434.320 Insolvent broker to accept no money or securities for margin from
144 words·~1 min read·
/ky/434-320A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
customer ignorant of broker's insolvency.
(1)Any broker who, knowing that he is insolvent, accepts or receives or consents to
receiving from a customer ignorant of the broker's insolvency, deposits of money,
stocks, bonds, securities, or other things of value belonging to the customer, to be
used as margin for the purchase of stocks, bonds, grain, produce or cotton,
otherwise than in payment of or security for an existing indebtedness, and who
thereby causes the customer to lose, in whole or in part, such money, stocks, bonds,
securities, or other things of value, shall be guilty of a Class D felony.
(2)"Broker," as used in KRS 434.320, 434.330, and 434.340, means any person
engaged in the business of buying or selling stocks, bonds, grain, produce, or cotton,
as agent or representative of other persons upon margins, and who charges
commissions for his services.