House Bill 0057

    Florida House of Representatives - 2000                  HB 57

        By Representative C. Green






  1                      A bill to be entitled

  2         An act relating to remedies for unlawful sales

  3         of securities; amending s. 517.211, F.S.;

  4         limiting authorization to rescind certain sales

  5         of securities under certain circumstances;

  6         providing an effective date.

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

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

11  Statutes, is amended to read:

12         517.211  Remedies available in cases of unlawful

13  sale.--

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

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

16  be rescinded at the election of the purchaser, except a sale

17  made in violation of the provisions of s. 517.12(11) relating

18  to a renewal of a branch office registration shall not be

19  subject to rescission and a sale made in violation of the

20  provisions of s. 517.12(13) relating to filing a change of

21  address amendment shall not be subject to rescission. Each;

22  and the person making the sale and every director, officer,

23  partner, or agent of or for the seller, if the director,

24  officer, partner, or agent has personally participated or

25  aided in making the sale, is jointly and severally liable to

26  the purchaser in an action for rescission, if the purchaser

27  still owns the security, or for damages, if the purchaser has

28  sold the security. No purchaser otherwise entitled will have

29  the benefit of this subsection who has refused or failed,

30  within 30 days of receipt, to accept an offer made in writing

31  by the seller, if the purchaser has not sold the security, to

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






    Florida House of Representatives - 2000                  HB 57

    705-111A-00






  1  take back the security in question and to refund the full

  2  amount paid by the purchaser or, if the purchaser has sold the

  3  security, to pay the purchaser an amount equal to the

  4  difference between the amount paid for the security and the

  5  amount received by the purchaser on the sale of the security,

  6  together, in either case, with interest on the full amount

  7  paid for the security by the purchaser at the legal rate,

  8  pursuant to s. 55.03, for the period from the date of payment

  9  by the purchaser to the date of repayment, less the amount of

10  any income received by the purchaser on the security.

11         Section 2.  This act shall take effect upon becoming a

12  law.

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15                          HOUSE SUMMARY

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      Limits authorization to rescind sales of securities made
17    in violation of specified registration requirements for
      dealers, associated persons, investment advisers, and
18    branch offices. See bill for details.

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