Md. Code Regs. 02.02.06.02

Current through Register Vol. 51, No. 24, December 2, 2024

Section 02.02.06.02 - Definitions

A. In this chapter, the following terms have the meanings indicated.

B. Terms Defined.

(1) "Administrative law judge" means a person authorized to conduct hearings in contested cases under State Government Article, Title 9, Subtitle 16, Annotated Code of Maryland.

(2) "Commissioner" means the Maryland Securities Commissioner or the designated agent of the Maryland Securities Commissioner.

(3) "Contested case" has the meaning stated in State Government Article, § 10-202(d), Annotated Code of Maryland, and in this chapter refers to a proceeding before the Commissioner under the Maryland Securities Act, Business Opportunities Act, or the Maryland Franchise Law.

(4) "Division" means the Division of Securities in the Office of the Attorney General.

(5) "Maryland Business Opportunities Sales Act" and "Business Opportunities Act" mean Business Regulation Article, Title 14, Subtitle 1, Annotated Code of Maryland.

(6) "Maryland Franchise Registration and Disclosure Law" and "Maryland Franchise Law" mean Business Regulation Article, Title 14, Subtitle 2, Annotated Code of Maryland.

(7) "Maryland Securities Act" means Corporations and Associations Article, Title 11, Annotated Code of Maryland.

(8) "Party" means a respondent in the proceeding and the Division.

(9) "Person" has the meaning stated in Business Regulation Article, § 1-101(g), Annotated Code of Maryland.

(10) "Respondent" means a person against whom a show cause order or summary order has been issued under the Maryland Securities Act, the Business Opportunities Act, or the Maryland Franchise Law.

(11) Show Cause Order.

(a) "Show cause order" means an order issued by the Commissioner that alleges facts that constitute a violation of, or a failure to comply with, the law by the respondent and that directs the respondent to explain why the Commissioner should not issue a final order against the respondent based upon the alleged facts.

(b) "Show cause order" includes orders to show cause concerning:

(i) A cease and desist order under the Business Opportunities Act, Business Regulation Article, § 14-110, Annotated Code of Maryland;

(ii) A cease and desist order under the Maryland Franchise Law, Business Regulation Article, § 14-210, Annotated Code of Maryland;

(iii) A denial, suspension, or revocation of investment adviser or investment adviser representative registration under the Maryland Securities Act, Corporations and Associations Article, § 11-412, Annotated Code of Maryland;

(iv) A denial, suspension, or revocation of broker-dealer or broker-dealer agent registration under the Maryland Securities Act, Corporations and Associations Article, § 11-412, Annotated Code of Maryland;

(v) A denial, suspension, or revocation of effectiveness of a securities registration statement under the Maryland Securities Act, Corporations and Associations Article, § 11-511, Annotated Code of Maryland;

(vi) A denial or revocation of a securities registration exemption under the Maryland Securities Act, Corporations and Associations Article, § 11-603, Annotated Code of Maryland;

(vii) An order to cease and desist violations of the Maryland Securities Act, Corporations and Associations Article, § 11-301 -11-304, 11-401, 11-402, or 11-501, Annotated Code of Maryland.

(12) Summary Order.

(a) "Summary order" means an order issued by the Commissioner that alleges facts that constitute a violation of, or failure to comply with, the law by the respondent and that directs the respondent immediately to take certain actions or to refrain from certain actions.

(b) "Summary order" includes:

(i) A summary cease and desist order issued under the Business Opportunities Act, Business Regulation Article, § 14-110, Annotated Code of Maryland;

(ii) A summary cease and desist order issued under the Maryland Franchise Law, Business Regulation Article, § 14-210, Annotated Code of Maryland;

(iii) A stop order issued under the Maryland Franchise Law, Business Regulation Article, § 14-221, Annotated Code of Maryland;

(iv) A summary postponement or suspension of investment adviser or investment adviser representative registration under the Maryland Securities Act, Corporations and Associations Article, § 11-413, Annotated Code of Maryland;

(v) A summary postponement or suspension of broker-dealer or broker-dealer agent registration under the Maryland Securities Act, Corporations and Associations Article, § 11-413, Annotated Code of Maryland;

(vi) A summary postponement or suspension of the effectiveness of a securities registration statement under the Maryland Securities Act, Corporations and Associations Article, § 11-512, Annotated Code of Maryland;

(vii) A summary denial or revocation of a securities registration exemption under the Maryland Securities Act, Corporations and Associations Article, § 11-603, Annotated Code of Maryland; or

(viii) A summary cease and desist order for violation of the Maryland Securities Act, Corporations and Associations Article, § 11-701.1, Annotated Code of Maryland.

Md. Code Regs. 02.02.06.02

Regulation .02B amended effective June 15, 1998 (25:12 Md. R. 944)