LD 509
pg. 48
Page 47 of 183 An Act To Adopt the Maine Uniform Securities Act Page 49 of 183
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LR 441
Item 1

 
The Chicago Board Options Exchange on condition that the relevant
listing standards continue to be substantially similar to those of
the New York, American, or Nasdaq stock markets. See Reporter's
Note to Section 102(7). A federal covered security subject to
Section 18(b)(1) of the Securities Act of 1933 will not be subject
to the securities registration requirements of Sections 301 and 303
through 306.

 
The exemption in Section 201(6) addresses specified options,
warrants, and rights that are not federal covered securities
under Section 18(b)(1) of the Securities Act of 1933, but
generally would have been exempted under RUSA. The 1956 Act,
which was narrower, was drafted before the computerized Nasdaq
stock market began trading the National Market List and the
development of standardized options markets.

 
The final clause of Section 201(6) makes clear that any offer
or sale of the underlying security that occurs as a result of the
offer or sale of an option or other derivative security exempted
under this provision or as the result of the exercise of the
option or other derivative security, is covered by the exemption
if the option met the terms of the exemption at the time such
derivative security was written (that is, sold) or issued. The
sale of the underlying security when an option is exercised would
be exempt even if the underlying security is not at that time
subject to any exemption under the Act. This is consistent with
existing precedent under federal law suggesting that the legality
of the sale of an underlying security when an option is exercised
should be determined by the status of the security at the time
the option was written rather than at the time of exercise. See,
e.g., H. Kook & Co., Inc. v. Scheinman, Hochstin & Trotta, Inc.,
414 F.2d 93 (2d Cir. 1969). Any transaction in an underlying
security that results from the offer, sale, or exercise of any
derivative security issued by a registered clearing agency and
traded on a national securities exchange or association is exempt
if the derivative security when written was exempt under Section
201(6).

 
The Securities and Exchange Commission has adopted Rule 9b-1
under Section 9(b).

 
7. Section 201(7): Nonprofit organization securities: Prior
Provision: Section 3(a)(4) of the Securities Act of 1933. Section
402(a)(9) of the 1956 Act and Section 401(b)(10) of RUSA exempt
specified nonprofit securities. Both are modeled on Section
3(a)(4) of the Securities Act, which was subsequently amended.

 
Securities issued under Section 3(a)(4) of the Securities Act
of 1933 are not treated as federal covered securities in Section
18(b)(4)(C), although a separate Section 3(a)(13)


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