---
kind: "section"
citation: "42 U.S.C. § 2297h–9"
title: "42"
title_heading: "The Public Health and Welfare"
number: "2297h–9"
heading: "Ownership limitations"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/42/2297h-9"
units:
  - "Chapter 23 — Development and Control of Atomic Energy"
  - "Division B — United States Enrichment Corporation"
  - "Subchapter VIII — United States Enrichment Corporation Privatization"
---

# §2297h–9. Ownership limitations

- (a) **Securities limitations—** No [director](/usc/42/11851.md?p=5), officer, or employee of the [Corporation](/usc/42/2296b–7.md?p=1) may acquire any securities, or any rights to acquire any securities of the [private corporation](/usc/42/2297h.md?p=7) on terms more favorable than those offered to the general public—
  - (1) in a [public offering](/usc/42/2297h.md?p=10) designed to transfer ownership of the [Corporation](/usc/42/2296b–7.md?p=1) to private investors,
  - (2) pursuant to any agreement, arrangement, or understanding entered into before the [privatization date](/usc/42/2297h.md?p=9), or
  - (3) before the election of the [directors](/usc/42/11851.md?p=5) of the [private corporation](/usc/42/2297h.md?p=7).
- (b) **Ownership limitation—** Immediately following the consummation of the transaction or series of transactions pursuant to which 100 percent of the ownership of the [Corporation](/usc/42/2296b–7.md?p=1) is transferred to private investors, and for a period of three years thereafter, no [person](/usc/42/2014.md?p=s) may acquire, directly or indirectly, beneficial ownership of securities representing more than 10 percent of the total votes of all outstanding voting securities of the [Corporation](/usc/42/2296b–7.md?p=1). The foregoing limitation shall not apply to—
  - (1) any employee stock ownership plan of the [Corporation](/usc/42/2296b–7.md?p=1),
  - (2) members of the underwriting syndicate purchasing shares in stabilization transactions in connection with the [privatization](/usc/42/2297h.md?p=8), or
  - (3) in the case of shares beneficially held in the ordinary course of business for others, any commercial bank, broker-dealer, or clearing [agency](/usc/42/2231.md?p=a).

## Source credit

(Pub. L. 104–134, title III, § 3111, Apr. 26, 1996, 110 Stat. 1321–343.)

## Notes

### Editorial Notes

### Codification

Section was enacted as part of the USEC Privatization Act and also as part of the Omnibus Consolidated Rescissions and Appropriations Act of 1996, and not as part of the Atomic Energy Act of 1954 which comprises this chapter.