LD 509
pg. 171
Page 170 of 183 An Act To Adopt the Maine Uniform Securities Act Page 172 of 183
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LR 441
Item 1

 
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.

 
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.

 
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:

 
Section 610(a) would apply when an "offer to sell is made in
this State."

 
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.

 
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).

 
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."

 
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.

 
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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