§485A-102  Definitions. 

As used in this chapter, unless the context otherwise requires:

     "Agent" means an individual, other

than a broker-dealer, who represents a broker-dealer in effecting or attempting

to effect purchases or sales of securities or represents an issuer in effecting

or attempting to effect purchases or sales of the issuer's securities.  A

partner, officer, or director of a broker-dealer or issuer, or an individual

having a similar status or performing similar functions, is an agent

only if the individual otherwise falls within this definition.  The definition

shall not include an individual excluded by rule adopted or order issued under

this chapter.

     "Bank" means:

     (1)  A banking institution organized under the laws of

the United States;

     (2)  A member bank of the Federal Reserve System;

     (3)  Any other banking institution, whether

incorporated or not, doing business under the laws of a state or of the United

States, a substantial portion of the business of which consists of receiving

deposits or exercising fiduciary powers similar to those permitted to be

exercised by national banks under the authority of the Comptroller of the

Currency pursuant to section 1 of Public Law 87-722 (12 U.S.C. 92a), and which

is supervised and examined by a state or federal agency having supervision over

banks, and which is not operated for the purpose of evading this chapter; or

     (4)  A receiver, conservator, or other liquidating

agent of any institution or firm included in paragraph (1), (2), or (3).

     "Broker-dealer" means a person

engaged in the business of effecting transactions in securities for the

accounts of others or for the person's own account.  The term shall not

include:

     (1)  An agent;

     (2)  An issuer;

     (3)  A depository institution;

     (4)  Any person licensed as a real estate broker or

real estate salesperson under the laws of this State while effecting

transactions in a security exempted by sections [485A-202(a)(24)] and [485A-202(a)(25)];

     (5)  An international banking institution; or

     (6)  A person excluded by rule adopted or order issued

under this chapter.

     "Commissioner" means the commissioner

of securities of this State.

     "Depository institution" means:

     (1)  A bank; or

     (2)  A savings institution, trust company, credit

union, or similar institution that is organized or chartered under the laws of

a state or of the United States, authorized to receive deposits, and supervised

and examined by an official or agency of a state or the United States if its

deposits or share accounts are insured to the maximum amount authorized by

statute by the Federal Deposit Insurance Corporation, the National Credit Union

Share Insurance Fund, or a successor authorized by federal law.  The term

shall not include:

         (A)  An insurance company or other organization

primarily engaged in the business of insurance;

         (B)  A Morris Plan bank; or

         (C)  An industrial loan company.

     "Director" means the director of

commerce and consumer affairs.

     "Federal covered investment adviser"

means a person registered under the Investment Advisers Act of 1940.

     "Federal covered security" means a

security that is, or upon completion of a transaction will be, a covered

security under section 18(b) of the Securities Act of 1933 (15 U.S.C. 77r(b)),

or rules or regulations adopted pursuant to that provision.

     "Filing" means the receipt of a

record required under this chapter by the commissioner or a designee of the

commissioner.

     "Fraud", "deceit", and

"defraud" are not limited to common law deceit.

     "Guaranteed" means guaranteed as to

payment of all principal and all interest.

     "Institutional investor" means any of

the following, whether acting for itself or for others in a fiduciary capacity:

     (1)  A depository institution or international banking

institution;

     (2)  An insurance company;

     (3)  A separate account of an insurance company;

     (4)  An investment company as defined in the

Investment Company Act of 1940;

     (5)  A broker-dealer registered under the Securities

Exchange Act of 1934;

     (6)  An employee pension, profit-sharing, or benefit

plan if the plan has total assets in excess of $10,000,000 or its investment

decisions are made by a named fiduciary, as defined in the Employee Retirement

Income Security Act of 1974, that is a broker-dealer registered under the

Securities Exchange Act of 1934, an investment adviser registered or exempt

from registration under the Investment Advisers Act of 1940, an investment

adviser registered under this chapter, a depository institution, or an

insurance company;

     (7)  A plan established and maintained by a state, a

political subdivision of a state, or an agency or instrumentality of a state or

a political subdivision of a state for the benefit of its employees, if the

plan has total assets in excess of $10,000,000 or its investment decisions are

made by a duly designated public official or by a named fiduciary, as defined

in the Employee Retirement Income Security Act of 1974, that is a broker-dealer

registered under the Securities Exchange Act of 1934, an investment adviser

registered or exempt from registration under the Investment Advisers Act of

1940, an investment adviser registered under this chapter, a depository

institution, or an insurance company;

     (8)  A trust, if it has total assets in excess of

$10,000,000, its trustee is a depository institution, and its participants are

exclusively plans of the types identified in paragraph (6) or (7), regardless

of the size of their assets, except a trust that includes as participants

self-directed individual retirement accounts or similar self-directed plans;

     (9)  An organization described in section 501(c)(3) of

the Internal Revenue Code (26 U.S.C. 501(c)(3)), corporation, Massachusetts

trust or similar business trust, limited liability company, or partnership, not

formed for the specific purpose of acquiring the securities offered, with total

assets in excess of $10,000,000;

    (10)  A small business investment company licensed by

the Small Business Administration under section 301(c) of the Small Business

Investment Act of 1958 (15 U.S.C. 681(c)) with total assets in excess of $10,000,000;

    (11)  A private business development company as defined

in section 202(a)(22) of the Investment Advisers Act of 1940 (15 U.S.C.

80b-2(a)(22)) with total assets in excess of $10,000,000;

    (12)  A federal covered investment adviser acting for

its own account;

    (13)  A "qualified institutional buyer" as

defined in Rule 144A(a)(1), other than Rule 144A(a)(1)(i)(H), adopted under the

Securities Act of 1933 (17 C.F.R. 230.144A);

    (14)  A "major U.S. institutional investor"

as defined in Rule 15a-6(b)(4)(i) adopted under the Securities Exchange Act of

1934 (17 C.F.R. 240.15a-6);

    (15)  Any other person, other than an individual, of

institutional character with total assets in excess of $10,000,000, not

organized for the specific purpose of evading this chapter; or

    (16)  Any other person specified by rule adopted or

order issued under this chapter.

     "Insurance company" means a company

organized as an insurance company whose primary business is writing insurance

or reinsuring risks underwritten by insurance companies and which is subject to

supervision by the insurance commissioner or a similar official or agency of a

state.

     "Insured" means insured as to payment

of all principal and all interest.

     "International banking institution"

means an international financial institution of which the United States is a

member and whose securities are exempt from registration under the Securities

Act of 1933.

     "Investment adviser" means a person

that, for compensation, engages in the business of advising others, either

directly or through publications or writings, as to the value of securities or

the advisability of investing in, purchasing, or selling securities or that,

for compensation and as a part of a regular business, issues or promulgates

analyses or reports concerning securities.  The term includes a financial

planner or other person that, as an integral component of other financially

related services, provides investment advice to others for compensation as part

of a business or that holds itself out as providing investment advice to others

for compensation.  The term shall not include:

     (1)  An investment adviser representative;

     (2)  A lawyer, accountant, engineer, or teacher whose

performance of investment advice is solely incidental to the practice of the

person's profession;

     (3)  A broker-dealer or its agents whose performance

of investment advice is solely incidental to the conduct of business as a

broker-dealer and that does not receive special compensation for the investment

advice;

     (4)  A publisher of a bona fide newspaper, news

magazine, or business or financial publication of general and regular

circulation;

     (5)  A federal covered investment adviser;

     (6)  A bank or savings institution;

     (7)  Any other person that is excluded by the

Investment Advisers Act of 1940 from the definition of investment adviser; or

     (8)  Any other person excluded by rule adopted or

order issued under this chapter.

     "Investment adviser representative"

means an individual employed by or associated with an investment adviser or

federal covered investment adviser and who makes any recommendations or

otherwise gives investment advice regarding securities, manages accounts or

portfolios of clients, determines which recommendation or advice regarding

securities should be given, provides investment advice or holds oneself out as

providing investment advice, receives compensation to solicit, offer, or

negotiate for the sale of or for selling investment advice, or supervises

employees who perform any of the foregoing.  The term shall not include an individual

who:

     (1)  Performs only clerical or ministerial acts;

     (2)  Is an agent whose performance of investment

advice is solely incidental to the individual acting as an agent and who does

not receive special compensation for investment advisory services;

     (3)  Is employed by or associated with a federal

covered investment adviser, unless the individual has a "place of

business" in this State as that term is defined by rule adopted under section

203A of the Investment Advisers Act of 1940 (15 U.S.C. 80b-3a) and is:

         (A)  An "investment adviser

representative" as that term is defined by rule adopted under section 203A

of the Investment Advisers Act of 1940 (15 U.S.C. 80b-3a); or

         (B)  Not a "supervised person" as

that term is defined in section 202(a)(25) of the Investment Advisers Act of

1940 (15 U.S.C. 80b-2(a)(25)); or

     (4)  Is excluded by rule adopted or order issued under

this chapter.

     "Issuer" means a person that issues

or proposes to issue a security, subject to the following:

     (1)  The issuer of a voting trust certificate,

collateral trust certificate, certificate of deposit for a security, or share

in an investment company without a board of directors or individuals performing

similar functions is the person performing the acts and assuming the duties of

a depositor or manager pursuant to the trust or other agreement or instrument

under which the security is issued;

     (2)  The issuer of an equipment trust certificate or

similar security serving the same purpose is the person by which the property

is or will be used or to which the property or equipment is or will be leased

or conditionally sold or that is otherwise contractually responsible for

assuring payment of the certificate; and

     (3)  The issuer of a fractional undivided interest in

an oil, gas, or other mineral lease or in payments out of production under a

lease, right, or royalty is the owner of an interest in the lease or in

payments out of production under a lease, right, or royalty, whether whole or

fractional, that creates fractional interests for the purpose of sale.

     "Nonissuer transaction" or

"nonissuer distribution" means a transaction or distribution not

directly for the benefit of the issuer.

     "Offer to purchase" includes an

attempt or offer to obtain, or solicitation of an offer to sell, a security or

interest in a security for value.  The term shall not include a tender offer

that is subject to section 14(d) of the Securities Exchange Act of 1934 (15

U.S.C. 78n(d)).

     "Person" means an individual;

corporation; business trust; estate; trust; partnership; limited liability

company; association; joint venture; government; governmental subdivision,

agency, or instrumentality; public corporation; or any other legal or

commercial entity.

     "Place of business" of a

broker-dealer, an investment adviser, or a federal covered investment adviser

means:

     (1)  An office at which the broker-dealer, investment

adviser, or federal covered investment adviser regularly provides brokerage or

investment advice or solicits, meets with, or otherwise communicates with

customers or clients; or

     (2)  Any other location that is held out to the

general public as a location at which the broker-dealer, investment adviser, or

federal covered investment adviser provides brokerage or investment advice or

solicits, meets with, or otherwise communicates with customers or clients.

     "Predecessor act" means chapter 485,

Hawaii Revised Statutes.

     "Price amendment" means the amendment

to a registration statement filed under the Securities Act of 1933 or, if an

amendment is not filed, the prospectus or prospectus supplement filed under the

Securities Act of 1933 that includes a statement of the offering price,

underwriting and selling discounts or commissions, amount of proceeds,

conversion rates, call prices, and other matters dependent upon the offering

price.

     "Principal place of business" of a

broker-dealer or an investment adviser means the executive office of the

broker-dealer or investment adviser from which the officers, partners, or

managers of the broker-dealer or investment adviser direct, control, and

coordinate the activities of the broker-dealer or investment adviser.

     "Record" except in the phrases

"of record", "official record", and "public

record", means information that is inscribed on a tangible medium or that

is stored in an electronic or other medium and is retrievable in perceivable

form.

     "Sale" includes every contract of

sale, contract to sell, or disposition of, a security or interest in a security

for value; and "offer to sell" includes every attempt or offer

to dispose of, or solicitation of an offer to purchase, a security or interest

in a security for value.  Both terms include:

     (1)  A security given or delivered with, or as a bonus

on account of, a purchase of securities or any other thing constituting part of

the subject of the purchase, and having been offered and sold for value;

     (2)  A gift of assessable stock involving an offer and

sale; and

     (3)  A sale or offer of a warrant or right to purchase

or subscribe to another security of the same or another issuer and a sale or

offer of a security that gives the holder a present or future right or

privilege to convert the security into another security of the same or another

issuer, including an offer of the other security.

     "Securities and Exchange Commission"

means the United States Securities and Exchange Commission.

     "Security" means a note; stock;

treasury stock; security future; bond; debenture; evidence of indebtedness;

certificate of interest or participation in a profit-sharing agreement;

collateral trust certificate; preorganization certificate or subscription;

transferable share; investment contract; variable annuity contract; voting

trust certificate; certificate of deposit for a security; fractional undivided

interest in oil, gas, or other mineral rights; put, call, straddle, option, or

privilege on a security, certificate of deposit, or group or index of

securities, including an interest therein or based on the value thereof; put,

call, straddle, option, or privilege entered into on a national securities exchange

relating to foreign currency; in general, an interest or instrument commonly

known as a "security"; or a certificate of interest or participation

in, temporary or interim certificate for, receipt for, guarantee of, or warrant

or right to subscribe to or purchase, any of the foregoing.  The term:

     (1)  Includes both a certificated and an

uncertificated security;

     (2)  Does not include an insurance or endowment policy

or annuity contract under which an insurance company promises to pay a fixed

sum of money either in a lump sum or periodically for life or other specified

period;

     (3)  Does not include an interest in a contributory or

noncontributory pension or welfare plan subject to the Employee Retirement

Income Security Act of 1974;

     (4)  Includes any contractual or quasi-contractual

arrangement pursuant to which:

         (A)  A person furnishes value, other than

services, to an offeror;

         (B)  A portion of that value is subjected to

the risk of the offeror's enterprise;

         (C)  The furnishing of that value is induced by

the representations of an offeror which give rise to a reasonable understanding

that a valuable benefit will accrue to the offeree as a result of the operation

of the enterprise; and

         (D)  The offeree does not receive the right to

exercise practical and actual control over the management of the enterprise in

a meaningful way; and

     (5)  Includes as an "investment contract",

among other contracts, an interest in a limited partnership and a limited

liability company and an investment in a viatical settlement or similar

agreement.

     "Self-regulatory organization" means

a national securities exchange registered under the Securities Exchange Act of

1934, a national securities association of broker-dealers registered under the

Securities Exchange Act of 1934, a clearing agency registered under the

Securities Exchange Act of 1934, or the Municipal Securities Rulemaking Board

established under the Securities Exchange Act of 1934.

     "Sign" means, with present intent to

authenticate or adopt a record:

     (1)  To execute or adopt a tangible symbol; or

     (2)  To attach or logically associate with the record

an electronic symbol, sound, or process.

     "State" means a state of the United

States, the District of Columbia, Puerto Rico, the United States Virgin

Islands, or any territory or insular possession subject to the jurisdiction of

the United States. [L 2006, c 229, pt of §1; am L 2013, c 165, §1]