Ch. 36

1995 LAWS OF MARYLAND

(I)      A TRANSACTION IN WHICH THE BENEFICIAL.OWNER WAS NOT
A BENEFICIAL OWNER BOTH AT THE TIME OF THE PURCHASE AND SALE, OR THE
SALE AND PURCHASE, OF THE SECURITY INVOLVED; OR

(II)     A TRANSACTION THAT THE COMMISSIONER EXEMPTS BY
REGULATION AS NOT WITHIN THE PURPOSE OF THIS SUBSECTION.

(F)      DELIVERY OF SECURITY SOLD.

(1)      A BENEFICIAL OWNER, DIRECTOR, OR OFFICER OF A DOMESTIC
STOCK INSURER MAY NOT SELL, DIRECTLY OR INDIRECTLY, AN EQUITY SECURITY
OF THE DOMESTIC STOCK INSURER IF THE PERSON SELLING THE EQUITY SECURITY
OR THE PERSON'S PRINCIPAL DOES NOT OWN THE EQUITY SECURITY SOLD.

(2)      A BENEFICIAL OWNER, DIRECTOR, OR OFFICER OF A DOMESTIC
STOCK INSURER MAY NOT SELL, DIRECTLY OR INDIRECTLY, AN EQUITY SECURITY
OF THE DOMESTIC STOCK INSURER OWNED BY THE PERSON SELLING THE SECURITY
OR THE PERSON'S PRINCIPAL IF THE PERSON OR THE PERSON'S PRINCIPAL:

(I)       DOES NOT DELIVER THE EQUITY SECURITY AGAINST THE
SALE WITHIN 20 DAYS AFTER THE SALE; OR

(II)     WITHIN 5 DAYS AFTER THE SALE DOES NOT DEPOSIT THE
EQUITY SECURITY IN THE MAIL OR OTHER USUAL CHANNELS OF TRANSPORTATION.

(3)      A PERSON IS NOT CONSIDERED TO HAVE VIOLATED THIS
SUBSECTION IF THE PERSON PROVES THAT, NOTWITHSTANDING THE EXERCISE OF
GOOD FAITH, THE PERSON WAS UNABLE TO MAKE THE DELIVERY OR DEPOSIT
WITHIN THE TIME ALLOWED OR PROVES THAT TO DO SO WOULD CAUSE UNDUE
INCONVENIENCE OR EXPENSE.

(G)     SALES BY DEALERS.

(1)      THE FOLLOWING PROVISIONS DO NOT APPLY TO A DEALER ACTING
IN THE ORDINARY COURSE OF THE DEALER'S BUSINESS AND, INCIDENT TO THE
ESTABLISHMENT OR MAINTENANCE BY THAT DEALER OF A PRIMARY OR
SECONDARY MARKET, OTHER THAN ON AN EXCHANGE AS DEFINED IN THE
SECURITIES EXCHANGE ACT OF 1934, FOR AN EQUITY SECURITY, EXCEPT FOR
EQUITY SECURITIES HELD BY THE DEALER IN AN INVESTMENT ACCOUNT:

(I)       SUBSECTION (E) OF THIS SECTION, FOR ANY PURCHASE AND
SALE, OR SALE AND PURCHASE, OF AN EQUITY SECURITY OF A DOMESTIC STOCK
INSURER; AND

(II)     SUBSECTION (F) OF THIS SECTION, FOR ANY SALE OF AN
EQUITY SECURITY OF A DOMESTIC STOCK INSURER.

(2)      BY REGULATION AS THE COMMISSIONER CONSIDERS NECESSARY
OR APPROPRIATE IN THE PUBLIC INTEREST, THE COMMISSIONER MAY DEFINE AND
REQUIRE TERMS AND CONDITIONS FOR:

(I) SECURITIES HELD IN AN INVESTMENT ACCOUNT; AND
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