---
title: HB 1521. Ponzi Scheme Prevention Act; enact
collection: bills
id: 2025-2026/hb1521
cite_as: HB 1521, 2025-2026 Regular Session (Ga.)
canonical_url: https://georgiacommons.org/bills/2025-2026/hb1521
md_url: https://georgiacommons.org/bills/2025-2026/hb1521.md
text_url: https://georgiacommons.org/bills/2025-2026/hb1521/text
source_url: https://www.legis.ga.gov/legislation/73934
date: 2026-03-10
status: introduced
corpus_version: bills-2026-09-13
license: Public record of the Georgia General Assembly, via LegiScan; see about.md
publisher: Georgia Commons, an independent project of Georgia Civic Data. Not the State of Georgia. Not legal advice.
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omitted: votes and history
omitted_chars: 129
omitted_url: https://georgiacommons.org/bills/2025-2026/hb1521.md?full=1
bill_number: HB 1521
session: 2025-2026 Regular Session
session_slug: 2025-2026
chamber: House
bill_type: bill
status_date: 2026-03-06
last_action: House Second Readers
sponsors:
- Tanya Miller
- Saira Draper
- Derrick Jackson
- Lisa Campbell
- Anne Westbrook
text_version: Introduced
has_text: true
legiscan_url: https://legiscan.com/GA/bill/HB1521/2025
upstream_id: 2130690
summaries_model: claude-sonnet-5
topic_tags:
- securities regulation
- financial fraud prevention
- promissory notes
- banking law
- Ponzi schemes
---
# HB 1521. Ponzi Scheme Prevention Act; enact
## Text
House Bill 1521
By: Representatives Miller of the 62nd, Draper of the 90th, Jackson of the 68th, Campbell of
the 35th, and Westbrook of the 163rd
A BILL TO BE ENTITLED
AN ACT
To amend Chapter 1 of Title 7 and Chapter 5 of Title 10 of the Official Code of Georgia
Annotated, relating to financial institutions and the "Georgia Uniform Securities Act of
2008," respectively, so as to remove an exemption from securities regulation for certain
financial institutions; to provide for notes as securities; to exempt certain notes as securities;
to provide for a rebuttable presumption; to provide for a short title; to provide for related
matters; to repeal conflicting laws; and for other purposes.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:
SECTION 1.
This Act shall be known and may be cited as the "Ponzi Scheme Prevention Act."
SECTION 2.
Chapter 1 of Title 7 of the Official Code of Georgia annotated, relating to financial
institutions, is amended by repealing and reserving Code Section 7-1-787, relating to
exemption from securities regulation.
SECTION 3.
Chapter 5 of Title 10 of the Official Code of Georgia Annotated, relating to the "Georgia
Uniform Securities Act of 2008," is amended by adding a new Code section to read as
follows:
"10-5-6.
(a) All notes are presumed securities, subject to other provisions of law to the contrary,
unless the note is:
(1) Delivered in consumer financing;
(2) Secured by a mortgage on a home;
(3) A short-term note secured by a lien on a small business or some of its assets;
(4) Evidencing an unsecured loan based on a lender's trust in the character and credit of
a customer;
(5) A short-term note secured by an assignment of accounts receivable;
(6) A note which formalizes an open account debt occurred in the ordinary course of
business; or
(7) Evidencing loans by commercial banks for current operations.
(b) A note that is not listed in subsection (a) of this Code section may rebut the
presumption of being a security if it acts similar in function to one of the notes listed in
subsection (a) of this Code section. Factors to consider when determining if a note is
similar in function include:
(1) If the note is exchanged to facilitate the purchase and sale of a minor asset or
consumer good, to correct cash flow deficiencies, or to advance some other commercial
or consumer purpose;
(2) If the note is an instrument in which there is common trading for speculation or
investment;
(3) The reasonable expectations of the public; and
(4) Other factors, including but not limited to regulatory schemes significantly reducing
the risk of an instrument, which would render application of this chapter unnecessary."
SECTION 4.
All laws and parts of laws in conflict with this Act are repealed.
## Summaries written by Georgia Commons
The following was written by claude-sonnet-5 from the text above and is not part of the bill. Quote the text, not the summary.
A Georgia House bill called the Ponzi Scheme Prevention Act would end a securities-law exemption for certain financial institutions and set new rules for when a promissory note counts as a regulated security under state law.
### Plain-language summary
Under current Georgia law, O.C.G.A. § 7-1-787 exempts certain financial institutions from state securities regulation. This bill repeals that exemption, meaning those institutions would no longer get automatic exclusion from Georgia's securities laws.
The bill also adds a new section to Georgia's Uniform Securities Act of 2008 (O.C.G.A. § 10-5-6) stating that all promissory notes are presumed to be securities, and therefore subject to state securities regulation, unless they fall into specific listed categories such as consumer financing notes, home mortgages, short-term small business notes, unsecured character-based loans, accounts receivable notes, open account debt notes, or commercial bank operating loans. Notes outside those categories can still avoid being treated as securities if they can show they function similarly to one of the listed exceptions, based on factors like their commercial purpose, whether they are commonly traded for investment, public expectations, and other regulatory considerations. The bill does not include a stated effective date beyond standard enactment.
### What it does
- Repeals O.C.G.A. § 7-1-787, removing an existing exemption from state securities regulation for certain financial institutions.
- Adds a new Code section (O.C.G.A. § 10-5-6) creating a presumption that all promissory notes are securities under Georgia law.
- Lists seven specific categories of notes, such as consumer financing notes and home mortgage notes, that are exempt from being treated as securities.
- Creates a rebuttable presumption test allowing other notes to avoid securities classification by showing they function like an exempt category, based on listed factors.
### Who it affects
Financial institutions that previously relied on the repealed exemption, lenders and borrowers who use promissory notes, small businesses that take out short-term loans, banks issuing commercial operating loans, and state securities regulators who would apply the new presumption and factor test.
### Why it matters
By treating most notes as securities unless they fit narrow exceptions, the bill could subject more lending arrangements to Georgia's securities disclosure and registration rules, potentially making it harder to disguise fraudulent lending schemes as ordinary loans while adding compliance considerations for lenders.
### Key provisions
- Section 1 names the bill the Ponzi Scheme Prevention Act.
- Section 2 repeals O.C.G.A. § 7-1-787, which had exempted certain financial institutions from securities regulation.
- Section 3 adds O.C.G.A. § 10-5-6, presuming all notes are securities unless they fall into one of seven listed exceptions, including consumer financing and home mortgage notes.
- Section 3 also sets out a multi-factor test for notes not on the exception list to rebut the presumption by showing similarity in function to an exempt category.
- Section 4 repeals any conflicting laws.
## Status
- Status: Introduced (2026-03-06)
- Last action: House Second Readers (2026-03-10)
- Sponsors: Tanya Miller, Saira Draper, Derrick Jackson, Lisa Campbell, Anne Westbrook
- Official page: https://www.legis.ga.gov/legislation/73934
> The history, votes, and amendments (129 characters) are at https://georgiacommons.org/bills/2025-2026/hb1521.md?full=1