CHAPTER 476

FORMERLY HOUSE BILL NO. 652

AMEND PART 1, ARTICLE VII, TITLE SA OF THE DELAWARE CODE RELATING TO INVESTMENT SECURITIES AND CLEARING CORPORATIONS.

Be it enacted by the General Assembly of the State of Delaware (two-thirds of all members elected to each house thereof concurring therein):

Section 1. Amend Section 8-102 (3), Part 1, Article VIII, Title 5A of the Delaware Code, by striking said subsection (3) in its entirety, and substituting in lieu thereof the following:

"(3) A 'clearing corporation' is a corporation (a) at least ninety per cent of the capital stock of which is held by or for one or more persons (other than individuals), each of whom

(i) is subject to supervision or regulation pursuant to the provisions of federal or state banking laws or state insurance laws, or

(ii) is a broker or dealer or investment company registered under the Securities Exchange Act of 1934 or the Investment Company Act of 1940, or

() is a national securities exchange or association registered under a statute of the United States such as the Securities Exchange Act of 1934,

and none of whom, other than a national securities exchange or association, holds in excess of twenty per cent of the capital stock of such corporation; and

(b) any remaining capital stock of which is held by individuals who have purchased such capital stock at or prior to the time of their taking office as directors of such corporation and who have purchased only so much of such capital stock as may be necessary to permit them to qualify as such directors."

Section 2. This Act shall take effect immediately. Approved June 30, 1972.