Section 2682.21 - Exemption from Section 1104.4 of Sales of Securities to be Acquired(a) Whenever any person is entitled, as an incident to that person's ownership of an issued security and without the payment of consideration, to receive another security "when issued" or "when distributed," the security to be acquired shall be exempt from the operation of Section 1104.4. provided that: (1) the sale is made subject to the same conditions as those attaching to the right of acquisition, and(2) such person exercises reasonable diligence to deliver such security to the purchaser promptly after such person's right of acquisition matures, and(3) such person reports the sale on the appropriate form for reporting transactions by persons subject to Section 1104.2.(b) This section shall not be construed as exempting transactions involving a sale of a security "when issued" or "when distributed" and a sale of the security by virtue of which the seller expects to receive the "when-issued" or "when-distributed" security, if the two transactions combined result in a sale of more units than the aggregate of those owned by the seller plus those to be received by the seller pursuant to the seller's right of acquisition.Cal. Code Regs. Tit. 10, § 2682.21
1. Change without regulatory effect amending subsections (a), (a)(2) and (b) filed 7-14-2021 pursuant to section 100, title 1, California Code of Regulations (Register 2021, No. 29). Filing deadline specified in Government Code section 11349.3(a) extended 60 calendar days pursuant to Executive Order N-40-20.1. Change without regulatory effect amending subsections (a), (a)(2) and (b) filed 7-14-2021 pursuant to section 100, title 1, California Code of Regulations (Register 2021, No. 29). Filing deadline specified in Government Code section 11349.3(a) extended 60 calendar days pursuant to Executive Order N-40-20.