§ 77r-1. — Preemption of State law.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 15USC77r-1]
TITLE 15--COMMERCE AND TRADE
CHAPTER 2A--SECURITIES AND TRUST INDENTURES
SUBCHAPTER I--DOMESTIC SECURITIES
Sec. 77r-1. Preemption of State law
(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.
(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).
