Page:United States Statutes at Large Volume 78.djvu/672

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[78 STAT. 630]
[78 STAT. 630]
PUBLIC LAW 88-000—MMMM. DD, 1964

630

PUBLIC LAW 88-503-AUG. 30, 1964

[78

STAT.

upon the tender of the security, or for damages if he no longer owns the security. For this purpose damages shall be the amount that would be recoverable upon a tender, less the market value of the security when the buyer disposed of it and interest from the date of disposition. (b) Any person who directly or indirectly controls a seller liable under subsection (a), any partner, officer, or director of such a seller and any person occupying a similar status or performing similar functions, any employee of such a seller who materially aids in the sale, and any broker-dealer or agent who materially aids in the sale shall also be liable jointly and severally with and to the same extent as the seller, unless the nonseller who shall be so liable sustains the burden of proof that he did not know, and in the exercise of reasonable care could not have known, of the existence of the facts by reason of which the liability is alleged to exist. There shall be contribution as in cases of contract among the several persons so liable. (c) Any tender specified in this section may be made at any time before entry of judgment. (d) Any liability or cause of action under this section shall survive the death of any person who, if living, would have such a liability or cause of action. (e) No person may bring an action under this section after two years from the contract of sale. No person may bring an action under this section (1) if the buyer received a written offer, before suit and at a time when he owned the security, to refund the consideration paid for the security together with interest at 6 per centum per annum from the date of payment, less the amount of any income received on the security, and if he failed to accept that offer within thirty days of its receipt, or (2) if the buyer received such an offer before suit and at a time when he did not own the security, unless he rejected the offer in writing within thirty days of its receipt. (f) No person who has made or engaged in the performance of any contract in violation of any provision of this Act or of any rule or order hereunder, or who has acquired any purported right under any such contract with knowledge of the facts by reason of which its making or performance was in violation, may base any suit upon the contract. (g) Any condition, stipulation, or provision binding any person who acquires any security to waive compliance with any provision of this Act or with any rule or order under this Act shall be void. (h) The rights and remedies provided by this Act shall be in addition to any other rights or remedies that may exist at law or in equity, but this Act shall not create any cause of action not specified in this or section 5(e). SCOPE OF ACT AND SERVICE OF PROCESS

SEC. 15. (a) Sections 3, 4 (a), 6, and 14 shall apply to persons who sell or offer to sell when (1) an offer to sell is made in the District, or (2) an offer to buy is made and accepted in the District. (b) Sections 3, 4 (a), and 6 shall apply to persons who buy or offer to buy when (1) an offer to buy is made in the District, or (2) an offer to sell is made and accepted in the District. (c) For the purpose of this section, an offer to sell or to buy is made in the District whether or not either party is then present in the District, when the offer (1) originates from the District or (2) is directed by the offeror to the District and received at the place to which it is directed (or at any post office in the District in the case of a mailed offer).