Section R. 500.543 - Exemption of sales of securities to be acquiredRule 543.
(1) Whenever any person is entitled, as an incident to his ownership of an issued security and without the payment of consideration, to receive another security "when issued" or "when distributed," the security to be acquired is exempt from the operation of section 5284if:(a) The sale is made subject to the same conditions as those attaching to the right of acquisition; and(b) The person exercises reasonable diligence to deliver the security to the purchaser promptly after his right of acquisition matures; and(c) The person reports the sale on the appropriate form for reporting transactions by persons subject to section 5282 of the act.(2) This rule shall not be construed as exempting transactions involving both a sale of a security "when issued" or "when distributed" and a sale of the security by virtue of which the seller expects to receive the "when-issued" or "when-distributed" security, if the 2 transactions combined result in a sale of more units than the aggregate of those owned by the seller plus those to be received by him pursuant to his right of acquisition.Mich. Admin. Code R. 500.543