Montana Attorney General Opinion 15-215

Opinion No. 215 Investment Companies-Blue St(y Law -SecUl'ities, Sale of-Licenses. HELD: An im'estment company as defined in Section 1 of Chapter 47, Law:; of 1n33, Illay sell securities owned by it but issued by another company, and securities owned by a client or cns- tomer but not issued by him or it, as well as securities issued by itself, in the State of Montana. after it has ob- tained a license to do business from the sta te investment commissioner. May 23, U133. "'e haye hefore us your letter in which you inquire whether or not an Investment Company, as descrihed or defined in S'ection 1 of Chapter 47, Law of 1933, may sell securities owned b~' it but issued by another company, and securities owned by a client or cus- tomer but not issued by him or it, as well as securities issued by itself, in the State of Montana, after it has ob- tained a license to do business from the state im'estment commissioner. After a careful reading of the Blue Sky Law, including said section 1 which is very broad, it is our view that it may do so. See, as more or less applic- a ble, Strong v. Efficiency Apa rtment Corporation, 17 S. W. (2d) 1, and Bid- dle v. Smith, 256 S. W. 453. It may be well to add for reference purposes that the term "Investment Company" has a place in the third and fourth series of "'Vords and Phrases."