§ 27-1-31 — § 27-1-31. Prohibited sales of securities.

Rhode Island § 27-1-31

• Jurisdiction: Rhode Island
• Title 27: Insurance
• Ch. 27-1: Domestic Insurance Companies

Text

§ 27-1-31. Prohibited sales of securities.

It shall be unlawful for any beneficial owner, director, or officer, directly or indirectly, to sell any equity security of the company if the person selling the security or the person's principal: (1) does not own the security sold; or (2) if owning the security, does not deliver it against the sale within twenty (20) days thereafter, or does not within five (5) days after the sale deposit it in the mails or other usual channels of transportation. No person shall be deemed to have violated this section if the person proves that notwithstanding the exercise of good faith the person was unable to make the delivery or deposit within time, or that to do this would cause undue inconvenience or expense.

Legislative History

P.L. 1965, ch. 101, § 1.