[Code of Federal Regulations]
[Title 17, Volume 2]
[Revised as of April 1, 2002]
From the U.S. Government Printing Office via GPO Access
[CITE: 17CFR230.131]

[Page 470]
 
              TITLE 17--COMMODITY AND SECURITIES EXCHANGES
 
             CHAPTER II--SECURITIES AND EXCHANGE COMMISSION
 
PART 230--GENERAL RULES AND REGULATIONS, SECURITIES ACT OF 1933--Table of Contents
 
Sec. 230.131  Definition of security issued under governmental obligations.

    (a) Any part of an obligation evidenced by any bond, note, 
debenture, or other evidence of indebtedness issued by any governmental 
unit specified in section 3(a)(2) of the Act which is payable from 
payments to be made in respect of property or money which is or will be 
used, under a lease, sale, or loan arrangement, by or for industrial or 
commercial enterprise, shall be deemed to be a separate security within 
the meaning of section 2(l) of the Act, issued by the lessee or obligor 
under the lease, sale or loan arrangement.
    (b) An obligation shall not be deemed a separate security as defined 
in paragraph (a) of this section if, (1) the obligation is payable from 
the general revenues of a governmental unit, specified in section 
3(a)(2) of the Act, having other resources which may be used for payment 
of the obligation, or (2) the obligation relates to a public project or 
facility owned and operated by or on behalf of and under the control of 
a governmental unit specified in such section, or (3) the obligation 
relates to a facility which is leased to and under the control of an 
industrial or commercial enterprise but is a part of a public project 
which, as a whole, is owned by and under the general control of a 
governmental unit specified in such section, or an instrumentality 
thereof.
    (c) This rule shall apply to transactions of the character described 
in paragraph (a) of this section only with respect to bonds, notes, 
debentures or other evidences of indebtedness sold after December 31, 
1968.

(15 U.S.C. 77w)

[33 FR 12648, Sept. 6, 1968, as amended at 35 FR 6000, Apr. 11, 1970]