Commercial Paper

Statute: § 551.22(9), Wis. Stats.

Used for: Commercial paper that evidences an obligation to pay cash within nine months of the date of issuance, and meets the requirements established by rules of the Division.

Filing requirement: Self-Executing. No filing or Consent to Service of Process is necessary in order to claim this exemption.

Administrative Code references: § DFI-Sec 2.01(5), Wis. Adm. Code.

Frequently asked questions:

Q: Is the exemption self-executing?

    A: Yes. No filing or Consent to Service of Process is required.

Q: Is commercial paper always a security under Wisconsin law?

    A: Yes.

Q: Does Wisconsin's exemption have additional requirements for use beyond those in section 402(a)(10) of the Uniform Securities Act?

    A: Yes. Additional requirements are specified in rule § DFI-Sec 2.01(5), Wis. Adm. Code. The commercial paper cannot be offered or sold to the general public through the use of any general advertising and the commercial paper must be sold either through a broker-dealer or a financial institution.

History:  Adopted on January 1, 1970. Differs from Uniform Securities Act section 402(a)(10) as a result of a 1984 amendment that clarified that the commercial paper must "meet[] the requirements established by rule of the [Division]." See § DFI-Sec 2.01(5), Wis. Adm. Code.

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