APPLICABILITY OF SECURITIES LAWS.

SEC. 405. APPLICABILITY OF SECURITIES LAWS. (a) Ownership Interests.—The ownership interests of members of a risk retention group shall be considered to be— (1) exempted securities for purposes of section 5 of the Securities Act of 1933 and for purposes of section 12 of the Securities Exchange Act of 1934; and (2) securities for purposes of the provisions of section 17 of the Securities Act of 1933 and the provisions of section 10 of the Securities Exchange Act of 1934. (b) Investment Company Act.—A risk retention group shall not be considered to be an investment company for purposes of the Investment Company Act of 1940 (15 U.S.C. 80a–1 et seq.). (c) Blue Sky Law.—The ownership interests of members in a risk retention group shall not be considered securities for purposes of any State blue sky law. [42 U.S.C. 9675]