Fin. Code, § 18427.9 · Article 5. Securities Transactions
Fin. Code, § 18427.9
Text — As published in the Legislative Counsel's database, tables dated October 18, 2026 (pubinfo_2025.zip)
There shall be exempted from the provisions of Section 18427.1 all of the following:
(a) (1) Any offer, not involving a public offering, to an affiliate or to a person of the type described in subdivision (i) of Section 25102 of the Corporations Code or in the regulations of the Commissioner of Financial Protection and Innovation adopted thereunder.
(2) The execution and delivery of an agreement for the sale of securities to any person of the type described in paragraph (1), subject to all of the following:
(A) The agreement shall contain substantially the following provision: “The sale of the securities which are the subject of this agreement has not been authorized by a permit issued by the Commissioner of Financial Protection and Innovation. The issuance of the securities or the payment or receipt of any part of the consideration therefor prior to the issuance of a permit is unlawful, unless the sale of securities is exempt from Section 18427.1 of the California Financial Code. The rights of all parties to this agreement are expressly conditioned upon the issuance of a permit, unless the sale is so exempt.”
(B) No part of the purchase price may be paid or received, and none of the securities may be issued, until a permit authorizing the sale of the securities is issued, unless the sale is exempt from Section 18427.1.
(b) Any transaction or security that the commissioner by regulation or order exempts as not being comprehended within the purposes of this article and the regulation of which they find is not necessary or appropriate in the public interest or for the protection of investors.
Notes and commentary — not statutory text
History
Amended by Stats. 2022, Ch. 452, Sec. 130. (SB 1498) Effective January 1, 2023.
Source of truth
- Edition
- As published in the Legislative Counsel's database, tables dated October 18, 2026 (pubinfo_2025.zip)
- Official file
- https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=FIN§ionNum=18427.9.
- Text hash
- sha256 4d15fd93c99f109e67de7f3bb26a0b1e249555fa697536e40fa6267b1572c85c
- Composed by
- compose_ca.py 2026-10-22: the Legislative Counsel's CAML content files read by a tokenizer (caml_readers.reader_a); an independent xml.etree reading (caml_readers.reader_b) agrees on every section
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