409.5-510. A purchaser, seller, or recipient of investment advice maynot maintain an action under section 409.5-509 if:
(1) The purchaser, seller, or recipient of investment advice receives ina record, before the action is instituted:
(A) An offer stating the respect in which liability under section409.5-509 may have arisen and fairly advising the purchaser, seller, orrecipient of investment advice of that person's rights in connection with theoffer, and any financial or other information necessary to correct allmaterial misrepresentations or omissions in the information that was requiredby this act to be furnished to that person at the time of the purchase, sale,or investment advice;
(B) If the basis for relief under this section may have been a violationof section 409.5-509(b), an offer to repurchase the security for cash, payableon delivery of the security, equal to the consideration paid, and interest atthe rate of eight percent per year from the date of the purchase, less theamount of any income received on the security, or, if the purchaser no longerowns the security, an offer to pay the purchaser upon acceptance of the offerdamages in an amount that would be recoverable upon a tender, less the valueof the security when the purchaser disposed of it, and interest at the rate ofeight percent per year from the date of the purchase in cash equal to thedamages computed in the manner provided in this subsection;
(C) If the basis for relief under this section may have been a violationof section 409.5-509(c), an offer to tender the security, on payment by theseller of an amount equal to the purchase price paid, less income received onthe security by the purchaser and interest at the rate of eight percent peryear from the date of the sale; or if the purchaser no longer owns thesecurity, an offer to pay the seller upon acceptance of the offer, in cash,damages in the amount of the difference between the price at which thesecurity was purchased and the value the security would have had at the timeof the purchase in the absence of the purchaser's conduct that may have causedliability and interest at the rate of eight percent per year from the date ofthe sale;
(D) If the basis for relief under this section may have been a violationof section 409.5-509(d); and if the customer is a purchaser, an offer to payas specified in subparagraph (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 been a violationof section 409.5-509(e), an offer to reimburse in cash the consideration paidfor the advice and interest at the rate of eight percent per year from thedate of payment; or
(F) If the basis for relief under this section may have been a violationof section 409.5-509(f), an offer to reimburse in cash the consideration paidfor the advice, the amount of any actual damages that may have been caused bythe conduct, and interest at the rate of eight percent per year from the dateof the violation causing the loss;
(2) The offer under paragraph (1) states that it must be accepted by thepurchaser, seller, or recipient of investment advice within thirty days afterthe date of its receipt by the purchaser, seller, or recipient of investmentadvice or any shorter period, of not less than three days, that thecommissioner, by order, specifies;
(3) The offeror has the present ability to pay the amount offered or totender the security under paragraph (1);
(4) The offer under paragraph (1) is delivered to the purchaser, seller,or recipient of investment advice, or sent in a manner that ensures receipt bythe purchaser, seller, or recipient of investment advice; and
(5) The purchaser, seller, or recipient of investment advice thataccepts the offer under paragraph (1) in a record within the period specifiedunder paragraph (2) is paid in accordance with the terms of the offer.
409.5-510. A purchaser, seller, or recipient of investment advice maynot maintain an action under section 409.5-509 if:
(1) The purchaser, seller, or recipient of investment advice receives ina record, before the action is instituted:
(A) An offer stating the respect in which liability under section409.5-509 may have arisen and fairly advising the purchaser, seller, orrecipient of investment advice of that person's rights in connection with theoffer, and any financial or other information necessary to correct allmaterial misrepresentations or omissions in the information that was requiredby this act to be furnished to that person at the time of the purchase, sale,or investment advice;
(B) If the basis for relief under this section may have been a violationof section 409.5-509(b), an offer to repurchase the security for cash, payableon delivery of the security, equal to the consideration paid, and interest atthe rate of eight percent per year from the date of the purchase, less theamount of any income received on the security, or, if the purchaser no longerowns the security, an offer to pay the purchaser upon acceptance of the offerdamages in an amount that would be recoverable upon a tender, less the valueof the security when the purchaser disposed of it, and interest at the rate ofeight percent per year from the date of the purchase in cash equal to thedamages computed in the manner provided in this subsection;
(C) If the basis for relief under this section may have been a violationof section 409.5-509(c), an offer to tender the security, on payment by theseller of an amount equal to the purchase price paid, less income received onthe security by the purchaser and interest at the rate of eight percent peryear from the date of the sale; or if the purchaser no longer owns thesecurity, an offer to pay the seller upon acceptance of the offer, in cash,damages in the amount of the difference between the price at which thesecurity was purchased and the value the security would have had at the timeof the purchase in the absence of the purchaser's conduct that may have causedliability and interest at the rate of eight percent per year from the date ofthe sale;
(D) If the basis for relief under this section may have been a violationof section 409.5-509(d); and if the customer is a purchaser, an offer to payas specified in subparagraph (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 been a violationof section 409.5-509(e), an offer to reimburse in cash the consideration paidfor the advice and interest at the rate of eight percent per year from thedate of payment; or
(F) If the basis for relief under this section may have been a violationof section 409.5-509(f), an offer to reimburse in cash the consideration paidfor the advice, the amount of any actual damages that may have been caused bythe conduct, and interest at the rate of eight percent per year from the dateof the violation causing the loss;
(2) The offer under paragraph (1) states that it must be accepted by thepurchaser, seller, or recipient of investment advice within thirty days afterthe date of its receipt by the purchaser, seller, or recipient of investmentadvice or any shorter period, of not less than three days, that thecommissioner, by order, specifies;
(3) The offeror has the present ability to pay the amount offered or totender the security under paragraph (1);
(4) The offer under paragraph (1) is delivered to the purchaser, seller,or recipient of investment advice, or sent in a manner that ensures receipt bythe purchaser, seller, or recipient of investment advice; and
(5) The purchaser, seller, or recipient of investment advice thataccepts the offer under paragraph (1) in a record within the period specifiedunder paragraph (2) is paid in accordance with the terms of the offer.
409.5-510. A purchaser, seller, or recipient of investment advice maynot maintain an action under section 409.5-509 if:
(1) The purchaser, seller, or recipient of investment advice receives ina record, before the action is instituted:
(A) An offer stating the respect in which liability under section409.5-509 may have arisen and fairly advising the purchaser, seller, orrecipient of investment advice of that person's rights in connection with theoffer, and any financial or other information necessary to correct allmaterial misrepresentations or omissions in the information that was requiredby this act to be furnished to that person at the time of the purchase, sale,or investment advice;
(B) If the basis for relief under this section may have been a violationof section 409.5-509(b), an offer to repurchase the security for cash, payableon delivery of the security, equal to the consideration paid, and interest atthe rate of eight percent per year from the date of the purchase, less theamount of any income received on the security, or, if the purchaser no longerowns the security, an offer to pay the purchaser upon acceptance of the offerdamages in an amount that would be recoverable upon a tender, less the valueof the security when the purchaser disposed of it, and interest at the rate ofeight percent per year from the date of the purchase in cash equal to thedamages computed in the manner provided in this subsection;
(C) If the basis for relief under this section may have been a violationof section 409.5-509(c), an offer to tender the security, on payment by theseller of an amount equal to the purchase price paid, less income received onthe security by the purchaser and interest at the rate of eight percent peryear from the date of the sale; or if the purchaser no longer owns thesecurity, an offer to pay the seller upon acceptance of the offer, in cash,damages in the amount of the difference between the price at which thesecurity was purchased and the value the security would have had at the timeof the purchase in the absence of the purchaser's conduct that may have causedliability and interest at the rate of eight percent per year from the date ofthe sale;
(D) If the basis for relief under this section may have been a violationof section 409.5-509(d); and if the customer is a purchaser, an offer to payas specified in subparagraph (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 been a violationof section 409.5-509(e), an offer to reimburse in cash the consideration paidfor the advice and interest at the rate of eight percent per year from thedate of payment; or
(F) If the basis for relief under this section may have been a violationof section 409.5-509(f), an offer to reimburse in cash the consideration paidfor the advice, the amount of any actual damages that may have been caused bythe conduct, and interest at the rate of eight percent per year from the dateof the violation causing the loss;
(2) The offer under paragraph (1) states that it must be accepted by thepurchaser, seller, or recipient of investment advice within thirty days afterthe date of its receipt by the purchaser, seller, or recipient of investmentadvice or any shorter period, of not less than three days, that thecommissioner, by order, specifies;
(3) The offeror has the present ability to pay the amount offered or totender the security under paragraph (1);
(4) The offer under paragraph (1) is delivered to the purchaser, seller,or recipient of investment advice, or sent in a manner that ensures receipt bythe purchaser, seller, or recipient of investment advice; and
(5) The purchaser, seller, or recipient of investment advice thataccepts the offer under paragraph (1) in a record within the period specifiedunder paragraph (2) is paid in accordance with the terms of the offer.
