Page:United States Statutes at Large Volume 107 Part 3.djvu/428

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107 STAT. 2366 PUBLIC LAW 103-202—DEC. 17, 1993 roUup transaction, and who casts a vote against the transaction and complies with procedures established by the exchange,

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except that for purposes of an exchange or tender offer, such person shall file an objection in writing under the rules of the exchange during the period during which the offer is outstanding.". (c) STANDARDS FOR AUTOMATED QUOTATION SYSTEMS.— Section 15A(b) of the Securities Exchange Act of 1934 (15 U.S.C. 78o- 3(b)) is amended by adding at the end the following new paragraph: "(13) The rules of the association prohibit the authorization for quotation on an automated interdealer quotation system sponsored by the association of any security designated by the Commission as a national market system security resulting from a limited partnership roUup transaction (as such term is defined in paragraphs (4) and (5) of section 14(h)), unless such transaction was conducted in accordance with procedures designed to protect the rights of limited partners, including— "(A) the right of dissenting limited partners to one of the following: "(i) an appraisal and compensation; "(ii) retention of a security under substantially the same terms and conditions as the original issue; ' "(iii) approval of the limited partnership rollup transaction by not less than 75 percent of the outstanding securities of each of the participating limited partnerships; "(iv) the use of a committee that is independent, as determined in accordance with rules prescribed by the association, of the general partner or sponsor, that has been approved by a majority of the outstanding securities of each of the participating partnerships, and that has such authority as is necessary to protect the interest of limited partners, including the authority to hire independent advisors, to negotiate with the general partner or sponsor on behalf of the limited partners, and to make a recommendation to the limited partners with respect to the proposed transaction; or "(v) other comparable rights that are prescribed by rule by the association and that are designed to protect dissenting limited partners; "(B) the right not to have their voting power unfairly reduced or abridged; "(C) the right not to bear an unfair portion of the costs of a proposed limited partnership rollup transaction that is rejected; and "(D) restrictions on the conversion of contingent interests or fees into non-contingent interests or fees and restrictions on the receipt of a non-contingent equity interest in exchange for fees for services which have not yet been provided. As used in this paragraph, the term 'dissenting limited partner* means a person who, on the date on which soliciting material is mailed to investors, is a holder of a beneficial interest in a limited partnership that is the subject of a limited partnership rollup transaction, and who casts a vote against the transaction and complies with procedures established by the association, except that for purposes of an exchange or tender offer, such