§71-1-510. Rescission offers.
770 words·~4 min read·
/ok/title-71-securities/71-1-510A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
A purchaser, seller, or recipient of investment advice may not maintain an action under Section 1-509 of this title if:
1. The purchaser, seller, or recipient of investment advice receives in a record, before the action is instituted:
a. an offer stating the respect in which liability under
Section 1-509 of this title may have arisen and fairly
advising the purchaser, seller, or recipient of
investment advice of that person's rights in
connection with the offer, and any financial or other
information necessary to correct all material
misstatements or omissions in the information that was
required by this act to be furnished to that person at
the time of the purchase, sale, or investment advice,
b. if the basis for relief under this section may have
been a violation of subsection B of Section 1-509 of
this title, an offer to repurchase the security for
cash, payable on delivery of the security, equal to
the consideration paid, and interest at the legal rate
of interest per year from the date of purchase, less
the amount of any income received on the security, or,
if the purchaser no longer owns the security, an offer
to pay the purchaser upon acceptance of the offer
damages in an amount that would be recoverable upon a
tender, less the value of the security when the
purchaser disposed of it, and interest at the legal
rate of interest per year from the date of purchase in
cash equal to the damages computed in the manner
provided in this subsection,
c. if the basis for relief under this section may have
been a violation of subsection C of Section 1-509 of
this title, an offer to tender the security, on
payment by the seller of an amount equal to the
purchase price paid, less income received on the
security by the purchaser, and interest at the legal
rate of interest from the date of the sale, or if the
purchaser no longer owns the security, an offer to pay
the seller upon acceptance of the offer, in cash,
damages in the amount of the difference between the
price at which the security was purchased and the
value the security would have had at the time of the
purchase in the absence of the purchaser's conduct
that may have caused liability and interest at the
legal rate of interest per year from the date of the
sale,
d. if the basis for relief under this section may have
been a violation of subsection D of Section 1-509 of
this title, and if the customer is a purchaser, an
offer to pay as specified in subparagraph b of this
paragraph; or, if the customer is a seller, an offer
to tender or to pay as specified in subparagraph c of
this paragraph,
e. if the basis for relief under this section may have
been a violation of subsection E of Section 1-509 of
this title, an offer to reimburse in cash the
consideration paid for the advice and interest at the
legal rate of interest per year from the date of
payment, or
f. if the basis for relief under this section may have
been a violation of subsection F of Section 1-509 of
this title, an offer to reimburse in cash the
consideration paid for the advice, the amount of any
actual damages that may have been caused by the
conduct, and interest at the legal rate of interest
per year from the date of the violation causing the
loss;
2. An offer under paragraph 1 of this subsection states that it must be accepted by the purchaser, seller, or recipient of
investment advice within thirty
(30)days after the date of its receipt by the purchaser, seller, or recipient of investment advice, or any shorter period, of not less than three
(3)days, that the Administrator, by order, specifies;
3. The offeror has the present ability to pay the amount offered or to tender the security under paragraph 1 of this subsection;
4. The offer under paragraph 1 of this subsection is delivered to the purchaser, seller, or recipient of investment advice, or sent in a manner that ensures receipt by the purchaser, seller, or recipient of investment advice; and
5. The purchaser, seller, or recipient of investment advice that accepts the offer under paragraph 1 of this subsection, in a record within the period specified under paragraph 2 of this subsection is paid in accordance with the terms of the offer. Added by Laws 2003, c. 347, § 38, eff. July 1, 2004. Amended by Laws 2022, c. 77, § 33, eff. Nov. 1, 2022.