§ 5955 Local Agency Security Consent

• •Even if a local agency says it's okay to sell a security, you still need to follow state rules unless the security is exempt.
• •Getting local approval doesn't mean you can skip state requirements.
• •Always check if the security or transaction is exempt from state rules.

A company wants to sell stocks in a small town and gets approval from the town council.

Even though the town council said it's okay, the company still needs to follow state rules to sell the stocks unless the stocks are exempt from those rules.