Page:United States Statutes at Large Volume 80 Part 1.djvu/161

 80 STAT. ]

PUBLIC LAW 89-402-APRIL 18, 1966

125

(e) The provisions of subsections (a), (b), and (c) of this section shall not apply to foreign or domestic arbitrage transactions unless made in contravention of such rules and reguhitions as the Commissioners of the District of Columbia may adopt in order to carry out the purposes of this section. (f) The term "equity security" when used in this section means. "Equity secuany stock or similar security; or any security convertible with or "'^" without consideration, into such a security, or carrying any warrant or right to subscribe to or purchase such a security; or any such warrant or right; or any other security which the Commissioners of the District of Columbia shall deem to be of similar nature and consider necessary or appropriate, by such rules and regulations as they may prescribe in the public interest or for the protection of investors, to treat as an equity security. (g) The provisions of subsections (a), (b), and (c) of this section shall not apply to securities of a domestic stock insurance company if (i) such securities shall be registered, or shall be required to be registered, pursuant to section 12 of the Securities Exchange Act of 1934, as amended, or if (ii) such domestic stock insurance company shall not ^^^ T^^es^' have any class of its equity securities held of record by one hundred 15 USC 78/. or more persons on the last business day of the year next preceding the year in which equity securities of the company would be subject to the provisions of subsections (a), (b), and (c) of this section except for the provisions of this subsection (g) (ii). (h) The Commissioners of the District of Columbia shall make such rules and regulations as may be necessary for the execution of the functions vested in the Superintendent by subsections (a) through (g) of this section, and may for such purpose classify domestic stock insurance companies, securities, and other persons or matters within his jurisdiction. No provisions of subsection (a), (b), or (c) of this section imposing any liability shall apply to any act done or omitted in good faith in conformity with any rule or regulation of the Commissioners of the District of Columbia notwithstanding that such rule or regulation may, after such act or omission, be amended or rescinded or determined by judicial or other authority to be invalid for any reason. (i) Any person who willfully violates any provision of this section, ^^^^ityor any rule or regulation thereunder the violation of which is made unlawful by this section or the observance of which is required under the terms of this section, or any person who willfully and knowingly makes, or causes to be made, any statement in any application, report, or document required to be filed under this section, which statement was false or misleading with respect to any material fact, shall upon conviction be fined not more than $1,000, or be imprisoned not more than thirty days, or both. (j) This section shall take effect thirty days after enactment. Effective date. SEC. 4. Nothing in this Act shall be construed so as to affect the authority vested in the Board of Commissioners of the District of Columbia by Reorganization Plan Numbered 5 of 1952 (66 Stat. 824). ^^^^ ^°'^^- ^ The performance of any function vested by this Act in the Board of Commissioners or in any office or agency under the jurisdiction and control of said Board of Commissioners may be delegated by said Board of Commissioners in accordance with section 3 of such plan. Approved April 18, 1966. 65-300 0-67—11

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