Section R590-68-24 - Exemption From Subsection 31A-5-303(3) of Sales of Securities to Be Acquired(1) When a person is entitled, as an incident to ownership of an issued security and without the payment of consideration, to receive another security when issued or when distributed, the security to be acquired is exempt from Subsection 31A-5-303(3) if: (a) the sale is made subject to the same conditions as those attaching to the right of acquisition;(b) a person exercises reasonable diligence to deliver the security to the purchaser promptly after the right of acquisition matures; and(c) a person reports the sale on the appropriate form for reporting transactions by persons subject to Subsection 31A-5-303(1).(2) This section may not be construed as exempting a transaction involving both a sale of a security when issued or when distributed, and a sale of the security by virtue of which the seller expects to receive the security, if the two transactions combined result in a sale of more units than the aggregate of those owned by the seller plus those to be received pursuant to the right of acquisition.Utah Admin. Code R590-68-24
Adopted by Utah State Bulletin Number 2023-12, effective 6/9/2023