Rule R164-13. Definitions.

As in effect on August 1, 2009

Table of Contents

• R164-13-1. Definitions.
• KEY
• Date of Enactment or Last Substantive Amendment
• Notice of Continuation
• Authorizing, Implemented, or Interpreted Law

R164-13-1. Definitions.

(A) Authority and purpose

(1) The Division enacts this rule under authority granted by Sections 61-1-13 and 61-1-24.

(2) This rule defines several terms used in Title 61, Chapter 1, Utah Uniform Securities Act.

(B) Terms defined

In addition to the definitions in Section 61-1-13, as used in Title 61, Chapter 1:

(1) "Investment contract" includes:

(1)(a) any investment in a common enterprise with the expectation of profit to be derived through the essential managerial efforts of someone other than the investor; or

(1)(b) any investment by which:

(1)(b)(i) an offeree furnishes initial value to an offerer;

(1)(b)(ii) a portion of this initial value is subjected to the risks of the enterprise;

(1)(b)(iii) the furnishing of the initial value is induced by the offerer's promises or representations which give rise to a reasonable understanding that a valuable benefit of some kind over and above the initial value will accrue to the offeree as a result of the operation of the enterprise; and

(1)(b)(iv) the offeree does not receive the right to exercise practical or actual control over the managerial decisions of the enterprise.

(2) "Isolated transaction" means not more than a total of two transactions which occur anywhere during six consecutive months.

KEY

securities, securities regulation

Date of Enactment or Last Substantive Amendment

July 3, 1997

Notice of Continuation

July 30, 2007

Authorizing, Implemented, or Interpreted Law

61-1-13; 61-1-24