WILLIAM DONALD SCHAEFER, Governor Ch. 805

(xiv) Certificate of interest or participation
in an oil, gas, or mining title or lease or in payments out of
production under the title or lease;

(xv) In general, interest or instrument
commonly known as a "security"; or

(xvi) Certificate of interest or participation
in, temporary or interim certificate for, receipt for, guarantee
of, or warrant or right to subscribe to or purchase any of the
preceding.

(2) "Security" does not include     any insurance or

endowment policy or annuity contract under   which an insurance

company promises to pay money either in a lump   sum, periodically
for life, or some other specified period.

[(P)] (Q) "State" means any state, territory, or possession
of the United States, the District of Columbia, and Puerto Rico.

11-302.

(a) It is unlawful for any person who [receives] RECEIVES,
DIRECTLY OR INDIRECTLY, any consideration from another person
[primarily] for advising the other person as to the value of
securities or their purchase or sale, whether through the
issuance of analyses, reports, or otherwise to:

(1)  Employ any device, scheme, or artifice to defraud
the other person; [or]

(2)  Engage in any act, practice, or course of
business which operates or would operate as a fraud or deceit on
the other person;

(3)  ENGAGE IN DISHONEST OR UNETHICAL PRACTICES AS THE
COMMISSIONER MAY DEFINE BY RULE;

(4)  WHEN ACTING AS PRINCIPAL FOR HIS OWN ACCOUNT
KNOWINGLY SELL ANY SECURITY TO OR PURCHASE ANY SECURITY FROM A
CLIENT, OR WHEN ACTING AS BROKER IN A AGENCY CAPACITY FOR A
PERSON OTHER THAN SUCH CLIENT KNOWINGLY EFFECT ANY SALE OR
PURCHASE OF ANY SECURITY FOR THE ACCOUNT OF SUCH CLIENT, WITHOUT
DISCLOSING TO SUCH CLIENT IN WRITING BEFORE THE COMPLETION OF
SUCH TRANSACTION THE CAPACITY IN WHICH HE IS ACTING AND OBTAINING
THE CONSENT OF THE CLIENT TO SUCH TRANSACTION.

(B) THE PROHIBITIONS OF SUBSECTION (A)(4) OF THIS SECTION
DO NOT APPLY TO ANY TRANSACTION WITH A CUSTOMER OF A
BROKER-DEALER IF THE BROKER-DEALER IS NOT ACTING AS AN INVESTMENT
ADVISER IN RELATION TO THE TRANSACTION.

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