17B:20-3 - Incidental acquisition of corporate stock or securities, construction of chapter
17B:20-3.Ā Incidental acquisition of corporate stock or securities, construction of chapter
Nothing contained in this chapter shall be construed to prohibit an insurerĀ from accepting or acquiring corporate stock or evidences of indebtedness orĀ other securities or property:
a.Ā pursuant to a plan of reorganization approved or made effective by orderĀ of a court having jurisdiction over the property of a debtor,
b.Ā pursuant to a voluntary plan or agreement of reorganization,
c.Ā as payment on account of an existing indebtedness,
d.Ā as realization of collateral for a loan in default,
e.Ā received in connection with an investment by the insurer otherwise allowable as an investment by this chapter, or
f.Ā through the exercise of rights of conversion, warrants or rights to purchase stock, or pre-emptive rights to subscribe to stock, contained in or attached to a previously existing investment of such insurer.
If any such stock, securities or property so received shall be of a kind orĀ in an amount not otherwise allowable as an investment by this chapter, theyĀ shall be disposed of within 5 years from the time of their acquisition, unlessĀ the commissioner shall, for good cause shown, allow further time for theĀ disposal thereof and then within the time so allowed.
L.1971, c. 144, s. 17B:20-3.
Nothing contained in this chapter shall be construed to prohibit an insurerĀ from accepting or acquiring corporate stock or evidences of indebtedness orĀ other securities or property:
a.Ā pursuant to a plan of reorganization approved or made effective by orderĀ of a court having jurisdiction over the property of a debtor,
b.Ā pursuant to a voluntary plan or agreement of reorganization,
c.Ā as payment on account of an existing indebtedness,
d.Ā as realization of collateral for a loan in default,
e.Ā received in connection with an investment by the insurer otherwise allowable as an investment by this chapter, or
f.Ā through the exercise of rights of conversion, warrants or rights to purchase stock, or pre-emptive rights to subscribe to stock, contained in or attached to a previously existing investment of such insurer.
If any such stock, securities or property so received shall be of a kind orĀ in an amount not otherwise allowable as an investment by this chapter, theyĀ shall be disposed of within 5 years from the time of their acquisition, unlessĀ the commissioner shall, for good cause shown, allow further time for theĀ disposal thereof and then within the time so allowed.
L.1971, c. 144, s. 17B:20-3.