1704 - Exemptions applicable to subsidiaries; limitations generally.

§  1704. Exemptions applicable to subsidiaries; limitations generally.  (a) Investments in  separate  account  subsidiaries  and  in  investment  subsidiaries are exempt from the provisions of subsection (a) of section  one  thousand  seven  hundred  five of this article and separate account  subsidiaries and investment subsidiaries are exempt from the  provisions  of  item (ii) of section one thousand seven hundred ten of this article.  Investments by the  parent  corporation  in  holding  company  operating  subsidiaries  are  exempt  from  the  provisions  of  paragraph  two  of  subsection (a) of section  one  thousand  seven  hundred  five  of  this  article.    (b)  Subsidiaries  that become such as a result of (i) the acquisition  of securities received as permitted by subsection  (e)  of  section  one  thousand  four  hundred  three  of  this  chapter  or (ii) the temporary  assumption of control by the owners of securities upon the happening  of  a  contingency  are  exempt  from the provisions of section one thousand  seven hundred eight and item (ii) of section one thousand seven  hundred  ten  of this article for one year, and from the provisions of subsection  (a) of section one thousand seven hundred five of this article for  five  years, after becoming subsidiaries.    (c)  Investments in subsidiaries engaged or organized to engage in any  kind of insurance business in which the parent corporation  may  engage,  and   investments   in  subsidiaries  engaged  or  organized  to  engage  exclusively in the ownership and management of  such  subsidiaries,  are  exempt  from  the  provisions  of subsection (a) of section one thousand  seven hundred five of this article.    (d) Investments made or acquired by investment subsidiaries  shall  be  deemed,  for  the  purposes  of  this  chapter,  to  be made or acquired  directly by  the  parent  corporation  (pro  rata,  in  the  case  of  a  subsidiary  less  than  all  of whose voting securities are owned by the  parent  corporation,  in  accordance  with  the   parent   corporation's  investment in such subsidiary), and shall (to such extent) be subject to  all  the  provisions  and limitations (including quantitative limits) on  the making thereof specified in this chapter with respect to investments  by the parent corporation.