1884

LAWS OF MARYLAND

[Ch. 311

(2) TO ANY TRANSACTION WHICH THE COMMISSIONER
BY RULE OR REGULATION EXEMPTS AS NOT COMPREHENDED WITHIN
THE PURPOSE OF THIS SECTION.]]

REVISOR'S NOTE: This section is new language derived
without substantive change from Art. 48A,
§250A(2).

The words "controlling person" are defined in
§6-501.

[[6-515. REQUIRED DELIVERY OF SOLD EQUITY SECURITY.

(A)   DELIVERY REQUIRED.

A CONTROLLING PERSON MAY NOT SELL DIRECTLY OR
INDIRECTLY ANY EQUITY SECURITY OF THE INSURER IF THE
PERSON SELLING THE SECURITY OR HIS PRINCIPAL:

(1)   DOES NOT OWN THE SECURITY SOLD; OR

(2)   IF HE OWNS THE SECURITY, DOES NOT

(I)   DELIVER IT AGAINST THE SALE WITHIN 20
DAYS AFTER THE SALE; OR

(II)   WITHIN FIVE DAYS AFTER THE SALE, DEPOSIT
IT IN THE MAIL OR OTHER USUAL CHANNEL OF TRANSPORTATION.

(B)        EXCEPTION.

A PERSON HAS NOT VIOLATED THIS SECTION IF HE PROVES
THAT, NOTWITHSTANDING THE EXERCISE OF GOOD FAITH, HE WAS
UNABLE TO MAKE THE DELIVERY OR DEPOSIT WITHIN THE TIME
REQUIRED BY THIS SECTION OR THAT TO DO SO WOULD CAUSE
UNDUE INCONVENIENCE OR EXPENSE.]]

REVISOR'S NOTE: This section is new language derived
without substantive change from Art. 48A,
§250A(3).

The words "controlling person" are defined in
§6-501.

[[6-516. APPLICATION OF §§ 6-513 THROUGH 6-514.

(A) DEALERS.

THE PROVISIONS OF §§ 6-514 AND 6-515 OF THIS
SUBTITLE DO NOT APPLY TO PURCHASE AND SALE, SALE AND
PURCHASE, OR SALE OF AN EQUITY SECURITY OF A DOMESTIC
STOCK INSURER BY A DEALER IN THE ORDINARY COURSE OF HIS
BUSINESS AND INCIDENT TO THE ESTABLISHMENT OR MAINTENANCE
BY HIM OF A PRIMARY OR SECONDARY MARKET FOR THE SECURITY,