Utah Admin. Code R966-1-41 - Securities Sale and Claims
(1) Sale of
securities.
(a) The administrator may not sell
a security prior to attempting to provide notice as provided for in Section
67-4a-503 of the Act.
(b) Unless
the administrator reasonably determines it would be in the best interests of
the owner for the sale to occur sooner, the administrator may not sell or
otherwise liquidate a security until 3 years after the administrator receives
the security.
(i) Examples of when it would be
in the best interest of the owner for a sale of securities to occur prior to
the expiration of the 3-year period include, but are not limited to: responding
to a tender offer, a bankruptcy filing, business liquidation, and instances
where fees will significantly deplete the value.
(ii) If the administrator sells a security
prior to the expiration of the 3-year period, then the administrator shall
document in a record the reasons for the sale.
(c) Unless otherwise provided in the Act or
these rules, the administrator may sell a security at any time 3 years after
the administrator receives the security.
(i)
The administrator may not sell a security listed on an established stock
exchange for less than the price prevailing on the exchange at the time of
sale.
(ii) The administrator may
sell a security not listed on an established exchange by any commercially
reasonable method.
(d)
Securities will not be sold when a claim has been filed with the administrator
by an apparent owner for such securities.
(i)
Upon denial of a claim, the administrator may dispose of the securities as
provided in the Act and these rules.
(ii) The administrator may also dispose of
the securities as provided in the Act and this Part if, after being requested
by the administrator, the apparent owner fails to provide necessary and
sufficient information to allow the administrator to transfer the securities
within 30 days of the administrator's request.
(2) Recovery of securities or value by owner.
(a) If the administrator sells a security
before the expiration of 3 years after delivery of the security to the
administrator, an apparent owner that files a valid claim under the Act for the
security before the 3-year period expires is entitled, at the option of the
owner, to receive:
(i) Replacement of the
security;
(ii) The market value of
the security at the time the claim is filed, plus dividends, interest, and
other increments on the security up to the time the claim is paid; or
(iii) The net proceeds of the sale of the
security, plus dividends, interest, and other increments on the security up to
the time the security was sold.
(b) Replacement of the security or
calculation of market value under (1) must take into account a stock split,
reverse stock split, stock dividend, or similar corporate action.
(c) A person that makes a valid claim under
the Act for a security after expiration of 3 years after delivery of the
security to the administrator is entitled to receive:
(i) The security the holder delivered to the
administrator, if it is in the custody of the administrator, plus dividends,
interest, and other increments on the security up to the time the administrator
delivers the security to the person; or
(ii) The net proceeds of the sale of the
security, plus dividends, interest, and other increments on the security up to
the time the security was sold.
Notes
State regulations are updated quarterly; we currently have two versions available. Below is a comparison between our most recent version and the prior quarterly release. More comparison features will be added as we have more versions to compare.
No prior version found.