D.C. Mun. Regs. tit. 26, r. 26-A1413

Current through Register Vol. 71, No. 49, December 6, 2024

Rule 26-A1413 - EXEMPTION FROM SECTION 3(B) OF CERTAIN TRANSACTIONS IN WHICH SECURITIES ARE RECEIVED BY REDEEMING OTHER SECURITIES

1413.1

Any acquisition of an equity security (other than a convertible security or right to purchase a security) by a director or officer of the insurer issuing the security shall be exempt from the operation of Section 3(b) of the Act upon the following conditions:

(a) The equity security is acquired by way of redemption of another security of an insurer substantially all of whose assets other than cash (or Government bonds) consist of securities of the insurer issuing the equity security so acquired, and which the following conditions are met:

(1) That represented substantially and in practical effect a stated or readily ascertainable amount of the equity security;

(2) That had a value which was substantially determined by the value of the equity security; and

(3) That conferred upon the holder the right to receive the equity security without the payment of any consideration other than than the security redeemed.

(b) No security of the same class as the security redeemed was acquired by the director or officer within six (6) months prior to the redemption or is acquired within six (6) months after the redemption; and

(c) The insurer issuing the equity security acquired has recognized the applicability of § 1413.1(a) by appropriate corporate action.

D.C. Mun. Regs. tit. 26, r. 26-A1413