Series 63 – Uniform Securities Agent State Law Exam Exempt Transactions and Securities 3

Question 1

Under the USA, a transaction by a sheriff, marshal, or court-appointed receiver qualifies as what type of exemption?

Accepted Answer

A fiduciary transaction exemption

Answer

Transactions by court-appointed fiduciaries such as sheriffs, marshals, guardians, and receivers are exempt transactions under the USA.

Question 2

Which of the following is true about the exemption for transactions with financial institutions under the USA?

Accepted Answer

It applies to transactions with any institutional investor defined under the USA

Answer

The institutional exemption under the USA applies to transactions with any institutional investor as defined, including banks, insurance companies, and registered broker-dealers.

Question 3

Under the USA, an issuer must file a notice of which type of transaction with the Administrator within a specified time period?

Accepted Answer

Private placement transactions claiming a transaction exemption

Answer

Issuers relying on a transaction exemption for private placements may be required to file a notice with the Administrator within 15 days of the first sale.

Question 4

Which of the following securities issued by a US government agency is exempt from registration under the USA?

Accepted Answer

Securities issued by the Federal Home Loan Bank

Answer

Securities issued by US government agencies such as the Federal Home Loan Bank are exempt from state registration under the USA.

Question 5

Under the USA, the burden of proving that a transaction qualifies for an exemption falls on which party?

Accepted Answer

The person claiming the exemption

Answer

The person claiming an exemption from registration has the burden of proving that the exemption applies.

Series 63 – Uniform Securities Agent State Law Exam Practice Test

Series 63 – Uniform Securities Agent State Law Exam Practice Test

Series 63 – Uniform Securities Agent State Law Exam Exempt Transactions and Securities 3