16. Section 412(i) parallels the language of Section 204 of the 1956 Act and Section 212(b) of RUSA with some significant changes. The time period in which the administrator can act has been extended to one year from 30 days in the 1956 Act and 90 days in RUSA. The limitation on instituting a proceeding can also be tolled by instituting a formal investigation. The addition of the word "solely" is intended to make it clear that an administrator may consider the prior history of an applicant or registrant even if that prior history had been known to the administrator for more than one year if there are additional material facts which are actually known to the administrator within the last year.

17. "Actually known" in Section 412(i) is used to signify that the mere filing of material facts in the Central Registration Depository or Investment Advisory Registration Depository systems does not constitute actual knowledge, unless that information was received by the administrator, or, but for a decision by the administrator, would have been received by the administrator.

Maine Comments

1. The model Uniform Securities Act version of this section and other sections referred to "willful" violations of law, whereas the Revised Maine Securities Act referred instead to "intentional or knowing" violations of law. Maine retains the words "intentional or knowing" because that language is used in the Maine Criminal Code. Further, under Maine law the term "willful" is construed to mean the same thing as "intentional or knowing."

SUBCHAPTER 5

FRAUD AND LIABILITIES

§16501.__General fraud

It is unlawful for a person, in connection with the offer, sale or purchase of a security, directly or indirectly:

1.__Device, scheme, artifice.__To employ a device, scheme or artifice to defraud;

2.__Untrue statement of or omission of material fact.__To make an untrue statement of a material fact or to omit to state a