{"data":{"id":"us-ky/krs-304.26-040","jurisdiction":"us-ky","citation":"KRS 304.26-040","heading":"Profits realized by beneficial owner, director, or officer from purchase -","body":"- Sale of equity securities recoverable by insurer -- Limitation of actions --\nExceptions.\n(1) For the purpose of preventing the unfair use of information which may have been\nobtained by such beneficial owner, director, or officer by reason of his or her\nrelationship to such insurer, any profit realized by him or her from any purchase and\nsale, or any sale and purchase, of any equity security of such insurer within any\nperiod of less than six (6) months, unless such security was acquired in good faith in\nconnection with a debt previously contracted, shall inure to and be recoverable by\nthe insurer, irrespective of any intention on the part of such beneficial owner,\ndirector, or  officer in entering into such transaction or holding the security\npurchased or of not repurchasing the security sold for a period exceeding six (6)\nmonths.\n(2) Suit to recover such profit may be instituted at law or in equity in any court of\ncompetent jurisdiction by the insurer, or by the owner of any security of the insurer\nin the name and in behalf of the insurer if the insurer fails or refuses to bring such\nsuit within sixty (60) days after request or fails diligently to prosecute the same\nthereafter; but no such suit shall be brought more than two (2) years after the date\nsuch profit was realized.\n(3) This section shall not be construed to cover any transaction where such beneficial\nowner was not such both at the time of the purchase and sale, or the s ale and\npurchase, of the security involved, or any transaction or transactions which the\ncommissioner by rules and regulations may exempt as not comprehended within the\npurpose of this section.","path":[],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=29603","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:57:51Z","sha256":"f38a01712d7d599c57f0f4ffcf2c571683771f25926bd8368421aeb826504a63","source_id":"us-ky","stale":false,"prev":"us-ky/krs-304.26-030","next":"us-ky/krs-304.26-050"},"notice":"GroundRules: Original legal text. Not legal advice."}