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  • PART I ADMINISTRATION OF THE GOVERNMENT
  • TITLE XV REGULATION OF TRADE
  • CHAPTER 110A UNIFORM SECURITIES ACT
  • Section 306 Federal covered securities

Section 306. (a) Covered securities under section 18(b)(2) of the Securities Act of 1933.

(1) Any security that is a federal covered security under section 18(b)(2) of the Securities Act of 1933 may be offered for sale and sold into, from, or within the commonwealth upon the secretary’s receipt of: a copy of the registration statement filed with the Securities and Exchange Commission or, in lieu of filing such registration statement, a notice as prescribed by the secretary by rule or order; a consent to service of process; and a fee of $750 for a unit investment trust or $2,000 for all other investment companies.

(2) Except as otherwise provided herein for unit investment trusts, unless otherwise extended by the secretary by rule or order, an initial notice filing under this section shall be effective commencing upon the later of the date the notice or registration statement, as applicable, is received by the secretary or the date the offering is effective with the Securities and Exchange Commission, until 2 months following the end of the issuer’s fiscal year. A notice filing may be renewed by filing, prior to the expiration of an effective notice filing, a renewal notice as prescribed by the secretary together with a renewal fee of $1,000. A renewal notice filing shall be effective until 2 months following the end of the issuer’s next fiscal year. A notice filing by a unit investment trust shall be effective for a period determined by the secretary by rule or order.

(3) A notice filing may be amended as provided by the secretary by rule or order.

(4) A notice filing may be terminated by an issuer upon providing the secretary a notice as the secretary may require by rule or order.

(b) Covered Securities under section 18(b)(4)(D) of the Securities Act of 1933.

The secretary may, by rule or order, require the issuer of any security that is a federal covered security under section 18(b)(4)(D) of the Securities Act of 1933 to file, no later than 15 days after the first sale in this commonwealth of such federal covered security, the following:

(1) a notice on Securities and Exchange Commission Form D;

(2) a consent to service of process signed by the issuer; and

(3) any fees required by the secretary.

(c) Covered Securities under sections 18(b)(3) and 18(b)(4)(A)-(C) of the Securities Act of 1933.

The secretary, by rule or order, may require the filing of any document filed with the Securities and Exchange Commission under the Securities Act of 1933 together with annual or periodic reports of the value of securities sold or offered to be sold to persons located in this commonwealth for any security that is a federal covered security under section 18(b)(3) or (4)(A)-(C) of the Securities Act of 1933, together with a consent to service of process and any fees required by the secretary.

(d) Suspension Order.

The secretary may issue a stop order suspending the offer and sale of a federal covered security, except a federal covered security under section 18(b)(1) of the Securities Act of 1933, if he finds that:—

(1) the order is in the public interest and

(2) there is a failure to comply with any condition established under this section or any rule or order adopted hereunder.

(e) Preservation of Fraud Authority.

Consistent with section 18(c)(1) of the Securities Act of 1933, the secretary retains jurisdiction under the laws of the commonwealth, including this chapter, to investigate and bring enforcement actions with respect to fraud or deceit, or unlawful conduct by a broker or dealer, in connection with covered securities or transactions in covered securities.

(f) Waiver.

The secretary, by rule or order, may waive any or all of the provisions of this section.