§485-5  Exempted securities; local development company.  Securities issued by a local development company organized within the State for profit under chapter 414 and approved by the Small Business Administration as qualifying for loans under section 502 of the Small Business Investment Act of 1958, as amended, are exempted from this chapter, except such provisions relating to the prospectus, upon the approval of the commissioner of securities.  The commissioner shall grant approval for the exemption upon finding that the proposed plan of business of the applicant and the proposed issuance of securities are fair, just, and equitable, that the applicant intends to transact its business fairly and honestly, and that the securities that the applicant proposes to issue and the method to be used by the applicant in issuing or disposing of such securities are not such as, in the opinion of the commissioner, will work a fraud upon the purchaser thereof. [L 1965, c 131, §1; Supp, §199-4.5; HRS §485-5; am L 1983, c 167, §17; am L 1985, c 270, §4; am L 1988, c 370, §10; am L 2002, c 40, §77]