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administrative, civil, and criminal. The law is now settled that a | person may violate the law of a particular state without ever being | within the state or performing each act necessary to violate the | law within that state. |
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| | 2. Section 610 generally follows Section 414 of the 1956 Act, | but has been modernized to reflect the development of the | Internet and other electronic communications after 1956. |
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| | 3. Section 610 can be illustrated in the context of a civil | action under Section 509(b) by a purchaser in State A against a | seller in State B: |
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| | Section 610(a) would apply when an "offer to sell is made in | this State." |
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| | Section 610(c) provides that an offer which originates in | State B and is directed to State A is made in both states. The | securities act of State A would apply under Section 610(c)(2). | The act of State B would apply also, under Section 610(c)(1). The | intent is to prevent a seller in State B from using that state as | a base of operations for defrauding person in other states. |
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| | Section 610(e) addresses offers made through publications, | radio, television, or electronic communications. The subsection | provides a series of safe harbors for advertisements in | newspapers, magazines, radio, television, or electronic media | that either originate outside State A or that originate in State | A but are directed outside the state to the general public. With | respect to bona fide newspapers or other publications of general, | regular, and paid circulation, the safe harbor requires that more | than two thirds of its circulation be outside State A. With | respect to radio, television, or other electronic communications, | safe harbors are specified in Sections 610(e)(1) through (4). |
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| | Section 610(d), however, provides that a person in State A who | makes an offer to purchase as a result of communication described | in Section 610(e) may cause the act to be applicable if the | offeror accepts the offer "in this State." Section 610(d) defines | when an offer is accepted "in this State." |
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| | If a selling broker-dealer in State B solely sends a | confirmation into State A, or the purchaser in State A sends a | check from within State A, the act will not apply unless, under | Section 610(d), the confirmation or delivery constitutes the | seller's acceptance of the purchaser's offer to buy in State A. |
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| | The applicability of the act to purchaser is addressed by | Section 610(b) which is the converse of Section 610(a). Under | Section 509(c) there can be liability of purchasers to sellers. |
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