§ 71-628 — Denial of effectiveness to, suspension or revocation of

Oklahoma § 71-628

• Jurisdiction: Oklahoma
• Title 71: Securities

Text

effectiveness of registration. A. The Administrator may issue a stop order denying effectiveness to, or suspending or revoking the effectiveness of, any registration if he or she finds that the order is in the public interest and that: 1. The registration statement as of its effective date or any report under subsections I or J of Section 627 of this Code is incomplete in any material respect or contains any statement which was, in light of the circumstances under which it was made, false or misleading with respect to any material fact; 2. Any provision of this Code or any rule, order, or condition lawfully imposed under this Code has been willfully violated in connection with the offer or disposition of subdivided lands by the person filing the registration statement, by the subdivider, any partner, officer or director of the subdivider, by any person occupying a similar status or performing similar functions, by any person directly or indirectly controlling or controlled by the subdivider, or by any subdivided land sales agent or other person involved directly or indirectly in the offer or disposition of subdivided lands; 3. The subdivided lands are the subject of an administrative stop order or similar order or a permanent or temporary injunction of any court of competent jurisdiction entered under any federal or state act applicable to the offer or disposition of the subdivided lands. Provided, however, the Administrator may not institute a proceeding against an effective registration statement under this paragraph more than one (1) year from the date of the order or injunction relied on, and he or she may not enter an order under this paragraph on the basis of an order or injunction entered under any other state or federal act unless that order or injunction was based on facts which would currently constitute a ground for a stop order under this section; 4. The subdivider's enterprise or method of business includes or would include activities which are illegal where performed; 5. The offer or disposition of the subdivided lands is or would be unfair or inequitable to purchasers or has worked, tended to work, or would work a fraud upon purchasers; 6. The disposition has been made or would be made with unreasonable commissions or other unreasonable compensation; 7. The applicant or registrant has failed to pay the proper filing fee. Provided, however, the Administrator may enter only a denial order under this paragraph and he or she shall vacate any such order when the deficiency has been corrected; 8. Advertising prohibited by Section 653 of this Code has been used in connection with the offer or disposition of the subdivided lands; 9. The financial condition of the subdivider or of any other person connected with the offer or disposition of subdivided lands adversely affects or would adversely affect the soundness of the land purchase; or 10. The subdivider is not in compliance with federal, state, or local environmental quality standards. B. The Administrator may not institute a stop order proceeding against an effective registration statement on the basis of a fact or transaction known to the Administrator when the registration statement became effective unless the proceeding is instituted within sixty (60) days. C. In a proceeding for registration, within sixty (60) days of the effective date of such registration statement, the applicant or registrant has the burden of satisfying the requirements of subsection A of this section. D. The Administrator may issue a summary order denying, postponing, suspending, or revoking the effectiveness of the registration statement pending final determination of any proceeding under this section. Upon the entry of the order, the Administrator shall promptly notify each person specified in subsection E of this section that the order has been entered, the reasons for the entry of order, and that each such person has a right to request a hearing under subsection A of Section 661 of this Code. If no hearing is requested and none is ordered by the Administrator, the order will remain in effect until it is modified or vacated by the Administrator. E. No stop order may be entered under this section except under subsection D of this section unless there has been appropriate prior notice to the applicant or registrant, to the subdivider and to the person on whose behalf the lands are to be or have been offered, an opportunity for hearings and the making of written findings of fact and conclusions of law. F. The Administrator may vacate or modify a stop order if he finds that the conditions which prompted the stop order's entry have changed or that it is otherwise in the public interest to do so.

Legislative History

Added by Laws 1977, c. 95, § 628. Amended by Laws 2022, c. 78, § 5, eff. Nov. 1, 2022.