42 USC 2297h-9 – Ownership limitations
(a) Securities limitations
No director, officer, or employee of the Corporation may acquire any securities, or any rights to acquire any securities of the private corporation on terms more favorable than those offered to the general public—
(1) in a public offering designed to transfer ownership of the Corporation to private investors,
(2) pursuant to any agreement, arrangement, or understanding entered into before the privatization date, or
(3) before the election of the directors of the private corporation.
(b) Ownership limitation
Terms Used In 42 USC 2297h-9
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
- officer: includes any person authorized by law to perform the duties of the office. See 1 USC 1
- person: means (1) any individual, corporation, partnership, firm, association, trust, estate, public or private institution, group, Government agency other than the Commission, any State or any political subdivision of, or any political entity within a State, any foreign government or nation or any political subdivision of any such government or nation, or other entity. See 42 USC 2014
Immediately following the consummation of the transaction or series of transactions pursuant to which 100 percent of the ownership of the Corporation is transferred to private investors, and for a period of three years thereafter, no person may acquire, directly or indirectly, beneficial ownership of securities representing more than 10 percent of the total votes of all outstanding voting securities of the Corporation. The foregoing limitation shall not apply to—
(1) any employee stock ownership plan of the Corporation,
(2) members of the underwriting syndicate purchasing shares in stabilization transactions in connection with the privatization, or
(3) in the case of shares beneficially held in the ordinary course of business for others, any commercial bank, broker-dealer, or clearing agency.