375.425. Provisions of 375.423 and 375.424 not to apply, when--equity security defined. - Missouri Statutes

Provisions of 375.423 and 375.424 not to apply, when--equitysecurity defined.

375.425. 1. The provisions of section 375.423 shall notapply to any purchase and sale, or sale and purchase, and theprovisions of section 375.424 shall not apply to any sale, of anequity security of such insurance company not then or theretoforeheld by him in an investment account, by a dealer in the ordinarycourse of his business and incident to the establishment ormaintenance by him of a primary or secondary market, otherwisethan on an exchange as defined in the Securities Exchange Act of1934, for such security. The director may, by such rules andregulations as he deems necessary or appropriate in the publicinterest, define and prescribe terms and conditions with respectto securities held in an investment account and transactions madein the ordinary course of business and incident to theestablishment or maintenance of a primary or secondary market.

2. The provisions of sections 375.422, 375.423 and 375.424shall not apply to foreign or domestic arbitrage transactionsunless made in contravention of such rules and regulations as thedirector may adopt in order to carry out the purposes of thissection.

3. The provisions of sections 375.422, 375.423 and 375.424shall not apply to equity securities of such insurance companyif:

(1) Such securities shall be registered, or shall berequired to be registered, pursuant to section 12 of theSecurities Exchange Act of 1934, as amended; or

(2) If such insurance company shall not have any class ofits equity securities held of record by one hundred or morepersons on the last business day of the year next preceding theyear in which equity securities of the company would be subjectto the provisions of sections 375.422, 375.423 and 375.424,except for the provisions of this subdivision.

4. The term "equity security" when used in this sectionmeans any stock or similar security; or any security convertible,with or without consideration, into such a security, or carryingany warrant or right to subscribe to or purchase such a security;or any such warrant or right; or any other security which thedirector shall deem to be of similar nature and considernecessary or appropriate, by such rules and regulations as he mayprescribe in the public interest or for the protection ofinvestors, to treat as an equity security.

(L. 1965 p. 575 §§ 4 to 7)