Georgia CommonsHB 1521: Ponzi Scheme Prevention Act; enact
Introduced version, the latest LegiScan holds · Last action March 10, 2026 · Introduced
The text as LegiScan holds it, read from the PDF the legislature publishes with its margin line numbers, running heads, and page footers removed. Line breaks are joined into paragraphs here; no word is changed.
Underlined words are what the bill adds to current law and struck-through words are what it removes, as the printed bill shows them.
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.