17-12a603

Chapter 17.--CORPORATIONS
Article 12a.--UNIFORM SECURITIES ACT

      17-12a603.   Civil enforcement.(a) Civil action instituted by administrator.If the administrator believes that a person has engaged, isengaging, or is about to engage in an act, practice, or course ofbusiness constituting a violation of this act or a rule adopted ororder issued under this act or that a person has, is, or is aboutto engage in an act, practice, or course of business that materiallyaids a violation of this act or a rule adopted or order issued underthis act, the administrator may maintain an action in any courtof competent jurisdiction to enjoin the act, practice, or course ofbusiness and to enforce compliance with this act or a rule adoptedor order issued under this act.

      (b)   Relief available. In an action under this section and ona proper showing, the court may:

      (1)   Issue a permanent or temporary injunction, restrainingorder, or declaratory judgment;

      (2)   order other appropriate or ancillary relief, which mayinclude:

      (A)   An asset freeze, accounting, writ of attachment, writ ofgeneral or specific execution, and appointment of a receiver orconservator, that may be the administrator, for the defendant or thedefendant's assets;

      (B)   ordering the administrator to take charge and control ofa defendant's property, including investment accounts and accountsin a depository institution, rents, and profits; to collect debts;and to acquire and dispose of property;

      (C)   imposing a civil penalty up to $25,000 for each violation.If any person is found tohave violatedany provision of this act, and such violation is committed against elder ordisabled persons, as defined in K.S.A. 50-676, and amendments thereto, inaddition to any civil penalty otherwise provided by law, the court may imposean additional penalty not to exceed $15,000 for each such violation. The totalpenalty against a person shall not exceed $1,000,000;

      (D)   an order of rescission, restitution, or disgorgementdirected to a person that has engaged in an act, practice, or courseof business constituting a violation of this act or the predecessoract or a rule adopted or order issued under this act or thepredecessor act; and

      (E)   ordering the payment of prejudgment and postjudgmentinterest; or

      (3)   order such other relief as the court considersappropriate.

      (c)   No bond required. The administrator may not be requiredto post a bond in an action or proceeding under this act.

      History:   L. 2004, ch. 154, § 42; July 1, 2005.