§ 27-1-31 - Prohibited sales of securities. - Rhode Island Statutes

SECTION 27-1-31

   § 27-1-31  Prohibited sales of securities.– It shall be unlawful for any beneficial owner, director, or officer, directlyor indirectly, to sell any equity security of the company if the person sellingthe security or his or her principal: (1) does not own the security sold, or(2) if owning the security, does not deliver it against the sale within twenty(20) days thereafter, or does not within five (5) days after the sale depositit in the mails or other usual channels of transportation. No person shall bedeemed to have violated this section if he or she proves that notwithstandingthe exercise of good faith he or she was unable to make the delivery or depositwithin time, or that to do this would cause undue inconvenience or expense.