Principal Underwriter Law and Legal Definition
According to 15 USCS § 80a-2 (29), the term principal underwriter of or for any investment company other than a closed-end company, or of any security issued by such a company, means “any underwriter who as principal purchases from such company, or pursuant to contract has the right (whether absolute or conditional) from time to time to purchase from such company, any such security for distribution, or who as agent for such company sells or has the right to sell any such security to a dealer or to the public or both, but does not include a dealer who purchases from such company through a principal underwriter acting as agent for such company. "Principal underwriter" of or for a closed-end company or any issuer which is not an investment company, or of any security issued by such a company or issuer, means any underwriter who, in connection with a primary distribution of securities, (A) is in privity of contract with the issuer or an affiliated person of the issuer; (B) acting alone or in concert with one or more other persons, initiates or directs the formation of an underwriting syndicate; or (C) is allowed a rate of gross commission, spread, or other profit greater than the rate allowed another underwriter participating in the distribution.”
Legal Definition list
- Principal Shareholder
- Principal Residence [HUD]
- Principal Representative [Department of State Standardized Regulations]
- Principal Register
- Principal Place of Business
- Principal Underwriter
- Principal-Protected Pool
- Principal, Interest, Tax, Insurance(PITI)
- Principia Probant, Non Probantur
- Principle
- Principle of Anticipation
Related Legal Terms
- Accessorium Non Ducit Sed Sequitur Suum Principale
- Additional Principal Payment
- Agent of a Foreign Principal
- Board of Fire Underwriters
- Chartered Life Underwriter [CLU]
- Chartered Property and Casualty Underwriter - CPCU
- Co-Principal Investigator
- Debtor’s Principal Residence ( Bankruptcy)
- Disclosed principal
- Foreign Principal
