Code of Alabama - Title 8: Commercial Law and Consumer Protection - Chapter 6 - Securities

• Article 1 General Provisions.
• Section 8-6-1 Short title
  This article may be cited as the "Alabama Securities Act."
• Section 8-6-2 Definitions
  When used in this article, unless the context otherwise requires, the following terms shall have the meanings respectively ascribed to them by this section: (1)...
• Section 8-6-3 Registration and bonds of dealers, agents, investment advisers, etc
  (a) It is unlawful for any person to transact business in this state as a dealer or agent for securities unless he or she is...
• Section 8-6-4 Registration of securities - Required; exceptions
  It is unlawful for any person to offer or sell any security in this state unless: (1) It is registered under this article; (2) The...
• Section 8-6-5 Registration of securities - Registration by notification
  (a) The following securities may be registered by notification, whether or not they are also eligible for registration by coordination under Section 8-6-6: (1) Any...
• Section 8-6-6 Registration of securities - Registration of certain securities by coordination
  (a) Any security for which a registration statement has been filed under the Securities Act of 1933 in connection with the same offering may be...
• Section 8-6-7 Registration of securities - Registration by qualification
  (a) Any security may be registered by qualification. (b) A registration statement under this section shall contain the following information and be accompanied by the...
• Section 8-6-8 Registration of securities - Registration statement; conditions precedent; bond; notice of action; fees; quarterly reports and financial statements; discharge from supervision
  (a) A registration statement on securities may be filed by the issuer, any other person on whose behalf the offering is to be made, or...
• Section 8-6-9 Registration of securities - Denial, suspension and revocation of registration
  The Securities Commission shall issue an order denying effectiveness to, or suspending or revoking the effectiveness of, any registration statement in the sale of securities...
• Section 8-6-10 Registration of securities - Exempt securities
  Sections 8-6-4 through 8-6-9 shall not apply to any of the following securities: (1) Any security, including a revenue obligation, issued or guaranteed by the...
• Section 8-6-11 Registration of securities - Exempt transactions
  (a) Except as hereinafter in this section expressly provided, Sections 8-6-3 through 8-6-9 shall not apply to any of the following transactions: (1) Any isolated...
• Section 8-6-12 Registration of securities - Applicability of provisions of article; consent to service of process on Secretary of State
  (a) The provisions of this article shall apply to persons who sell or offer to sell when (1) an offer to sell is made in...
• Section 8-6-14 Filing or registration not finding of truth, completeness, etc., of documents; representations concerning effect of registration or exemption
  (a) Neither the fact that an application for registration under Section 8-6-3 or a registration statement under Sections 8-6-5, 8-6-6 or 8-6-7 has been filed,...
• Section 8-6-15 Investigations and subpoenas by commission
  (a) The Securities Commission, in its discretion, may: (1) Make such public or private investigations within or outside of this state as he deems necessary...
• Section 8-6-16 Administrative cease and desist authority to commission; injunctive relief; appointment of receivers or conservators for defendants or defendants' assets; court ordered rescission, restitution, or disgorgement for violations
  Whenever it appears to the Securities Commission that any person has engaged in or is about to engage in any act or practice constituting a...
• Section 8-6-17 Prohibited acts regarding offer, sale, or purchase of securities
  (a) It is unlawful for any person, in connection with the offer, sale, or purchase of any security, directly or indirectly, to: (1) Employ any...
• Section 8-6-18 Criminal penalties for violations of article; enforcement; scienter
  (a) A person who willfully violates Section 8-6-3 or Section 8-6-4, upon conviction, shall be guilty of a Class C felony. A person that willfully...
• Section 8-6-19 Civil liabilities of sellers, agents, etc.; remedies of purchasers
  (a) Any person who: (1) Sells or offers to sell a security in violation of any provision of this article or of any rule or...
• Section 8-6-21 Commission authorized to swear out warrants of arrest; liability of commission for warrant
  The Securities Commission is authorized and empowered to swear out warrants of arrest against any person violating the criminal provisions of this article, and it...
• Section 8-6-22 Duties of director; director empowered to swear out warrants of arrest; liability of director for warrant
  The Director of the Securities Commission shall keep the records of the commission and generally perform such duties as the commission may direct. When ordered...
• Section 8-6-23 Making, amending, and rescinding rules and prescribing forms by commission
  The Securities Commission may from time to time make, amend, and rescind such rules and prescribe such forms as are necessary and desirable to carry...
• Section 8-6-24 Liability for acts done or omitted in good faith under rules, forms, or orders
  No provision of this article imposing any liability applies to any act done or omitted in good faith in conformity with any rule, form, or...
• Section 8-6-25 Hearings to be public; requests for private hearings
  Every hearing in an administrative proceeding shall be public unless the Securities Commission, in its discretion, grants a request joined in by all the respondents...
• Section 8-6-26 Document deemed filed when received
  A document is deemed filed when it is received by the Securities Commission.
• Section 8-6-27 Commission to keep register; register to be open for public inspection
  The Securities Commission shall keep a register of all applications for registration and registration statements which are or have ever been effective under this article...
• Section 8-6-28 Commission to furnish copies of register entries or documents; certified copy deemed prima facie evidence
  Upon request and at such reasonable charges as it prescribes, the Securities Commission shall furnish to any person photostatic or other copies, certified under its...
• Section 8-6-29 Interpretative opinions by commission
  (a) The Securities Commission, in its discretion, may honor requests from interested persons for interpretative opinions and no-action letters. (b) Any person who makes application...
• Section 8-6-30 Burden of proving exemption or exception from definition
  In any proceeding under this article, the burden of proving an exemption or an exception from a definition is upon the person claiming it.
• Section 8-6-31 Commission may issue warnings to public and publish information regarding orders
  The Securities Commission may issue and give warnings to the public concerning securities being sold in this state and may in its discretion cause to...
• Section 8-6-32 Party aggrieved by order entitled to hearing before commission; appeals from action of commission
  (a) Any person aggrieved by an order issued under this article shall be entitled to a hearing pursuant to the provisions of the Alabama Administrative...
• Section 8-6-33 Disposition of revenue
  All moneys accruing to or collected by or through the Securities Commission shall be deposited when collected into the State Treasury to the credit of...
• Article 2 Securities Commission.
• Section 8-6-50 Created; duties generally
  There is created the Alabama Securities Commission, which shall be responsible for the enforcement of laws governing the issuance, sale, and other transactions relative to
• Section 8-6-51 Membership; qualifications and appointment of commissioners; use or disclosure of confidential information by commissioners, employees, etc.; civil liability of commissioners
  (a) The Securities Commission shall consist of the Attorney General of Alabama, the State Superintendent of Banks, the State Superintendent of Insurance and four other...
• Section 8-6-52 Terms of office of appointed members; filling of vacancies; reappointment of members
  (a) The Governor shall biennially appoint one Securities Commission member to serve for a term of four years; provided, however, that the Governor shall designate...
• Section 8-6-53 Selection of chair; rules for proceedings; meetings; quorum; records and reports; access to offices and records; exercise of powers of director
  (a) The Securities Commission shall select a chair and may adopt rules for conducting its proceedings. (b) The commission shall meet quarterly on a date...
• Section 8-6-54 Compensation of members
  (a) Each appointed member of the Securities Commission shall be paid $50 per day, for a period not to exceed a total of 60 days...
• Section 8-6-55 Director - Appointment; duties generally
  (a) The Securities Commission shall appoint a full-time director who shall be a career employee subject to the provisions of the Alabama Merit System Law...
• Section 8-6-56 Director - Qualifications; interest in banks, etc., prohibited; salary
  (a) The Director of the Securities Commission shall be a person of good moral character, at least 30 years of age, a resident of Alabama,...
• Section 8-6-57 Deputy director
  (a) With the approval of the Securities Commission and subject to the provisions of the Merit System law, the director thereof may designate a deputy...
• Section 8-6-58 Personnel
  (a) The Director of the Securities Commission shall prepare in writing a manual of necessary employee positions for the commission, including job classifications, personnel qualifications,...
• Section 8-6-59 Bonds of director and employees
  (a) Before assuming office, the Director of the Securities Commission shall give a bond in the sum of $50,000, payable to the State of Alabama,...
• Section 8-6-60 Place of office
  The Securities Commission and the director thereof shall maintain offices in the capital city of the state, and all records of the commission shall be...
• Article 3 Fiduciary Security Transfers.
• Article 4 Ownership by Minors.
• Section 8-6-90 Short title
  This article may be cited as the Securities Ownership by Minors Act.
• Section 8-6-91 Definitions
  In this article, unless the context otherwise requires, the following terms shall have the meanings ascribed to them by this section: (1) BANK. A bank,...
• Section 8-6-92 Liability of bank, transfer agent, etc., for treating minor as having capacity to exercise security rights; presumption that holder not minor
  (a) A bank, broker, issuer, third-party or transfer agent incurs no liability by reason of his treating a minor as having capacity to transfer a...
• Section 8-6-93 Minor may not disaffirm security transaction unless prior written notice of minority given
  A minor who has transferred a security, received or empowered others to receive dividends, interest, principal, or other payments or distributions, voted or given consent...
• Section 8-6-94 Right of minor to receive dividends, etc
  A minor may receive in his own right dividends or other moneys in respect to any securities standing in his name on the books of...
• Section 8-6-95 Certain laws not affected by article
  Nothing in this article shall be construed to repeal or in any way affect Sections 10-6-1 through 10-6-4.
• Article 5 Pre-Issuance Procedure for Industrial Revenue Bonds.
• Section 8-6-110 Definitions
  The following words and phrases, as used in this article, shall have the following meanings: (1) AUTHORIZING ACT. Any of the following statutes or acts:...
• Section 8-6-111 Legislative findings; purpose of article
  (a) The Legislature finds and determines that unscrupulous promoters may take advantage of the authorizing act by inducing issuers to issue industrial revenue bonds which...
• Section 8-6-112 Powers of director of Securities Commission
  (a) The director shall have authority to: (1) Consider and investigate proposed issues of industrial revenue bonds; (2) Advise and consult with issuers with respect...
• Section 8-6-113 Powers of Securities Commission
  (a) The commission may: (1) Stop the issuance of industrial revenue bonds under the procedures provided in this article. (2) Issue rules and regulations necessary...
• Section 8-6-115 Notifications of intent to issue bonds
  On and after May 27, 1978, any issuer proposing to issue any industrial revenue bonds under authority of the authorizing act shall, at least 20...
• Section 8-6-116 Action by director upon receipt of notification; stop orders
  Upon receipt of a notification, the director shall cause a preliminary investigation or inquiry to be made into the proposed issue to determine whether there...
• Section 8-6-117 Appeals or references to Securities Commission
  When a stop order has been issued by the director, the issuer shall have the right to appeal the matter to the commission by notice...
• Section 8-6-118 Proceedings before Securities Commission
  When the matter of any proposed industrial revenue bond issue has been appealed by the issuer to the commission or referred to the commission by...
• Section 8-6-119 Judicial validation proceedings
  Any judicial validation proceeding instituted under this article shall conform to and be conducted in accordance with either Section 6-6-750 et seq. or Section 11-81-220...
• Section 8-6-120 Certificate of notification; representation that industrial revenue bonds have been approved prohibited
  In the event that (1) 20 days shall have expired after the filing by an issuer of the notification required by Section 8-6-115 describing proposed...
• Section 8-6-121 Criminal penalties
  Any lessee, any guarantor, or any officer of any issuer, lessee, or guarantor or any other person, firm, or corporation who: (1) Willfully violates this...
• Section 8-6-122 Article remedial; certain statutes not repealed
  This article is remedial in nature and shall not be construed so as to repeal any provision of Section 8-6-1 et seq. or Section 8-6-50...
• Article 6 Uniform Transfer On Death Security Registration Act.
• Section 8-6-140 Definitions
  For the purposes of this article, the following words have the following meanings unless the context otherwise requires: (1) BENEFICIARY FORM. A registration of a...
• Section 8-6-141 Registration - Beneficiary form
  Only individuals whose registration of a security shows sole ownership by one individual or multiple ownership by two or more with right of survivorship, rather...
• Section 8-6-142 Registration - Authorization
  A security may be registered in beneficiary form if the form is authorized by this or a similar statute of the state of organization of...
• Section 8-6-143 Registration - Designation of a beneficiary
  A security, whether evidenced by certificate or account, is registered in beneficiary form when the registration includes a designation of a beneficiary to take the...
• Section 8-6-144 Registration - Applicable language
  Registration in beneficiary form may be shown by the words "transfer on death" or the abbreviation "TOD," or by the words "pay on death" or...
• Section 8-6-145 Designation of TOD; registration cancelled or changed
  The designation of a TOD beneficiary on a registration in beneficiary form has no effect on ownership until the owner's death. A registration of a...
• Section 8-6-146 Death of owner
  On death of a sole owner or the last to die of all multiple owners, ownership of securities registered in beneficiary form passes to the...
• Section 8-6-147 Assent of owner; discharge from claims
  (a) A registering entity is not required to offer or to accept a request for security registration in beneficiary form. If a registration in beneficiary...
• Section 8-6-148 Transfer on death
  (a) A transfer on death resulting from a registration in beneficiary form is effective by reason of the contract regarding the registration between the owner...
• Section 8-6-149 Terms and conditions of registration
  (a) A registering entity offering to accept registrations in beneficiary form may establish the terms and conditions under which it will receive requests (1) for...
• Section 8-6-150 Short title; construction
  (a) This article shall be known as and may be cited as the Uniform TOD Security Registration Act. (b) This article shall be liberally construed...
• Section 8-6-151 Application
  This article applies to registrations of securities in beneficiary form made before or after August 1, 1997, by decedents dying on or after August 1,
• Article 7 Protection of Vulnerable Adults from Financial Exploitation Act.
• Section 8-6-170 Short title
  This article shall be known and may be cited as the Protection of Vulnerable Adults from Financial Exploitation Act.
• Section 8-6-171 Definitions
  In this article, unless the context otherwise requires, the following words and terms shall have the following meanings: (1) AGENT. The same meaning as in...
• Section 8-6-172 Notification of department and commission - Disclosure of information
  If a qualified individual reasonably believes that financial exploitation of a vulnerable adult may have occurred, may have been attempted, or is being attempted, the...
• Section 8-6-173 Notification of department and commission - Liability
  A qualified individual that in good faith and exercising reasonable care makes a disclosure of information pursuant to Section 8-6-172 shall be immune from administrative...
• Section 8-6-174 Notification of certain third parties - Disclosure of information
  If a qualified individual reasonably believes that financial exploitation of a vulnerable adult may have occurred, may have been attempted, or is being attempted, the...
• Section 8-6-175 Notification of certain third parties - Liability
  A qualified individual that, in good faith and exercising reasonable care, complies with Section 8-6-174 shall be immune from any administrative or civil liability that...
• Section 8-6-176 Delay of disbursement - Authorized
  (a) A broker-dealer or investment adviser may delay a disbursement from an account of a vulnerable adult or an account on which a vulnerable adult...
• Section 8-6-177 Delay of disbursement - Liability
  A broker-dealer or investment adviser that, in good faith and exercising reasonable care, complies with Section 8-6-176 shall be immune from any administrative or civil...
• Section 8-6-178 Access to and availability of records
  A broker-dealer or investment adviser shall provide access to or copies of records that are relevant to the suspected or attempted financial exploitation of a...
• Section 8-6-179 Rulemaking authority
  The commission, from time to time, may make, amend, and rescind such rules pursuant to the Alabama Administrative Procedure Act and prescribe such forms as...

Last modified: May 3, 2021