§ 23-19-5-10 — Rescission offers

Indiana § 23-19-5-10

• Jurisdiction: Indiana
• Title 23: BUSINESS AND OTHER ASSOCIATIONS
• Art. 19: INDIANA UNIFORM SECURITIES ACT
• Ch. 5: Fraud and Liabilities

Text

A purchaser, seller, or recipient of
investment advice may not maintain an action under section 9 of this
chapter 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
9 of this chapter 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
misrepresentations or omissions in the information that was
required by this article 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 described in section 9(a) of this chapter, an offer to
repurchase the security for cash, payable on delivery of the
security, equal to the consideration paid, and interest at the rate
of eight percent (8%) per annum from the date of the 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
rate of eight percent (8%) per annum from the date of the
purchase in cash equal to the damages computed in the manner
provided in this clause;
(C) if the basis for relief under this section may have been a
violation described in section 9(b) of this chapter, 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 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 rate of eight
percent (8%) per annum from the date of the sale; or
(D) if the basis for relief under this section may have been a
violation described in section 9(c) of this chapter, an offer to
reimburse in cash the consideration paid for the advice and
interest from the date of payment;
(2) the offer under subdivision (1) 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 commissioner, by order,
specifies;
(3) the offeror has the present ability to pay the amount offered or
to tender the security under subdivision (1);
(4) the offer under subdivision (1) 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 subdivision (1) in a record within the
period specified under subdivision (2) is paid in accordance with
the terms of the offer.

Legislative History

As added by P.L.27-2007, SEC.23.