Current through Register Vol. 54, No. 44, November 2, 2024
(a)
Definition. The following word, when used in this section, has
the following meaning, unless the context indicates otherwise:
Incapacitation-A determination by a court
that an individual is incapacitated as provided in
20 Pa.C.S. §
5511
(relating to petition and hearing; independent evaluation), or for
non-Pennsylvania residents, a substantially similar order from a court of
competent jurisdiction.
(b)
Death or incapacitation of an individual certificate holder.
(1) Except as provided in subsection (d),
upon the death or incapacitation of an individual certificate holder, the
operation or use of Authority rights conferred by the certificate may continue
with the legal representative of the deceased or incapacitated certificate
holder.
(2) The legal
representative of the deceased or incapacitated certificate holder shall
immediately notify the Authority in writing upon the death or incapacitation
and provide to the Authority the legal representative's mailing address,
telephone number and email address along with the applicable documentation
proving legal authorization to act on the part of the certificate
holder.
(3) The legal
representative of the deceased or incapacitated certificate holder shall
immediately begin the process of finding a qualified person to buy the
certificate as provided in Chapter 1059 (relating to applications and sale of
rights), including the use of a broker or attorney. Nothing in this section
prohibits the legal representative from applying to the Authority to obtain the
transferrable rights.
(4) If an
SA-1 for the transferable right is not correctly filed, as provided in Chapter
1059 within 90 days of the date the certificate holder died or was declared
incapacitated, the certificate will be placed out of service as provided in
§
1003.32 (relating to out of
service designation) and may be cancelled upon determination of a formal
complaint filed by the Enforcement Department or trial counsel.
(5) If an SA-1 for the transferable right is
correctly filed within 90 days of the date the certificate holder died or was
declared incapacitated, the rights conferred by the certificate shall continue
with the legal representative of the deceased or incapacitated certificate
holder for the duration of the SA-1 review period and through closing on the
sale.
(c)
Death,
incapacitation or dissolution of certain persons with controlling interest in a
certificate.
(1) Except as provided
in subsection (d), upon the death, incapacitation or dissolution of a person
that owns 5% or more of the certificate holder's securities, the operation or
use of the Authority rights conferred by the certificate may continue with
either the certificate holder or with the legal representative of the deceased,
incapacitated or dissolved person.
(2) The certificate holder or legal
representative of the deceased, incapacitated or dissolved person shall
immediately notify the Authority in writing upon the death, incapacitation or
dissolution of the person and provide to the Authority the legal
representative's mailing address, telephone number and email address along with
the applicable documentation proving legal authorization to act on the part of
the deceased, incapacitated or dissolved person.
(3) The certificate holder or legal
representative of the deceased, incapacitated or dissolved person shall
immediately begin the process of finding a qualified person to buy the
securities of the certificate holder referenced in paragraph (1) as provided in
Chapter 1059 including the use of a broker or attorney. Nothing in this section
prohibits the certificate holder from acquiring the securities of the person
referenced in paragraph (1).
(4) If
an SA-1 for the sale of the securities referenced in paragraph (1) is not
correctly filed as provided in Chapter 1059 within 6 months of the date of that
person's death, incapacitation or dissolution, the certificate will be placed
out of service as provided in §
1003.32 and may be cancelled upon
determination of a formal complaint filed by the Enforcement Department or
trial counsel.
(5) If an SA-1 for
the sale of the securities referenced in paragraph (1) is correctly filed, as
provided in Chapter 1059, within 6 months of the date of the person's death,
incapacitation or dissolution, the rights conferred by the certificate shall
continue for the duration of the SA-1 review period and through closing on the
sale.
(d)
Ineligibility of successor or legal representative. This
section may not be interpreted to permit the operation or use of Authority
rights by a person otherwise prohibited from the ability to receive Authority
rights. For example, the executor of the estate on a deceased individual
certificate holder who would be ineligible to own Authority rights as provided
in §
1051.5 (relating to ineligibility
due to conviction or arrest) may not operate or supervise the operation of the
rights conferred by the certificate.
The provisions of this §1051.14 temporarily amended
under 53 Pa.C.S. § 57B 02.
