The Key West citizen. [volume] (Key West, Fla.) 1879-current, 1939-09-07

bona hde debt. a security pledged
in good faith as security for such
debt.
(cl. The sale of securities when
made by or on behalf of a vendor
not the issuer or underwater thereof
who being a bona fide owner of such
securities. disposes of his own prop
erty for his own account, and such
sale is not made directly or indi-
rectiy for the benefit of issuer
or an underwater of such security,
or for the direct or indirect promo
ton OF any scheme or enterprise
with the intent of violating or evad-
ing any provision of this Act.
Id The distribution by q corpora
ton. actively engaged in the bust
securities to its stockholders or 9TH
er securities holders as a stock div
ness authorized by its charter. of
idend or other distribution out of
earnings of surplus; or the issuance
of securities to the security holders
or other creditors of a corporation in
the process of a bona fide reorgan-
izatiOn of such corporation made in
good faith and not for the purpose
of avoiding the provisions of this
Act. either in exchange for the Sc
curltieS of such security holders or
claims of such creditors or partly
for cash and partly in exchange for
the securities or claims of such Sc
curity holders or creditors; or the
issuance of additional capital stock
of a corporation sold or distributed
by it among it's own stockholders
exclusively where no commission or
other remuneration is paid or given
directly or indirectly in connection
with the sale or distribution of such
increased capital stock.
(e) The sale. transfer, or delivery
of any securities to any bank, saw
ings institution trust company in
surance company. or to any corpora
ton or TO any broker or dealer; pro-
vided that such broker or dealer is
actually engaged in buying and sell
ing securities as a bushes.
Cd The transfer or exchange by
one corporation to another corpora
ton of their own securities in con-
nection with a consolidation or mer-
ger of such corporation.
tg) Bonds or notes secured by
mortgage upon real estate or tan
gible personal property where the
entire mortgage together with all
of the bonds or notes secured there
by are sold to a single purchaser
at a single sale.
(h) Bonds or notes secured by
mortgage upon real estate or tan
gible personal property situated
within the State of Florida where
the bonds or notes are sold to not
more than twenty purchasers and
the total face amount of all bonds
or notes secured by a single mort
gage does not exceed ten thousand
dollars.
ID The issue and delivery of any
security in exchange for any other
security of the same issuer pur-
suant to a right of conversion en-
titling the holder of the security
surrendered in exchange to make
such conversion provided that the
security in exchange to make such
conversion so surrendered has been
registered under the law or was,
when sold. exempt from the provis-
ions of the law and that the security
issued and delivered in exchange if
sold at the conversion price, would
at the time of such conversion fall
within the class of securities entitled
to registration by notification under
the law. Upon such conversion the
par value of the security surrender
ed in such exchange shall be deemed
the price at which the securities is
sued and delivered in such exchange
are sold.
Cd Not exceeding twenty-five sub
ScrlptiOnS for shares of the capital
stock of a corporation prior to the
incorporation thereof under the laws
of this state when no expense is in
CURED. or no commission, compen-
satiOn or remuneration is paid or
given for or in connection with the
sale or disposition of such securities.
Ql) The sale of its shares by any
corporation organized under the laws
of this state when the total number
of shareholders does not and will not
after such sale exceed twenty and
the total face amount or the total
sale price of such shares does not
exceed ten thousand dollars; pro-
vided that such securities are is
sued and disposed of for the sole
account of the issuer in good faith
and not for the purpose of evading
the provisions of this Act.
ID The sale or distribution of Sc
curities of any public utility cor
poration operating in this state, or
the securities of any public utility
controlling such first mentioned pub
lie utility which is subject to regu-
lation by the Public Service Com
mission of any state or by the Inter
state Commerce Commission or by
any other similar state or federal
regulatory body, when such securi-
ties are exempt securities under
Section of this Act and under such
sale or distribution is made by the
corporation issuing such securities
or any subsidiary thereof, through
the employees of the public utility
so operating in this state.
(m) The sale of securities by a
bank or trust company organized
or incorporated under the laws of
the United States. or this state, at a
profit to such bank or trust company
of not more than two per cent of
the total price of such securities,
provided that there is no solicitation
of this business by such bank or
trust company %Nhere such bank or
trust company acts merely as agent
In the purchase or sale of such Sc
curities.
In any of the transactions here
in above referred to in sub-para-
graphs h, i. j. and |. of this sec
ton. written notice is hereby re-
CURED to be given to said Florida
Securities Commission in advance
of the sale of securities in such ex-
empt transactions, such notice to
be on forms prescribed by the Flor
ida Securities Commission and to
contain such information as the
Florida Securities Commission shall
deem necessary to affirmatively show
particular transactions to be in fact
exempt transactions under this sec
ton.
Sec. 3. That Chapter 1889. Laws
of Florida. Acts of 1881, be and the
same is hereby amended by adding
thereto new section. in words and
figures. as follows:
Sec. 1515 Whenever it is pro-
posed to conduct an investigation
examination. or hearing under the
provisions of Sections 10. II, or Is,
of the Uniform Sale of Securities
Act. or any amendment to said sec
tions the Commission, or its chair
man. may appoint an examiner, who
shall be a discreet person without
bias or prejudice in said cause, to
take the proof in the matter of de-
positions. The examiner shall have