Utah Admin. Code R590-68-24 - Exemption From Subsection 31A-5-303(3) of Sales of Securities to Be Acquired
(1) When a person is entitled, as an incident
to 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 is exempt from Subsection
31A-5-303(3) if:
(a) the sale is made subject to the same
conditions as those attaching to the right of acquisition;
(b) a person exercises reasonable diligence
to deliver the security to the purchaser promptly after the right of
acquisition matures; and
(c) a
person reports the sale on the appropriate form for reporting transactions by
persons subject to Subsection
31A-5-303(1).
(2) This section may not be construed as
exempting a transaction involving both 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 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 pursuant to the right of acquisition.
Notes
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