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304.37-535 Capital stock.
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The majority of the voting shares of the capital stock of the reorganized
insurance company, which is required by KRS 304.37-505 to be at all times
owned by a mutual insurance holding company, shall not be conveyed,
transferred, assigned, pledged, subjected to a security interest or lien,
encumbered, or otherwise hypothecated or alienated by the mutual insurance
holding company or intermediate holding company.
Any conveyance, transfer, assignment, pledge, security interest, lien,
encumbrance, hypothecation, or alienation of, in, or on the majority of the
voting shares of the reorganized insurance company, which is required by KRS
304.37-505 to be at all times owned by a mutual insurance holding company, is
in violation of KRS 304.37-505, and shall be void in inverse chronological order
of the date of the conveyance, transfer, assignment, pledge, security interest,
lien, encumbrance, hypothecation, or alienation, as to the shares necessary to
constitute a majority of the voting shares.
The majority of the voting shares of the capital stock of the reorganized
insurance company, which is required by KRS 304.37-505 to be at all times
owned by a mutual insurance holding company, shall not be subject to
execution and levy as provided in KRS Chapter 426.
The shares of the capital stock of the surviving or new company resulting from
a merger or consolidation of two (2) or more reorganized insurance companies
or two (2) or more intermediate holding companies which were subsidiaries of
the same mutual insurance holding company are subject to the same
requirements, restrictions, and limitations as provided in this section to which
the shares of the merging or consolidating reorganized insurance companies or
intermediate holding companies were subject by KRS 304.37-505, prior to the
merger or consolidation.
Effective:July 15, 1998
History: Created 1998 Ky. Acts ch. 546, sec. 8, effective July 15, 1998.
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