
    those applicable to any obligation issued by the United States.
    (d) Implementation
      (1) Limitation
        The provisions of subsections (a) and (b) of this section
      concerning small business related securities shall not apply with
      respect to a particular person, trust, corporation, partnership,
      association, business trust, or business entity or class thereof
      in any State that, prior to the expiration of 7 years after
      September 23, 1994, enacts a statute that specifically refers to
      this section and either prohibits or provides for a more limited
      authority to purchase, hold, or invest in such small business
      related securities by any person, trust, corporation,
      partnership, association, business trust, or business entity or
      class thereof than is provided in this section. The enactment by
      any State of any statute of the type described in the preceding
      sentence shall not affect the validity of any contractual
      commitment to purchase, hold, or invest that was made prior to
      such enactment, and shall not require the sale or other
      disposition of any small business related securities acquired
      prior to the date of such enactment.
      (2) State registration or qualification requirements
        Any State may, not later than 7 years after September 23, 1994,
      enact a statute that specifically refers to this section and
      requires registration or qualification of any small business
      related securities on terms that differ from those applicable to
      any obligation issued by the United States.

SOURCE

    (Pub. L. 98-440, title I, Sec. 106, Oct. 3, 1984, 98 Stat. 1691;
    Pub. L. 103-325, title II, Sec. 207, Sept. 23, 1994, 108 Stat.
    2199.)

CODIFICATION

      Section was enacted as part of the Secondary Mortgage Market
    Enhancement Act of 1984, and not as part of the Securities Act of
    1933, which comprises this subchapter.

AMENDMENTS

      1994 - Subsec. (a)(1)(B) to (D). Pub. L. 103-325, Sec. 207(a),
    struck out "or" at end of subpar. (B), added subpar. (C), and
    redesignated former subpar. (C) as (D).
      Subsec. (a)(2)(B) to (D). Pub. L. 103-325, Sec. 207(b), struck
    out "or" at end of subpar. (B), added subpar. (C), and redesignated
    former subpar. (C) as (D).
      Subsec. (c). Pub. L. 103-325, Sec. 207(c), in first sentence
    substituted ", that" for "or that" before "are mortgage related
    securities" and inserted ", or that are small business related
    securities (as defined in section 78c(a)(53) of this title)" before
    "shall be exempt".
      Subsec. (d). Pub. L. 103-325, Sec. 207(d), added subsec. (d).