September 10, 1991
TO: CONTRACTUAL PLANS COMMITTEE NO. 13-91
RE: PENNSYLVANIA DETERMINES ACT NO. 113 DOES NOT APPLY TO
CONTRACTUAL PLANS
__________________________________________________________
The Institute is pleased to inform you that the
Pennsylvania Office of the Attorney General recently determined
that Pennsylvania Act No. 113 does not apply to contractual
plans.
As you may recall, the Institute submitted comments to the
Pennsylvania Securities Commission with respect to the
applicability of the Act to contractual plans. The Pennsylvania
Securities Commission had previously raised the issue of whether
contractual plans were required to comply with certain provisions
of the Act which requires certain corporations and persons that
accept payments from individuals with a promise to repay that
amount at a future date to comply with specific licensing
provisions, including posting a bond in the amount of $100,000.
Failure to comply with the provisions of the Act subjects the
corporation or person to criminal sanctions. (See Memorandum to
Contractual Plans Committee No. 8-90, dated August 3, 1990.)
A copy of the Office of the Attorney General's letter is
attached.
Patricia Louie
Assistant General Counsel
Attachment