Connecticut Administrative Code
Title 36a - The Banking Law of Connecticut
136 - Conversion of Mutual Connecticut Banks to Capital Stock Connecticut Banks
Section 36a-136-21 - Prohibited sales practices
Universal Citation: CT Reg of State Agencies 36a-136-21
Current through September 9, 2024
(a) In connection with offers, sales or purchases of conversion shares, the converting institution and its directors, officers, agents or employees shall not engage in any activity prohibited by section 36b-4 of the Connecticut General Statutes.
(b) During the conversion, no person may:
(1) Transfer or enter into any agreement or
understanding to transfer the legal or beneficial ownership of subscription
rights for the conversion shares or the underlying securities to the account of
another;
(2) Make any offer or any
announcement of an offer to purchase any conversion shares from anyone but the
converting institution; or
(3)
Knowingly acquire more than the maximum purchase allowable under the plan of
conversion.
(c) The restrictions in subdivisions (1) and (2) of subsection (b) of this section do not apply to offers for more than ten per cent of any class of conversion shares by:
(1) An underwriter or a selling
group, acting on behalf of the converting institution, that makes the offer
with a view toward public resale; or
(2) Any of the converting institution's
tax-qualified employee stock ownership plans so long as the plan does not
beneficially own more than twenty-five per cent of any class of the converting
institution's equity securities in the aggregate.
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