1961 U. Ill. L.F. 205 (1961)
Exemptions from Registration under the Illinois Securities Law of 1953

handle is hein.journals/unilllr1961 and id is 209 raw text is: EXEMPTIONS FROM REGISTRATION
UNDER THE ILLINOIS SECURITIES LAW
OF 1953
BY SAMUEL H. YOUNG'
THIS ARTICLE will deal primarily with sections 3 and 4 of the Illinois
Securities Law of 1953,1 which provide exemptions from registration pur-
suant to the requirements of sections 5, 6, or 7. Exemptions for dealers,
salesmen, and investment advisers from registration requirements of section
8 of the 1953 Law will be dealt with in another article in this symposium.
The purpose of this article is to discuss the scope of such exemptions,
the constitutional aspects of certain of the exemptions (which have been
passed upon by the Supreme Court of the United States, or the Supreme
Court of Illinois), the burden of proof with respect to exemptions, and
problems arising with respect to exemptions of securities and transac-
tions under sections 3 and 4, respectively, of the 1953 Law. Particular
emphasis will be given the more commonly used exemptions, and those
exemptions which have been the subject of judicial interpretation.
DEFINITION OF SECURITIES
Since the 1953 Law regulates the sale of securities, a fortiorari,
absent either a sale or a security, the Law has no application.
To the surprise of many, the definition of securities as set out in the
1953 Law 2 and as interpreted by judicial decisions is extremely broad. Not
only does it cover notes, stocks, bonds, and other instruments commonly
known as securities, but it also includes certificates of interest, par-
ticipations in any 'profit sharing agreement, fractional undivided interests
in oil, gas, or other mineral leases, rights, or royalties, and temporary or
interim certificates therefor.
The sale of land under a contract allowing the purchase price to be
paid from profits has been held to be a security transaction, as have also
the following: certificates of beneficial interest in a building trust to finance
construction; 4 certificates of interest in a Trustees Land Syndicate; 5
* SAMUEL H. YOUNG. B.S. 1947, LL.B. 1948, University of Illinois;
Illinois Securities Commissioner, 1953-1955; one of the principal drafters
of the Illinois Securities Law of 1953; member of the firm of Hough,
Young & Coale, Chicago, Illinois.
1 ILL. REv. STAT. C. 1211/2, SS 137.1-.19 (1959). [Hereinafter referred to as the 1953
Law.]
21d. S 137.2(A).
s Frenzel v. Lonnquist Co., 304 111. App. 377, 26 N.E.2d 687 (lst Dist. 1940).
4 Glen v. Dodson, 347 111. 473, 180 N.E. 393 (1932).
'Kinross v. Cooper, 224 Ill. App. III (2d Dist. 1922),
205

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