Section 3(a)(3) Exemption for Commercial Paper

Summary

This practice note discusses the scope and application of the exemption from the registration requirements of the Securities Act of 1933, as amended (Securities Act) for commercial paper provided by Section 3(a)(3) under the Securities Act (15 U.S.C. § 77c). Because the statutory provision is not very detailed and has not been the subject of rule-making by the Securities and Exchange Commission (SEC), the parameters of the exemption have been shaped by guidance issued by the SEC in an interpretative release in 1961 and in no-action letters issued mostly in the following 25 to 30 years.