§ 551a-4

551A.4 Exemptions from requirements — burden of proof. 1. The following business opportunities are exempt from the requirements of section 551A.3: a. The offer or sale of a business opportunity if the purchaser is a bank, federally chartered savings and loan association, trust company, insurance company, credit union, or investmentcompany as defined by the federal Investment Company Act of 1940, 15 U.S.C. §80a-1 etseq., a pension or profit-sharing trust, or other financial institution or institutional buyer, ora broker-dealer registered pursuant to chapter 502, whether the purchaser is acting for itselfor in a fiduciary capacity. b. (1) An offer or sale of a business opportunity which is a franchise, provided that the seller delivers to each purchaser at the earlier of the first personal meeting between the sellerand the purchaser, or fourteen days prior to the earlier of the execution by a purchaser of acontract imposing a binding legal obligation on the purchaser or the payment by a purchaserof any consideration in connection with the offer or sale of the business opportunity, one ofthe following disclosure documents: (a) A uniform franchise offering circular prepared in

nt by a purchaserof any consideration in connection with the offer or sale of the business opportunity, one ofthe following disclosure documents: (a) A uniform franchise offering circular prepared in accordance with the guidelines adopted by the North American securities administrators association, inc. (b) A disclosure document prepared pursuant to the federal trade commission rule entitled 'Disclosure requirements and prohibitions concerning franchising and businessopportunity ventures', 16 C.F.R. pt. 436 or any successor regulation. (2) For the purposes of this paragraph 'b', a 'personal meeting' means a face-to-face meeting between the purchaser and the seller or their representatives, which is held for thepurpose of discussing the offer or sale of a business opportunity. c. The offer or sale of a business opportunity for which the cash payment made by a purchaser does not exceed five hundred dollars and the payment is made for the not-for-profitsale of sales demonstration equipment, material, or samples, or the payment is made forproduct inventory sold to the purchaser at a bona fide wholesale price. 2.

payment is made for the not-for-profitsale of sales demonstration equipment, material, or samples, or the payment is made forproduct inventory sold to the purchaser at a bona fide wholesale price. 2. In an administrative, civil, or criminal proceeding related to this chapter, the burden of proving an exemption, an exception from a definition, or an exclusion from this chapter isupon the person claiming it. [81 Acts, ch 171, §3]C83, §523B.391 Acts, ch 205, §3; 98 Acts, ch 1189, §15, 16; 99 Acts, ch 90, §2, 3; 2004 Acts, ch 1104, §21, 30 C2005, §551A.42005 Acts, ch 56, §2; 2012 Acts, ch 1017, §152; 2012 Acts, ch 1023, §157; 2014 Acts, ch 1092, §192; 2015 Acts, ch 30, §173 Sat Dec 23 01:48:22 2023 Iowa Code 2024, Section 551A.4 (22, 0)