17-12a204.   Denial, suspension, revocation, conditionor limitation of exemptions.(a) Except with respect to a federal covered securityor a transaction involving a federal covered security, an orderunder this act may deny, suspend application of, condition, limit,or revoke an exemption created underK.S.A. 17-12a201 (3)(C), (7) or(8)or 17-12a202, and amendments thereto, or an exemption orwaivercreated underK.S.A. 17-12a203, and amendments thereto, withrespect toa specific security, transaction, or offer. An order under thissection may be issued only pursuant to the procedures in K.S.A. 17-12a306(d) or17-12a604, and amendments thereto, and onlyprospectively.

      (b)   Knowledge of order required. A person does not violateK.S.A. 17-12a301, 17-12a303 through 17-12a306, 17-12a504 or 17-12a510, andamendmentsthereto, by an offer to sell, offer topurchase, sale, or purchase effected after the entry of an order issued underthis section if the person did not know, and in the exercise of reasonablecare could not have known, of the order.

      History:   L. 2004, ch. 154, § 9; July 1, 2005.