2016 California Code
Government Code - GOV
TITLE 1 - GENERAL
DIVISION 6 - PUBLIC BONDS AND OBLIGATIONS
CHAPTER 13 - Fractional Interest in Local Agency Obligations
Section 5950.
5950. As used in this chapter:
(a) Accredited investor has the meaning specified in Rule 501 of the Securities Act of 1933.
(b) In this state has the meaning specified in Section 25008 of the Corporations Code.
(c) Issuer has the meaning specified in Section 25010 of the Corporations Code.
(d) Issuer transaction means any transaction directly or indirectly for the benefit of the issuer. A transaction is indirectly for the benefit of the issuer if any portion of the purchase price of any security constituting a fractional interest in a lease, installment sale, or other obligation of a local agency involved in the transaction will be received indirectly by the issuer. An offer or sale that involves both an issuer transaction and a transaction that is not an issuer transaction shall be treated as separate transactions.
(e) Knowingly means that a person, with respect to an offer or sale of a security constituting a fractional interest in a lease, installment sale, or other obligation of a local agency, does any of the following:
(1) Has actual knowledge that the local agency has not consented to the offer or sale of such security.
(2) Acts in deliberate ignorance of whether or not the local agency has consented to the offer or sale of that security.
(3) Acts in reckless disregard of whether or not the local agency has consented to the offer or sale of that security.
Proof of specific intent to violate Section 5951 is not required.
(f) Local agency means a city, county, city and county, school district, special district, public corporation, or other public entity of this state.
(g) Person has the meaning specified in Section 25013 of the Corporations Code.
(h) Qualified institutional buyer has the meaning specified in Rule 144A of the Securities Act of 1933.
(i) Sale, sell, offer, and offer to sell have the respective meanings specified in Section 25017 of the Corporations Code.
(j) Security has the meaning specified in Section 25019 of the Corporations Code.
(k) Securities Act of 1933 and Investment Company Act of 1940 means the federal statutes of those names as amended before or after the effective date of this chapter.
(Added by Stats. 1994, Ch. 972, Sec. 3. Effective September 29, 1994.)
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