52 Pa. Code § 1011.15 - Death or incapacitation of a certificate holder or certain persons with controlling interest
(a)
Definitions. The following word, when used in this section,
has the following meaning, unless the context indicates otherwise:
Incapacitation-A determination by a court that an individual is incapacitated as provided in 20 Pa.C.S. § 5511 (relating to petition and hearing; independent evaluation) or, for non-Pennsylvania residents, a substantially similar order from a court of competent jurisdiction.
(b)
Death or incapacitation of an individual certificate holder.
(1) Except as provided in subsection (d),
upon the death or incapacitation of an individual certificate holder, the
operation or use of Authority rights conferred by the certificate may continue
with the legal representative of the deceased or incapacitated certificate
holder.
(2) The legal
representative of the deceased or incapacitated certificate holder shall
immediately notify the Authority in writing upon the death or incapacitation
and provide to the Authority the legal representative's mailing address,
telephone number and email address along with the applicable documentation
proving legal authorization to act on the part of the certificate
holder.
(3) The legal
representative of the deceased or incapacitated certificate holder shall
immediately begin the process of finding a qualified person to buy the
transferable rights as provided in Chapter 1027 (relating to sale of rights),
including the use of a broker or attorney. Nothing in this section prohibits
the legal representative from applying to the Authority to obtain the
transferrable rights.
(4) In the
event an SA-1 for the transferable right is not correctly filed, as provided in
Chapter 1027, within 90 days of the date the certificate holder died or was
declared incapacitated, the certificate will be placed out of service as
provided in §
1003.32 (relating to out of
service designation) and may be cancelled upon determination of a formal
complaint filed by the Enforcement Department or trial counsel.
(5) In the event an SA-1 for the transferable
right is correctly filed within 90 days of the date the certificate holder died
or was declared incapacitated, the rights conferred by the certificate shall
continue with the legal representative of the deceased or incapacitated
certificate holder for the duration of the SA-1 review period and through
closing on the sale.
(6) Paragraphs
(4) and (5) do not apply if the transferable right is a
medallion.
(c)
Death, incapacitation or dissolution of certain persons with
controlling interest in a certificate.
(1) Except as provided in subsection (d),
upon the death, incapacitation or dissolution of a person that owns 5% or more
of the certificate holder's securities, the operation or use of the Authority
rights conferred by the certificate may continue with either the certificate
holder or with the legal representative of the deceased, incapacitated or
dissolved person.
(2) The
certificate holder or the legal representative of the deceased, incapacitated
or dissolved person shall immediately notify the Authority in writing upon the
death, incapacitation or dissolution of the person and provide to the Authority
the legal representative's mailing address, telephone number and email address
along with the applicable documentation proving legal authorization to act on
the part of the deceased, incapacitated or dissolved person.
(3) The certificate holder or the legal
representative of the deceased, incapacitated or dissolved person shall
immediately begin the process of finding a qualified person to buy the
securities of the certificate holder referenced in paragraph (1) as provided in
Chapter 1027, including the use of a broker or attorney. Nothing in this
section prohibits the certificate holder from acquiring the securities of the
person referenced in paragraph (1).
(4) In the event an SA-1 for the sale of the
securities referenced in paragraph (1) is not correctly filed as provided in
Chapter 1027 within 6 months of the date of the person's death, incapacitation
or dissolution, the certificate will be placed out of service as provided in §
1003.32 and may be cancelled upon
determination of a formal complaint filed by the Enforcement Department or
trial counsel.
(5) In the event an
SA-1 for the sale of the securities referenced in paragraph (1) is correctly
filed, as provided in Chapter 1027, within 6 months of the date of the person's
death, incapacitation or dissolution, the rights conferred by the certificate
shall continue for the duration of the SA-1 review period and through closing
on the sale.
(6) Paragraphs (4) and
(5) do not apply if the transferable right is a medallion.
(d)
Ineligibility of successor or
legal representative. This section may not be interpreted to permit
the operation or use of Authority rights by a person otherwise prohibited from
the ability to receive Authority rights. For example, the executor of the
estate on a deceased individual certificate holder who would be ineligible to
possess Authority rights as provided in §
1011.5 (relating to ineligibility
due to conviction or arrest) may not operate or supervise the operation of the
rights conferred by the certificate.
Notes
The provisions of this § 1011.15 temporarily amended under 53 Pa.C.S. § 57B 02.
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