17-12a510.   Recission offers.A purchaser, seller, or recipient of investmentadvice may not maintain an action underK.S.A. 17-12a509, andamendmentsthereto, if:

      (1)   The purchaser, seller, or recipient of investment advicereceives in a record, before the action is instituted:

      (A)   An offer stating the respect in which liability underK.S.A. 17-12a509, and amendments thereto, may have arisen and fairly advisingthepurchaser, seller, or recipient of investment advice of thatperson's rights in connection with the offer, and any financial orother information necessary to correct all materialmisrepresentations or omissions in the information that was required by thisact to be furnished to that person at the time of thepurchase, sale, or investment advice;

      (B)   if the basis for relief under this section may have beena violation ofK.S.A. 17-12a509(b), and amendments thereto, an offertorepurchase the security for cash, payable on delivery of thesecurity, equal to the consideration paid, and interestfrom the date of the purchaseat the rate provided for interest onjudgments by K.S.A. 16-204, and amendments thereto,less the amount of any incomereceived on the security, or, if the purchaser no longer owns thesecurity, an offer to pay the purchaser upon acceptance of the offerdamages in an amount that would be recoverable upon a tender, lessthe value of the security when the purchaser disposed of it, andinterest from the date of the purchaseat the rate provided for interest onjudgments by K.S.A. 16-204, and amendments thereto,in cashequal to the damages computed in the manner provided in thissubsection;

      (C)   if the basis for relief under this section may have beena violation ofK.S.A. 17-12a509(c), and amendments thereto, an offertotender the security, on payment by the seller of an amount equal tothe purchase price paid, less income received on the security by thepurchaser and interest from the date of the saleat the rate provided for interest onjudgments by K.S.A. 16-204, and amendments thereto;or if the purchaser no longer owns the security, an offer to pay theseller upon acceptance of the offer, in cash, damages in the amountof the difference between the price at which the security waspurchased and the value the security would have had at the time ofthe purchase in the absence of the purchaser's conduct that may havecaused liability and interest from the date of the saleat the rate provided for interest onjudgments by K.S.A. 16-204, and amendments thereto;

      (D)   if the basis for relief under this section may have beena violation ofK.S.A. 17-12a509(d), and amendments thereto; and ifthecustomer is a purchaser, an offer to pay as specified insubparagraph (B); or, if the customer is a seller, an offer totender or to pay as specified in subparagraph (C);

      (E)   if the basis for relief under this section may have beena violation ofK.S.A. 17-12a509(e), and amendments thereto, an offertoreimburse in cash the consideration paid for the advice and interestfrom the date of paymentat the rate provided for interest onjudgments by K.S.A. 16-204, and amendments thereto; or

      (F)   if the basis for relief under this section may have beena violation of17-12a509(f), and amendments thereto, an offertoreimburse in cash the consideration paid for the advice, the amountof any actual damages that may have been caused by the conduct, andinterest from the date of the violation causing thelossat the rate provided for interest onjudgments by K.S.A. 16-204, and amendments thereto;

      (2)   the offer under paragraph (1) states that it must beaccepted by the purchaser, seller, or recipient of investment advicewithin 30 days after the date of its receipt by the purchaser,seller, or recipient of investment advice or any shorter period, ofnot less than three days, that the administrator, by order,specifies;

      (3)   the offer under paragraph (1)discloses whetherthe offeror has the present ability to pay the amountoffered or to tender the security;

      (4)   the offer under paragraph (1) is delivered to the purchaser, seller, orrecipient of investment advice, or sent in amanner that ensures receipt by the purchaser, seller, or recipientof investment advice; and

      (5)   the purchaser, seller, or recipient of investment advicethat accepts the offer under paragraph (1) in a record within theperiod specified under paragraph (2) is paid in accordance with theterms of the offer.

      History:   L. 2004, ch. 154, § 39; July 1, 2005.