304.37 -575 Prohibited practices. The following practices are prohibited: (1) Borrowing funds from the mutual insurance holding company, or its subsidiaries and affiliates, to finance the purchase of any portion of a stock offering; (2) Payment of commissions, 'special fees,' and any other special payment or extraordinary compensati on to officers, directors, interested persons, and affiliates, for arranging, promoting, aiding, or assisting in reorganization to a mutual insurance holding company, or for arranging, promoting, aiding, assisting, or participating in the structuring and p lacement of a stock offering; and (3) Entering into an understanding or agreement transferring legal or beneficial ownership of stock to another person in avoidance of these rules. Effective: July 15, 1998 History: Created 1998 Ky. Acts ch. 546, sec. 16, e ffective July 15, 1998.
Kentucky Legal Code