Copyright
statutes Iowa. Laws.

Iowa law relating to inspection of stocks, bonds and securities to prevent fraud and providing penalties for violation thereof commonly known as the Blue sky law ... Passed by the 36th General assembly, 1915; in effect April 28, 1915 online

. (page 2 of 2)
Online Librarystatutes Iowa. LawsIowa law relating to inspection of stocks, bonds and securities to prevent fraud and providing penalties for violation thereof commonly known as the Blue sky law ... Passed by the 36th General assembly, 1915; in effect April 28, 1915 → online text (page 2 of 2)
Font size
QR-code for this ebook


v that "THE SECRETARY OF STATE DOES
NOT RECOMMEND THE PURCHASE OF THE
SECURITY OF THIS OR ANY OTHER COM :
PANY."

Section 16. Every person, firm, association, com-
pany or corporation that has received a permit
to transact business in this state and desires
to appoint agents or representatives shall cause
said agent or representative to register with
the secretary of state and file with said officer
his written appointment and authority to repre-
sent said person, firm, association, company or
corporation as its agent in this state and receive
from said secretary a certificate showing that
the principal represented by said agent or repre-
sentative has complied with the provisions of
this act and received a certificate to do business.
All such certificates shall be subject to revoca-
tion by the secretary of state if upon examina-
tion or investigation the secretary finds that the
agent is misrepresenting the kind and character
of securities, the nature of the business or is
thereby, or otherwise defrauding the people of
th-s state, in the sale of stocks, bonds or other
securities. All such certificates, unless sooner
revoked, shall expire on the first day of July of
each year. A charge of $1.00 shall be made by
the secretary of state for each certificate issued
to such agent.

Section 17. The secretary of state may issue to
any broker, or dealer in stocks, bonds or other
securities, an annual permit, which permit shall

14



er title such stock broker or dealer to sell, offer
or negotiate for sale any stocks, bonds or other
securities within this state, except those stocks,
bonds or other securities, the sale of which
would work a fraud upon the purchaser; pro-
vided, however, that such stock broker or dealer
shall file on the first and fifteenth day of each,
month a detailed list of the stocks, bonds or
other securities on hand for sale or listed for
sale by him, and also those sold by him during
the preceding one-half month and not previously
reported; provided further, that the secretary
of state shall refuse to grant a permit, or shall
cancel a permit previously granted, to any such
stock broker or dealer when he finds by investi-
gation or otherwise that such stock broker or
dealer is selling or offering for sale within this
state any stocks, bonds or other securities which
w~uld work a fraud upon the purchasers thereof.
In order that the secretary of state may deter-
mine the nature and kind of securities to be
sold and the character of the applicant, he is
authorized to make investigation as otherwise
provided herein, the expenses incurred thereby
to be paid as provided in section 11 of this act.
The applicant shall also pay a fee of fifty dol-
lars ($50.00) to the secretary of state for each
of said annual permits, which permit, unless
sooner revoked by the secretary of state, shall
expire on the first secular day of July of each
year. If said permit is issued after the first
of January of any year, the fee shall be reduced
one-half. Before being granted such permit by
the secretary of state the stock broker or dealer
shall give a bond in the penal sum of five thou-
sand dollars ($5000.00) to the state of Iowa,
conditioned upon a strict compliance with this
act which bond shall be approved by the execu-
tive council and filed with the secretary of state.
Said bond shall be forfeited by a violation of
the terms or conditions of this act, or by a con-,
viction for such violation, and the attorney
general of this state may institute suit in the
name of the state of Iowa in any court of com-
petent jurisdiction for a forfeiture thereof at
any time within two years from the time the

15



cause of action accrues; provided that if it ap-
pears such violation was not intentional and no
fraud was shown then only so much of said bond
shall be forfeited as shall be equal to the amount
of damages sustained.

Section 18. Any person, firm, association, com-
pany or corporation that is denied a certificate
to transact business in this state, or whose cer-
tificate is cancelled pursuant to the provisions
of this act shall have the right to appeal to the
executive council of the state of Iowa from any
decision of the secretary of state affecting a sub-
stantial right under the provisions of this act
within twenty days from the entrv or the pro-
nouncement of the decision of said secretary by
serving notice of such appeal upon the secretary
of the executive council. Such appeal shall be
heard and determined by the executive council
under such rules and regulations as they may
prescribe giving full notice and opportunity to
be heard by all persons interested therein.

Any person, firm, association, company or cor-
poration perfecting said appeal to said executive
council, may upon receiving an adverse decision
by said executive council, appeal to the district
court at the seat of government, by the service
of a written notice of appeal on the attorney
general, and thereupon the cause may be dock-
eted and the case may be tried in the district
court as a special equitable action by the filing
of such transcript and such Dleadings as the
court may prescribe in order that an intelligent
hearing may be had and a just decision rendered
thereon free from any technical objections or
irregularities in the matter of procedure or the
introduction of evidence.

Section 19. A supersedeas may be had by any
person denied a permit to do business in this
state and who has thereafter perfected an ap-
peal by the execution and filing of a penal bond
to the state of Iowa for the use and benefit of
the state of Iowa for any costs or damages in-
curred by reason of said appeal and for the use
and benefit of any purchaser of any stocks,

I);



bonds or other securities from the appellant dur-
ing the pendency of said appeal; said bond shall
be in the sum fixed by the judge of the district
court to which said appeal is taken and ap-
proved by the clerk of said court, and shall pro-
vide that if the order appealed from is affirmed,
the party appealing shall pay to the state all
costs and damages by reason of said appeal, and
shall pay to the secretary of state for the use
and benefit of any purchaser who ha.s suffered
damage by reason of the purchase of- any secur-
ity during the pendency of such appeal the
amount fixed in said bond or so much thereof
as may be necessary. . It shall be the duty of the
clerk of the district court to transmit a certi-
ned copy of said bond to the secretary of state
of the state of Iowa immediately upon the filing
and approvil of said bond in the office of said
clerk.

Section 20. Any person, firm, association, com-
pany or corporation subject to the provisions of
this act that shall subscribe or cause to be made
any false statement or false entry in any book
required to be kept or relating to any business
to be transacted in this state pursuant to the
provisions of this act, or make or subscribe to
any false statement, exhibit or paper filed with
the secretary of state of the state of Iowa, or
shall make to the secretary of state, his deputy,
agent or representative any false or fraudulent
statement concerning the proposed plan of busi-
ness to be transacted, or the nature, value or
character of securities to be sold in this state,
or shall make to said secretary of state, his
deputy, agent or representative any false state-
ment as to the financial condition of such per-
son, firm, association, company or corporation
shall be deemed guilty of a felony, and upon
conviction shall be fined in the sum of not more
than five thousand dollars ($5000.00), or im-
prisoned not to exceed five years in the peniten-
tiary or reformatory, or by both such fine and
imprisonment in the discretion of the court.

Section 21. Any person, firm, association, com-
pany or corporation subject to the provisions



of this act that shall sell or negotiate for tho
sale of any stocks, bonds or other securities
within this state without first paying the in-
spection fee and otherwise complying with the
provisions of this act, or that continues to sell,
offers for sale, or negotiates for the sale of
stocks, bonds or other securities in this state
after his certificate or permit to do business has
been canceled by the secretary of state, unless
a supersedeas bond has been filed as and ac-
cording to the provisions of Section 19 hereof,
or that shall otherwise neglect or refuse to
comply with any of the provisions of this act,
shall be guilty of a misdemeanor and upon con-
viction thereof shall be fined not to exceed five
thousand dollars ($5000.00) or by imprison-
ment in the county jail not to exceed six months
or by both such fine and imprisonment.

Section 22. Any person, firm, association, com-
pany or corporation, or any agent or representa-
tive thereof, whether subject to the provisions
of this act or otherwise, that sells, offers for
sale or negotiates for the sale of any stocks,
bonds, or other securities within this state, and
knowingly makes any false representations or
statement as to the nature, character or value
of such security, or the amount of the earning
pcwer of such security whether in the nature of
interest, dividends or otherwise, or knowingly
makes any false or fraudulent representation
concerning the financial condition, the assets or
the property of the company, firm or corpora-
tion issuing said security, or knowingly makes
any other false or fraudulent representation to
any person for the purpose of inducing said
person to purchase said security, or conceals
any material fact in the advertisement or pros-
pectus of such security for the purpose of mis-
leading or defrauding the purchaser, shall be
guilty of a misdemeanor and upon conviction
be punished by a fine of not more than two
thousand dollars or by imprisonment of not to
exceed six months in the county jail, or by both
such fine and imprisonment.

Section 23. Should any section of this act or

18



any part thereof be held by any court of com-
petent jurisdiction to be unconstitutional, such
decision shall affect the specific provision only
which it is held offends against the constitution
and said unconstitutional part shall not be held
to be an inducement to the passage of any other
section or provision of this act.

Section 24. This act being deemed of immedi-
ate importance shall take effect and be in force
from and after its publication in the Des Moines
News, published in the city of Des Moines, Iowa,
and Creston Daily Advertiser-Gazette, published
in the city of Creston, Iowa.

Approved April 12th, A. D. 1915. .



UNIVERSITY OF CALIFORNIA LIBRARY
BERKELEY

Return to desk from which borrowed.
This book is DUE on the last date stamped below.



NOV 25



NOV 251947






'-



1947



LD 21-100m-9,'47(A5702sl6)476




UNIVEE^SITY OF CAUFORNIA LIBRARY






X





2

Online Librarystatutes Iowa. LawsIowa law relating to inspection of stocks, bonds and securities to prevent fraud and providing penalties for violation thereof commonly known as the Blue sky law ... Passed by the 36th General assembly, 1915; in effect April 28, 1915 → online text (page 2 of 2)