Mo. Code Regs. tit. 15 § 30-52.260

Current through Register Vol. 49, No. 23, December 2, 2024

Section 15 CSR 30-52.260 - Suggested Form of Offer of Refund (Rescission)

PURPOSE: This rule suggests a simplified form of rescission offer to be provided to investors.

(1) The sample rescission letter contained in this regulation is based upon a violation of section 409.3-301, RSMo but may be adapted for any other violations of the Missouri Securities Act of 2003.

(2) The Securities Division suggests the following letter be used to offer rescission:

Certified/Return Receipt Requested

Dear Investor:

This letter is to inform you of your rights under the Missouri Securities Act of 2003, Chapter 409, RSMo (the "Act"). The (describe securities) that you were sold constitute "securities" under the Act.

Section 409.3-301, RSMo, requires that any security offered or sold in Missouri must be registered, exempt from registration or a federal covered security. The securities that you purchased were not registered, exempt or federal covered securities. (Include herein any other statutory violation, along with an explanation of the violation).

Section 409.5-509, RSMo, provides that any person who sells a security in violation of section 409.3-301, RSMo is liable to the purchaser for the amount of the consideration paid for the security, together with interest of eight percent (8%) per year from the date of purchase, costs and reasonable attorney fees, less the amount of any income received on the security.

This letter is to inform you of these rights and to offer to rescind your securities purchase. Attached is a statement as to whether or not you wish to take advantage of this offer. Please fill out the attached form and return it to this office within thirty (30) days of your receipt of this notice. If you wish to take advantage of the rescission, the amount you originally invested plus eight percent (8%) interest, less any income you received, will be returned to you within ten (10) business days of the receipt of your rescission request. If you do not respond to this offer within thirty (30) days of the date you receive it, your right to rescind your purchase will be extinguished as provided in the Act.

(Name of Issuer)

(Signature)

(Printed Name of Signatory)

I have been informed of my right to rescission under the Missouri Securities Act of 2003 by (name of firm offering rescission). I do/do not (circle one) wish to take advantage of this rescission offer.

(Investor's Signature)

15 CSR 30-52.260

AUTHORITY: sections 409.5-509, 409.5-510 and 409.6-605, RSMo Supp. 2003.* Original rule filed July 21, 1972, effective Aug. 1, 1972. Amended: Filed Nov. 15, 1974, effective Nov. 25, 1974. Rescinded and readopted: Filed Aug. 1, 1984, effective Nov. 11, 1984. Rescinded and readopted: Filed Aug. 30, 2002, effective Feb. 28, 2003. Emergency amendment filed Aug. 19, 2003, effective Sept. 12, 2003, expired March 9, 2004. Amended: Filed Aug. 22, 2003, effective Feb. 29, 2004.

*Original authority: 409.5-509, RSMo 2003; 409.5-510, RSMo 2003; 409.6-605, RSMo 2003.