Opinion ID: 1675388
Heading Depth: 1
Heading Rank: 2

Heading: the commercial paper exemption

Text: The Uniform Securities Act exempts certain securities and transactions from its registration provisions. [2] One of the exemptions is for: [a]ny negotiable promissory note or commercial paper which arises out of a current transaction or the proceeds of which have been or are to be used for current transactions, and which evidences an obligation to pay cash within 12 months of the date of issuance, exclusive of days of grace, or any renewal of such note or paper which is likewise limited, or any guarantee of such note or paper or of any such renewal. MCLA 451.802(a)(9); MSA 19.776(402)(a)(9). Defendants allege that the securities sold by Dempster Investment Company fit within this exemption, and thus need not have been registered. Mrs. Dempster and Dempster Investment Company sold to the general public shares in an open-end trust account. One of the particular securities involved reads as follows: Date December 2, 1969 Renewal of Trust Account Dated September 2, 1969