Laws: Cases and Codes : U.S. Code : Title 43 : Section 1625


   
U.S. Code as of: 01/19/04
Section 1625. Securities laws exemption

    (a) Laws; termination date of exempt status
      A Native Corporation shall be exempt from the provisions, as
    amended, of the Investment Company Act of 1940 (54 Stat. 789) [15
    U.S.C. 80a-1 et seq.], the Securities Act of 1933 (48 Stat. 74) [15
    U.S.C. 77a et seq.], and the Securities Exchange Act of 1934 (48
    Stat. 881) [15 U.S.C. 78a et seq.] until the earlier of the day
    after - 
        (1) the date on which the corporation issues shares of stock
      other than Settlement Common Stock in a transaction where - 
          (A) the transaction or the shares are not otherwise exempt
        from Federal securities laws; and
          (B) the shares are issued to persons or entities other than -
        
            (i) individuals who held shares in the corporation on
          February 3, 1988;
            (ii) Natives;
            (iii) descendants of Natives;
            (iv) individuals who have received shares of Settlement
          Common Stock by inheritance pursuant to section 1606(h)(2) of
          this title;
            (v) Settlement Trusts; or
            (vi) entities established for the sole benefit of Natives
          or descendants of Natives; or

        (2) the date on which alienability restrictions are terminated;
      or
        (3) the date on which the corporation files a registration
      statement with the Securities and Exchange Commission pursuant to
      either the Securities Act of 1933 [15 U.S.C. 77a et seq.] or the
      Securities Exchange Act of 1934 [15 U.S.C. 78a et seq.].
    (b) Status of Native Corporations after termination date
      No provision of this section shall be construed to require or
    imply that a Native Corporation shall, or shall not, be subject to
    provisions of the Acts listed in subsection (a) of this section
    after any of the dates described in subsection (a) of this section.
    (c) Annual report to shareholders; shareholders of record
      (1) A Native Corporation that, but for this section, would be
    subject to the provisions of the Securities Exchange Act of 1934
    [15 U.S.C. 78a et seq.] shall annually prepare and transmit to its
    shareholders a report that contains substantially all the
    information required to be included in an annual report to
    shareholders by a corporation subject to that Act.
      (2) For purposes of determining the applicability of the
    registration requirements of the Securities Exchange Act of 1934 on
    or after the date described in subsection (a) of this section,
    holders of Settlement Common Stock shall be excluded from the
    calculation of the number of shareholders of record pursuant to
    section 12(g) of that Act [15 U.S.C. 78l(g)].
    (d) Wholly owned subsidiaries; Settlement Trusts; voluntary
      registration as Investment Company
      (1) Notwithstanding any other provision of law, prior to January
    1, 2001, the provisions of the Investment Company Act of 1940 [15
    U.S.C. 80a-1 et seq.] shall not apply to any Native Corporation or
    any subsidiary of such corporation if such subsidiary is wholly
    owned (as that term is defined in the Investment Company Act of
    1940) by the corporation and the corporation owns at least 95 per
    centum of the equity of the subsidiary.
      (2) The Investment Company Act of 1940 shall not apply to any
    Settlement Trust.
      (3) If, but for this section, a Native Corporation would qualify
    as an Investment Company under the Investment Company Act of 1940,
    it shall be entitled to voluntarily register pursuant to such Act
    and any such corporation which so registered shall thereafter
    comply with the provisions of such Act.



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