Code of Federal Regulations Title 17. Commodity and Securities Exchanges § 17.34.3 Hybrid instrument exemption

(i) An equity or debt security within the meaning of section 2(1) of the Securities Act of 1933;  or

(ii) A demand deposit, time deposit or transaction account within the meaning of 12 CFR 204.2 (b)(1), (c)(1) and (e), respectively, offered by an insured depository institution as defined in section 3 of the Federal Deposit Insurance Act;  an insured credit union as defined in section 101 of the Federal Credit Union Act;  or a Federal or State branch or agency of a foreign bank as defined in section 1 of the International Banking Act;

(i) An issuer must receive full payment of the hybrid instrument's purchase price, and a purchaser or holder of a hybrid instrument may not be required to make additional out-of-pocket payments to the issuer during the life of the instrument or at maturity;  and

(ii) The instrument is not marketed as a futures contract or a commodity option, or, except to the extent necessary to describe the functioning of the instrument or to comply with applicable disclosure requirements, as having the characteristics of a futures contract or a commodity option;  and

(iii) The instrument does not provide for settlement in the form of a delivery instrument that is specified as such in the rules of a designed contract market;