Senate Bill 2226c1

    Florida Senate - 1999                           CS for SB 2226

    By the Committee on Banking and Insurance; and Senator Sebesta





    311-2003-99

  1                      A bill to be entitled

  2         An act relating to the sale of securities;

  3         amending s. 517.211, F.S.; providing that a

  4         sale of securities by a dealer, associated

  5         person, or issuer who is not registered with

  6         the Department of Banking and Finance may be

  7         rescinded by the purchaser; providing limited

  8         circumstances where rescission does not apply;

  9         providing that an investment adviser or

10         associated person who engages in business

11         without being registered with the department

12         may have such business canceled by the

13         purchaser; providing an effective date.

14

15  Be It Enacted by the Legislature of the State of Florida:

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17         Section 1.  Subsection (1) of section 517.211, Florida

18  Statutes, is amended to read:

19         517.211  Remedies available in cases of unlawful

20  sale.--

21         (1)  Every sale made in violation of either s. 517.07

22  or s. 517.12(1), (4), (5), (9), (11), (13), (16), or (18) s.

23  517.12 may be rescinded at the election of the purchaser,

24  except that a sale made in violation of the provisions of s.

25  517.12(11) relating to a renewal of a branch office

26  registration shall not be subject to rescission and a sale

27  made in violation of the provisions of s. 517.12(13) relating

28  to filing a change of address amendment shall not be subject

29  to rescission. Each; and the person making the sale and every

30  director, officer, partner, or agent of or for the seller, if

31  the director, officer, partner, or agent has personally

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CODING: Words stricken are deletions; words underlined are additions.






    Florida Senate - 1999                           CS for SB 2226
    311-2003-99




  1  participated or aided in making the sale, is jointly and

  2  severally liable to the purchaser in an action for rescission,

  3  if the purchaser still owns the security, or for damages, if

  4  the purchaser has sold the security. No purchaser otherwise

  5  entitled will have the benefit of this subsection who has

  6  refused or failed, within 30 days of receipt, to accept an

  7  offer made in writing by the seller, if the purchaser has not

  8  sold the security, to take back the security in question and

  9  to refund the full amount paid by the purchaser or, if the

10  purchaser has sold the security, to pay the purchaser an

11  amount equal to the difference between the amount paid for the

12  security and the amount received by the purchaser on the sale

13  of the security, together, in either case, with interest on

14  the full amount paid for the security by the purchaser at the

15  legal rate, pursuant to s. 55.03, for the period from the date

16  of payment by the purchaser to the date of repayment, less the

17  amount of any income received by the purchaser on the

18  security.

19         Section 2.  This act shall take effect July 1, 1999.

20

21          STATEMENT OF SUBSTANTIAL CHANGES CONTAINED IN
                       COMMITTEE SUBSTITUTE FOR
22                         Senate Bill 2226

23

24  Retains the purchaser's remedy of recission due to a violation
    of s. 517.12, (1), (4), (5), (9), (11), (13), (16), or
25  (18),F.S., except for a violation of subsections (11) and (13)
    pertaining to renewal registration of a branch office and
26  filing a change of address amendment, will not allow
    rescission at the election of the purchaser.
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