Delaware Code Title 18 Sec. 5105 – Unlawful sale of securities
No such beneficial owner, director or officer, directly or indirectly, shall sell any equity security of such insurer if the person selling the security or principal:
(1) Does not own the security sold; or
(2) If owning the security does not deliver it against such sale within 20 days thereafter or does not within 5 days after such sale deposit it in the mails or other usual channels of transportation; but no person shall be deemed to have violated this section if such person proves that, notwithstanding the exercise of good faith, was unable to make such delivery or deposit within such time, or that to do so would cause undue inconvenience or expense.
18 Del. C. 1953, § ?5105; 56 Del. Laws, c. 380, § ?1; 70 Del. Laws, c. 186, § ?1;
Terms Used In Delaware Code Title 18 Sec. 5105
- equity security: when used in this chapter means any stock or similar security or any security convertible, with or without consideration, into such a security or carrying any warrant or right to subscribe to or purchase such a security, or any such warrant or right, or any other security which the Commissioner deems to be of similar nature and considers necessary or appropriate, by such rules and regulations as the Commissioner may prescribe in the public interest or for the protection of investors, to treat as an equity security. See Delaware Code Title 18 Sec. 5102