Laws 401. Qualified ISAs not treated as securities A Qualified ISA and an income-share agreement shall not be treated as a security for purposes of the securities laws (as defined in section 3(a) of the Securities Exchange Act of 1934 ( 15 U.S.C. 78c(a) )), any similar State law, or any State law that directly or indirectly prohibits, limits, or imposes conditions, based on the merits of an offering or issuer of securities, upon the offer or sale of any security. Nothing in the preceding sentence may be construed to prevent an instrument that is collateralized by, or serviced by the cash flows of, a Qualified ISA from being treated as a security for purposes of any law described in that sentence. 402. Businesses making Qualified ISAs excluded from investment company treatment Section 3(c) of the Investment Company Act of 1940 ( 15 U.S.C. 80a–3(c) ) is amended— (1) in paragraph (4), by inserting Qualified ISAs or income-share agreements (as those terms are defined in section 2 of the ISA Student Protection Act of 2019 ), after industrial banking,