General Rules and Regulations
Securities Act of 1933
Rule 131 -- Definition of Security Issued Under Governmental Obligations
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(a)(l) of
the Act, issued by the lessee or obligor under the lease, sale or loan arrangement.
An obligation shall not be deemed a separate security
as defined in paragraph (a) of this section if,
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
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
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.
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.
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