Download as PDF
304.6-030 Use of "wash" transactions -- Penalty.
(1)
(2)
(3)
Any member, officer, director, employee, or attorney in fact of any company,
association, or exchange licensed to do an insurance business in this state, who on
behalf of such company, association, or exchange, borrows, rents, hires, leases, or
otherwise engages the use of stocks, bonds, debentures, notes, investment
certificates, securities, or other obligations or evidences of indebtedness owned or
issued by any other corporation, company, association, or individual, or of any
government, political subdivision, or agency thereof, with intent to injure or defraud
any other company, body politic, or corporation, or person, or to deceive the
commissioner or other person legally authorized to examine the affairs of any such
company, association, or exchange, is guilty of a Class D felony.
Any individual that aids and abets such insurance company, association, or
exchange in borrowing, renting, hiring, leasing, or engaging the use of such stocks,
bonds, debentures, notes, investment certificates, securities, or other obligations or
evidences of indebtedness, is guilty of a Class D felony.
If any insurance company, association, or exchange is found in possession of stocks,
bonds, debentures, notes, investment certificates, securities, or other obligations or
evidences of indebtedness acquired in violation of subsection (1) of this section, or
if any of its officers, directors, members, or attorneys in fact have been convicted
under subsection (1) of this section, the company, association, or exchange may be
subject to suspension of its certificate of authority by the commissioner. Nothing in
this section shall be construed to prevent the commissioner from commencing
delinquency proceedings under this code.
Effective: July 15, 2010
History: Amended 2010 Ky. Acts ch. 24, sec. 996, effective July 15, 2010. -- Amended
1992 Ky. Acts ch. 463, sec. 34, effective July 14, 1992. -- Amended 1982 Ky. Acts
ch. 320, sec. 11, effective July 15, 1982. -- Created 1970 Ky. Acts ch. 301, subtit. 6,
sec. 3, effective June 18, 1970.
Disclaimer: These codes may not be the most recent version. Kentucky may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.