SA Section 3(a)(3) Exemption: Current Transactions


Securities Act Section 3(a)(3) exempts from registration "any note, draft, bill of exchange, or banker’s acceptance which arises out of a current transaction or the proceeds of which have been or are to be used for current transactions, and which has a maturity at the time of issuance of not exceeding nine months, exclusive of days of grace, or any renewal thereof the maturity of which is likewise limited." This is also referred to as the exemption for "commercial paper."

Be aware that the exemption for paper with a maturity of less than nine months is not absolute. See Reves v. Ernst & Young, 494 U.S. 56 (Feb. 21, 1990).'s picture
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Securities Act

  • SA Section 3 (Classes of securities under this subchapter)
  • SA Section 3(a)(3) (Notes arising out of current transactions with a maturity not exceeding nine months)