Section 1-211 - Federally covered securities (a) With respect to any security that is a covered security under section 18(b)(2) of the Securities Act of 1933 (48 Stat. 74, 15 U.S.C. § 77r(b)(2)), the following shall apply: (1) An open-end or closed-end investment company, unit investment trust or face amount certificate company, as such persons are classified in the Investment Company Act of 1940 (54 Stat. 789, 15 U.S.C. § 80a-1 et seq.), annually shall notify the department of its intent to offer such federally covered securities for sale in this State by paying the filing fee specified in section 602(b.1) and, if applicable, the assessment specified in section 602.1(a)(5) and filing any or all of the following documents which the department, by rule or order, may require: (i) Prior to the initial offer of such federally covered security in this State, all documents that are part of a Federal registration statement filed with the Securities and Exchange Commission under the Securities Act of 1933 (15 U.S.C. § 77a et seq.) or, as an alternative thereto, a notice form adopted by the department.(ii) After the initial offer of such federally covered security in this State, all documents that are part of an amendment to a Federal registration statement filed with the Securities and Exchange Commission under the Securities Act of 1933 or, as an alternative thereto, a notice form adopted by the department, which shall be filed concurrently with the department.(iii) Any other documents that are part of a Federal registration statement filed with the Securities and Exchange Commission under the Securities Act of 1933, which shall be filed concurrently with the department.(2) An initial notice filing by a unit investment trust shall be effective for the period beginning with its effective date in this State and ending one year after the date the registration statement for the same securities became effective with the Securities and Exchange Commission. A renewal notice filing by a unit investment trust shall be effective for a period of one year. An initial or renewal notice filing by a unit investment trust becomes effective upon receipt by the department of a properly completed filing, including documents required by paragraph (1), and a correct fee and, if applicable, the correct assessment unless another date is requested in writing by the issuer in the notice filing made with the department.(3) A notice filing by an open-end or closed-end investment company or face amount certificate company, as such terms are classified in the Investment Company Act of 1940, shall be effective for the period beginning with its effective date in this State and ending sixty days after the filer's fiscal year end for the year in which the notice filing was made. A notice filing by an open-end or closed-end investment company or face amount certificate company becomes effective upon receipt by the department of a properly completed filing, including documents required by paragraph (1), and a correct fee and, if applicable, the correct assessment unless another date is requested in writing by the issuer in the notice filing made with the department.(b) With respect to any security that is a covered security under section 18(b)(4)(E) of the Securities Act of 1933 (48 Stat. 74, 15 U.S.C. § 77r(b)(4)(E)), an issuer shall file a notice with the department on Form D promulgated by the Securities and Exchange Commission not later than fifteen calendar days after the first sale of such federally covered security occurs in this State, together with the filing fee specified in section 602(b.1). (b.1)(1)With respect to any security that is a covered security under section 18(b)(4)(C) of the Securities Act of 1933, the issuer shall file with the department a copy of the document filed with the Securities and Exchange Commission pursuant to section 4A(b) of the Securities Act of 1933 where:(i) the principal place of business, as that term is defined in the rules and regulations of the Securities and Exchange Commission, is in this State; or(ii) purchasers of 50% or more of the securities sold by the issuer pursuant to an offering made in reliance on section 18(b) (4)(C) of the Securities Act of 1933 are residents of this State.(2) The document required under paragraph (1) shall be filed when the issuer files the document with the Securities and Exchange Commission with respect to paragraph (1)(i) and within 15 days of when it becomes aware of the facts under paragraph (1)(ii).(3) There shall be no fee for making the filing with the department.(c)(1) The department may issue a stop order suspending the offer or sale of a security described in subsection (a), (b) or (b.1) upon finding that:(i) The order is necessary or appropriate in the public interest for protection of investors; and(ii) There is a failure to comply with any condition established under this section.(2) A stop order under this section may be issued summarily without notice or hearing. Upon issuance of a summary order, the department shall promptly provide the order to the person against whom it is issued. The order shall contain findings of fact and conclusions of law and include a notice affording the person an opportunity for a hearing under section 607(a). No person shall be considered to have violated section 201 solely by reason of an order entered under this section for an offer or sale effected after the entry of an order under this section if the person sustains the burden of proof that the person did not know and in the exercise of reasonable care could not have known of the order.(e) A failure to file or timely file documents with the department or a failure to pay or timely pay a filing fee as required by this section may not create any cause of action for civil liability on the part of any person under section 502 or 503. Amended by P.L. 678 2014 No. 52, § 10, eff. 8/9/2014.1972, Dec. 5, P.L. 1280, No. 284, § 211, added 1998, Nov. 24, P.L. 829, No. 109, § 11, effective in 60 days. Amended 2002, July 4, P.L. 721, No. 108, § 7, effective in 60 days.