Outliers

Now we know that with every definition defined by the Great Regulators, there are always a few outliers that are given exceptions from that definition.

The terms defined in this subsection do not include:

(A) any bona fide pledge or loan;

We're talking about pledging securities as collateral, like in the case of a loan (not the Pledge of Allegiance, though a loan for the Pledge would be pretty cool). This transaction can take place whether the securities are registered or not. The state...