523.9 - PENALTY FOR SELLING STOCK NOT DIRECTLY OWNED BY SELLER.

        523.9  PENALTY FOR SELLING STOCK NOT DIRECTLY OWNED BY      SELLER.         It shall be unlawful for any such beneficial owner, director or      officer, directly or indirectly, to sell any equity security of such      company if the person selling the security or the person's principal      does not own the security sold, or if owning the security, does not      deliver it against such sale within twenty days thereafter, or does      not within five 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 the person proves that notwithstanding      the exercise of good faith the person was unable to make such      delivery or deposit within such time, or that to do so would cause      undue inconvenience or expense.  
         Section History: Early Form
         [C66, 71, 73, 75, 77, 79, 81, § 523.9]         Referred to in § 523.10, 523.11, 523.12, 523.13, 523.14