ÿWPCÌ ‰¨6¤ëçÍ@µþdd¹³ýPô¾Aÿ;/)b>Cµþ~;Å?]܈ڒ¶¾k¥ý2'm냄ý?}Õ³ ÕÖeùZ)€‡• ÿP½Ké ¿Cåå ¿„'¬üŤ91 ÑÙ£¢.ÜP¾§\ ¨zlp· ÉRäÙh؆hJëkç±D²×øc‹N@û_U‡«œª‚Úeê'ñ J~†>纈e=(ƒy9m¶çÒ¹§Ô»“Ò}(J°‘¨LšÅnÉáX[ î£ã´™ HOBéºÿ¹4A%%rOsˆÿŽüëëæ›'Ï“Fà¬#caÀ$rzµ»Å|ZGoÎÏ¢nzª>$÷ÑüF¦pókqë¨T¹gä€áº‰ ´Ý&ÐíÓÆECLŽ\yåëÿ JxÉRA´ë±6l™‘á#+Eqñ25z°Z 6éoF¬MÐÄCR¹˜-à ¸1@ü,üDsbé²oùxs/_XŽ¶Î÷M*&‘ùÛ ¨Pì%‹è²ÚgT|Vlœžµ{Gª°ÎÌç¸àõ¦/^&ƒíç«œÊN«3-$ŒÁv©çÀ¸Ö(|@¥ø.ÿFÏ‘(“"¡†Fpq ô¼áïèŽâ¨9|˜û°  U N° %þ 0( 4, 0†A@ UN 0TÏ 0.# 0[?Q 0D U>Ô #É 0DÛ  N*^ ,8 m:UNQŸŸŸŸŸŸŸŸŸŸwµUN¹¹¹¹ B 0D$$ÆhhUšN.. AM| 0KÉ D3 0rGGGGGGGGG 0i¹ 0i""""""" 02‹ 01½ 0‘,îîîîîîîîîîîîîîîîîîîîîîîîîîîîîîîîîîîîîîîîîîîîîîîîîî 0²3|x(ÖÃ9 Z ‹6Times New Roman RegularX($¡¡Èi9lar(Vm$˜˜Ìà0  àà ° àðÖÃ9 Z‹6Times New Roman Regular(,!ù$™™à0  àà0` (#(#àà  à.,para1,_P*paraà..à(3¯$§§Ý ƒ!ÝÝ  Ý:èÀ( qZ &Univers Regular˜HP LaserJet 2100 PCL6,,,,,,,,0(3¯$¨¨Ý ƒ!ÝÝ  Ý jÃ:î =ÿU‹ÿÀÀÀ(ÖÃ9 Z‹6Times New Roman Regular Ñ ° Ñ(ÖÃ9 Z ‹6Times New Roman Regular d(3¯$££Ý ƒ!ÝÝ  ÝLevel 1Level 2Level 3Level 4Level 5'ÀõO Z ‹6Times New Roman Regular*(/0A<< Cÿÿ( ±þ$’’ò òFigure€Ú  Ú1Ú  Úó ó$$$$'ÿÿdxdd ÿ·,bstatBill section statute numberSection€ò òó óVT52seccatchSection Catchlineò òó óÌà  àLRa.secnumSection Numberà..àò ò.ó ó€0B.mspace€€0.nspace€,*xref\+ ƒº.linenoFreezed line numberingà  àÔ‡ X6ùXXXÔà0  àÔ‡ X6ùXXXÔÝ ƒ!ÝÝ  ÝÔ_Ôà@ìì*ìàÔ€ X`,XXXÔˆÌÌÌà@PPìàò òÔ‡ °5D°X X`,ÔUTAH€€UNIFORM€€SECURITIES€€ACTˆÐ tÄ ÐÔ#† X`,X° °5Du#Ôó óÌÔ‡ »¾ì»X X`,ÔÌÌà@îî$ìà2009€€EDITIONÔ#† X`,X» »¾ìï#ԈРX ¨ ÐÌÌÌÌÌÌÌÌÌÌÌÌÌÌÌÌÌÌÌÌÌÌÌÌÌÌÌÌÌÌà@ÝÝ$ìàState€of€UtahˆÐ )b$& Ðà@ÚÚìàDepartment€of€CommerceˆÐ þ)N%' Ðà@ggìàò òDivision€of€Securitiesó óˆÐ ê*:&( ÐÌUpdated:€6/09Ð  Â,(* ÐÔ‡ òÜòX X`,ÔÔ€,òÜòò òÜÔà@g g ìàò òÔ#†,X`,Xò,òÜ`#ÔUTAH€UNIFORM€SECURITIES€ACTó óˆÐ ° Ðà@ìì*ìàˆÌà@\ \ ìàò òSection€61„1„1€òòet€seq.óó,€UCA€1953,€as€amendedˆÐ ˆØ ÐÌà@  ìàEffective€May€12,€2009ˆÐ `° Ðó óÌÓ€Ý ÓÓ  ÓÝ‚VmÿÝÌÝ  ÝÝ‚VmÚÝà0  àà ° àÝ  Ý61„1„1.€Fraud€unlawful.à‚#Ä"Ä"J(#." " !(#(##à1݃VmÚöÝŒˆÐ $ t ÐŒÝ  ÝÝ‚VmÿÝÌÝ  ÝÝ‚Vm¡Ýà0  àà ° àÝ  Ý61„1„2.€Investment€adviser€„€Unlawful€acts.à‚#Ä"Ä"J(#.@@5(#(##à1݃Vm¡½ÝŒˆÐ ü L  ÐŒÝ  ÝÝ‚VmÿÝÌÝ  ÝÝ‚Vm|Ýà0  àà ° àÝ  Ý61„1„3.€Licensing€of€broker„dealers,€agents,€and€investment€advisers.à‚#Ä"Ä"J(#.44O(#(##à2݃Vm|˜ÝŒˆÐ Ô$  ÐŒÝ  ÝÝ‚VmÿÝÌÝ  ÝÝ‚VmqÝà0  àà ° àÝ  Ý61„1„4.€Licensing€and€notice€filing€procedure.à‚#Ä"Ä"J(#.8(#(##à5݃VmqÝŒˆÐ ¬ü  ÐŒÝ  ÝÝ‚VmÿÝÌÝ  ÝÝ‚VmOÝà0  àà ° àÝ  Ý61„1„5.€Ô_ÔPostlicensingÔ_Ô€provisions.à‚#Ä"Ä"J(#.øø+(#(##à8݃VmOkÝŒˆÐ „Ô  ÐŒÝ  ÝÝ‚VmÿÝÌÝ  ÝÝ‚Vm@Ýà0  àà ° àÝ  Ý61„1„6.€Denial,€suspension,€revocation,€cancellation,€or€withdrawal€of€license.à‚#`"`"I(#.Y(#(##à10݃Vm@\ÝŒˆÐ \¬ ÐŒÝ  ÝÝ‚VmÿÝÌÝ  ÝÝ‚Vm@ Ýà0  àà ° àÝ  Ý61„1„6.5.€€€Court„ordered€discipline.à‚#`"`"I(#.úú/(#(##à15݃Vm@ \ ÝŒˆÐ 4„ ÐŒÝ  ÝÝ‚VmÿÝÌÝ  ÝÝ‚Vm Ýà0  àà ° àÝ  Ý61„1„7.€Registration€before€sale.à‚#`"`"I(#.ÀÀ+(#(##à16݃Vm 2 ÝŒˆÐ  \ ÐŒÝ  ÝÝ‚VmÿÝÌÝ  ÝÝ‚Vmè Ýà0  àà ° àÝ  Ý61„1„8.€REPEALED.à‚#`"`"I(#.T T (#(##à16݃Vmè  ÝŒˆÐ ä4 ÐŒÝ  ÝÝ‚VmÿÝÌÝ  ÝÝ‚Vmª Ýà0  àà ° àÝ  Ý61„1„9.€Registration€by€coordination.à‚#`"`"I(#.BB/(#(##à16݃Vmª Æ ÝŒˆÐ ¼  ÐŒÝ  ÝÝ‚VmÿÝÌÝ  ÝÝ‚Vm€ Ýà0  àà ° àÝ  Ý61„1„10.€Registration€by€qualification.à‚#`"`"I(#.¦¦1(#(##à18݃Vm€ œ ÝŒˆÐ ”ä ÐŒÝ  ÝÝ‚VmÿÝÌÝ  ÝÝ‚VmX Ýà0  àà ° àÝ  Ý61„1„11.€Provisions€applicable€to€registration€generally.à‚#`"`"I(#.C(#(##à22݃VmX t ÝŒˆÐ l¼ ÐŒÝ  ÝÝ‚VmÿÝÌÝ  ÝÝ‚VmBÝà0  àà ° àÝ  Ý61„1„11.1.€€€€Hearings€for€certain€exchanges€of€securitiesà‚#`"`"I(#.\\D(#(##à24݃VmB^ÝŒˆÐ D!” ÐŒÝ  ÝÝ‚VmÿÝÌÝ  ÝÝ‚Vm-Ýà0  àà ° àÝ  Ý61„1„12.€Denial,€suspension,€and€revocation€of€registration.à‚#`"`"I(#.::F(#(##à25݃Vm-IÝŒˆÐ #l! ÐŒÝ  ÝÝ‚VmÿÝÌÝ  ÝÝ‚VmÝà0  àà ° àÝ  Ý61„1„13.€Definitions.à‚#`"`"I(#.B B (#(##à27݃Vm6ÝŒˆÐ ô$D # ÐŒÝ  ÝÝ‚VmÿÝÌÝ  ÝÝ‚VmàÝà0  àà ° àÝ  Ý61„1„14.€Exemptions.à‚#`"`"I(#.| | (#(##à38݃VmàüÝŒˆÐ Ì&"% ÐŒÝ  ÝÝ‚VmÿÝÌÝ  ÝÝ‚Vm¥Ýà0  àà ° àÝ  Ý61„1„14.5.€Burden€of€proving€exemption.à‚#`"`"I(#.””1(#(##à44݃Vm¥ÁÝŒˆÐ ¤(ô#' ÐŒÝ  ÝÝ‚VmÿÝÌÝ  ÝÝ‚Vm}Ýà0  àà ° àÝ  Ý61„1„15.€Filing€of€sales€literature.à‚#`"`"I(#.**.(#(##à44݃Vm}™ÝŒˆÐ |*Ì%) ÐŒÝ  ÝÝ‚VmÿÝÌÝ  ÝÝ‚VmRÝà0  àà ° àÝ  Ý61„1„15.5.€€€Federal€covered€securities.à‚#`"`"I(#.ØØ2(#(##à44݃VmRnÝŒˆÐ T,¤'+ ÐŒÝ  ÝÝ‚VmÿÝÐ @-(, ÐÝ  ÝÝ‚Vm+Ýà0  àà ° àÝ  Ý61„1„16.€False€statements€unlawful.à‚#`"`"I(#.ØØ-(#(##à45݃Vm+[ÝŒˆÐ ° ÐŒÝ  ÝÝ‚VmÿÝÌÝ  ÝÝ‚VmÝà0  àà ° àÝ  Ý61„1„17.€No€finding€by€division€on€merits€„€Contrary€representation€unlawful.à‚#`"`"I(#.êêW(#(##à46݃Vm/ÝŒˆÐ ˆØ ÐŒÝ  ÝÝ‚VmÿÝÌÝ  ÝÝ‚VmÝà0  àà ° àÝ  Ý61„1„18.€Division€of€Securities€established€„€Director€„€Appointment€„€Functions.à‚#`"`"I(#.öö[(#(##à46݃Vm-ÝŒˆÐ `° ÐŒÝ  ÝÝ‚VmÿÝÌÝ  ÝÝ‚VmÝà0  àà ° àÝ  Ý61„1„18.1.€Technical€experts€and€specialists€„€Employment€„€Contracts.à‚#`"`"I(#.ââP(#(##à46݃Vm/ÝŒˆÐ 8 ˆ ÐŒÝ  ÝÝ‚VmÿÝÌÝ  ÝÝ‚Vm Ýà0  àà ° àÝ  Ý61„1„18.2.€Budget€„€Annual€report.à‚#`"`"I(#.’’,(#(##à47݃Vm &ÝŒˆÐ  ` ÐŒÝ  ÝÝ‚VmÿÝÌÝ  ÝÝ‚VmÝÝà0  àà ° àÝ  Ý61„1„18.3.€Information€obtained€by€division€„€Use€for€personal€benefit€prohibited€„€Disclosure.Ð è 8  Ðà‚#`"`"I(#.(#(##à47݃VmÝùÝŒˆÐ Ô$  ÐŒÝ  ÝÝ‚VmÿÝÌÝ  ÝÝ‚VmÝà0  àà ° àÝ  Ý61„1„18.4.€Fees€collected€by€division.à‚#`"`"I(#.nn0(#(##à47݃VmÝŒˆÐ ¬ü  ÐŒÝ  ÝÝ‚VmÿÝÌÝ  ÝÝ‚VmÚÝà0  àà ° àÝ  Ý61„1„18.5.€Securities€Commission€„€Transition.à‚#`"`"I(#.ll8(#(##à48݃VmÚöÝŒˆÐ „Ô  ÐŒÝ  ÝÝ‚VmÿÝÌÝ  ÝÝ‚Vm¹Ýà0  àà ° àÝ  Ý61„1„18.6.€Procedures€„€Adjudicative€proceedings.à‚#`"`"I(#.ll;(#(##à50݃Vm¹ÕÝŒˆÐ \¬ ÐŒÝ  ÝÝ‚VmÿÝÌÝ  ÝÝ‚Vm›Ýà0  àà ° àÝ  Ý61„1„18.7.€Funding€of€securities€investor€education€and€training.à‚#`"`"I(#.ÈÈK(#(##à50݃Vm›·ÝŒˆÐ 4„ ÐŒÝ  ÝÝ‚VmÿÝÌÝ  ÝÝ‚VmÝà0  àà ° àÝ  Ý61„1„19.€Investigations€authorized.à‚#`"`"I(#.˜˜-(#(##à51݃Vm©ÝŒˆÐ  \ ÐŒÝ  ÝÝ‚VmÿÝÌÝ  ÝÝ‚VmaÝà0  àà ° àÝ  Ý61„1„20.€Enforcement.à‚#`"`"I(#.Ä Ä (#(##à51݃Vma}ÝŒˆÐ ä4 ÐŒÝ  ÝÝ‚VmÿÝÌÝ  ÝÝ‚Vm'Ýà0  àà ° àÝ  Ý61„1„21.€Penalties€for€violations.à‚#`"`"I(#.òò,(#(##à52݃Vm'CÝŒˆÐ ¼  ÐŒÝ  ÝÝ‚VmÿÝÌÝ  ÝÝ‚VmúÝà0  àà ° àÝ  Ý61„1„21.1.€Limitation€of€prosecutions.à‚#`"`"I(#.šš0(#(##à54݃Vmú ÝŒˆÐ ”ä ÐŒÝ  ÝÝ‚VmÿÝÌÝ  ÝÝ‚VmÑ Ýà0  àà ° àÝ  Ý61„1„21.5.€Legal€counsel€„€Prosecutions.à‚#`"`"I(#.LL2(#(##à54݃VmÑ í ÝŒˆÐ l¼ ÐŒÝ  ÝÝ‚VmÿÝÌÝ  ÝÝ‚Vmª!Ýà0  àà ° àÝ  Ý61„1„22.€Sales€and€purchases€in€violation€„€Remedies€„€Limitation€of€actions.à‚#`"`"I(#.¬¬W(#(##à54݃Vmª!Æ!ÝŒˆÐ D!” ÐŒÝ  ÝÝ‚VmÿÝÌÝ  ÝÝ‚Vm¨"Ýà0  àà ° àÝ  Ý61„1„23.€Review€of€orders.à‚#`"`"I(#.  $(#(##à57݃Vm¨"Ä"ÝŒˆÐ #l! ÐŒÝ  ÝÝ‚VmÿÝÌÝ  ÝÝ‚Vms#Ýà0  àà ° àÝ  Ý61„1„24.€Rules,€forms,€and€orders€of€division.à‚#`"`"I(#.ôô8(#(##à57݃Vms##ÝŒˆÐ ô$D # ÐŒÝ  ÝÝ‚VmÿÝÌÝ  ÝÝ‚VmR$Ýà0  àà ° àÝ  Ý61„1„25.€Record€of€registrations.à‚#`"`"I(#.ââ+(#(##à58݃VmR$n$ÝŒˆÐ Ì&"% ÐŒÝ  ÝÝ‚VmÿÝÌÝ  ÝÝ‚Vm$%Ýà0  àà ° àÝ  Ý61„1„26.€Scope€of€the€act€„€Service€of€process.à‚#`"`"I(#.9(#(##à58݃Vm$%@%ÝŒˆÐ ¤(ô#' ÐŒÝ  ÝÝ‚VmÿÝÌÝ  ÝÝ‚Vm&Ýà0  àà ° àÝ  Ý61„1„27.€Construction€of€chapter.à‚#`"`"I(#.+(#(##à61݃Vm& &ÝŒˆÐ |*Ì%) ÐŒÝ  ÝÝ‚VmÿÝÌÝ  ÝÝ‚VmÖ&Ýà0  àà ° àÝ  Ý61„1„28.€Citation€of€chapter.à‚#`"`"I(#.˜ ˜ '(#(##à61݃VmÖ&ò&ÝŒˆÐ T,¤'+ ÐŒÝ  ÝÝ‚VmÿÝÐ @-(, ÐÝ  ÝÝ‚Vm¤'Ýà0  àà ° àÝ  Ý61„1„29.€Savings€clause.à‚#`"`"I(#.Z Z "(#(##à61݃Vm¤'Ô'ÝŒˆÐ ° ÐŒÝ  ÝÝ‚VmÿÝÌÝ  ÝÝ‚Vm(Ýà0  àà ° àÝ  Ý61„1„30.€REPEALED.à‚#`"`"I(#.¸ ¸ (#(##à61݃Vm((ÝŒˆÐ ˆØ ÐŒÝ  ÝÝ‚VmÿÝÌÝ  ÝÝ‚VmD)Ýà0  àà ° àÝ  ÝSunset€Act.à‚#`"`"I(#.JJ(#(##à61݃VmD)`)ÝŒˆÐ `° ÐŒÝ  ÝÓ ÎÓÐ  L œ ÐÔ_ ÔÓ$°°‡,<Ú°œX$ÓØØÑ8€`,XXdìdÈ8Ñò òÔ  ÔÑ€Oa*Ñ61-1-1.€Fraud€unlawful.ó óÔ Ý ¥*ÔÐ ° Ðà Ü àIt€is€unlawful€for€any€person,€in€connection€with€the€offer,€sale,€or€purchase€of€any€security,Ð œì Ðdirectly€or€indirectly€to:€Ð ˆØ ÐÌà Ü à(1)€employ€any€device,€scheme,€or€artifice€to€defraud;€Ð `° ÐÌà Ü à(2)€make€any€untrue€statement€of€a€material€fact€or€to€omit€to€state€a€material€fact€necessaryÐ 8 ˆ Ðin€order€to€make€the€statements€made,€in€the€light€of€the€circumstances€under€which€they€areÐ $ t Ðmade,€not€misleading;€or€Ð  ` ÐÌà Ü à(3)€engage€in€any€act,€practice,€or€course€of€business€which€operates€or€would€operate€as€aÐ è 8  Ðfraud€or€deceit€upon€any€person.€Ð Ô$  ÐÌÔ‡,òÜòX,X`,ÔHistory:€As€last€amended€by€Chapter€284,€ðð€4,€Laws€of€Utah€1983.Ð ¬ü  ÐAdministrative€Rules:€This€section€is€cited€in€or€interpreted€by€the€following€administrative€rule(s):€R164-1,€R164„6,Ð pÀ  ÐR164„10,€R164„14.Ð 4„  ÐCross-References:€Criminal€Code,€corporation€frauds,€ðð€76-10-701€et€seq.€Ð øH ÐÔ#†,X`,Xò,òÜá-#ÔÌò òÔ  Ô61-1-2.€Investment€adviser€-€Unlawful€acts.ó óÔ Ý ‘/ÔÐ ¨ø Ðà Ü à(1)€€It€is€unlawful€for€any€person€who€receives€any€consideration€from€another€personÐ ”ä Ðprimarily€for€advising€the€other€person€as€to€the€value€of€securities€or€their€purchase€or€sale,Ð €Ð Ðwhether€through€the€issuance€of€analyses€or€reports€or€otherwise€to:€Ð l¼ ÐÌà Ü àà  à(a)€employ€any€device,€scheme,€or€artifice€to€defraud€the€other€person;€Ð D” ÐÌà Ü àà  à(b)€engage€in€any€act,€practice,€or€course€of€business€which€operates€or€would€operate€as€aÐ l Ðfraud€or€deceit€upon€the€other€person;€or€Ð X ÐÌà Ü àà  à(c)€divide€or€otherwise€split€any€consideration€with€any€person€not€licensed€under€thisÐ à0 Ðchapter€as€an€investment€advisor€or€investment€adviser€representative.€Ð Ì ÐÌà Ü à(2)€(a)€€Except€as€may€be€permitted€by€rule€of€the€division,€it€is€unlawful€for€any€investmentÐ ¤ ô Ðadviser€to€enter€into,€extend,€or€renew€any€investment€advisory€contract€unless€it€provides€inÐ !à  Ðwriting€that:€Ð |"Ì! ÐÌà Ü àà  àà 4 à(i)€the€investment€adviser€shall€not€be€compensated€on€the€basis€of€a€share€of€capitalÐ T$¤# Ðgains€upon€or€capital€appreciation€of€the€funds€or€any€portion€of€the€funds€of€the€client;€Ð @% $ ÐÌà Ü àà  àà 4 à(ii)€no€assignment€of€the€contract€may€be€made€by€the€investment€adviser€without€theÐ 'h"& Ðconsent€of€the€other€party€to€the€contract;€and€Ð (T#' ÐÌÛÛà Ü àà  àà 4 à(iii)€the€investment€adviser,€if€a€partnership,€shall€notify€the€other€party€to€the€contractÐ Ü),%) Ðof€any€change€in€the€membership€of€the€partnership€within€a€reasonable€time€after€the€change.€Ð È*&* ÐÐ ´+'+ Ðà Ü àà  à(b)€Subsection€61-1-2(2)(a)(i)€does€not€prohibit€an€investment€advisory€contract€whichÐ ° Ðprovides€for€compensation€based€upon€the€total€value€of€a€fund€averaged€over€a€definite€period,Ð œì Ðor€as€of€definite€dates€or€taken€as€of€a€definite€date.€Ð ˆØ ÐÌà Ü àà  à(c)€"Assignment,"€as€used€in€Subsection€61-1-2(2)(a)(ii),€includes€any€direct€or€indirectÐ `° Ðtransfer€or€hypothecation€of€an€investment€advisory€contract€by€the€assignor€or€of€a€controllingÐ L œ Ðblock€of€the€assignor's€outstanding€voting€securities€by€a€security€holder€of€the€assignor.€Ð 8 ˆ ÐÌà Ü àà  à(d)€If€the€investment€adviser€is€a€partnership,€no€assignment€of€an€investment€advisoryÐ  ` Ðcontract€is€considered€to€result€from€the€death€or€withdrawal€of€a€minority€of€the€members€of€theÐ ü L  Ðinvestment€adviser€having€only€a€minority€interest€in€the€business€of€the€investment€adviser,€orÐ è 8  Ðfrom€the€admission€to€the€investment€adviser€of€one€or€more€members€who,€after€admission,€willÐ Ô$  Ðbe€only€a€minority€of€the€members€and€will€have€only€a€minority€interest€in€the€business.€Ð À  ÐÌà Ü à(3)€€It€is€unlawful€for€any€investment€adviser€to€take€or€have€custody€of€any€securities€orÐ ˜è  Ðfunds€of€any€client€if:€Ð „Ô  ÐÌà Ü àà  à(a)€the€division€by€rule€prohibits€custody;€or€Ð \¬ ÐÌà Ü àà  à(b)€in€the€absence€of€a€rule,€the€investment€adviser€fails€to€notify€the€division€that€he€hasÐ 4„ Ðor€may€have€custody.€Ð  p ÐÌà Ü à(4)€€The€division€may€by€rule€adopt€exemptions€from€Subsections€61-1-2(2)(a)(i),€(ii),€andÐ øH Ð(iii)€where€such€exemptions€are€consistent€with€the€public€interest€and€within€the€purposes€fairlyÐ ä4 Ðintended€by€the€policy€and€provisions€of€this€chapter.€Ð Ð  ÐÌÔ‡,òÜòX,X`,ÔHistory:€As€last€amended€by€Chapter€158,€ðð€1,€Laws€of€Utah€1993.Ð ¨ø ÐAdministrative€Rules:€This€section€is€cited€in€or€interpreted€by€the€following€administrative€rule(s):€R164-2.Ô#†,X`,Xò,òÜl?#ÔÐ l¼ ÐÌò òÔ  Ô61-1-3.€Licensing€of€broker-dealers,€agents,€and€investment€advisers.ó óÔ Ý @ÔÐ l ÐÔ‡X`,XX,X`,Ô(1)€€It€is€unlawful€for€a€person€to€transact€business€in€this€state€as€a€broker-dealer€or€agent€unlessÐ  X Ðthe€person€is€licensed€under€this€chapter.Ð ô D ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(2)€(a)€€It€is€unlawful€for€a€broker-dealer€or€issuer€to€employ€or€engage€an€agent€unless€theÐ Ì"! Ðagent€is€licensed.€€The€license€of€an€agent€is€not€effective€during€any€period€when€the€agent€is€notÐ ¸#" Ðassociated€with:Ð ¤$ô# ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(i)€€a€particular€broker-dealer€licensed€under€this€chapter;€orÐ |&Ì!% ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(ii)€€a€particular€issuer.Ð T(¤#' ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(b)€€When€an€agent€begins€or€terminates€an€association€with€a€broker-dealer€or€issuer,€orÐ ,*|%) Ðbegins€or€terminates€activities€as€an€agent,€the€agent€and€the€broker-dealer€or€issuer€shallÐ +h&* Ðpromptly€notify€the€division.Ð ,T'+ ÐÝ ƒ _PÿÝà Ü àÝ  Ý(c)€€An€agent€who€terminates€an€association€with€a€broker-dealer€or€issuer€is€considered€to€beÐ ° Ðunlicensed€until€the€day€on€which€the€division:Ð œì ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(i)€€approves€the€agent's€association€with€a€different€broker-dealer€or€issuer;€andÐ tÄ ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(ii)€€notifies€the€agent€of€the€division's€approval€of€the€association.Ð L œ ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(d)€(i)€€It€is€unlawful€for€a€broker-dealer€or€an€issuer€engaged,€directly€or€indirectly,€inÐ $ t Ðoffering,€offering€to€purchase,€purchasing,€or€selling€a€security€in€this€state,€to€employ€orÐ  ` Ðassociate€with€an€individual€to€engage€in€an€activity€related€to€a€securities€transaction€in€this€stateÐ ü L  Ðif:Ð è 8  ÐÝ ƒ _PÿÝà Ü àÝ  Ý(A)€(I)€€the€license€of€the€individual€is€suspended€or€revoked;€orÐ Ô$  ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(II)€€the€individual€is€barred€from€employment€or€association€with€a€broker-dealer,€an€issuer,Ð ¬ü  Ðor€a€state€or€federal€covered€investment€adviser;€andÐ ˜è  ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(B)€€the€suspension,€revocation,€or€bar€described€in€Subsection€(2)(d)(i)(A)€is€by€an€order:Ð pÀ ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(I)€€under€this€chapter;Ð H˜ ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(II)€€of€the€Securities€and€Exchange€Commission;Ð  p ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(III)€€of€a€self-regulatory€organization;€orÐ øH ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(IV)€€of€a€securities€administrator€of€a€state€other€than€Utah.Ð Ð  ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(ii)€€A€broker-dealer€or€issuer€does€not€violate€this€Subsection€(2)(d)€if€the€broker-dealer€orÐ ¨ø Ðissuer€did€not€know€and€in€the€exercise€of€reasonable€care€could€not€have€known,€of€theÐ ”ä Ðsuspension,€revocation,€or€bar.Ð €Ð ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(iii)€€An€order€under€this€chapter€may€modify€or€waive,€in€whole€or€in€part,€the€application€ofÐ X ¨ ÐSubsection€(2)(d)(i)€to€a€broker-dealer€or€issuer.Ð D!” ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(3)€€It€is€unlawful€for€a€person€to€transact€business€in€this€state€as€an€investment€adviser€or€asÐ #l! Ðan€investment€adviser€representative€unless:Ð $X" ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(a)€€the€person€is€licensed€under€this€chapter;Ð à%0!$ ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(b)€€the€person's€only€clients€in€this€state€are:Ð ¸'#& ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(i)€€one€or€more€of€the€following€whether€acting€for€itself€or€as€a€trustee€with€investmentÐ )à$( Ðcontrol:Ð |*Ì%) ÐÝ ƒ _PÿÝà Ü àÝ  Ý(A)€€an€investment€company€as€defined€in€the€Investment€Company€Act€of€1940;Ð h+¸&* Ð‡Ý ƒ _PÿÝà Ü àÝ  Ý(B)€€another€investment€adviser;Ð ° ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(C)€€a€federal€covered€adviser;Ð ˆØ ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(D)€€a€broker-dealer;Ð `° ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(E)€€a€depository€institution;Ð 8 ˆ ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(F)€€a€trust€company;Ð  ` ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(G)€€an€insurance€company;Ð è 8  ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(H)€€an€employee€benefit€plan€with€assets€of€not€less€than€$1,000,000;€orÐ À  ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(I)€€a€governmental€agency€or€instrumentality;€orÐ ˜è  ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(ii)€€other€institutional€investors€as€are€designated€by€rule€or€order€of€the€director;€orÐ pÀ ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(c)€€the€person€has€no€place€of€business€in€this€state€and€during€the€preceding€12-monthÐ H˜ Ðperiod€has€had€not€more€than€five€clients,€other€than€those€specified€in€Subsection€(3)(b),€who€areÐ 4„ Ðresidents€of€this€state.Ð  p ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(4)€(a)€€It€is€unlawful€for:Ð øH ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(i)€€a€person€required€to€be€licensed€as€an€investment€adviser€under€this€chapter€to€employ€anÐ Ð  Ðinvestment€adviser€representative€unless€the€investment€adviser€representative€is€licensed€underÐ ¼  Ðthis€chapter,€except€that€the€license€of€an€investment€adviser€representative€is€not€effective€duringÐ ¨ø Ðany€period€when€the€person€is€not€employed€by€an€investment€adviser€licensed€under€this€chapter;Ð ”ä ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(ii)€€a€federal€covered€adviser€to€employ,€supervise,€or€associate€with€an€investment€adviserÐ l¼ Ðrepresentative€having€a€place€of€business€located€in€this€state,€unless€the€investment€adviserÐ X ¨ Ðrepresentative€is:Ð D!” ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(A)€€licensed€under€this€chapter;€orÐ #l! ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(B)€€exempt€from€licensing;€orÐ ô$D # ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(iii)€€an€investment€adviser,€directly€or€indirectly,€to€employ€or€associate€with€an€individual€toÐ Ì&"% Ðengage€in€an€activity€related€to€providing€investment€advice€in€this€state€if:Ð ¸'#& ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(A)€(I)€€the€license€of€the€individual€is€suspended€or€revoked;€orÐ )à$( ÐÝ ƒ _PÿÝà Ü àÝ  Ý(II)€€the€individual€is€barred€from€employment€or€association€with€a€state€or€federal€coveredÐ |*Ì%) Ðinvestment€adviser,€broker-dealer,€or€issuer;€andÐ h+¸&* Ð‡Ý ƒ _PÿÝà Ü àÝ  Ý(B)€€the€suspension,€revocation,€or€bar€is€by€an€order:Ð ° ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(I)€€under€this€chapter;Ð ˆØ ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(II)€€of€the€Securities€and€Exchange€Commission;Ð `° ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(III)€€a€self-regulatory€organization;€orÐ 8 ˆ ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(IV)€€a€securities€administrator€of€a€state€other€than€Utah.Ð  ` ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(b)€(i)€€An€investment€adviser€does€not€violate€Subsection€(4)(a)(iii)€if€the€investment€adviserÐ è 8  Ðdid€not€know,€and€in€the€exercise€of€reasonable€care€could€not€have€known,€of€the€suspension,Ð Ô$  Ðrevocation,€or€bar.Ð À  ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(ii)€€An€order€under€this€chapter€may€waive,€in€whole€or€in€part,€the€application€of€SubsectionÐ ˜è  Ð(4)(a)(iii)€to€an€investment€adviser.Ð „Ô  ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(c)€€When€an€investment€adviser€representative€required€to€be€licensed€under€this€chapterÐ \¬ Ðbegins€or€terminates€employment€with€an€investment€adviser,€the€investment€adviser€shallÐ H˜ Ðpromptly€notify€the€division.Ð 4„ ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(d)€€An€investment€adviser€representative€who€terminates€association€with€an€investmentÐ  \ Ðadviser€is€considered€unlicensed€until€the€day€on€which€the€division:Ð øH ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(i)€€approves€the€investment€adviser€representative's€association€with€a€different€investmentÐ Ð  Ðadviser;€andÐ ¼  ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(ii)€€notifies€the€investment€adviser€representative€of€the€division's€approval€of€theÐ ”ä Ðassociation.Ð €Ð ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(5)€€Except€with€respect€to€an€investment€adviser€whose€only€clients€are€those€describedÐ X ¨ Ðunder€Subsections€(3)(b)€or€(3)(c),€it€is€unlawful€for€a€federal€covered€adviser€to€conduct€advisoryÐ D!” Ðbusiness€in€this€state€unless€the€person€complies€with€Section€Ý‚}ÿÝÝ  Ý61-1-4Ý‚}ÿîeies€ÝÝ  Ý.Ô#†,X`,XXX`, A#ÔÐ 0"€  ÐÌÔ‡,òÜòX,X`,ÔHistory:€As€last€amended€by€Chapter€351,€Laws€of€Utah€2009€.Ð $X" ÐAdministrative€Rules:€This€section€is€cited€in€or€interpreted€by€the€following€administrative€rule(s):€R164-1.Ð Ì$ # ÐCross-References:€Insurance€companies,€solicitations€only€by€those€registered€under€this€chapter,€ðð€31A-5-207;€SaleÐ %à $ Ðof€securities€by€authorized€insurer,€ðð€31A-5-206.Ð T&¤!% ÐÔ#†,X`,Xò,òÜlf#ÔÌò òÔ  Ô61-1-4.€Licensing€and€notice€filing€procedure.ó óÔ Ý ZhÔÐ (T#' ÐÔ‡X`,XX,X`,Ôà Ü àÔ#†,X`,XXX`,Àh#ÔÔ‡X`,XX,X`,Ô(1)€(a)€€A€broker-dealer,€agent,€investment€adviser,€or€investment€adviser€representative€shallÐ ð(@$( Ðobtain€an€initial€or€renewal€license€by€filing€with€the€division€or€its€designee€an€applicationÐ Ü),%) Ðtogether€with€a€consent€to€service€of€process€under€Section€Ý‚}ÿÝÝ  Ý61-1-26Ý‚}ÿQjàÝ ÝÝ  Ý.Ð È*&* ÐÐ ´+'+ ÐÝ ƒ _PÿÝà Ü àÝ  Ý(b)€(i)€€The€application€shall€contain€the€applicant's€Social€Security€number€and€whateverÐ ° Ðinformation€the€division€by€rule€requires€concerning€such€matters€as:Ð œì ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(A)€€the€applicant's€form€and€place€of€organization;Ð tÄ ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(B)€€the€applicant's€proposed€method€of€doing€business;Ð L œ ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(C)€(I)€€the€qualifications€and€business€history€of€the€applicant;€andÐ $ t ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(II)€€in€the€case€of€a€broker-dealer€or€investment€adviser,€the€qualifications€and€businessÐ ü L  Ðhistory€of€any€partner,€officer,€or€director,€any€person€occupying€a€similar€status€or€performingÐ è 8  Ðsimilar€functions,€or€any€person€directly€or€indirectly€controlling€the€broker-dealer€or€investmentÐ Ô$  Ðadviser;Ð À  ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(D)€whether€the€applicant€has€been€subject€to:Ð ˜è  ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(I)€€an€injunction,€administrative€order,€or€misdemeanor€conviction€involving€a€security€orÐ pÀ Ðany€aspect€of€the€securities€business;€orÐ \¬ ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(II)€€a€felony€conviction;€andÐ 4„ ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(E)€€the€applicant's€financial€condition€and€history.Ð  \ ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(ii)€€An€applicant's€Social€Security€number€is€a€private€record€under€SubsectionÐ ä4 ÐÝ‚}ÿÝÝ  Ý63G-2-302Ý‚}ÿWq-ÝÝ  Ý(1)(h).Ð Ð  ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(c)€€The€division€may,€by€rule€or€order,€require€an€applicant€for€an€initial€license€to€publish€anÐ ¨ø Ðannouncement€of€the€application€in€one€or€more€specified€newspapers€published€in€this€state.Ð ”ä ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(d)€€A€license€or€notice€filing€of€a€broker-dealer,€agent,€investment€adviser,€or€investmentÐ l¼ Ðadviser€representative€expires€on€December€31€of€each€year.Ð X ¨ ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(e)€(i)€€If€no€denial€order€is€in€effect€and€no€proceeding€is€pending€under€Section€Ý‚}ÿÝÝ  Ý61-1-6Ý‚}ÿ/tàÝ ÝÝ  Ý,€aÐ 0"€  Ðlicense€becomes€effective€at€noon€of€the€30th€day€after€an€application€is€filed.Ð #l! ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(ii)€€The€division€may€by€rule€or€order€specify€an€earlier€effective€date€and€may€by€order€deferÐ ô$D # Ðthe€effective€date€until€noon€of€the€30th€day€after€the€filing€of€any€amendment.Ð à%0!$ ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(iii)€€Licensing€of€a€broker-dealer€automatically€constitutes€licensing€of€only€one€partner,Ð ¸'#& Ðofficer,€director,€or€a€person€occupying€a€similar€status€or€performing€similar€functions€as€aÐ ¤(ô#' Ðlicensed€agent€of€the€broker-dealer.Ð )à$( ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(iv)€€Licensing€of€an€investment€adviser€automatically€constitutes€licensing€of€only€oneÐ h+¸&* Ðpartner,€officer,€director,€or€a€person€occupying€a€similar€status€or€performing€similar€functions.Ð ° ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(v)€(A)€€For€purposes€of€the€activities€of€a€licensee€in€this€state,€during€the€time€period€that€aÐ ˆØ Ðbroker-dealer€or€investment€adviser€is€licensed€in€this€state:Ð tÄ ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(I)€€the€broker-dealer€shall€maintain€a€principal;€andÐ L œ ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(II)€€the€investment€adviser€shall€maintain€a€designated€official.Ð $ t ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(B)€€The€division€may€by€rule€made€in€accordance€with€Title€63G,€Chapter€3,€UtahÐ ü L  ÐAdministrative€Rulemaking€Act,€provide€a€process€for€a€person€to€identify€for€the€division:Ð è 8  ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(I)€€a€principal€or€designated€official€at€the€time€a€license€is€issued;€andÐ À  ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(II)€€a€different€principal€or€designated€official€if:Ð ˜è  ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(Aa)€€a€broker-dealer€changes€its€principal;€orÐ pÀ ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(Bb)€€an€investment€adviser€changes€its€designated€official.Ð H˜ ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(C)€€A€principal€or€designated€official€identified€in€Subsection€(1)(e)(v)(A)€is€not€required€toÐ  p Ðbe€separately€licensed€with€the€division.Ð  \ ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(2)€€Except€with€respect€to€a€federal€covered€adviser€whose€only€clients€are€those€described€inÐ ä4 ÐSubsection€Ý‚}ÿÝÝ  Ý61-1-3Ý‚}ÿˆ~€broÝÝ  Ý(3)(b)€or€(c),€a€federal€covered€adviser€shall€file€with€the€division,€before€actingÐ Ð  Ðas€a€federal€covered€adviser€in€this€state,€a€notice€filing€consisting€of€the€documents€filed€with€theÐ ¼  ÐSecurities€and€Exchange€Commission€as€the€division€by€rule€or€order€may€require.Ð ¨ø ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(3)€(a)€€An€applicant€for€an€initial€or€renewal€license€as€a€broker-dealer€or€agent€shall€pay€aÐ €Ð Ðreasonable€filing€fee€as€determined€under€Section€Ý‚}ÿÝÝ  Ý61-1-18.4Ý‚}ÿã€àÝ ÝÝ  Ý.Ð l¼ ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(b)€€An€applicant€for€an€initial€or€renewal€license€as€an€investment€adviser€or€investmentÐ D!” Ðadviser€representative€who€is€subject€to€licensing€under€this€chapter€shall€pay€a€reasonable€filingÐ 0"€  Ðfee€as€determined€under€Section€Ý‚}ÿÝÝ  Ý61-1-18.4Ý‚}ÿo‚€broÝÝ  Ý.Ð #l! ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(c)€€A€person€acting€as€a€federal€covered€adviser€in€this€state€shall€pay€an€initial€and€renewalÐ ô$D # Ðnotice€filing€fee€as€determined€under€Section€Ý‚}ÿÝÝ  Ý61-1-18.4Ý‚}ÿ—ƒ€broÝÝ  Ý.Ð à%0!$ ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(d)€€If€the€license€or€renewal€is€not€granted€or€the€application€is€withdrawn,€the€division€shallÐ ¸'#& Ðretain€the€fee.Ð ¤(ô#' ÐÝ ƒ _PÿÝà Ü àÝ  Ý(4)€€A€licensed€broker-dealer€or€investment€adviser€may€file€an€application€for€licensing€of€aÐ )à$( Ðsuccessor€for€the€unexpired€portion€of€the€year.€€There€shall€be€no€filing€fee.Ð |*Ì%) ÐÐ h+¸&* ÐÝ ƒ _PÿÝà Ü àÝ  Ý(5)€€The€division€may€by€rule€or€order:Ð ° ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(a)€€require€a€minimum€capital€for€a€licensed€broker-dealer,€subject€to€the€limitations€ofÐ ˆØ ÐSection€15€of€the€Securities€Exchange€Act€of€1934;€andÐ tÄ ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(b)€€establish€minimum€financial€requirements€for€an€investment€adviser:Ð L œ ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(i)€€subject€to€the€limitations€of€Section€222€of€the€Investment€Advisers€Act€of€1940;€andÐ $ t ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(ii)€€which€may€include€different€requirements€for€an€investment€adviser€who€maintainsÐ ü L  Ðcustody€of€or€has€discretionary€authority€over€client€funds€or€securities€and€an€investment€adviserÐ è 8  Ðwho€does€not.Ð Ô$  ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(6)€(a)€€The€division€may€by€rule€or€order€require€a€licensed€broker-dealer€or€investmentÐ ¬ü  Ðadviser€who€has€custody€of€or€discretionary€authority€over€client€funds€or€securities€to€post€one€orÐ ˜è  Ðmore€bonds€in€amounts€and€under€conditions€as€the€division€may€prescribe,€subject€to€theÐ „Ô  Ðlimitations€of€Section€15€of€the€Securities€Exchange€Act€of€1934€for€a€broker-dealer,€and€SectionÐ pÀ Ð222€of€the€Investment€Advisers€Act€of€1940€for€an€investment€adviser.Ð \¬ ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(b)€€An€appropriate€deposit€of€cash€or€securities€may€be€accepted€in€lieu€of€a€required€bond.Ð 4„ ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(c)€€A€bond€may€not€be€required€of€a€licensee€whose€net€capital,€or€in€the€case€of€anÐ  \ Ðinvestment€adviser€whose€minimum€financial€requirements,€which€may€be€defined€by€rule,Ð øH Ðexceeds€the€amounts€required€by€the€division.Ð ä4 ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(d)€€A€bond€shall€provide€for€suit€on€the€bond€by€a€person€who€has€a€cause€of€action€underÐ ¼  ÐSection€Ý‚}ÿÝÝ  Ý61-1-22Ý‚}ÿŽàÝ ÝÝ  Ý€and,€if€the€division€by€rule€or€order€requires,€by€any€person€who€has€a€cause€ofÐ ¨ø Ðaction€not€arising€under€this€chapter.Ð ”ä ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(e)€€A€bond€shall€provide€that€a€suit€may€not€be€maintained€to€enforce€liability€on€the€bondÐ l¼ Ðunless€brought€before€the€earlier€of:Ð X ¨ ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(i)€€the€expiration€of€five€years€after€the€act€or€transaction€constituting€the€violation;€orÐ 0"€  ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(ii)€€the€expiration€of€two€years€after€the€discovery€by€the€plaintiff€of€the€facts€constituting€theÐ $X" Ðviolation.Ô#†,X`,XXX`,i#ÔÐ ô$D # ÐÌÔ‡X`,XX,X`,ÔÔ‡òÜòXX`,ÔHistory:€As€last€amended€by€Chapter€351,€Laws€of€Utah€2009.Ô#†,òÜòòòÜR‘#ÔÔ#†,X`,Xò,òÜq‘#ÔÐ Ì&"% ÐÌò òÔ  Ô61-1-5.€Postlicensing€provisions.ó óÔ Ý*’ÔÐ |(Ì#' ÐÌà Ü àÔ‡X`,XX,X`,ÔÝ ƒ _PÿÝà  àÝ  Ý(1)€(a)€€Every€licensed€broker-dealer€and€investment€adviser€shall€make€and€keep€suchÐ T*¤%) Ðaccounts,€correspondence,€memoranda,€papers,€books,€and€other€records€as€the€division€by€ruleÐ @+&* Ðprescribes,€except€as€provided€in:Ð ,,|'+ Ð‡Ý ƒ _PÿÝà Ü àÝ  Ý(i)€€Section€15€of€the€Securities€Exchange€Act€of€1934€in€the€case€of€a€broker-dealer;€andÐ ° ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(ii)€€Section€222€of€the€Investment€Advisers€Act€of€1940€in€the€case€of€an€investment€adviser.Ð ˆØ ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(b)€€All€required€records€regarding€an€investment€adviser€shall€be€preserved€for€the€period€asÐ `° Ðthe€division€prescribes€by€rule€or€order.Ð L œ ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(2)€(a)€€Every€licensed€broker-dealer€shall,€within€24€hours€after€demand,€furnish€to€anyÐ $ t Ðcustomer€or€principal€for€whom€the€broker-dealer€has€executed€any€order€for€the€purchase€or€saleÐ  ` Ðof€any€securities,€either€for€immediate€or€future€delivery,€a€written€statement€showing:Ð ü L  ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(i)€€the€time€when€the€securities€were€bought€and€sold;Ð Ô$  ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(ii)€€the€place€where€the€securities€were€bought€and€sold;€andÐ ¬ü  ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(iii)€€the€price€at€which€the€securities€were€bought€and€sold.Ð „Ô  ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(b)€€With€respect€to€investment€advisers,€the€division€may€require€that€certain€information€beÐ \¬ Ðfurnished€or€disseminated€as€necessary€or€appropriate€in€the€public€interest€or€for€the€protectionÐ H˜ Ðof€investors€and€advisory€clients.Ð 4„ ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(c)€€To€the€extent€determined€by€the€director,€information€furnished€to€clients€or€prospectiveÐ  \ Ðclients€of€an€investment€adviser€who€would€be€in€compliance€with€the€Investment€Advisers€ActÐ øH Ðof€1940€and€the€rules€under€the€Investment€Advisers€Act€of€1940€may€be€considered€to€satisfyÐ ä4 Ðthis€requirement.Ð Ð  ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(3)€€Every€licensed€broker-dealer€and€investment€adviser€shall€file€financial€reports€as€theÐ ¨ø Ðdivision€by€rule€prescribes,€except€as€provided€in:Ð ”ä ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(a)€€Section€15€of€the€Securities€Exchange€Act€of€1934€in€the€case€of€a€broker-dealer;€andÐ l¼ ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(b)€€Section€222€of€the€Investment€Advisers€Act€of€1940€in€the€case€of€an€investment€adviser.Ð D!” ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(4)€€If€the€information€contained€in€any€document€filed€with€the€division€is€or€becomesÐ #l! Ðinaccurate€or€incomplete€in€any€material€respect,€the€licensee€or€federal€covered€adviser€shallÐ $X" Ðpromptly€file€a€correcting€amendment€if€the€document€is€filed€with€respect€to€a€licensee,€or€whenÐ ô$D # Ðsuch€amendment€is€required€to€be€filed€with€the€Securities€and€Exchange€Commission€if€theÐ à%0!$ Ðdocument€is€filed€with€respect€to€a€federal€covered€adviser,€unless€notification€of€the€correctionÐ Ì&"% Ðhas€been€given€under€Section€Ý‚}ÿÝÝ  Ý61-1-3Ý‚}ÿT res,ÝÝ  Ý.Ð ¸'#& ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(5)€(a)€€All€the€records€referred€to€in€Subsection€(1)€are€subject€at€any€time€or€from€time€toÐ )à$( Ðtime€to€reasonable€periodic,€special,€or€other€examinations€by€representatives€of€the€division,Ð |*Ì%) Ðwithin€or€without€this€state,€as€the€division€considers€necessary€or€appropriate€in€the€publicÐ h+¸&* Ðinterest€or€for€the€protection€of€investors.Ð ° ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(b)€€For€the€purpose€of€avoiding€unnecessary€duplication€of€examination,€the€division€mayÐ ˆØ Ðcooperate€with:Ð tÄ ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(i)€€the€securities€administrators€of€other€states;Ð L œ ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(ii)€€the€Securities€and€Exchange€Commission;€andÐ $ t ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(iii)€€national€securities€exchanges€or€national€securities€associations€registered€under€theÐ ü L  ÐSecurities€Exchange€Act€of€1934.Ô#†,X`,XXX`,’#ÔÐ è 8  ÐÌò òÔ  Ô61-1-6.€Denial,€suspension,€revocation,€cancellation,€or€withdrawal€of€license€„€Sanctions.ó óÔ f€ÿ¤ÔÐ À  Ðà Ü àÔ‡X`,XX,X`,Ô(1)€€Subject€to€the€other€provisions€of€this€section€and€by€means€of€an€adjudicativeÐ ¬ü  Ðproceeding€conducted€in€accordance€with€Title€63G,€Chapter€4,€Administrative€Procedures€Act:Ð ˜è  ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(a)€€the€commission€may€issue€an€order:Ð pÀ ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(i)€€suspending€or€revoking€a€license;Ð H˜ ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(ii)€€barring€or€censuring€a€licensee€or€an€officer,€director,€partner,€or€person€occupying€aÐ  p Ðsimilar€status€or€performing€similar€functions€for€a€licensee€from€employment€with€a€licensedÐ  \ Ðbroker-dealer€or€investment€adviser;Ð øH ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(iii)€€restricting€or€limiting€a€licensee€as€to€a€function€or€activity€of€the€business€for€which€aÐ Ð  Ðlicense€is€required€in€this€state;Ð ¼  ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(iv)€€imposing€a€fine;€orÐ ”ä ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(v)€€taking€any€combination€of€actions€under€this€Subsection€(1)(a);€orÐ l¼ ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(b)€€the€director€may€deny€a€license.Ð D!” ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(2)€(a)€€The€commission€may€impose€a€sanction€in€accordance€with€Subsection€(1)(a)€or€theÐ #l! Ðdirector€may€impose€a€sanction€in€accordance€with€Subsection€(1)(b)€if€the€commission€orÐ $X" Ðdirector€finds:Ð ô$D # ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(i)€€that€it€is€in€the€public€interest;€andÐ Ì&"% ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(ii)€€with€respect€to€the€applicant€or€licensee€or,€in€the€case€of€a€broker-dealer€or€investmentÐ ¤(ô#' Ðadviser,€a€partner,€officer,€or€director,€or€a€person€occupying€a€similar€status€or€performingÐ )à$( Ðsimilar€functions,€or€a€person€directly€or€indirectly€controlling€the€broker-dealer€or€investmentÐ |*Ì%) Ðadviser,€that€the€person:Ð h+¸&* ÐÝ ƒ _PÿÝà Ü àÝ  Ý(A)€€has€filed€an€application€for€a€license€that,€as€of€the€effective€date€of€the€application€or€asÐ ° Ðof€any€date€after€filing€in€the€case€of€an€order€denying€effectiveness:Ð œì ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(I)€€was€incomplete€in€a€material€respect;€Ð tÄ ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(II)€€contained€a€statement€that€was,€in€light€of€the€circumstances€under€which€it€was€made,Ð L œ Ðfalse€or€misleading€with€respect€to€a€material€fact;Ð 8 ˆ ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(B)€€has€willfully€violated€or€willfully€failed€to€comply€with€this€chapter€or€a€predecessor€actÐ  ` Ðor€a€rule€or€order€under€this€chapter€or€a€predecessor€act;Ð ü L  ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(C)€€was€convicted€of,€or€entered€a€plea€of€guilty,€a€plea€of€no€contest,€a€plea€in€abeyance,€or€aÐ Ô$  Ðsimilar€plea€of€guilty€to:Ð À  ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(I)€€a€misdemeanor€involving:Ð ˜è  ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(Aa)€€fraud€or€dishonesty;€orÐ pÀ ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(Bb)€€a€security€or€any€aspect€of€the€securities€business;€orÐ H˜ ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(II)€€a€felony;Ð  p ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(D)€€is€permanently€or€temporarily€enjoined€by€a€court€of€competent€jurisdiction€fromÐ øH Ðengaging€in€or€continuing€a€conduct€or€practice€involving€any€aspect€of€the€securities€business;Ð ä4 ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(E)€(I)€€is€the€subject€of€an€order€of€the€commission€or€a€predecessor€suspending€or€revoking€aÐ ¼  Ðlicense€as€a€broker-dealer,€agent,€investment€adviser,€or€investment€adviser€representative;€orÐ ¨ø ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(II)€€is€the€subject€of€an€order€of€the€director€or€a€predecessor€denying€a€license€as€aÐ €Ð Ðbroker-dealer,€agent,€investment€adviser,€or€investment€adviser€representative;Ð l¼ ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(F)€€subject€to€Subsection€(2)(b),€is€the€subject€of:Ð D!” ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(I)€€an€adjudication€or€determination,€within€the€past€five€years€by€a€securities€or€commoditiesÐ #l! Ðagency€or€administrator€of€another€state,€Canadian€province€or€territory,€or€a€court€of€competentÐ $X" Ðjurisdiction€that€the€person€has€willfully€violated:Ð ô$D # ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(Aa)€€the€Securities€Act€of€1933;Ð Ì&"% ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(Bb)€€the€Securities€Exchange€Act€of€1934;Ð ¤(ô#' ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(Cc)€€the€Investment€Advisers€Act€of€1940;Ð |*Ì%) ÐÐ h+¸&* ÐÝ ƒ _PÿÝà Ü àÝ  Ý(Dd)€€the€Investment€Company€Act€of€1940;Ð ° ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(Ee)€€the€Commodity€Exchange€Act;€orÐ ˆØ ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(Ff)€€the€securities€or€commodities€law€of€another€state;€orÐ `° ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(II)€€an€order:Ð 8 ˆ ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(Aa)€€entered€within€the€past€five€years€by€the€securities€administrator€of€a€state€or€CanadianÐ  ` Ðprovince€or€territory€or€by€the€Securities€and€Exchange€Commission€denying€or€revoking€€aÐ ü L  Ðlicense€as€a€broker-dealer,€agent,€investment€adviser,€or€investment€adviser€representative,€or€theÐ è 8  Ðsubstantial€equivalent€of€those€terms;Ð Ô$  ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(Bb)€€of€the€Securities€and€Exchange€Commission€suspending€or€expelling€the€person€from€aÐ ¬ü  Ðnational€securities€exchange€or€national€securities€association€registered€under€the€SecuritiesÐ ˜è  ÐExchange€Act€of€1934;€orÐ „Ô  ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(Cc)€€that€is€a€United€States€post€office€fraud€order;Ð \¬ ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(G)€€has€engaged€in€dishonest€or€unethical€practices€in€the€securities€business;Ð 4„ ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(H)€€is€insolvent,€either€in€the€sense€that€liabilities€exceed€assets€or€in€the€sense€thatÐ  \ Ðobligations€cannot€be€met€as€they€mature,€except€that€the€director€or€commission€may€not€enterÐ øH Ðan€order€against€a€broker-dealer€or€investment€adviser€under€this€Subsection€(2)(a)(ii)(H)€withoutÐ ä4 Ða€finding€of€insolvency€as€to€the€broker-dealer€or€investment€adviser;Ð Ð  ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(I)€€is€not€qualified€on€the€basis€of€the€lack€of€training,€experience,€and€knowledge€of€theÐ ¨ø Ðsecurities€business,€except€as€otherwise€provided€in€Subsection€(5);Ð ”ä ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(J)€€has€failed€reasonably€to€supervise€the€person's:Ð l¼ ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(I)€€agents€or€employees,€if€the€person€is€a€broker-dealer;€orÐ D!” ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(II)€€investment€adviser€representatives€or€employees,€if€the€person€is€an€investment€adviser;Ð #l! ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(K)€€has€failed€to€pay€the€proper€filing€fee€within€30€days€after€being€notified€by€the€divisionÐ ô$D # Ðof€a€deficiency;Ð à%0!$ ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(L)€€subject€to€Subsection€(2)(c),€is€a€licensee€or€applicant€that€is€materially€the€same€entity€asÐ ¸'#& Ðan€entity€that€is€defunct,€insolvent,€statutorily€disqualified,€barred,€or€described€in€SubsectionÐ ¤(ô#' Ð(2)(a)(ii)(D);€orÐ )à$( ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(M)€€has€had€a€final€judgment€entered€against€the€person€in€a€civil€action€on€grounds€of:Ð h+¸&* ÐÝ ƒ _PÿÝà Ü àÝ  Ý(I)€€fraud;Ð ° ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(II)€€embezzlement;Ð ˆØ ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(III)€€misrepresentation;€orÐ `° ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(IV)€€deceit.Ð 8 ˆ ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(b)€(i)€€The€commission€may€not€commence€an€agency€action€to€revoke€or€suspend€a€licenseÐ  ` Ðunder€Subsection€(2)(a)(ii)(F)€more€than€one€year€from€the€day€on€which€the€order€on€which€theÐ ü L  Ðdivision€relies€is€entered.Ð è 8  ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(ii)€€The€commission€or€director€may€not€enter€an€order€under€Subsection€(2)(a)(ii)(F)€on€theÐ À  Ðbasis€of€an€order€under€another€state's€law€unless€that€order€is€issued€on€the€basis€of€facts€thatÐ ¬ü  Ðwould€constitute€a€ground€for€an€agency€action€under€this€section€on€the€day€on€which€the€noticeÐ ˜è  Ðof€agency€action€is€filed.Ð „Ô  ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(c)€(i)€€For€purposes€of€Subsection€(2)(a)(ii)(L),€the€director€or€commission€may€consider€oneÐ \¬ Ðor€more€factors€in€determining€whether€an€entity€is€materially€the€same€as€another€entityÐ H˜ Ðincluding€the€following:Ð 4„ ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(A)€€the€entity€has€one€or€more€of€the€same€executive€officers€as€the€prior€entity;Ð  \ ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(B)€€the€entity€conducts€operations€in€the€same€location€as€the€prior€entity;Ð ä4 ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(C)€€the€entity€employs€two€or€more€agents€from€the€prior€entity;Ð ¼  ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(D)€€the€entity€solicits€or€serves€two€or€more€customers€of€the€prior€entity;Ð ”ä ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(E)€€the€entity€has€a€name€similar€to€the€prior€entity;€orÐ l¼ ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(F)€€another€factor€showing€a€relationship€between€the€entity€and€the€prior€entity.Ð D!” ÐÌÒe°ÒÝ ƒ _PÿÝà Ü àÝ  Ý(ii)€€In€addition€to€imposing€a€sanction€in€accordance€with€Subsection€(1),€for€an€entity€that€isÐ #l! Ðmaterially€the€same€as€an€entity€described€in€Subsection€(2)(a)(ii)(L),€the€director€or€theÐ $X" Ðcommission€may:Ð ô$D # ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(A)€€limit€the€license€of€the€entity;€orÐ Ì&"% ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(B)€€require€additional€disclosures€to€the€customers€or€employees€of€the€entity.Ð ¤(ô#' ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(3)€€The€director€may€enter€a€denial€order€under€Subsection€(2)(a)(ii)(K),€but€shall€vacate€theÐ |*Ì%) Ðorder€when€the€deficiency€is€corrected.Ð h+¸&* ÐÝ ƒ _PÿÝà Ü àÝ  Ý(4)€€The€division€may€not€institute€a€suspension€or€revocation€proceeding€on€the€basis€of€a€factÐ ° Ðor€transaction€known€to€the€division€when€the€license€became€effective€unless€the€proceeding€isÐ œì Ðinstituted€within€the€120€days€after€the€day€on€which€the€license€takes€effect.Ð ˆØ ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(5)€€The€following€provisions€govern€the€application€of€Subsection€(2)(a)(ii)(I):Ð `° ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(a)€€The€director€or€commission€may€not€enter€an€order€against€a€broker-dealer€on€the€basis€ofÐ 8 ˆ Ðthe€lack€of€qualification€of€a€person€other€than:Ð $ t ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(i)€€the€broker-dealer€if€the€broker-dealer€is€an€individual;€orÐ ü L  ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(ii)€€an€agent€of€the€broker-dealer.Ð Ô$  ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(b)€€The€director€or€commission€may€not€enter€an€order€against€an€investment€adviser€on€theÐ ¬ü  Ðbasis€of€the€lack€of€qualification€of€a€person€other€than:Ð ˜è  ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(i)€€the€investment€adviser€if€the€investment€adviser€is€an€individual;€orÐ pÀ ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(ii)€€an€investment€adviser€representative.Ð H˜ ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(c)€€The€director€or€commission€may€not€enter€an€order€solely€on€the€basis€of€lack€ofÐ  p Ðexperience€if€the€applicant€or€licensee€is€qualified€by€training€or€knowledge.Ð  \ ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(d)€€The€director€or€commission€shall€consider€that:Ð ä4 ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(i)€€an€agent€who€will€work€under€the€supervision€of€a€licensed€broker-dealer€need€not€have€theÐ ¼  Ðsame€qualifications€as€a€broker-dealer;€andÐ ¨ø ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(ii)€€an€investment€adviser€representative€who€will€work€under€the€supervision€of€a€licensedÐ €Ð Ðinvestment€adviser€need€not€have€the€same€qualifications€as€an€investment€adviser.Ð l¼ ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(e)€(i)€€The€director€or€commission€shall€consider€that€an€investment€adviser€is€not€necessarilyÐ D!” Ðqualified€solely€on€the€basis€of€experience€as€a€broker-dealer€or€agent.Ð 0"€  ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(ii)€€When€the€director€finds€that€an€applicant€for€a€license€as€a€broker-dealer€is€not€qualified€asÐ $X" Ðan€investment€adviser,€the€director€may€condition€the€applicant's€license€as€a€broker-dealer€uponÐ ô$D # Ðthe€applicant's€not€transacting€business€in€this€state€as€an€investment€adviser.Ð à%0!$ ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(f)€(i)€€The€division€may€by€rule€provide€for€examinations,€which€may€be€written€or€oral€orÐ ¸'#& Ðboth,€to€be€taken€by€any€class€of€or€all€applicants.Ð ¤(ô#' ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(ii)€€The€division€may€by€rule€or€order€waive€the€examination€requirement€as€to€a€person€orÐ |*Ì%) Ðclass€of€persons€if€the€division€determines€that€the€examination€is€not€necessary€for€the€protectionÐ h+¸&* Ðof€investors.Ð ° ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(6)€€If€the€director€finds€that€a€licensee€or€applicant€for€a€license€is€no€longer€in€existence,€hasÐ ˆØ Ðceased€to€do€business€as€a€broker-dealer,€agent,€investment€adviser,€or€investment€adviserÐ tÄ Ðrepresentative,€or€is€subject€to€an€adjudication€of€mental€incompetence€or€to€the€control€of€aÐ `° Ðcommittee,€conservator,€or€guardian,€or€cannot€be€located€after€reasonable€search,€the€divisionÐ L œ Ðmay€summarily€cancel€or€deny€the€license€or€application€according€to€the€procedures€andÐ 8 ˆ Ðrequirements€of€Title€63G,€Chapter€4,€Administrative€Procedures€Act.Ð $ t ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(7)€(a)€€Withdrawal€from€license€as€a€broker-dealer,€agent,€investment€adviser,€or€investmentÐ ü L  Ðadviser€representative€becomes€effective€30€days€after€receipt€of€an€application€to€withdraw€orÐ è 8  Ðwithin€a€shorter€period€of€time€as€determined€by€the€director,€unless:Ð Ô$  ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(i)€€a€revocation€or€suspension€proceeding€is€pending€when€the€application€is€filed;Ð ¬ü  ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(ii)€€a€proceeding€to€revoke€or€suspend€or€to€impose€conditions€upon€the€withdrawal€isÐ „Ô  Ðinstituted€within€30€days€after€the€application€is€filed;€orÐ pÀ ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(iii)€€additional€information€is€requested€by€the€division€regarding€the€withdrawal€application.Ð H˜ ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(b)€(i)€€If€a€proceeding€described€in€Subsection€(7)(a)€is€pending€or€instituted,€the€director€shallÐ  p Ðdesignate€by€order€when€and€under€what€conditions€the€withdrawal€becomes€effective.Ð  \ ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(ii)€€If€additional€information€is€requested,€withdrawal€is€effective€30€days€after€the€additionalÐ ä4 Ðinformation€is€filed.Ð Ð  ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(c)€(i)€€If€no€proceeding€is€pending€or€instituted,€and€withdrawal€automatically€becomesÐ ¨ø Ðeffective,€the€director€may€initiate€a€revocation€or€suspension€proceeding€under€this€section€withinÐ ”ä Ðone€year€after€withdrawal€becomes€effective.Ð €Ð ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(ii)€€The€commission€shall€enter€an€order€under€Subsection€(2)(a)(ii)(B)€as€of€the€last€date€onÐ X ¨ Ðwhich€the€license€is€effective.Ô#†,X`,XXX`,ž¥#ÔÐ D!” ÐÌÔ‡,òÜòX,X`,ÔHistory:€As€last€amended€by€Chapter€351,€Laws€of€Utah€2009.Ô#†,X`,Xò,òÜ:é#ÔÔ‡,òÜòX,X`,ÔÐ #l! ÐAdministrative€Rules:€This€section€is€cited€in€or€interpreted€by€the€following€administrative€rule(s):€R164-4,€R164-6,Ð à#0" ÐR164„14,€R164„18.Ô#†,X`,Xò,òÜ·é#ԀР¤$ô# ÐÌò òÔ  Ô61-1-6.5.€€€Court-ordered€discipline.Ô  ÄêÔó óÐ |&Ì!% Ðà Ü àThe€division€shall€promptly€withhold,€suspend,€restrict,€or€reinstate€the€use€of€a€license€issuedÐ h'¸"& Ðunder€this€chapter€if€so€ordered€by€a€court.Ð T(¤#' ÐÌÔ‡,òÜòX,X`,ÔHistory:€As€enacted€by€Chapter€232,€ðð€25,€Laws€of€Utah€1997.Ô#†,X`,Xò,òÜåë#ÔÐ ,*|%) ÐÌÐ Ü+,'+ Ðò òÔ  Ô61-1-7.€Registration€before€sale.ó óÔ  ”ìÔÐ ° Ðà Ü àIt€is€unlawful€for€any€person€to€offer€or€sell€any€security€in€this€state€unless€it€is€registeredÐ œì Ðunder€this€chapter,€the€security€or€transaction€is€exempted€under€Section€61-1-14,€or€the€security€isÐ ˆØ Ða€federal€covered€security€for€which€a€notice€filing€has€been€made€pursuant€to€the€provisions€ofÐ tÄ ÐSection€61-1-15.5.Ð `° ÐÌÔ‡,òÜòX,X`,ÔHistory:€As€last€amended€by€Chapter€160,€ðð€4,€Laws€of€Utah€1997.Ð 8 ˆ ÐAdministrative€Rules:€This€section€is€cited€in€or€interpreted€by€the€following€administrative€rule(s):€R164-14.Ô#†,X`,Xò,ò܆î#ԀРü L ÐÌò òÔ  Ô61-1-8.€REPEALED.ó óÔ  ©ïÔÐ Ô $  ÐÌÔ‡,òÜòX,X`,ÔHistory:€As€last€amended€by€Chapter€351,€Laws€of€Utah€2009.Ð ¬ü  ÐÔ#†,X`,Xò,òÜóï#ÔÌò òÔ  Ô61-1-9.€Registration€by€coordination.ó óÔ r€‰ðÔÐ \¬  ÐÔ‡X`,XX,X`,ÔÝ ƒ _PÿÝà Ü àÝ  Ý(1)€€A€security€for€which€a€registration€statement€or€a€notification€under€Regulation€A€or€aÐ H˜  Ðsuccessor€to€Regulation€A€is€filed€under€the€Securities€Act€of€1933€in€connection€with€the€sameÐ 4„  Ðoffering€may€be€registered€by€coordination.Ð  p ÐÝ ƒ _PÿÝà Ü àÝ  ÝÌ(2)€€A€registration€statement€under€this€section€shall€contain€the€following€information€and€beÐ øH Ðaccompanied€by€the€following€documents€in€addition€to€the€information€specified€in€SubsectionÐ ä4 ÐÝ‚}ÿÝÝ  Ý61-1-11Ý‚}ÿ_óƒÝÝ  Ý(3)€and€the€consent€to€service€of€process€required€by€Section€Ý‚}ÿÝÝ  Ý61-1-26Ý‚}ÿâóƒÝÝ  Ý:Ð Ð  ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(a)€€one€copy€of€the€disclosure€statement€together€with€all€its€amendments€filed€under€theÐ ¨ø ÐSecurities€Act€of€1933;Ð ”ä ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(b)€€if€the€division€by€rule€or€otherwise€requires,€a€copy€of€the€articles€of€incorporation€andÐ l¼ Ðbylaws€or€their€substantial€equivalents€currently€in€effect,€a€copy€of€any€agreements€with€or€amongÐ X¨ Ðunderwriters,€a€copy€of€any€indenture€or€other€instrument€governing€the€issuance€of€the€security€toÐ D” Ðbe€registered€and€a€specimen€or€copy€of€the€security;Ð 0€ ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(c)€€if€the€division€requests,€any€other€information,€or€copies€of€any€other€documents,€filedÐ  X Ðunder€the€Securities€Act€of€1933;€Ð ô D ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(d)€€an€undertaking€to€forward€all€future€amendments€to€the€disclosure€statement€promptly€andÐ Ì"! Ðin€any€event€not€later€than€the€first€working€day€after€the€day€they€are€forwarded€to€or€filed€withÐ ¸#" Ðthe€Securities€and€Exchange€Commission,€whichever€first€occurs.Ð ¤$ô# ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(3)€€A€registration€statement€under€this€section€automatically€becomes€effective€at€the€momentÐ |&Ì!% Ðthe€disclosure€statement€becomes€effective€if€all€the€following€conditions€are€satisfied:Ð h'¸"& ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(a)€€no€stop€order€is€in€effect€and€no€proceeding€is€pending€under€Section€Ý‚}ÿÝÝ  Ý61-1-12Ý‚}ÿ‰úƒÝÝ  Ý;Ð @)$( ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(b)€€the€disclosure€statement€is€on€file€with€the€division€for€at€least€20€working€days;€andÐ +h&* ÐÐ ,T'+ ÐÝ ƒ _PÿÝà Ü àÝ  Ý(c)€€a€statement€of€the€maximum€and€minimum€proposed€offering€prices€and€the€maximumÐ ° Ðunderwriting€discounts€and€commissions€is€on€file€for€two€full€working€days€or€such€shorterÐ œì Ðperiod€as€the€division€permits€by€rule€or€otherwise€and€the€offering€is€made€within€thoseÐ ˆØ Ðlimitations.Ð tÄ ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(4)€(a)€€A€registrant€shall€promptly:Ð L œ ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(i)€€notify€the€division€in€a€record€of€the€date€and€time€when€the€disclosure€statement€becameÐ $ t Ðeffective€and€the€content€of€the€price€amendment,€if€any;€andÐ  ` ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(ii)€€file€a€posteffective€amendment€containing€the€information€and€documents€in€the€priceÐ è 8  Ðamendment.Ð Ô$  ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(b)€€"Price€amendment"€means€the€final€federal€amendment€that€includes€a€statement€of€the:Ð ¬ü  ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(i)€€offering€price;Ð „Ô  ÐÝ ƒ _PÿÝà Ü àÝ  Ý(ii)€€underwriting€and€selling€discounts€or€commissions;Ð pÀ ÐÝ ƒ _PÿÝà Ü àÝ  Ý(iii)€€amount€of€proceeds;Ð \¬ ÐÝ ƒ _PÿÝà Ü àÝ  Ý(iv)€€conversion€rates;Ð H˜ ÐÝ ƒ _PÿÝà Ü àÝ  Ý(v)€€call€prices;€andÐ 4„ ÐÝ ƒ _PÿÝà Ü àÝ  Ý(vi)€€other€matters€dependent€upon€the€offering€price.Ð  p ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(5)€(a)€€Upon€failure€to€receive€the€required€notification€and€posteffective€amendment€withÐ øH Ðrespect€to€the€price€amendment,€the€division€may€enter€a€stop€order,€without€notice€or€hearing,Ð ä4 Ðretroactively€denying€effectiveness€to€the€registration€statement€or€suspending€its€effectivenessÐ Ð  Ðuntil€compliance€with€Subsection€(4),€if€the€division€promptly€notifies€the€registrant€in€a€record€ofÐ ¼  Ðthe€issuance€of€the€order.Ð ¨ø ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(b)€€If€the€registrant€proves€compliance€with€the€requirements€of€Subsection€(4)€as€to€noticeÐ €Ð Ðand€posteffective€amendment,€the€stop€order€is€void€as€of€the€time€of€its€entry.Ð l¼ ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(6)€€The€division€may€by€rule€or€otherwise€waive€either€or€both€of€the€conditions€specified€inÐ D!” ÐSubsections€(3)(b)€and€(3)(c).Ð 0"€  ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(7)€€If€the€disclosure€statement€becomes€effective€before€all€the€conditions€in€SubsectionsÐ $X" Ð(3)(b)€and€(3)(c)€are€satisfied€and€they€are€not€waived,€the€disclosure€statement€automaticallyÐ ô$D # Ðbecomes€effective€as€soon€as€all€the€conditions€are€satisfied.Ð à%0!$ ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(8)€€If€the€registrant€advises€the€division€of€the€date€when€the€disclosure€statement€is€expectedÐ ¸'#& Ðto€become€effective,€the€division€shall€promptly€advise€the€registrant€in€a€record,€at€the€registrant'sÐ ¤(ô#' Ðexpense,€whether€all€the€conditions€are€satisfied€and€whether€it€then€contemplates€the€institutionÐ )à$( Ðof€proceedings€under€Section€Ý‚}ÿÝÝ  Ý61-1-12Ý‚}ÿóƒÝÝ  Ý,€but€this€advice€by€the€division€does€not€preclude€theÐ |*Ì%) Ðinstitution€of€such€a€proceeding€at€any€time.Ð h+¸&* Ð‡Ý ƒ _PÿÝà Ü àÝ  Ý(9)€€The€division€may€by€rule€or€order€permit€registration€by€coordination€of€a€security€forÐ ° Ðwhich€a€notification€or€similar€document€is€filed€under€the€Securities€Act€of€1933€in€connectionÐ œì Ðwith€the€same€offering.Ô#†,X`,XXX`,æð#ÔÐ ˆØ ÐÌÔ‡,òÜòX,X`,ÔHistory:€As€last€amended€by€Chapter€351,€Laws€of€Utah€2009.Ð `° ÐAdministrative€Rules:€This€section€is€cited€in€or€interpreted€by€the€following€administrative€rule(s):€R164-9,€R164„14,Ð $ t ÐR164„18.Ð è 8 ÐÌÔ#†,X`,Xò,òÜ$ #Ôò òÔ  Ô61-1-10.€Registration€by€qualification.ó óÔ  c ÔÐ p À ÐÔ‡X`,XX,X`,Ô(1)€€Application€may€be€made€to€register€any€security€by€qualification.Ð \ ¬  ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(2)€€A€registration€statement€under€this€section€shall€contain€the€following€information€and€beÐ 4„  Ðaccompanied€by€the€following€documents€in€addition€to€the€information€specified€in€SubsectionÐ  p  ÐÝ‚}ÿÝÝ  Ý61-1-11Ý‚}ÿKƒÝÝ  Ý€(3)€and€the€consent€to€service€of€process€required€by€Section€Ý‚}ÿÝÝ  Ý61-1-26Ý‚}ÿσÝÝ  Ý:Ð  \  ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(a)€€with€respect€to€the€issuer€and€any€significant€subsidiary:Ð ä4  ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(i)€€its€name,€address,€and€form€of€organization;Ð ¼  ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(ii)€€the€state€or€foreign€jurisdiction€and€date€of€its€organization;Ð ”ä ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(iii)€€the€general€character€and€location€of€its€business;Ð l¼ ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(iv)€€a€description€of€its€physical€properties€and€equipment;€andÐ D” ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(v)€€a€statement€of€the€general€competitive€conditions€in€the€industry€or€business€in€which€it€isÐ l Ðor€will€be€engaged;Ð X ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(b)€€with€respect€to€every€director€and€officer€of€the€issuer€or€person€occupying€a€similar€statusÐ à0 Ðor€performing€similar€functions:Ð Ì ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(i)€€his€name,€address,€and€principal€occupation€for€the€past€five€years;Ð ¤ ô ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(ii)€€the€amount€of€securities€of€the€issuer€held€by€him€as€of€a€specified€date€within€30€days€ofÐ |"Ì! Ðthe€filing€of€the€registration€statement;Ð h#¸" ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(iii)€€the€amount€of€the€securities€covered€by€the€registration€statement€to€which€he€hasÐ @% $ Ðindicated€his€intention€to€subscribe;€andÐ ,&|!% ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(iv)€€a€description€of€any€material€interest€in€any€material€transaction€with€the€issuer€or€anyÐ (T#' Ðsignificant€subsidiary€affected€within€the€past€three€years€or€proposed€to€be€affected;Ð ð(@$( ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(c)€€with€respect€to€persons€covered€by€Subsection€(b),€the€remuneration€paid€during€the€pastÐ È*&* Ð12€months€and€estimated€to€be€paid€during€the€next€12€months,€directly€or€indirectly,€by€the€issuer,Ð ´+'+ Ðtogether€with€all€predecessors,€parents,€subsidiaries,€and€affiliates,€to€all€those€persons€in€theÐ ° Ðaggregate;Ð œì ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(d)€€with€respect€to€any€person€owning€of€record,€or€beneficially€if€known,€10%€or€more€of€theÐ tÄ Ðoutstanding€shares€of€any€class€of€equity€security€of€the€issuer,€the€information€specified€inÐ `° ÐSubsection€(b)€other€than€the€person's€occupation;Ð L œ ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(e)€€with€respect€to€every€promoter€if€the€issuer€was€organized€within€the€past€three€years,€theÐ $ t Ðinformation€specified€in€Subsection€(b),€any€amount€paid€to€the€promoter€within€that€period€orÐ  ` Ðintended€to€be€paid€to€the€promoter,€and€the€consideration€for€any€such€payment;Ð ü L  ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(f)€€with€respect€to€any€person€on€whose€behalf€any€part€of€the€offering€is€to€be€made€in€aÐ Ô$  Ðnonissuer€distribution:Ð À  ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(i)€€the€person's€name€and€address;Ð ˜è  ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(ii)€€the€amount€of€securities€of€the€issuer€held€by€the€person€as€of€the€date€of€filing€of€theÐ pÀ Ðregistration€statement;Ð \¬ ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(iii)€€a€description€of€any€material€interest€in€any€material€transaction€with€the€issuer€or€anyÐ 4„ Ðsignificant€subsidiary€effected€within€the€past€three€years€or€proposed€to€be€effected;€andÐ  p ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(iv)€€a€statement€of€the€person's€reasons€for€making€the€offering;Ð øH ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(g)€€the€capitalization€and€long-term€debt,€on€both€a€current€and€pro€forma€basis,€of€the€issuerÐ Ð  Ðand€any€significant€subsidiary,€including€a€description€of€each€security€outstanding€or€beingÐ ¼  Ðregistered€or€otherwise€offered,€and€a€statement€of€the€amount€and€kind€of€consideration,€whetherÐ ¨ø Ðin€the€form€of€cash,€physical€assets,€services,€patents,€goodwill,€or€anything€else,€for€which€theÐ ”ä Ðissuer€or€any€subsidiary€has€issued€any€of€its€securities€within€the€past€two€years€or€is€obligated€toÐ €Ð Ðissue€any€of€its€securities;Ð l¼ ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(h)€(i)€€the€kind€and€amount€of€securities€to€be€offered;Ð D!” ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(ii)€€the€proposed€offering€price€or€the€method€by€which€it€is€to€be€computed;Ð #l! ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(iii)€€any€variation€therefrom€at€which€any€proportion€of€the€offering€is€to€be€made€to€anyÐ ô$D # Ðperson€or€class€of€persons€other€than€the€underwriters,€with€a€specification€of€any€such€person€orÐ à%0!$ Ðclass;Ð Ì&"% ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(iv)€€the€basis€upon€which€the€offering€is€to€be€made€if€otherwise€than€for€cash;Ð ¤(ô#' ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(v)€€the€estimated€aggregate€underwriting€and€selling€discounts€or€commissions€and€finders'Ð |*Ì%) Ðfees,€including€separately€cash,€securities,€contracts,€or€anything€else€of€value€to€accrue€to€theÐ h+¸&* Ðunderwriters€or€finders€in€connection€with€the€offering,€or,€if€the€selling€discounts€or€commissionsÐ ° Ðare€variable,€the€basis€of€determining€them€and€their€maximum€and€minimum€amounts;Ð œì ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(vi)€€the€estimated€amounts€of€other€selling€expenses,€including€legal,€engineering,€andÐ tÄ Ðaccounting€charges;Ð `° ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(vii)€€the€name€and€address€of€every€underwriter€and€every€recipient€of€a€finder's€feeÐ 8 ˆ ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(viii)€€a€copy€of€any€underwriting€or€selling-group€agreement€under€which€the€distribution€is€toÐ  ` Ðbe€made,€or€the€proposed€form€of€any€such€agreement€whose€terms€have€not€yet€been€determined;Ð ü L  ÐandÐ è 8  ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(ix)€€a€description€of€the€plan€of€distribution€of€any€securities€which€are€to€be€offeredÐ À  Ðotherwise€than€through€an€underwriter;Ð ¬ü  ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(i)€(i)€€the€estimated€cash€proceeds€to€be€received€by€the€issuer€from€the€offering;Ð „Ô  ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(ii)€€the€purposes€for€which€the€proceeds€are€to€be€used€by€the€issuer;Ð \¬ ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(iii)€€the€amount€to€be€used€for€each€purpose;Ð 4„ ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(iv)€€the€order€or€priority€in€which€the€proceeds€will€be€used€for€the€purposes€stated;Ð  \ ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(v)€€the€amounts€of€any€funds€to€be€raised€from€other€sources€to€achieve€the€purposes€stated;Ð ä4 Ðthe€sources€of€any€such€funds;€andÐ Ð  ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(vi)€€if€any€part€of€the€proceeds€is€to€be€used€to€acquire€any€property,€including€goodwill,Ð ¨ø Ðotherwise€than€in€the€ordinary€course€of€business,€the€names€and€addresses€of€the€vendors,€theÐ ”ä Ðpurchase€price,€the€names€of€any€persons€who€have€received€commissions€in€connection€with€theÐ €Ð Ðacquisition,€and€the€amounts€of€any€such€commissions€and€any€other€expense€in€connection€withÐ l¼ Ðthe€acquisition,€including€the€cost€of€borrowing€money€to€finance€the€acquisition;Ð X ¨ ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(j)€€a€description€of€any€stock€options€or€other€security€options€outstanding,€or€to€be€created€inÐ 0"€  Ðconnection€with€the€offering,€together€with€the€amount€of€any€such€option€held€or€to€be€held€byÐ #l! Ðevery€person€required€to€be€named€in€clause€(b),€(d),€(e),€(f),€or€(h)€and€by€any€person€who€holdsÐ $X" Ðor€will€hold€10%€or€more€in€the€aggregate€of€any€such€options;Ð ô$D # ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(k)€(i)€€the€dates€of,€parties€to,€and€general€effect€concisely€stated€of,€every€management€orÐ Ì&"% Ðother€material€contract€made€or€to€be€made€otherwise€than€in€the€ordinary€course€of€business€if€itÐ ¸'#& Ðis€to€be€performed€in€whole€or€in€part€at€or€after€the€filing€of€the€registration€statement€or€wasÐ ¤(ô#' Ðmade€within€the€past€two€years,€together€with€a€copy€of€every€such€contract;€andÐ )à$( ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(ii)€€a€description€of€any€pending€litigation€or€proceeding€to€which€the€issuer€is€a€party€andÐ h+¸&* Ðwhich€materially€affects€its€business€or€assets,€including€any€such€litigation€or€proceeding€knownÐ ° Ðto€be€contemplated€by€governmental€authorities;Ð œì ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(l)€€a€copy€of€any€prospectus,€pamphlet,€circular,€form€letter,€advertisement,€or€other€salesÐ tÄ Ðliterature€intended€as€of€the€effective€date€to€be€used€in€connection€with€the€offering;Ð `° ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(m)€(i)€€a€specimen€copy€of€the€security€being€registered;Ð 8 ˆ ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(ii)€€a€copy€of€the€issuer's€articles€of€incorporation,€and€bylaws,€if€any,€or€their€substantialÐ  ` Ðequivalents,€as€currently€in€effect;€andÐ ü L  ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(iii)€€a€copy€of€any€indenture€or€other€instrument€covering€the€security€to€be€registered;Ð Ô$  ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(n)€€a€signed€or€conformed€copy€of€an€opinion€of€counsel€as€to€the€legality€of€the€securityÐ ¬ü  Ðbeing€registered,€with€an€English€translation€if€it€is€in€a€foreign€language,€which€shall€stateÐ ˜è  Ðwhether€the€security€when€sold€will€be€legally€issued,€fully€paid,€and€nonassessable,€and€if€a€debtÐ „Ô  Ðsecurity,€a€binding€obligation€of€the€issuer;Ð pÀ ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(o)€€the€written€consent€of€any€accountant,€engineer,€appraiser,€or€other€person€whoseÐ H˜ Ðprofession€gives€authority€to€a€statement€made€by€him,€if€that€person€is€named€as€having€preparedÐ 4„ Ðor€certified€a€report€or€valuation,€other€than€a€public€and€official€document€or€statement,€which€isÐ  p Ðused€in€connection€with€the€registration€statement;Ð  \ ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(p)€(i)€€a€balance€sheet€of€the€issuer€as€of€a€date€within€four€months€prior€to€the€filing€of€theÐ ä4 Ðregistration€statement;Ð Ð  ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(ii)€€a€profit€and€loss€statement€and€analysis€of€retained€earnings€for€each€of€the€three€fiscalÐ ¨ø Ðyears€preceding€the€date€of€the€balance€sheet€and€for€any€period€between€the€close€of€the€last€fiscalÐ ”ä Ðyear€and€the€date€of€the€balance€sheet,€or€for€the€period€of€the€issuer's€and€any€predecessors'Ð €Ð Ðexistence€if€less€than€three€years;€andÐ l¼ ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(iii)€€if€any€part€of€the€proceeds€of€the€offering€is€to€be€applied€to€the€purchase€of€any€business,Ð D!” Ðthe€same€financial€statements€which€would€be€required€if€that€business€were€the€registrant;€andÐ 0"€  ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(q)€€such€additional€information€or€verification€of€any€statement€as€the€division€requires€byÐ $X" Ðrule€or€order.Ð ô$D # ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(3)€€A€registration€statement€under€this€section€becomes€effective€when€the€division€so€orders.Ð Ì&"% ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(4)€€As€a€condition€of€registration€under€this€section,€a€prospectus€containing€the€information,Ð ¤(ô#' Ðbut€not€containing€copies€of€contracts€or€agreements€specified€in€Subsections€(2)(a),€(b),€(c),€(d),Ð )à$( Ð(e),€(f),€(g),€(h),€(i),€(j),€(k),€and€(p)€shall€be€sent€or€given€to€each€person€to€whom€an€offer€is€madeÐ |*Ì%) Ðbefore€or€concurrently€with:Ð h+¸&* Ð‡Ý ƒ _PÿÝà Ü àÝ  Ý(a)€€the€first€written€offer€made€to€the€person,€otherwise€than€by€means€of€a€publicÐ ° Ðadvertisement,€by€or€for€the€account€of€the€issuer€or€any€other€person€on€whose€behalf€the€offeringÐ œì Ðis€being€made,€or€by€any€underwriter€or€broker-dealer€who€is€offering€part€of€an€unsold€allotmentÐ ˆØ Ðor€subscription€taken€by€the€person€as€a€participant€in€the€distribution;Ð tÄ ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(b)€€the€confirmation€of€any€sale€made€by€or€for€the€account€of€any€such€person;Ð L œ ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(c)€€payment€pursuant€to€any€such€sale;€orÐ $ t ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(d)€€delivery€of€the€security€pursuant€to€any€such€sale,€whichever€occurs€first.Ô#†,X`,XXX`, #ÔÐ ü L  ÐÌÔ‡,òÜòX,X`,ÔHistory:€As€last€amended€by€Chapter€351,€Laws€of€Utah€2009.Ð Ô$  ÐAdministrative€Rules:€This€section€is€cited€in€or€interpreted€by€the€following€administrative€rule(s):€R164-10,€R164„Ð ˜è  Ð18.Ô#†,X`,Xò,òÜD#ÔÐ \¬  ÐÌò òÔ  Ô61-1-11.€Provisions€applicable€to€registration€generally.ó óÔ €o@EÔÐ  \  ÐÔ‡X`,XX,X`,ÔÝ ƒ _PÿÝà Ü àÝ  Ý(1)€€A€registration€statement€may€be€filed€by€the€issuer,€another€person€on€whose€behalf€theÐ øH Ðoffering€is€to€be€made,€or€a€licensed€broker-dealer.Ð ä4 ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(2)€€A€person€filing€a€registration€statement€shall€pay€a€filing€fee€as€determined€under€SectionÐ ¼  ÐÝ‚}ÿÝÝ  Ý61-1-18.4Ý‚}ÿNGƒÝÝ  Ý.Ð ¨ø ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(3)€€A€registration€statement€shall€specify:Ð €Ð ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(a)€€the€amount€of€securities€to€be€offered€in€this€state;Ð X¨ ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(b)€€the€states€in€which€a€registration€statement€or€similar€document€in€connection€with€theÐ 0€ Ðoffering€is€or€is€to€be€filed;€andÐ l ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(c)€€an€adverse€order,€judgment,€or€decree€entered€in€connection€with€the€offering€by€theÐ ôD Ðregulatory€authorities€in€each€state€or€by€a€court€or€the€Securities€and€Exchange€Commission.Ð à0 ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(4)€€A€document€filed€under€this€chapter€or€a€predecessor€act€within€five€years€preceding€theÐ ¸!  Ðfiling€of€a€registration€statement€may€be€incorporated€by€reference€in€the€registration€statement€toÐ ¤"ô! Ðthe€extent€that€the€document€is€currently€accurate.Ð #à" ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(5)€€The€division€may€permit€the€omission€of€an€item€of€information€or€document€from€aÐ h%¸ $ Ðregistration€statement.Ð T&¤!% ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(6)€€In€the€case€of€a€nonissuer€distribution,€information€may€not€be€required€under€SubsectionÐ ,(|#' Ð(9)€or€Section€Ý‚}ÿÝÝ  Ý61-1-10Ý‚}ÿ'MƒÝÝ  Ý€unless€it€is€known€to€the€person€filing€the€registration€statement€or€to€theÐ )h$( Ðpersons€on€whose€behalf€the€distribution€is€to€be€made,€or€can€be€furnished€by€them€withoutÐ *T%) Ðunreasonable€effort€or€expense.Ð ð*@&* ÐÐ Ü+,'+ ÐÝ ƒ _PÿÝà Ü àÝ  Ý(7)€(a)€€The€division€may€require€as€a€condition€of€registration€by€qualification€orÐ ° Ðcoordination:Ð œì ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(i)€€that€security€issued€within€the€past€three€years€or€to€be€issued€to€a€promoter€for€aÐ tÄ Ðconsideration€substantially€different€from€the€public€offering€price,€or€to€a€person€for€aÐ `° Ðconsideration€other€than€cash,€be€deposited€in€escrow;€andÐ L œ ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(ii)€€that€the€proceeds€from€the€sale€of€the€registered€security€be€impounded€until€the€issuerÐ $ t Ðreceives€a€specified€amount€from€the€sale€of€the€security€either€in€this€state€or€elsewhere.Ð  ` ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(b)€€The€division€may€determine€the€conditions€of€an€escrow€or€impounding€required€by€thisÐ è 8  ÐSubsection€(7),€but€it€may€not€reject€a€depository€solely€because€of€location€in€another€state.Ð Ô$  ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(8)€(a)€€A€registration€statement€is€effective€for€one€year€from€its€effective€date.Ð ¬ü  ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(b)€€All€outstanding€securities€of€the€same€class€as€a€registered€security€are€considered€to€beÐ „Ô  Ðregistered€for€the€purpose€of€a€nonissuer€transaction:Ð pÀ ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(i)€€so€long€as€the€registration€statement€is€effective;€andÐ H˜ ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(ii)€€between€the€30th€day€after€the€entry€of€a€stop€order€suspending€or€revoking€theÐ  p Ðeffectiveness€of€the€registration€statement€under€Section€Ý‚}ÿÝÝ  Ý61-1-12Ý‚}ÿaUƒÝÝ  Ý,€if€the€registration€statement€didÐ  \ Ðnot€relate€in€whole€or€in€part€to€a€nonissuer€distribution,€and€one€year€from€the€effective€date€ofÐ øH Ðthe€registration€statement.Ð ä4 ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(c)€€A€registration€statement€may€not€be€withdrawn€for€one€year€from€its€effective€date€if€aÐ ¼  Ðsecurity€of€the€same€class€is€outstanding.Ð ¨ø ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(d)€€A€registration€statement€may€be€withdrawn€otherwise€only€in€the€discretion€of€theÐ €Ð Ðdivision.Ð l¼ ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(9)€€So€long€as€a€registration€statement€is€effective€and€the€offering€is€not€completely€sold,€theÐ D!” Ðdivision€may€require€the€person€who€filed€the€registration€statement€to€file€reports,€not€more€oftenÐ 0"€  Ðthan€quarterly,€to€keep€reasonably€current€the€information€contained€in€the€registration€statementÐ #l! Ðand€to€disclose€the€progress€of€the€offering.Ð $X" ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(10)€(a)€€A€registration€statement€may€be€amended€after€its€effective€date€so€as€to€increase€theÐ à%0!$ Ðsecurities€specified€to€be€offered€and€sold,€if€the€public€offering€price€and€underwriters'€discountsÐ Ì&"% Ðand€commissions€are€not€changed€from€the€respective€amounts€of€which€the€division€wasÐ ¸'#& Ðinformed.Ð ¤(ô#' ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(b)€€The€amendment€becomes€effective€when€the€division€so€orders.Ð |*Ì%) ÐÐ h+¸&* ÐÝ ƒ _PÿÝà Ü àÝ  Ý(c)€€A€person€filing€an€amendment€shall€pay€a€registration€fee€as€determined€under€SectionÐ ° ÐÝ‚}ÿÝÝ  Ý61-1-18.4Ý‚}ÿ¨\ƒÝÝ  Ý€with€respect€to€the€additional€securities€proposed€to€be€offered.Ð œì ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(d)€€The€amendment€relates€back€to€the€date€of€the€sale€of€the€additional€security€beingÐ tÄ Ðregistered,€provided€that€within€six€months€of€the€date€of€the€sale€the€amendment€is€filed€and€theÐ `° Ðadditional€registration€fee€is€paid.Ð L œ ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(11)€(a)€€A€security€that€is€offered€or€sold€under€Section€4(5)€of€the€Securities€Act€of€1933€orÐ $ t Ðthat€is€a€"mortgage€related€security"€as€defined€in€Section€3(a)(41)€of€the€Securities€Exchange€ActÐ  ` Ðof€1934€may€not€be€exempt€under€Subsection€Ý‚}ÿÝÝ  Ý61-1-14Ý‚}ÿË_ƒÝÝ  Ý(1)(a)€to€the€same€extent€as€an€obligationÐ ü L  Ðissued€by€or€guaranteed€as€to€principal€and€interest€by€the€United€States€or€an€agency€orÐ è 8  Ðinstrumentality€of€the€United€States.€€Accordingly,€any€such€security€shall€comply€with€theÐ Ô$  Ðapplicable€registration€and€qualification€requirements€set€forth€in€this€chapter.Ð À  ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(b)€€This€Subsection€(11)€specifically€overrides€the€preemption€of€state€law€contained€inÐ ˜è  ÐSection€106(c)€of€the€Secondary€Mortgage€Market€Enhancement€Act€of€1984,€Public€Law€NumberÐ „Ô  Ð98-440.Ô#†,X`,XXX`,±E#ÔÐ pÀ ÐÌÔ‡,òÜòX,X`,ÔHistory:€As€last€amended€by€Chapter€161,€ðð€7,€Laws€of€Utah€1991.Ð H˜ ÐAdministrative€Rules:€This€section€is€cited€in€or€interpreted€by€the€following€administrative€rule(s):€R164-10,€R164„Ð  \ Ð11,€R164„18.Ð Ð  ÐCross-References:€False€corporate€reports€as€crime,€ðð€76-10-707.Ô#†,X`,Xò,òÜØb#ÔÐ ”ä ÐÌ€ò òÔ  Ô61-1-11.1.€€€€Hearings€for€certain€exchanges€of€securitiesÔ ),zdÔ.ó óÐ D” ÐÔ‡X`,XX,X`,Ô(1)€€An€application€may€be€made€to€the€division€for€approval€to€issue€securities€or€to€deliver€otherÐ 4„ Ðconsideration€in€exchange€for:Ð  p ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(a)€€one€or€more€outstanding€securities,€claims,€or€property€interests;€orÐ øH ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(b)€€partly€in€exchange€for€one€or€more€outstanding€securities,€claims,€or€property€interests,Ð Ð  Ðand€partly€for€cash.Ð ¼  ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(2)€€The€director€may:Ð ”!ä  ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(a)€€hold€a€hearing€upon€the€fairness€of€the€terms€and€conditions€of€an€exchange€described€inÐ l#¼" ÐSubsection€(1);€andÐ X$¨# ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(b)€€approve€or€disapprove€the€terms€and€conditions€of€an€exchange€described€in€SubsectionÐ 0&€!% Ð(1).Ð 'l"& ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(3)€€After€conducting€a€hearing€under€this€section,€if€the€director€finds€that€the€terms€andÐ ô(D$( Ðconditions€of€an€exchange€described€in€Subsection€(1)€are€fair€to€those€to€whom€the€securities€willÐ à)0%) Ðbe€issued,€the€director€may:Ð Ì*&* ÐÐ ¸+'+ ÐÝ ƒ _PÿÝà Ü àÝ  Ý(a)€€approve€the€fairness€of€the€terms€and€conditions€of€the€exchange€described€in€SubsectionÐ ° Ð(1);€andÐ œì ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(b)€€approve€the€exchange€described€in€Subsection€(1).Ð tÄ ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(4)€€In€a€hearing€under€this€section,€all€persons€to€whom€it€is€proposed€to€issue€securities€or€toÐ L œ Ðdeliver€other€consideration€in€an€exchange€under€Subsection€(1)€may€appear.Ð 8 ˆ ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(5)€€An€application€under€Subsection€(1)€shall€contain€the€information€and€be€accompanied€byÐ  ` Ðthe€documents€required€by€rule€or€order€of€the€division.Ð ü L  ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(6)€€A€person€filing€an€application€under€Subsection€(1)€shall€pay€a€filing€fee€as€determinedÐ Ô$  Ðunder€Section€Ý‚}ÿÝÝ  Ý61-1-18.4Ý‚}ÿÕmƒÝÝ  Ý.Ð À  ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(7)€€An€applicant€under€this€section€shall€provide€adequate€notice€of€any€hearing€under€thisÐ ˜è  Ðsection€to€all€persons€that€have€a€right€to€appear,€under€Subsection€(4),€at€the€hearing.Ð „Ô  ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(8)€€An€application€may€be€made€under€this€section€regardless€of€whether€the€security€orÐ \¬ Ðtransaction€being€issued€is:Ð H˜ ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(a)€€exempt€from€registration;€orÐ  p ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(b)€€not€required€to€be€registered.Ð øH ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(9)€€In€accordance€with€Title€63G,€Chapter€3,€Utah€Administrative€Rulemaking€Act,€theÐ Ð  Ðdivision€may€establish€rules€to€govern€the€conduct€of€a€hearing€permitted€by€this€section€inÐ ¼  Ðaccordance€with€Sections€Ý‚}ÿÝÝ  Ý61-1-18.5Ý‚}ÿÙq‚ÝÝ  Ý€and€Ý‚}ÿÝÝ  Ý61-1-24Ý‚}ÿ%r‚ÝÝ  Ý.Ð ¨ø ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(10)€€This€section€is€intended€to€provide€for€a€fairness€hearing€that€satisfies€the€requirements€ofÐ €Ð ÐSecurities€Act€of€1933,€Section€3(a)(10),€15€U.S.C.€Section€77c(a)(10),€or€any€comparable€sectionÐ l¼ Ðthat€may€subsequently€be€enacted.Ô#†,X`,XXX`,íd#ÔÐ X ¨ ÐÌÔ‡,ôÜòX,X`,ÔHistory:€As€last€amended€by€Chapter€351,€Laws€of€Utah€2009Ô#†,X`,Xò,ôÜðs#ÔÐ 0"€  ÐÌò òÔ  Ô61-1-12.€Denial,€suspension,€and€revocation€of€registration.ó óÔ ¼…tÔÐ à#0" Ðà Ü àÔ‡X`,XX,X`,Ô(1)€€Upon€approval€by€a€majority€of€the€commission,€the€director,€by€means€of€an€adjudicativeÐ Ì$ # Ðproceeding€conducted€in€accordance€with€Title€63G,€Chapter€4,€Administrative€Procedures€Act,Ð ¸%!$ Ðmay€issue€a€stop€order€that€denies€effectiveness€to,€or€suspends€or€revokes€the€effectiveness€of,Ð ¤&ô!% Ðany€securities€registration€statement€and€may€impose€a€fine€if€the€director€finds€that€the€order€is€inÐ 'à"& Ðthe€public€interest€and€that:Ð |(Ì#' ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(a)€€the€registration€statement,€as€of€its€effective€date€or€as€of€any€earlier€date€in€the€case€of€anÐ T*¤%) Ðorder€denying€effectiveness,€or€an€amendment€under€Subsection€Ý‚}ÿÝÝ  Ý61-1-11Ý‚}ÿ xƒÝÝ  Ý(10)€as€of€its€effectiveÐ @+&* Ðdate,€or€a€report€under€Subsection€Ý‚}ÿÝÝ  Ý61-1-11Ý‚}ÿŸxƒÝÝ  Ý(9),€is€incomplete€in€a€material€respect,€or€contains€aÐ ,,|'+ Ðstatement€that€was,€in€the€light€of€the€circumstances€under€which€it€was€made,€false€or€misleadingÐ ° Ðwith€respect€to€a€material€fact;Ð œì ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(b)€€this€chapter,€or€a€rule,€order,€or€condition€lawfully€imposed€under€this€chapter,€is€willfullyÐ tÄ Ðviolated,€in€connection€with€the€offering,€by:Ð `° ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(i)€€the€person€filing€the€registration€statement;Ð 8 ˆ ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(ii)€€the€issuer,€a€partner,€officer,€or€director€of€the€issuer,€a€person€occupying€a€similar€statusÐ  ` Ðor€performing€similar€functions,€or€a€person€directly€or€indirectly€controlling€or€controlled€by€theÐ ü L  Ðissuer,€but€only€if€the€person€filing€the€registration€statement€is€directly€or€indirectly€controlled€byÐ è 8  Ðor€acting€for€the€issuer;€orÐ Ô$  ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(iii)€€an€underwriter;Ð ¬ü  ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(c)€€subject€to€Subsection€(5),€the€security€registered€or€sought€to€be€registered€is€the€subject€ofÐ „Ô  Ðan€administrative€stop€order€or€similar€order,€or€a€permanent€or€temporary€injunction€of€a€court€ofÐ pÀ Ðcompetent€jurisdiction€entered€under€another€federal€or€state€act€applicable€to€the€offering;Ð \¬ ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(d)€€the€issuer's€enterprise€or€method€of€business€includes€or€would€include€activities€that€areÐ 4„ Ðillegal€where€performed;Ð  p ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(e)€€the€offering€has€worked€or€tended€to€work€a€fraud€upon€purchasers€or€would€so€operate;Ð øH ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(f)€€the€offering€is€or€would€be€made€with€unreasonable€amounts€of€underwriters'€and€sellers'Ð Ð  Ðdiscounts,€commissions,€or€other€compensation,€or€promoters'€profits€or€participation,€orÐ ¼  Ðunreasonable€amounts€or€kinds€of€options;Ð ¨ø ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(g)€€when€a€security€is€sought€to€be€registered€by€coordination,€there€is€a€failure€to€comply€withÐ €Ð Ðthe€undertaking€required€by€Subsection€Ý‚}ÿÝÝ  Ý61-1-9Ý‚}ÿB‚ƒÝÝ  Ý(2)(d);€orÐ l¼ ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(h)€€the€applicant€or€registrant€has€failed€to€pay€the€proper€filing€fee.Ð D!” ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(2)€€The€director€may€enter€an€order€under€this€section€but€may€vacate€the€order€if€the€directorÐ #l! Ðfinds€that€the€conditions€that€prompted€its€entry€have€changed€or€that€it€is€otherwise€in€the€publicÐ $X" Ðinterest€to€do€so.Ð ô$D # ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(3)€€The€director€may€not€issue€a€stop€order€against€an€effective€registration€statement€on€theÐ Ì&"% Ðbasis€of€a€fact€or€transaction€known€to€the€division€when€the€registration€statement€becameÐ ¸'#& Ðeffective€unless€the€proceeding€is€instituted€within€the€120€days€after€the€day€on€which€theÐ ¤(ô#' Ðregistration€statement€becomes€effective.Ð )à$( ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(4)€€A€person€may€not€be€considered€to€have€violated€Section€Ý‚}ÿÝÝ  Ý61-1-7Ý‚}ÿˆ†ƒÝÝ  Ý€or€Ý‚}ÿÝÝ  Ý61-1-15Ý‚}ÿІƒÝÝ  Ý€by€reason€ofÐ h+¸&* Ðan€order€or€sale€effected€after€the€entry€of€an€order€under€this€section€if€that€person€proves€by€aÐ ° Ðpreponderance€of€the€evidence€that€the€person€did€not€know,€and€in€the€exercise€of€reasonable€careÐ œì Ðcould€not€have€known,€of€the€order.Ð ˆØ ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(5)€(a)€€The€director€may€not€commence€agency€action€against€an€effective€registrationÐ `° Ðstatement€under€Subsection€(1)(c)€more€than€one€year€from€the€day€on€which€the€order€orÐ L œ Ðinjunction€on€which€the€director€relies€is€issued.Ð 8 ˆ ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(b)€€The€director€may€not€enter€an€order€under€Subsection€(1)(c)€on€the€basis€of€an€order€orÐ  ` Ðinjunction€entered€under€the€securities€act€of€another€state€unless€that€order€or€injunction€is€issuedÐ ü L  Ðon€the€basis€of€facts€that€would€constitute€a€ground€for€a€stop€order€under€this€section€at€the€timeÐ è 8  Ðthe€director€commences€the€agency€action.Ô#†,X`,XXX`,u#ÔÐ Ô$  ÐÌÔ‡,òÜòX,X`,ÔHistory:€As€last€amended€by€Chapter€351,€Laws€of€Utah€2009.Ð ¬ü  ÐÔ#†,X`,Xò,òÜ“‹#ÔÔ‡,òÜòX,X`,ÔAdministrative€Rules:€This€section€is€cited€in€or€interpreted€by€the€following€administrative€rule(s):€R164-10,€R164„Ð pÀ  Ð18.Ð 4„  ÐÔ#†,X`,Xò,òÜ%Œ#ÔÌò òÔ  Ô61-1-13.€Definitions.ó óÔ „ ÔÐ ä4 ÐÔ‡X`,XX,X`,Ô(1)€€As€used€in€this€chapter:Ð Ð  ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(a)€€"Affiliate"€means€a€person€that,€directly€or€indirectly,€through€one€or€more€intermediaries,Ð ¨ø Ðcontrols€or€is€controlled€by,€or€is€under€common€control€with€a€person€specified.Ð ”ä ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(b)€(i)€€"Agent"€means€an€individual€other€than€a€broker-dealer€who€represents€a€broker-dealerÐ l¼ Ðor€issuer€in€effecting€or€attempting€to€effect€purchases€or€sales€of€securities.Ð X¨ ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(ii)€€"Agent"€does€not€include€an€individual€who€represents:Ð 0€ ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(A)€€an€issuer,€who€receives€no€commission€or€other€remuneration,€directly€or€indirectly,€forÐ X Ðeffecting€or€attempting€to€effect€purchases€or€sales€of€securities€in€this€state,€and€who€effectsÐ ôD Ðtransactions:Ð à0 ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(I)€€in€securities€exempted€by€Subsection€Ý‚}ÿÝÝ  Ý61-1-14Ý‚}ÿ¬‘ƒÝÝ  Ý(1)(a),€(b),€(c),€or€(g);Ð ¸!  ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(II)€€exempted€by€Subsection€Ý‚}ÿÝÝ  Ý61-1-14Ý‚}ÿd’ƒÝÝ  Ý(2);Ð #à" ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(III)€€in€a€covered€security€as€described€in€Sections€18(b)(3)€and€18(b)(4)(D)€of€the€SecuritiesÐ h%¸ $ ÐAct€of€1933;€orÐ T&¤!% ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(IV)€€with€existing€employees,€partners,€officers,€or€directors€of€the€issuer;€orÐ ,(|#' ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(B)€€a€broker-dealer€in€effecting€transactions€in€this€state€limited€to€those€transactionsÐ *T%) Ðdescribed€in€Section€15(h)(2)€of€the€Securities€Exchange€Act€of€1934.Ð ð*@&* ÐÐ Ü+,'+ ÐÝ ƒ _PÿÝà Ü àÝ  Ý(iii)€€A€partner,€officer,€or€director€of€a€broker-dealer€or€issuer,€or€a€person€occupying€a€similarÐ ° Ðstatus€or€performing€similar€functions,€is€an€agent€only€if€the€partner,€officer,€director,€or€personÐ œì Ðotherwise€comes€within€the€definition€of€"agent."Ð ˆØ ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(iv)€€"Agent"€does€not€include€a€person€described€in€Subsection€(3).Ð `° ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(c)€(i)€€"Broker-dealer"€means€a€person€engaged€in€the€business€of€effecting€transactions€inÐ 8 ˆ Ðsecurities€for€the€account€of€others€or€for€the€person's€own€account.Ð $ t ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(ii)€€"Broker-dealer"€does€not€include:Ð ü L  ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(A)€€an€agent;Ð Ô$  ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(B)€€an€issuer;Ð ¬ü  ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(C)€€a€depository€institution€or€trust€company;Ð „Ô  ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(D)€€a€person€who€has€no€place€of€business€in€this€state€ifÐ \¬ ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(I)€€the€person€effects€transactions€in€this€state€exclusively€with€or€through:Ð 4„ ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(Aa)€€the€issuers€of€the€securities€involved€in€the€transactions;Ð  \ ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(Bb)€€other€broker-dealers;Ð ä4 ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(Cc)€€a€depository€institution,€whether€acting€for€itself€or€as€a€trustee;Ð ¼  ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(Dd)€€a€trust€company,€whether€acting€for€itself€or€as€a€trustee;Ð ”ä ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(Ee)€€an€insurance€company,€whether€acting€for€itself€or€as€a€trustee;Ð l¼ ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(Ff)€€an€investment€company,€as€defined€in€the€Investment€Company€Act€of€1940,€whetherÐ D!” Ðacting€for€itself€or€as€a€trustee;Ð 0"€  ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(Gg)€€a€pension€or€profit-sharing€trust,€whether€acting€for€itself€or€as€a€trustee;€orÐ $X" ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(Hh)€€another€financial€institution€or€institutional€buyer,€whether€acting€for€itself€or€as€aÐ à%0!$ Ðtrustee;€orÐ Ì&"% ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(II)€€during€any€period€of€12€consecutive€months€the€person€does€not€direct€more€than€15Ð ¤(ô#' Ðoffers€to€sell€or€buy€into€this€state€in€any€manner€to€persons€other€than€those€specified€inÐ )à$( ÐSubsection€(1)(c)(ii)(D)(I),€whether€or€not€the€offeror€or€an€offeree€is€then€present€in€this€state;Ð |*Ì%) ÐÐ h+¸&* ÐÝ ƒ _PÿÝà Ü àÝ  Ý(E)€€a€general€partner€who€organizes€and€effects€transactions€in€securities€of€three€or€fewerÐ ° Ðlimited€partnerships,€of€which€the€person€is€the€general€partner,€in€any€period€of€12€consecutiveÐ œì Ðmonths;Ð ˆØ ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(F)€€a€person€whose€participation€in€transactions€in€securities€is€confined€to€those€transactionsÐ `° Ðmade€by€or€through€a€broker-dealer€licensed€in€this€state;Ð L œ ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(G)€€a€person€who€is€a€real€estate€broker€licensed€in€this€state€and€who€effects€transactions€in€aÐ $ t Ðbond€or€other€evidence€of€indebtedness€secured€by€a€real€or€chattel€mortgage€or€deed€of€trust,€orÐ  ` Ðby€an€agreement€for€the€sale€of€real€estate€or€chattels,€if€the€entire€mortgage,€deed€or€trust,€orÐ ü L  Ðagreement,€together€with€all€the€bonds€or€other€evidences€of€indebtedness€secured€thereby,€isÐ è 8  Ðoffered€and€sold€as€a€unit;Ð Ô$  ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(H)€€a€person€effecting€transactions€in€commodity€contracts€or€commodity€options;Ð ¬ü  ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(I)€€a€person€described€in€Subsection€(3);€orÐ „Ô  ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(J)€€other€persons€as€the€division,€by€rule€or€order,€may€designate,€consistent€with€the€publicÐ \¬ Ðinterest€and€protection€of€investors,€as€not€within€the€intent€of€this€Subsection€(1)ðð.Ð H˜ ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(d)€€"Buy"€or€"purchase"€means€a€contract€for€purchase€of,€contract€to€buy,€or€acquisition€of€aÐ  p Ðsecurity€or€interest€in€a€security€for€value.Ð  \ ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(e)€€"Commission"€means€the€Securities€Commission€created€in€Section€Ý‚}ÿÝÝ  Ý61-1-18.5Ý‚}ÿó§ƒÝÝ  Ý.Ð ä4 ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(f)€€"Commodity"€means,€except€as€otherwise€specified€by€the€division€by€rule:Ð ¼  ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(i)€€an€agricultural,€grain,€or€livestock€product€or€byproduct,€except€real€property€or€a€timber,Ð ”ä Ðagricultural,€or€livestock€product€grown€or€raised€on€real€property€and€offered€or€sold€by€theÐ €Ð Ðowner€or€lessee€of€the€real€property;Ð l¼ ÐÝ ƒ _PÿÝà Ü àÝ  Ý(ii)€€a€metal€or€mineral,€including€a€precious€metal,€except€a€numismatic€coin€whose€fairÐ X ¨ Ðmarket€value€is€at€least€15%€greater€than€the€value€of€the€metal€it€contains;Ð D!” ÐÝ ƒ _PÿÝà Ü àÝ  Ý(iii)€€a€gem€or€gemstone,€whether€characterized€as€precious,€semi-precious,€or€otherwise;Ð 0"€  ÐÝ ƒ _PÿÝà Ü àÝ  Ý(iv)€€a€fuel,€whether€liquid,€gaseous,€or€otherwise;Ð #l! ÐÝ ƒ _PÿÝà Ü àÝ  Ý(v)€€a€foreign€currency;€andÐ $X" ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(vi)€€all€other€goods,€articles,€products,€or€items€of€any€kind,€except€a€work€of€art€offered€orÐ à%0!$ Ðsold€by€art€dealers,€at€public€auction€or€offered€or€sold€through€a€private€sale€by€the€owner€of€theÐ Ì&"% Ðwork.Ð ¸'#& ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(g)€(i)€€"Commodity€contract"€means€an€account,€agreement,€or€contract€for€the€purchase€orÐ )à$( Ðsale,€primarily€for€speculation€or€investment€purposes€and€not€for€use€or€consumption€by€theÐ |*Ì%) Ðofferee€or€purchaser,€of€one€or€more€commodities,€whether€for€immediate€or€subsequent€deliveryÐ h+¸&* Ðor€whether€delivery€is€intended€by€the€parties,€and€whether€characterized€as€a€cash€contract,Ð ° Ðdeferred€shipment€or€deferred€delivery€contract,€forward€contract,€futures€contract,€installment€orÐ œì Ðmargin€contract,€leverage€contract,€or€otherwise.Ð ˆØ ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(ii)€€A€commodity€contract€offered€or€sold€shall,€in€the€absence€of€evidence€to€the€contrary,€beÐ `° Ðpresumed€to€be€offered€or€sold€for€speculation€or€investment€purposes.Ð L œ ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(iii)€(A)€€A€commodity€contract€may€not€include€a€contract€or€agreement€that€requires,€andÐ $ t Ðunder€which€the€purchaser€receives,€within€28€calendar€days€from€the€payment€in€good€funds€anyÐ  ` Ðportion€of€the€purchase€price,€physical€delivery€of€the€total€amount€of€each€commodity€to€beÐ ü L  Ðpurchased€under€the€contract€or€agreement.Ð è 8  ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(B)€€A€purchaser€is€not€considered€to€have€received€physical€delivery€of€the€total€amount€ofÐ À  Ðeach€commodity€to€be€purchased€under€the€contract€or€agreement€when€the€commodity€orÐ ¬ü  Ðcommodities€are€held€as€collateral€for€a€loan€or€are€subject€to€a€lien€of€any€person€when€the€loanÐ ˜è  Ðor€lien€arises€in€connection€with€the€purchase€of€each€commodity€or€commodities.Ð „Ô  ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(h)€(i)€€"Commodity€option"€means€an€account,€agreement,€or€contract€giving€a€party€to€theÐ \¬ Ðoption€the€right€but€not€the€obligation€to€purchase€or€sell€one€or€more€commodities€or€one€or€moreÐ H˜ Ðcommodity€contracts,€or€both€whether€characterized€as€an€option,€privilege,€indemnity,€bid,€offer,Ð 4„ Ðput,€call,€advance€guaranty,€decline€guaranty,€or€otherwise.Ð  p ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(ii)€€"Commodity€option"€does€not€include€an€option€traded€on€a€national€securities€exchangeÐ øH Ðregistered:Ð ä4 ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(A)€€with€the€Securities€and€Exchange€Commission;€orÐ ¼  ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(B)€€on€a€board€of€trade€designated€as€a€contract€market€by€the€Commodity€Futures€TradingÐ ”ä ÐCommission.Ð €Ð ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(i)€€"Depository€institution"€is€as€defined€in€Section€Ý‚}ÿÝÝ  Ý7-1-103Ý‚}ÿú¸ÝÝÝ  Ý.Ð X ¨ ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(j)€€"Director"€means€the€director€of€the€division€appointed€in€accordance€with€SectionÐ 0"€  ÐÝ‚}ÿÝÝ  Ý61-1-18Ý‚}ÿé¹,ÝÝ  Ý.Ð #l! ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(k)€€"Division"€means€the€Division€of€Securities€established€by€Section€Ý‚}ÿÝÝ  Ý61-1-18Ý‚}ÿ´ºe€boÝÝ  Ý.Ð ô$D # ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(l)€€"Executive€director"€means€the€executive€director€of€the€Department€of€Commerce.Ð Ì&"% ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(m)€€"Federal€covered€adviser"€means€a€person€who:Ð ¤(ô#' ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(i)€€is€registered€under€Section€203€of€the€Investment€Advisers€Act€of€1940;€orÐ |*Ì%) ÐÐ h+¸&* ÐÝ ƒ _PÿÝà Ü àÝ  Ý(ii)€€is€excluded€from€the€definition€of€"investment€adviser"€under€Section€202(a)(11)€of€theÐ ° ÐInvestment€Advisers€Act€of€1940.Ð œì ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(n)€€"Federal€covered€security"€means€a€security€that€is€a€covered€security€under€Section€18(b)Ð tÄ Ðof€the€Securities€Act€of€1933€or€rules€or€regulations€promulgated€under€Section€18(b)€of€theÐ `° ÐSecurities€Act€of€1933.Ð L œ ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(o)€€"Fraud,"€"deceit,"€and€"defraud"€are€not€limited€to€their€common-law€meanings.Ð $ t ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(p)€€"Guaranteed"€means€guaranteed€as€to€payment€of€principal€or€interest€as€to€debt€securities,Ð ü L  Ðor€dividends€as€to€equity€securities.Ð è 8  ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(q)€(i)€€"Investment€adviser"€means€a€person€who:Ð À  ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(A)€€for€compensation,€engages€in€the€business€of€advising€others,€either€directly€or€throughÐ ˜è  Ðpublications€or€writings,€as€to€the€value€of€securities€or€as€to€the€advisability€of€investing€in,Ð „Ô  Ðpurchasing,€or€selling€securities;€orÐ pÀ ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(B)€€for€compensation€and€as€a€part€of€a€regular€business,€issues€or€promulgates€analyses€orÐ H˜ Ðreports€concerning€securities.Ð 4„ ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(ii)€€"Investment€adviser"€includes€a€financial€planner€or€other€person€who:Ð  \ ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(A)€€as€an€integral€component€of€other€financially€related€services,€provides€the€investmentÐ ä4 Ðadvisory€services€described€in€Subsection€(1)(q)(i)€to€others€for€compensation€and€as€part€of€aÐ Ð  Ðbusiness;€orÐ ¼  ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(B)€holds€the€person€out€as€providing€the€investment€advisory€services€described€in€SubsectionÐ ”ä Ð(1)(q)(i)€to€others€for€compensation.Ð €Ð ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(iii)€€"Investment€adviser"€does€not€include:Ð X ¨ ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(A)€€an€investment€adviser€representative;Ð 0"€  ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(B)€€a€depository€institution€or€trust€company;Ð $X" ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(C)€€a€lawyer,€accountant,€engineer,€or€teacher€whose€performance€of€these€services€is€solelyÐ à%0!$ Ðincidental€to€the€practice€of€the€profession;Ð Ì&"% ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(D)€€a€broker-dealer€or€its€agent€whose€performance€of€these€services€is€solely€incidental€to€theÐ ¤(ô#' Ðconduct€of€its€business€as€a€broker-dealer€and€who€receives€no€special€compensation€for€theÐ )à$( Ðservices;Ð |*Ì%) ÐÐ h+¸&* ÐÝ ƒ _PÿÝà Ü àÝ  Ý(E)€€a€publisher€of€a€bona€fide€newspaper,€news€column,€news€letter,€news€magazine,€orÐ ° Ðbusiness€or€financial€publication€or€service,€of€general,€regular,€and€paid€circulation,€whetherÐ œì Ðcommunicated€in€hard€copy€form,€or€by€electronic€means,€or€otherwise,€that€does€not€consist€ofÐ ˆØ Ðthe€rendering€of€advice€on€the€basis€of€the€specific€investment€situation€of€each€client;Ð tÄ ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(F)€€a€person€who€is€a€federal€covered€adviser;Ð L œ ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(G)€€a€person€described€in€Subsection€(3);€orÐ $ t ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(H)€€such€other€persons€not€within€the€intent€of€this€Subsection€(1)(q)€as€the€division€may€byÐ ü L  Ðrule€or€order€designate.Ð è 8  ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(r)€(i)€€"Investment€adviser€representative"€means€a€partner,€officer,€director€of,€or€a€personÐ À  Ðoccupying€a€similar€status€or€performing€similar€functions,€or€other€individual,€except€clerical€orÐ ¬ü  Ðministerial€personnel,€who:Ð ˜è  ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(A)€(I)€€is€employed€by€or€associated€with€an€investment€adviser€who€is€licensed€or€required€toÐ pÀ Ðbe€licensed€under€this€chapter;€orÐ \¬ ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(II)€€has€a€place€of€business€located€in€this€state€and€is€employed€by€or€associated€with€aÐ 4„ Ðfederal€covered€adviser;€andÐ  p ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(B)€€does€any€of€the€followingÐ øH ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(I)€€makes€a€recommendation€or€otherwise€renders€advice€regarding€securitiesÐ Ð  ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(II)€€manages€accounts€or€portfolios€of€clients;Ð ¨ø ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(III)€€determines€which€recommendation€or€advice€regarding€securities€should€be€given;Ð €Ð ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(IV)€€solicits,€offers,€or€negotiates€for€the€sale€of€or€sells€investment€advisory€services;€orÐ X ¨ ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(V)€€supervises€employees€who€perform€any€of€the€acts€described€in€this€SubsectionÐ 0"€  Ð(1)(r)(i)(B).Ð #l! ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(ii)€€"Investment€adviser€representative"€does€not€include€a€person€described€in€Subsection€(3).Ð ô$D # ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(s)€€"Investment€contract"€includes:Ð Ì&"% ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(i)€€an€investment€in€a€common€enterprise€with€the€expectation€of€profit€to€be€derived€throughÐ ¤(ô#' Ðthe€essential€managerial€efforts€of€someone€other€than€the€investor;€orÐ )à$( ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(ii)€€an€investment€by€which:Ð h+¸&* Ð‡Ý ƒ _PÿÝà Ü àÝ  Ý(A)€€an€offeree€furnishes€initial€value€to€an€offerer;Ð ° ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(B)€€a€portion€of€the€initial€value€is€subjected€to€the€risks€of€the€enterprise;Ð ˆØ ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(C)€€the€furnishing€of€the€initial€value€is€induced€by€the€offerer's€promises€or€representationsÐ `° Ðthat€give€rise€to€a€reasonable€understanding€that€a€valuable€benefit€of€some€kind€over€and€aboveÐ L œ Ðthe€initial€value€will€accrue€to€the€offeree€as€a€result€of€the€operation€of€the€enterprise;€andÐ 8 ˆ ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(D)€€the€offeree€does€not€receive€the€right€to€exercise€practical€or€actual€control€over€theÐ  ` Ðmanagerial€decisions€of€the€enterprise.Ð ü L  ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(t)€€"Isolated€transaction"€means€not€more€than€a€total€of€two€transactions€that€occur€anywhereÐ Ô$  Ðduring€six€consecutive€months.Ð À  ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(u)€(i)€€"Issuer"€means€a€person€who€issues€or€proposes€to€issue€a€security€or€has€outstanding€aÐ ˜è  Ðsecurity€that€it€has€issued.Ð „Ô  ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(ii)€€With€respect€to€a€preorganization€certificate€or€subscription,€"issuer"€means€the€one€orÐ \¬ Ðmore€promoters€of€the€person€to€be€organized.Ð H˜ ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(iii)€€"Issuer"€means€the€one€or€more€persons€performing€the€acts€and€assuming€duties€of€aÐ  p Ðdepositor€or€manager€under€the€provisions€of€the€trust€or€other€agreement€or€instrument€underÐ  \ Ðwhich€the€security€is€issued€with€respect€to:Ð øH ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(A)€€interests€in€trusts,€including€collateral€trust€certificates,€voting€trust€certificates,€andÐ Ð  Ðcertificates€of€deposit€for€securities;€orÐ ¼  ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(B)€€shares€in€an€investment€company€without€a€board€of€directors.Ð ”ä ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(iv)€€With€respect€to€an€equipment€trust€certificate,€a€conditional€sales€contract,€or€similarÐ l¼ Ðsecurities€serving€the€same€purpose,€"issuer"€means€the€person€by€whom€the€equipment€orÐ X ¨ Ðproperty€is€to€be€used.Ð D!” ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(v)€€With€respect€to€interests€in€partnerships,€general€or€limited,€"issuer"€means€the€partnershipÐ #l! Ðitself€and€not€the€general€partner€or€partners.Ð $X" ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(vi)€€With€respect€to€certificates€of€interest€or€participation€in€oil,€gas,€or€mining€titles€or€leasesÐ à%0!$ Ðor€in€payment€out€of€production€under€the€titles€or€leases,€"issuer"€means€the€owner€of€the€title€orÐ Ì&"% Ðlease€or€right€of€production,€whether€whole€or€fractional,€who€creates€fractional€interests€thereinÐ ¸'#& Ðfor€the€purpose€of€sale.Ð ¤(ô#' ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(v)€(i)€€"Life€settlement€interest"€means€the€entire€interest€or€a€fractional€interest€in€any€of€theÐ |*Ì%) Ðfollowing€that€is€the€subject€of€a€life€settlement:Ð h+¸&* Ð‡Ý ƒ _PÿÝà Ü àÝ  Ý(A)€€a€policy;€orÐ ° ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(B)€€the€death€benefit€under€a€policy.Ð ˆØ ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(ii)€€"Life€settlement€interest"€does€not€include€the€initial€purchase€from€the€owner€by€a€lifeÐ `° Ðsettlement€provider.Ð L œ ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(w)€€"Nonissuer"€means€not€directly€or€indirectly€for€the€benefit€of€the€issuer.Ð $ t ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(x)€€"Person"€means:Ð ü L  ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(i)€€an€individual;Ð Ô$  ÐÝ ƒ _PÿÝà Ü àÝ  Ý(ii)€€a€corporation;Ð À  ÐÝ ƒ _PÿÝà Ü àÝ  Ý(iii)€€a€partnership;Ð ¬ü  ÐÝ ƒ _PÿÝà Ü àÝ  Ý(iv)€€a€limited€liability€company;Ð ˜è  ÐÝ ƒ _PÿÝà Ü àÝ  Ý(v)€€an€association;Ð „Ô  ÐÝ ƒ _PÿÝà Ü àÝ  Ý(vi)€€a€joint-stock€company;Ð pÀ ÐÝ ƒ _PÿÝà Ü àÝ  Ý(vii)€€a€joint€venture;Ð \¬ ÐÝ ƒ _PÿÝà Ü àÝ  Ý(viii)€€a€trust€where€the€interests€of€the€beneficiaries€are€evidenced€by€a€security;Ð H˜ ÐÝ ƒ _PÿÝà Ü àÝ  Ý(ix)€€an€unincorporated€organization;Ð 4„ ÐÝ ƒ _PÿÝà Ü àÝ  Ý(x)€€a€government;€orÐ  p ÐÝ ƒ _PÿÝà Ü àÝ  Ý(xi)€€a€political€subdivision€of€a€government.Ð  \ ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(y)€€"Precious€metal"€means€the€following,€whether€in€coin,€bullion,€or€other€form:Ð ä4 ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(i)€€silver;Ð ¼  ÐÝ ƒ _PÿÝà Ü àÝ  Ý(ii)€€gold;Ð ¨ø ÐÝ ƒ _PÿÝà Ü àÝ  Ý(iii)€€platinum;Ð ”ä ÐÝ ƒ _PÿÝà Ü àÝ  Ý(iv)€€palladium;Ð €Ð ÐÝ ƒ _PÿÝà Ü àÝ  Ý(v)€€copper;€andÐ l¼ ÐÝ ƒ _PÿÝà Ü àÝ  Ý(vi)€€such€other€substances€as€the€division€may€specify€by€rule.Ð X ¨ ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(z)€€"Promoter"€means€a€person€who,€acting€alone€or€in€concert€with€one€or€more€persons,Ð 0"€  Ðtakes€initiative€in€founding€or€organizing€the€business€or€enterprise€of€a€personÐ #l! ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(aa)€(i)€€Except€as€provided€in€Subsection€(1)(aa)(ii),€"record"€means€information€that€is:Ð ô$D # ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(A)€€inscribed€in€a€tangible€medium;€orÐ Ì&"% ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(B)€(I)€€stored€in€an€electronic€or€other€medium;€andÐ ¤(ô#' ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(II)€€retrievable€in€perceivable€form.Ð |*Ì%) ÐÐ h+¸&* ÐÝ ƒ _PÿÝà Ü àÝ  Ý(ii)€€This€Subsection€(1)(aa)€does€not€apply€when€the€context€requires€otherwise,€includingÐ ° Ðwhen€"record"€is€used€in€the€following€phrases:Ð œì ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(A)€€"of€record";Ð tÄ ÐÝ ƒ _PÿÝà Ü àÝ  Ý(B)€€"official€record";€orÐ `° ÐÝ ƒ _PÿÝà Ü àÝ  Ý(C)€€"public€record."Ð L œ ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(bb)€(i)€€"Sale"€or€"sell"€includes€a€contract€for€sale€of,€contract€to€sell,€or€disposition€of,€aÐ $ t Ðsecurity€or€interest€in€a€security€for€value.Ð  ` ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(ii)€€"Offer"€or€"offer€to€sell"€includes€an€attempt€or€offer€to€dispose€of,€or€solicitation€of€anÐ è 8  Ðoffer€to€buy,€a€security€or€interest€in€a€security€for€value.Ð Ô$  ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(iii)€€The€following€are€examples€of€the€definitions€in€Subsection€(1)(bb)(i)€or€(ii):Ð ¬ü  ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(A)€€a€security€given€or€delivered€with€or€as€a€bonus€on€account€of€a€purchase€of€a€security€orÐ „Ô  Ðany€other€thing,€is€part€of€the€subject€of€the€purchase,€and€is€offered€and€sold€for€value;Ð pÀ ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(B)€€a€purported€gift€of€assessable€stock€is€an€offer€or€sale€as€is€each€assessment€levied€on€theÐ H˜ Ðstock;Ð 4„ ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(C)€€an€offer€or€sale€of€a€security€that€is€convertible€into,€or€entitles€its€holder€to€acquire€orÐ  \ Ðsubscribe€to€another€security€of€the€same€or€another€issuer€is€an€offer€or€sale€of€that€security,€andÐ øH Ðalso€an€offer€of€the€other€security,€whether€the€right€to€convert€or€acquire€is€exercisableÐ ä4 Ðimmediately€or€in€the€future;Ð Ð  ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(D)€€a€conversion€or€exchange€of€one€security€for€another€constitutes€an€offer€or€sale€of€theÐ ¨ø Ðsecurity€received€in€a€conversion€or€exchange,€and€the€offer€to€buy€or€the€purchase€of€the€securityÐ ”ä Ðconverted€or€exchanged;Ð €Ð ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(E)€€securities€distributed€as€a€dividend€wherein€the€person€receiving€the€dividend€surrendersÐ X ¨ Ðthe€right,€or€the€alternative€right,€to€receive€a€cash€or€property€dividend€is€an€offer€or€sale;Ð D!” ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(F)€€a€dividend€of€a€security€of€another€issuer€is€an€offer€or€sale;€orÐ #l! ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(G)€€the€issuance€of€a€security€under€a€merger,€consolidation,€reorganization,€recapitalization,Ð ô$D # Ðreclassification,€or€acquisition€of€assets€constitutes€the€offer€or€sale€of€the€security€issued€as€wellÐ à%0!$ Ðas€the€offer€to€buy€or€the€purchase€of€a€security€surrendered€in€connection€therewith,€unless€theÐ Ì&"% Ðsole€purpose€of€the€transaction€is€to€change€the€issuer's€domicile.Ð ¸'#& ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(iv)€€The€terms€defined€in€Subsections€(1)(bb)(i)€and€(ii)€do€not€include:Ð )à$( ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(A)€€a€good€faith€gift;Ð h+¸&* ÐÝ ƒ _PÿÝà Ü àÝ  Ý(B)€€a€transfer€by€death;Ð ° ÐÝ ƒ _PÿÝà Ü àÝ  Ý(C)€€a€transfer€by€termination€of€a€trust€or€of€a€beneficial€interest€in€a€trust;Ð œì ÐÝ ƒ _PÿÝà Ü àÝ  Ý(D)€€a€security€dividend€not€within€Subsection€(1)(bb)(iii)(E)€or€(F);€orÐ ˆØ ÐÝ ƒ _PÿÝà Ü àÝ  Ý(E)€€a€securities€split€or€reverse€split.Ð tÄ ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(cc)€€"Securities€Act€of€1933,"€"Securities€Exchange€Act€of€1934,"€and€"Investment€CompanyÐ L œ ÐAct€of€1940"€mean€the€federal€statutes€of€those€names€as€amended€before€or€after€the€effectiveÐ 8 ˆ Ðdate€of€this€chapter.Ð $ t ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(dd)€€"Securities€Exchange€Commission"€means€the€United€States€Securities€ExchangeÐ ü L  ÐCommission€created€by€the€Securities€Exchange€Act€of€1934.Ð è 8  ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(ee)€(i)€€"Security"€means€a:Ð À  ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(A)€€note;Ð ˜è  ÐÝ ƒ _PÿÝà Ü àÝ  Ý(B)€€stock;Ð „Ô  ÐÝ ƒ _PÿÝà Ü àÝ  Ý(C)€€treasury€stock;Ð pÀ ÐÝ ƒ _PÿÝà Ü àÝ  Ý(D)€€bond;Ð \¬ ÐÝ ƒ _PÿÝà Ü àÝ  Ý(E)€€debenture;Ð H˜ ÐÝ ƒ _PÿÝà Ü àÝ  Ý(F)€€evidence€of€indebtedness;Ð 4„ ÐÝ ƒ _PÿÝà Ü àÝ  Ý(G)€€certificate€of€interest€or€participation€in€a€profit-sharing€agreement;Ð  p ÐÝ ƒ _PÿÝà Ü àÝ  Ý(H)€€collateral-trust€certificate;Ð  \ ÐÝ ƒ _PÿÝà Ü àÝ  Ý(I)€€preorganization€certificate€or€subscription;Ð øH ÐÝ ƒ _PÿÝà Ü àÝ  Ý(J)€€transferable€share;Ð ä4 ÐÝ ƒ _PÿÝà Ü àÝ  Ý(K)€€investment€contract;Ð Ð  ÐÝ ƒ _PÿÝà Ü àÝ  Ý(L)€€burial€certificate€or€burial€contract;Ð ¼  ÐÝ ƒ _PÿÝà Ü àÝ  Ý(M)€€voting-trust€certificate;Ð ¨ø ÐÝ ƒ _PÿÝà Ü àÝ  Ý(N)€€certificate€of€deposit€for€a€security;Ð ”ä ÐÝ ƒ _PÿÝà Ü àÝ  Ý(O)€€certificate€of€interest€or€participation€in€an€oil,€gas,€or€mining€title€or€lease€or€in€paymentsÐ €Ð Ðout€of€production€under€such€a€title€or€lease;Ð l¼ ÐÝ ƒ _PÿÝà Ü àÝ  Ý(P)€€commodity€contract€or€commodity€option;Ð X ¨ ÐÝ ƒ _PÿÝà Ü àÝ  Ý(Q)€€interest€in€a€limited€liability€company;Ð D!” ÐÝ ƒ _PÿÝà Ü àÝ  Ý(R)€€life€settlement€interest;€orÐ 0"€  ÐÝ ƒ _PÿÝà Ü àÝ  Ý(S)€€in€general,€an€interest€or€instrument€commonly€known€as€a€"security,"€or€a€certificate€ofÐ #l! Ðinterest€or€participation€in,€temporary€or€interim€certificate€for,€receipt€for,€guarantee€of,€orÐ $X" Ðwarrant€or€right€to€subscribe€to€or€purchase€an€item€listed€in€Subsections€(1)(ee)(i)(A)€through€(R).Ð ô$D # ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(ii)€€"Security"€does€not€include:Ð Ì&"% ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(A)€€an€insurance€or€endowment€policy€or€annuity€contract€under€which€an€insurance€companyÐ ¤(ô#' Ðpromises€to€pay€money€in€a€lump€sum€or€periodically€for€life€or€some€other€specified€period;Ð )à$( ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(B)€€an€interest€in€a€limited€liability€company€in€which€the€limited€liability€company€is€formedÐ h+¸&* Ðas€part€of€an€estate€plan€where€all€of€the€members€are€related€by€blood€or€marriage,€or€the€personÐ ° Ðclaiming€this€exception€can€prove€that€all€of€the€members€are€actively€engaged€in€the€managementÐ œì Ðof€the€limited€liability€company;€orÐ ˆØ ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(C)€(I)€€a€whole€long-term€estate€in€real€property;Ð `° ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(II)€€an€undivided€fractionalized€long-term€estate€in€real€property€that€consists€of€ten€or€fewerÐ 8 ˆ Ðowners;€orÐ $ t ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(III)€€an€undivided€fractionalized€long-term€estate€in€real€property€that€consists€of€more€thanÐ ü L  Ðten€owners€if,€when€the€real€property€estate€is€subject€to€a€management€agreement:Ð è 8  ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(Aa)€€the€management€agreement€permits€a€simple€majority€of€owners€of€the€real€propertyÐ À  Ðestate€to€not€renew€or€to€terminate€the€management€agreement€at€the€earlier€of€the€end€of€theÐ ¬ü  Ðmanagement€agreement's€current€term,€or€180€days€after€the€day€on€which€the€owners€give€noticeÐ ˜è  Ðof€termination€to€the€manager;Ð „Ô  ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(Bb)€€the€management€agreement€prohibits,€directly€or€indirectly,€the€lending€of€the€proceedsÐ \¬ Ðearned€from€the€real€property€estate€or€the€use€or€pledge€of€its€assets€to€a€person€or€entity€affiliatedÐ H˜ Ðwith€or€under€common€control€of€the€manager;€andÐ 4„ ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(Cc)€€the€management€agreement€complies€with€any€other€requirement€imposed€by€rule€by€theÐ  \ ÐReal€Estate€Commission€under€Section€Ý‚}ÿÝÝ  Ý61-2-26Ý‚}ÿ€ ® ÝÝ  Ý.Ð øH ÐÌ€Ý ƒ _PÿÝà Ü àÝ  Ý(iii)€€For€purposes€of€Subsection€(1)(ee)(ii)(B),€evidence€that€members€vote€or€have€the€rightÐ Ð  Ðto€vote,€or€the€right€to€information€concerning€the€business€and€affairs€of€the€limited€liabilityÐ ¼  Ðcompany,€or€the€right€to€participate€in€management,€may€not€establish,€without€more,€that€allÐ ¨ø Ðmembers€are€actively€engaged€in€the€management€of€the€limited€liability€company.Ð ”ä ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(ff)€€"State"€means€a€state,€territory,€or€possession€of€the€United€States,€the€District€ofÐ l¼ ÐColumbia,€and€Puerto€Rico.Ð X ¨ ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(gg)€(i)€€"Undivided€fractionalized€long-term€estate"€means€an€ownership€interest€in€realÐ 0"€  Ðproperty€by€two€or€more€persons€that€is€a:Ð #l! ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(A)€€tenancy€in€common;€orÐ ô$D # ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(B)€€any€other€legal€form€of€undivided€estate€in€real€property€including:Ð Ì&"% ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(I)€€a€fee€estate;Ð ¤(ô#' ÐÝ ƒ _PÿÝà Ü àÝ  Ý(II)€€a€life€estate;€orÐ )à$( ÐÝ ƒ _PÿÝà Ü àÝ  Ý(III)€€other€long-term€estate.Ð |*Ì%) ÐÐ h+¸&* ÐÝ ƒ _PÿÝà Ü àÝ  Ý(ii)€€"Undivided€fractionalized€long-term€estate"€does€not€include€a€joint€tenancy.Ð ° ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(hh)€€"Whole€long-term€estate"€means€a€person€owns€or€persons€through€joint€tenancy€ownÐ ˆØ Ðreal€property€through:Ð tÄ ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(i)€€a€fee€estate;Ð L œ ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(ii)€€a€life€estate;€orÐ $ t ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(iii)€€other€long-term€estate.Ð ü L  ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(ii)€€"Working€days"€means€8€a.m.€to€5€p.m.,€Monday€through€Friday,€exclusive€of€legalÐ Ô$  Ðholidays€listed€in€Section€Ý‚}ÿÝÝ  Ý63G-1-301Ý‚}ÿH ÝÝ  Ý.Ð À  ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(2)€€A€term€not€defined€in€this€section€shall€have€the€meaning€as€established€by€division€rule.€Ð ˜è  ÐThe€meaning€of€a€term€neither€defined€in€this€section€nor€by€rule€of€the€division€shall€be€theÐ „Ô  Ðmeaning€commonly€accepted€in€the€business€community.Ð pÀ ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(3)€(a)€€This€Subsection€(3)€applies€to:Ð H˜ ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(i)€€the€offer€or€sale€of€a€real€property€estate€exempted€from€the€definition€of€security€underÐ  p ÐSubsection€(1)(ee)(ii)(C);€orÐ  \ ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(ii)€€the€offer€or€sale€of€an€undivided€fractionalized€long-term€estate€that€is€the€offer€of€aÐ ä4 Ðsecurity.Ð Ð  ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(b)€€A€person€who,€directly€or€indirectly€receives€compensation€in€connection€with€the€offer€orÐ ¨ø Ðsale€as€provided€in€this€Subsection€(3)€of€a€real€property€estate€is€not€an€agent,€broker-dealer,Ð ”ä Ðinvestment€adviser,€or€investment€adviser€representative€under€this€chapter€if€that€person€isÐ €Ð Ðlicensed€under€Chapter€2,€Division€of€Real€Estate,€as:Ð l¼ ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(i)€€a€principal€real€estate€broker;Ð D!” ÐÝ ƒ _PÿÝà Ü àÝ  Ý(ii)€€an€associate€real€estate€broker;€orÐ 0"€  ÐÝ ƒ _PÿÝà Ü àÝ  Ý(iii)€€a€real€estate€sales€agent.Ð #l! ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(4)€€The€list€of€real€property€estates€excluded€from€the€definition€of€securities€underÐ ô$D # ÐSubsection€(1)(ee)(ii)(C)€is€not€an€exclusive€list€of€real€property€estates€or€interests€that€are€not€aÐ à%0!$ Ðsecurity.Ô#†,X`,XXX`,Z#ÔÔ‡,òÜòX,X`,ÔÐ Ì&"% ÐÔ#†,X`,Xò,òÜ!#ÔÌÔ‡X`,XX,X`,ÔÔ‡ôÜòXX`,ÔHistory:€As€last€amended€by€Chapter€351,€Laws€of€Utah€2009Ô#†,ôÜòòôÜp!#ÔÔ#†,X`,Xò,ôÜ!#ÔÔ‡,òÜòX,X`,ÔÐ ¤(ô#' ÐAdministrative€Rules:€This€section€is€cited€in€or€interpreted€by€the€following€administrative€rule(s):€€R164„18.Ô#†,X`,Xò,òÜ."#ÔÐ h)¸$( ÐÌò òÔ  Ô61-1-14.€Exemptions.ó óÔ an#ÔÐ +h&* ÐÔ‡X`,XX,X`,Ô(1)€€The€following€securities€are€exempt€from€Sections€Ý‚}ÿÝÝ  Ý61-1-7Ý‚}ÿ°#ƒ/ÝÝ  Ý€and€Ý‚}ÿÝÝ  Ý61-1-15Ý‚}ÿù#ƒ/ÝÝ  Ý:Ð ,T'+ ÐÝ ƒ _PÿÝà Ü àÝ  Ý(a)€€a€security,€including€a€revenue€obligation,€issued€or€guaranteed€by€the€United€States,€aÐ ° Ðstate,€a€political€subdivision€of€a€state,€or€an€agency€or€corporate€or€other€instrumentality€of€one€orÐ œì Ðmore€of€the€foregoing,€or€a€certificate€of€deposit€for€any€of€the€foregoing;Ð ˆØ ÐÝ ƒ _PÿÝà Ü àÝ  Ý(b)€€a€security€issued€or€guaranteed€by€Canada,€a€Canadian€province,€a€political€subdivision€ofÐ tÄ Ða€Canadian€province,€an€agency€or€corporate€or€other€instrumentality€of€one€or€more€of€theÐ `° Ðforegoing,€or€another€foreign€government€with€which€the€United€States€currently€maintainsÐ L œ Ðdiplomatic€relations,€if€the€security€is€recognized€as€a€valid€obligation€by€the€issuer€or€guarantor;Ð 8 ˆ ÐÝ ƒ _PÿÝà Ü àÝ  Ý(c)€€a€security€issued€by€and€representing€an€interest€in€or€a€debt€of,€or€guaranteed€by,€aÐ $ t Ðdepository€institution€organized€under€the€laws€of€the€United€States,€or€a€depository€institution€orÐ  ` Ðtrust€company€supervised€under€the€laws€of€a€state;Ð ü L  ÐÝ ƒ _PÿÝà Ü àÝ  Ý(d)€€a€security€issued€or€guaranteed€by€a€public€utility€or€a€security€regulated€in€respect€of€itsÐ è 8  Ðrates€or€in€its€issuance€by€a€governmental€authority€of€the€United€States,€a€state,€Canada,€or€aÐ Ô$  ÐCanadian€province;Ð À  ÐÝ ƒ _PÿÝà Ü àÝ  Ý(e)€(i)€€a€federal€covered€security€specified€in€the€Securities€Act€of€1933,€Section€18(b)(1),€15Ð ¬ü  ÐU.S.C.€Section€77r(b)(1),€or€by€rule€adopted€under€that€provision;Ð ˜è  ÐÝ ƒ _PÿÝà Ü àÝ  Ý(ii)€€a€security€listed€or€approved€for€listing€on€another€securities€market€specified€by€ruleÐ „Ô  Ðunder€this€chapter;Ð pÀ ÐÝ ƒ _PÿÝà Ü àÝ  Ý(iii)€€any€of€the€following€with€respect€to€a€security€described€in€Subsection€(1)(e)(i)€or€(ii):Ð \¬ ÐÝ ƒ _PÿÝà Ü àÝ  Ý(A)€€a€put€or€a€call€option€contract;Ð H˜ ÐÝ ƒ _PÿÝà Ü àÝ  Ý(B)€€a€warrant;€orÐ 4„ ÐÝ ƒ _PÿÝà Ü àÝ  Ý(C)€€a€subscription€right€on€or€with€respect€to€the€security;Ð  p ÐÝ ƒ _PÿÝà Ü àÝ  Ý(iv)€€an€option€or€similar€derivative€security€on€a€security€or€an€index€of€securities€or€foreignÐ  \ Ðcurrencies€issued€by€a€clearing€agency€that€is:Ð øH ÐÝ ƒ _PÿÝà Ü àÝ  Ý(A)€€registered€under€the€Securities€Exchange€Act€of€1934;€andÐ ä4 ÐÝ ƒ _PÿÝà Ü àÝ  Ý(B)€€listed€or€designated€for€trading€on€a€national€securities€exchange,€or€a€facility€of€a€nationalÐ Ð  Ðsecurities€association€registered€under€the€Securities€Exchange€Act€of€1934;Ð ¼  ÐÝ ƒ _PÿÝà Ü àÝ  Ý(v)€€an€offer€or€sale,€of€the€underlying€security€in€connection€with€the€offer,€sale,€or€exercise€ofÐ ¨ø Ðan€option€or€other€security€that€was€exempt€when€the€option€or€other€security€was€written€orÐ ”ä Ðissued;€orÐ €Ð ÐÝ ƒ _PÿÝà Ü àÝ  Ý(vi)€€an€option€or€a€derivative€security€designated€by€the€Securities€and€Exchange€CommissionÐ l¼ Ðunder€Securities€Exchange€Act€of€1934,€Section€9(b),€15€U.S.C.€Section€78i(b);Ð X ¨ ÐÝ ƒ _PÿÝà Ü àÝ  Ý(f)€(i)€€a€security€issued€by€a€person€organized€and€operated€not€for€private€profit€butÐ D!” Ðexclusively€for€religious,€educational,€benevolent,€charitable,€fraternal,€social,€athletic,€orÐ 0"€  Ðreformatory€purposes,€or€as€a€chamber€of€commerce€or€trade€or€professional€association;€andÐ #l! ÐÝ ƒ _PÿÝà Ü àÝ  Ý(ii)€€a€security€issued€by€a€corporation€organized€under€Title€3,€Chapter€1,€General€ProvisionsÐ $X" ÐRelating€to€Agricultural€Cooperative€Associations,€and€a€security€issued€by€a€corporation€to€whichÐ ô$D # Ðthat€chapter€is€made€applicable€by€compliance€with€Section€Ý‚}ÿÝÝ  Ý3-1-21Ý‚}ÿ5ectiÝÝ  Ý;Ð à%0!$ ÐÝ ƒ _PÿÝà Ü àÝ  Ý(g)€€an€investment€contract€issued€in€connection€with€an€employees'€stock€purchase,€option,Ð Ì&"% Ðsavings,€pension,€profit-sharing,€or€similar€benefit€plan;Ð ¸'#& ÐÝ ƒ _PÿÝà Ü àÝ  Ý(h)€€a€security€issued€by€an€investment€company€that€is€registered,€or€that€has€filed€aÐ ¤(ô#' Ðregistration€statement,€under€the€Investment€Company€Act€of€1940;€andÐ )à$( ÐÝ ƒ _PÿÝà Ü àÝ  Ý(i)€€a€security€as€to€which€the€director,€by€rule€or€order,€finds€that€registration€is€not€necessaryÐ |*Ì%) Ðor€appropriate€for€the€protection€of€investors.Ð h+¸&* ÐÝ ƒ _PÿÝà Ü àÝ  Ý(2)€€The€following€transactions€are€exempt€from€Sections€Ý‚}ÿÝÝ  Ý61-1-7Ý‚}ÿ‡8ectiÝÝ  Ý€and€Ý‚}ÿÝÝ  Ý61-1-15Ý‚}ÿÐ8ectiÝÝ  Ý:Ð ° ÐÝ ƒ _PÿÝà Ü àÝ  Ý(a)€€an€isolated€nonissuer€transaction,€whether€effected€through€a€broker-dealer€or€not;Ð œì ÐÝ ƒ _PÿÝà Ü àÝ  Ý(b)€€a€nonissuer€transaction€in€an€outstanding€security,€if€as€provided€by€rule€of€the€division:Ð ˆØ ÐÝ ƒ _PÿÝà Ü àÝ  Ý(i)€€information€about€the€issuer€of€the€security€as€required€by€the€division€is€currently€listed€inÐ tÄ Ða€securities€manual€recognized€by€the€division,€and€the€listing€is€based€upon€such€information€asÐ `° Ðrequired€by€rule€of€the€division;€orÐ L œ ÐÝ ƒ _PÿÝà Ü àÝ  Ý(ii)€€the€security€has€a€fixed€maturity€or€a€fixed€interest€or€dividend€provision€and€there€is€noÐ 8 ˆ Ðdefault€during€the€current€fiscal€year€or€within€the€three€preceding€fiscal€years,€or€during€theÐ $ t Ðexistence€of€the€issuer€and€any€predecessors€if€less€than€three€years,€in€the€payment€of€principal,Ð  ` Ðinterest,€or€dividends€on€the€security;Ð ü L  ÐÝ ƒ _PÿÝà Ü àÝ  Ý(c)€€a€nonissuer€transaction€effected€by€or€through€a€registered€broker-dealer€pursuant€to€anÐ è 8  Ðunsolicited€order€or€offer€to€buy;Ð Ô$  ÐÝ ƒ _PÿÝà Ü àÝ  Ý(d)€€a€transaction€between€the€issuer€or€other€person€on€whose€behalf€the€offering€is€made€andÐ À  Ðan€underwriter,€or€among€underwriters;Ð ¬ü  ÐÝ ƒ _PÿÝà Ü àÝ  Ý(e)€€a€transaction€in€a€bond€or€other€evidence€of€indebtedness€secured€by€a€real€or€chattelÐ ˜è  Ðmortgage€or€deed€of€trust,€or€by€an€agreement€for€the€sale€of€real€estate€or€chattels,€if€the€entireÐ „Ô  Ðmortgage,€deed€of€trust,€or€agreement,€together€with€all€the€bonds€or€other€evidences€ofÐ pÀ Ðindebtedness€secured€thereby,€is€offered€and€sold€as€a€unit;Ð \¬ ÐÝ ƒ _PÿÝà Ü àÝ  Ý(f)€€a€transaction€by€an€executor,€administrator,€sheriff,€marshal,€receiver,€trustee€inÐ H˜ Ðbankruptcy,€guardian,€or€conservator;Ð 4„ ÐÝ ƒ _PÿÝà Ü àÝ  Ý(g)€€a€transaction€executed€by€a€bona€fide€pledgee€without€a€purpose€of€evading€this€chapter;Ð  p ÐÝ ƒ _PÿÝà Ü àÝ  Ý(h)€€an€offer€or€sale€to€one€of€the€following€whether€the€purchaser€is€acting€for€itself€or€in€aÐ  \ Ðfiduciary€capacity:Ð øH ÐÝ ƒ _PÿÝà Ü àÝ  Ý(i)€€a€depository€institution;Ð ä4 ÐÝ ƒ _PÿÝà Ü àÝ  Ý(ii)€€a€trust€company;Ð Ð  ÐÝ ƒ _PÿÝà Ü àÝ  Ý(iii)€€an€insurance€company;Ð ¼  ÐÝ ƒ _PÿÝà Ü àÝ  Ý(iv)€€an€investment€company€as€defined€in€the€Investment€Company€Act€of€1940;Ð ¨ø ÐÝ ƒ _PÿÝà Ü àÝ  Ý(v)€€a€pension€or€profit-sharing€trust;Ð ”ä ÐÝ ƒ _PÿÝà Ü àÝ  Ý(vi)€€other€financial€institution€or€institutional€investor;€orÐ €Ð ÐÝ ƒ _PÿÝà Ü àÝ  Ý(vii)€€a€broker-dealer;Ð l¼ ÐÝ ƒ _PÿÝà Ü àÝ  Ý(i)€€an€offer€or€sale€of€a€preorganization€certificate€or€subscription€if:Ð X ¨ ÐÝ ƒ _PÿÝà Ü àÝ  Ý(i)€€no€commission€or€other€remuneration€is€paid€or€given€directly€or€indirectly€for€soliciting€aÐ D!” Ðprospective€subscriber;Ð 0"€  ÐÝ ƒ _PÿÝà Ü àÝ  Ý(ii)€€the€number€of€subscribers€acquiring€a€legal€or€beneficial€interest€therein€does€not€exceedÐ #l! Ðten;Ð $X" ÐÝ ƒ _PÿÝà Ü àÝ  Ý(iii)€€there€is€no€general€advertising€or€solicitation€in€connection€with€the€offer€or€sale;€andÐ ô$D # ÐÝ ƒ _PÿÝà Ü àÝ  Ý(iv)€€no€payment€is€made€by€a€subscriber;Ð à%0!$ ÐÝ ƒ _PÿÝà Ü àÝ  Ý(j)€€subject€to€Subsection€(6),€a€transaction€pursuant€to€an€offer€by€an€issuer€of€its€securities€toÐ Ì&"% Ðits€existing€securities€holders,€if:Ð ¸'#& ÐÝ ƒ _PÿÝà Ü àÝ  Ý(i)€€no€commission€or€other€remuneration,€other€than€a€standby€commission€is€paid€or€givenÐ ¤(ô#' Ðdirectly€or€indirectly€for€soliciting€a€security€holder€in€this€state;€andÐ )à$( ÐÝ ƒ _PÿÝà Ü àÝ  Ý(ii)€€the€transaction€constitutes:Ð |*Ì%) ÐÝ ƒ _PÿÝà Ü àÝ  Ý(A)€€the€conversion€of€convertible€securities;Ð h+¸&* ÐÝ ƒ _PÿÝà Ü àÝ  Ý(B)€€the€exercise€of€nontransferable€rights€or€warrants;Ð ° ÐÝ ƒ _PÿÝà Ü àÝ  Ý(C)€€the€exercise€of€transferable€rights€or€warrants€if€the€rights€or€warrants€are€exercisable€notÐ œì Ðmore€than€90€days€after€their€issuance;Ð ˆØ ÐÝ ƒ _PÿÝà Ü àÝ  Ý(D)€€the€purchase€of€securities€under€a€preemptive€right;€orÐ tÄ ÐÝ ƒ _PÿÝà Ü àÝ  Ý(E)€€a€transaction€other€than€one€specified€in€Subsections€(2)(j)(ii)(A)€through€(D)€if:Ð `° ÐÝ ƒ _PÿÝà Ü àÝ  Ý(I)€€the€division€is€furnished€with:Ð L œ ÐÝ ƒ _PÿÝà Ü àÝ  Ý(Aa)€€a€general€description€of€the€transaction;Ð 8 ˆ ÐÝ ƒ _PÿÝà Ü àÝ  Ý(Bb)€€the€disclosure€materials€to€be€furnished€to€the€issuer's€securities€holders€in€theÐ $ t Ðtransaction;€andÐ  ` ÐÝ ƒ _PÿÝà Ü àÝ  Ý(Cc)€€a€non-refundable€fee;€andÐ ü L  ÐÝ ƒ _PÿÝà Ü àÝ  Ý(II)€€the€division€does€not,€by€order,€deny€or€revoke€the€exemption€within€20€working€daysÐ è 8  Ðafter€the€day€on€which€the€filing€required€by€Subsection€(2)(j)(ii)(E)(I)€is€complete;Ð Ô$  ÐÝ ƒ _PÿÝà Ü àÝ  Ý(k)€€an€offer,€but€not€a€sale,€of€a€security€for€which€a€registration€statement€is€filed€under€bothÐ À  Ðthis€chapter€and€the€Securities€Act€of€1933€if€no€stop€order€or€refusal€order€is€in€effect€and€noÐ ¬ü  Ðpublic€proceeding€or€examination€looking€toward€such€an€order€is€pending;Ð ˜è  ÐÝ ƒ _PÿÝà Ü àÝ  Ý(l)€€a€distribution€of€securities€as€a€dividend€if€the€person€distributing€the€dividend€is€the€issuerÐ „Ô  Ðof€the€securities€distributed;Ð pÀ ÐÝ ƒ _PÿÝà Ü àÝ  Ý(m)€€a€nonissuer€transaction€effected€by€or€through€a€registered€broker-dealer€where€theÐ \¬ Ðbroker-dealer€or€issuer€files€with€the€division,€and€the€broker-dealer€maintains€in€theÐ H˜ Ðbroker-dealer's€records,€and€makes€reasonably€available€upon€request€to€a€person€expressing€anÐ 4„ Ðinterest€in€a€proposed€transaction€in€the€security€with€the€broker-dealer€information€prescribed€byÐ  p Ðthe€division€under€its€rules;Ð  \ ÐÝ ƒ _PÿÝà Ü àÝ  Ý(n)€€a€transaction€not€involving€a€public€offering;Ð øH ÐÝ ƒ _PÿÝà Ü àÝ  Ý(o)€€an€offer€or€sale€of€"condominium€units"€or€"time€period€units"€as€those€terms€are€definedÐ ä4 Ðin€Title€57,€Chapter€8,€Condominium€Ownership€Act,€whether€or€not€to€be€sold€by€installmentÐ Ð  Ðcontract,€if€the€following€are€complied€with:Ð ¼  ÐÝ ƒ _PÿÝà Ü àÝ  Ý(i)€€Title€57,€Chapter€8,€Condominium€Ownership€Act,€or€if€the€units€are€located€in€anotherÐ ¨ø Ðstate,€the€condominium€act€of€that€state;Ð ”ä ÐÝ ƒ _PÿÝà Ü àÝ  Ý(ii)€€Title€57,€Chapter€11,€Utah€Uniform€Land€Sales€Practices€Act;Ð €Ð ÐÝ ƒ _PÿÝà Ü àÝ  Ý(iii)€€Title€57,€Chapter€19,€Timeshare€and€Camp€Resort€Act;€andÐ l¼ ÐÝ ƒ _PÿÝà Ü àÝ  Ý(iv)€€Title€70C,€Utah€Consumer€Credit€Code;Ð X ¨ ÐÝ ƒ _PÿÝà Ü àÝ  Ý(p)€€a€transaction€or€series€of€transactions€involving€a€merger,€consolidation,€reorganization,Ð D!” Ðrecapitalization,€reclassification,€or€sale€of€assets,€if€the€consideration€for€which,€in€whole€or€inÐ 0"€  Ðpart,€is€the€issuance€of€securities€of€a€person€or€persons,€and€if:Ð #l! ÐÝ ƒ _PÿÝà Ü àÝ  Ý(i)€€the€transaction€or€series€of€transactions€is€incident€to€a€vote€of€the€securities€holders€ofÐ $X" Ðeach€person€involved€or€by€written€consent€or€resolution€of€some€or€all€of€the€securities€holders€ofÐ ô$D # Ðeach€person€involved;Ð à%0!$ ÐÝ ƒ _PÿÝà Ü àÝ  Ý(ii)€€the€vote,€consent,€or€resolution€is€given€under€a€provision€in:Ð Ì&"% ÐÝ ƒ _PÿÝà Ü àÝ  Ý(A)€€the€applicable€corporate€statute€or€other€controlling€statute;Ð ¸'#& ÐÝ ƒ _PÿÝà Ü àÝ  Ý(B)€€the€controlling€articles€of€incorporation,€trust€indenture,€deed€of€trust,€or€partnershipÐ ¤(ô#' Ðagreement;€orÐ )à$( ÐÝ ƒ _PÿÝà Ü àÝ  Ý(C)€€the€controlling€agreement€among€securities€holders;Ð |*Ì%) ÐÝ ƒ _PÿÝà Ü àÝ  Ý(iii)€(A)€€one€person€involved€in€the€transaction€is€required€to€file€proxy€or€informationalÐ h+¸&* Ðmaterials€under€Section€14(a)€or€(c)€of€the€Securities€Exchange€Act€of€1934€or€Section€20€of€theÐ ° ÐInvestment€Company€Act€of€1940€and€has€so€filed;Ð œì ÐÝ ƒ _PÿÝà Ü àÝ  Ý(B)€€one€person€involved€in€the€transaction€is€an€insurance€company€that€is€exempt€from€filingÐ ˆØ Ðunder€Section€12(g)(2)(G)€of€the€Securities€Exchange€Act€of€1934,€and€has€filed€proxy€orÐ tÄ Ðinformational€materials€with€the€appropriate€regulatory€agency€or€official€of€its€domiciliary€state;Ð `° ÐorÐ L œ ÐÝ ƒ _PÿÝà Ü àÝ  Ý(C)€€all€persons€involved€in€the€transaction€are€exempt€from€filing€under€Section€12(g)(1)€ofÐ 8 ˆ Ðthe€Securities€Exchange€Act€of€1934,€and€file€with€the€division€such€proxy€or€informationalÐ $ t Ðmaterial€as€the€division€requires€by€rule;Ð  ` ÐÝ ƒ _PÿÝà Ü àÝ  Ý(iv)€€the€proxy€or€informational€material€is€filed€with€the€division€and€distributed€to€allÐ ü L  Ðsecurities€holders€entitled€to€vote€in€the€transaction€or€series€of€transactions€at€least€ten€workingÐ è 8  Ðdays€prior€to€any€necessary€vote€by€the€securities€holders€or€action€on€any€necessary€consent€orÐ Ô$  Ðresolution;€andÐ À  ÐÝ ƒ _PÿÝà Ü àÝ  Ý(v)€€the€division€does€not,€by€order,€deny€or€revoke€the€exemption€within€ten€working€daysÐ ¬ü  Ðafter€filing€of€the€proxy€or€informational€materials;Ð ˜è  ÐÝ ƒ _PÿÝà Ü àÝ  Ý(q)€€subject€to€Subsection€(7),€a€transaction€pursuant€to€an€offer€to€sell€securities€of€an€issuerÐ „Ô  Ðif:Ð pÀ ÐÝ ƒ _PÿÝà Ü àÝ  Ý(i)€€the€transaction€is€part€of€an€issue€in€which€there€are€not€more€than€15€purchasers€in€thisÐ \¬ Ðstate,€other€than€those€designated€in€Subsection€(2)(h),€during€any€12€consecutive€months;Ð H˜ ÐÝ ƒ _PÿÝà Ü àÝ  Ý(ii)€€no€general€solicitation€or€general€advertising€is€used€in€connection€with€the€offer€to€sell€orÐ 4„ Ðsale€of€the€securities;Ð  p ÐÝ ƒ _PÿÝà Ü àÝ  Ý(iii)€€no€commission€or€other€similar€compensation€is€given,€directly€or€indirectly,€to€a€personÐ  \ Ðother€than€a€broker-dealer€or€agent€licensed€under€this€chapter,€for€soliciting€a€prospectiveÐ øH Ðpurchaser€in€this€state;Ð ä4 ÐÝ ƒ _PÿÝà Ü àÝ  Ý(iv)€€the€seller€reasonably€believes€that€all€the€purchasers€in€this€state€are€purchasing€forÐ Ð  Ðinvestment;€andÐ ¼  ÐÝ ƒ _PÿÝà Ü àÝ  Ý(v)€€the€transaction€is€part€of€an€aggregate€offering€that€does€not€exceed€$1,000,000,€or€aÐ ¨ø Ðgreater€amount€as€prescribed€by€a€division€rule,€during€any€12€consecutive€months;Ð ”ä ÐÝ ƒ _PÿÝà Ü àÝ  Ý(r)€€a€transaction€involving€a€commodity€contract€or€commodity€option;Ð €Ð ÐÝ ƒ _PÿÝà Ü àÝ  Ý(s)€€a€transaction€in€a€security,€whether€or€not€the€security€or€transaction€is€otherwise€exemptÐ l¼ Ðif:Ð X ¨ ÐÝ ƒ _PÿÝà Ü àÝ  Ý(i)€€the€transaction€is:Ð D!” ÐÝ ƒ _PÿÝà Ü àÝ  Ý(A)€€in€exchange€for€one€or€more€outstanding€securities,€claims,€or€property€interests;€orÐ 0"€  ÐÝ ƒ _PÿÝà Ü àÝ  Ý(B)€€partly€for€cash€and€partly€in€exchange€for€one€or€more€outstanding€securities,€claims,€orÐ #l! Ðproperty€interests;€andÐ $X" ÐÝ ƒ _PÿÝà Ü àÝ  Ý(ii)€€the€terms€and€conditions€are€approved€by€the€director€after€a€hearing€under€SectionÐ ô$D # ÐÝ‚}ÿÝÝ  Ý61-1a-408Ý‚}ÿŠmƒÝÝ  Ý;Ð à%0!$ ÐÝ ƒ _PÿÝà Ü àÝ  Ý(t)€€a€transaction€incident€to€a€judicially€approved€reorganization€in€which€a€security€is€issued:Ð Ì&"% ÐÝ ƒ _PÿÝà Ü àÝ  Ý(i)€€in€exchange€for€one€or€more€outstanding€securities,€claims,€or€property€interests;€orÐ ¸'#& ÐÝ ƒ _PÿÝà Ü àÝ  Ý(ii)€€partly€for€cash€and€partly€in€exchange€for€one€or€more€outstanding€securities,€claims,€orÐ ¤(ô#' Ðproperty€interests;Ð )à$( ÐÝ ƒ _PÿÝà Ü àÝ  Ý(u)€€a€nonissuer€transaction€by€a€federal€covered€investment€adviser€with€investments€underÐ |*Ì%) Ðmanagement€in€excess€of€$100,000,000€acting€in€the€exercise€of€discretionary€authority€in€aÐ h+¸&* ÐÑOa/Ñâ âÑ°°Ñâ âÑ  Ñsigned€record€for€the€account€of€others;€andÐ ° ÐÝ ƒ _PÿÝà Ü àÝ  Ý(v)€€a€transaction€as€to€which€the€division€finds€that€registration€is€not€necessary€or€appropriateÐ œì Ðfor€the€protection€of€investors.Ð ˆØ ÐÝ ƒ _PÿÝà Ü àÝ  Ý(3)€€A€person€filing€an€exemption€notice€or€application€shall€pay€a€filing€fee€as€determinedÐ tÄ Ðunder€Section€Ý‚}ÿÝÝ  Ý61-1-18.4Ý‚}ÿårn€thÝÝ  Ý.Ð `° ÐÝ ƒ _PÿÝà Ü àÝ  Ý(4)€€Upon€approval€by€a€majority€of€the€commission,€the€director,€by€means€of€an€adjudicativeÐ L œ Ðproceeding€conducted€in€accordance€with€Title€63G,€Chapter€4,€Administrative€Procedures€Act,Ð 8 ˆ Ðmay€deny€or€revoke€an€exemption€specified€in€Subsection€(1)(f)€or€(g)€or€in€Subsection€(2)€withÐ $ t Ðrespect€to:Ð  ` ÐÝ ƒ _PÿÝà Ü àÝ  Ý(a)€€a€specific€security,€transaction,€or€series€of€transactions;€orÐ ü L  ÐÝ ƒ _PÿÝà Ü àÝ  Ý(b)€€a€person€or€issuer,€an€affiliate€or€successor€to€a€person€or€issuer,€or€an€entity€subsequentlyÐ è 8  Ðorganized€by€or€on€behalf€of€a€person€or€issuer€generally€and€may€impose€a€fine€if€the€directorÐ Ô$  Ðfinds€that€the€order€is€in€the€public€interest€and€that:Ð À  ÐÝ ƒ _PÿÝà Ü àÝ  Ý(i)€€the€application€for€or€notice€of€exemption€filed€with€the€division€is€incomplete€in€aÐ ¬ü  Ðmaterial€respect€or€contains€a€statement€which€was,€in€the€light€of€the€circumstances€under€whichÐ ˜è  Ðit€was€made,€false€or€misleading€with€respect€to€a€material€fact;Ð „Ô  ÐÝ ƒ _PÿÝà Ü àÝ  Ý(ii)€€this€chapter,€or€a€rule,€order,€or€condition€lawfully€imposed€under€this€chapter€has€beenÐ pÀ Ðwillfully€violated€in€connection€with€the€offering€or€exemption€by:Ð \¬ ÐÝ ƒ _PÿÝà Ü àÝ  Ý(A)€€the€person€filing€an€application€for€or€notice€of€exemption;Ð H˜ ÐÝ ƒ _PÿÝà Ü àÝ  Ý(B)€€the€issuer,€a€partner,€officer,€or€director€of€the€issuer,€a€person€occupying€a€similar€statusÐ 4„ Ðor€performing€similar€functions,€or€a€person€directly€or€indirectly€controlling€or€controlled€by€theÐ  p Ðissuer,€but€only€if€the€person€filing€the€application€for€or€notice€of€exemption€is€directly€orÐ  \ Ðindirectly€controlled€by€or€acting€for€the€issuer;€orÐ øH ÐÝ ƒ _PÿÝà Ü àÝ  Ý(C)€€an€underwriter;Ð ä4 ÐÝ ƒ _PÿÝà Ü àÝ  Ý(iii)€€subject€to€Subsection€(8),€the€security€for€which€the€exemption€is€sought€is€the€subject€ofÐ Ð  Ðan€administrative€stop€order€or€similar€order,€or€a€permanent€or€temporary€injunction€or€a€court€ofÐ ¼  Ðcompetent€jurisdiction€entered€under€another€federal€or€state€act€applicable€to€the€offering€orÐ ¨ø Ðexemption;Ð ”ä ÐÝ ƒ _PÿÝà Ü àÝ  Ý(iv)€€the€issuer's€enterprise€or€method€of€business€includes€or€would€include€activities€that€areÐ €Ð Ðillegal€where€performed;Ð l¼ ÐÝ ƒ _PÿÝà Ü àÝ  Ý(v)€€the€offering€has€worked,€has€tended€to€work,€or€would€operate€to€work€a€fraud€uponÐ X ¨ Ðpurchasers;Ð D!” ÐÝ ƒ _PÿÝà Ü àÝ  Ý(vi)€€the€offering€is€or€was€made€with€unreasonable€amounts€of€underwriters'€and€sellers'Ð 0"€  Ðdiscounts,€commissions,€or€other€compensation,€or€promoters'€profits€or€participation,€orÐ #l! Ðunreasonable€amounts€or€kinds€of€options;Ð $X" ÐÝ ƒ _PÿÝà Ü àÝ  Ý(vii)€€an€exemption€is€sought€for€a€security€or€transaction€that€is€not€eligible€for€the€exemption;Ð ô$D # ÐorÐ à%0!$ ÐÝ ƒ _PÿÝà Ü àÝ  Ý(viii)€€the€proper€filing€fee,€if€required,€has€not€been€paid.Ð Ì&"% ÐÝ ƒ _PÿÝà Ü àÝ  Ý(5)€(a)€€An€order€under€Subsection€(4)€may€not€operate€retroactively.Ð ¸'#& ÐÝ ƒ _PÿÝà Ü àÝ  Ý(b)€€A€person€may€not€be€considered€to€have€violated€Section€Ý‚}ÿÝÝ  Ý61-1-7Ý‚}ÿ4‚n€thÝÝ  Ý€or€Ý‚}ÿÝÝ  Ý61-1-15Ý‚}ÿ|‚n€thÝÝ  Ý€by€reason€ofÐ ¤(ô#' Ðan€offer€or€sale€effected€after€the€entry€of€an€order€under€this€Subsection€(5)€if€the€person€sustainsÐ )à$( Ðthe€burden€of€proof€that€the€person€did€not€know,€and€in€the€exercise€of€reasonable€care€could€notÐ |*Ì%) Ðhave€known,€of€the€order.Ð h+¸&* ÐÝ ƒ _PÿÝà Ü àÝ  Ý(6)€€The€exemption€created€by€Subsection€(2)(j)€is€not€available€for€an€offer€or€sale€of€aÐ ° Ðsecurity€to€an€existing€securities€holder€who€has€acquired€the€holder's€security€from€the€issuer€in€aÐ œì Ðtransaction€in€violation€of€Section€Ý‚}ÿÝÝ  Ý61-1-7Ý‚}ÿ7…ƒÝÝ  Ý.Ð ˆØ ÐÝ ƒ _PÿÝà Ü àÝ  Ý(7)€€As€to€a€security,€a€transaction,€or€a€type€of€security€or€transaction,€the€division€may:Ð tÄ ÐÝ ƒ _PÿÝà Ü àÝ  Ý(a)€€withdraw€or€further€condition€the€exemption€described€in€Subsection€(2)(q);€orÐ `° ÐÝ ƒ _PÿÝà Ü àÝ  Ý(b)€€waive€one€or€more€of€the€conditions€described€in€Subsection€(2)(q).Ð L œ ÐÝ ƒ _PÿÝà Ü àÝ  Ý(8)€(a)€€The€director€may€not€institute€a€proceeding€against€an€effective€exemption€underÐ 8 ˆ ÐSubsection€(4)(b)€more€than€one€year€from€the€day€on€which€the€order€or€injunction€on€which€theÐ $ t Ðdirector€relies€is€issued.Ð  ` ÐÝ ƒ _PÿÝà Ü àÝ  Ý(b)€€The€director€may€not€enter€an€order€under€Subsection€(4)(b)€on€the€basis€of€an€order€orÐ ü L  Ðinjunction€entered€under€another€state€act€unless€that€order€or€injunction€is€issued€on€the€basis€ofÐ è 8  Ðfacts€that€would€constitute€a€ground€for€a€stop€order€under€this€section€at€the€time€the€directorÐ Ô$  Ðenters€the€order.Ô#†,X`,XXX`,Z##ÔÐ À  ÐÌÔ‡,òÜòX,X`,ÔHistory:€As€last€amended€by€Chapter€351,€Laws€of€Utah€2009.Ð ˜è  ÐAdministrative€Rules:€This€section€is€cited€in€or€interpreted€by€the€following€administrative€rule(s):€R164„5,€R164-14,Ð \¬  ÐR164-18.Ô#†,X`,Xò,òÜFŠ#ÔÐ  p ÐÔ‡,òÜòX,X`,ÔCross-References:€Condominium€Ownership€Act,€ðð€57-8-1€et€seq.;€Utah€Consumer€Credit€Code,€Title€70C;€UtahÐ ä4 ÐTimeshare€and€Camp€Resort€Act,€Title€57,€Chapter€19;€Utah€Uniform€Land€Sales€Practices€Act,€ðð€57-11-1€et€seq.€Ô#†,X`,Xò,òÜ‹#ÔÐ ¨ø ÐÌò òÔ  Ô61-1-14.5.€Burden€of€proving€exemption.ó óÔ €eÎŒÔÐ X¨ Ðà Ü àIn€any€proceeding€under€this€chapter,€civil,€criminal,€administrative,€or€judicial,€the€burden€ofÐ D” Ðproving€an€exemption€under€Section€61-1-14€or€an€exception€from€a€definition€under€SectionÐ 0€ Ð61-1-13€is€upon€the€person€claiming€the€exemption€or€exception.€Ð l ÐÌÔ‡,òÜòX,X`,ÔHistory:€As€enacted€by€Chapter€284,€ðð€18,€Law€of€Utah€1983.Ð ôD ÐÔ#†,X`,Xò,òÜtŽ#ÔÌò òÔ  Ô61-1-15.€Filing€of€sales€literature.ó óÔ €e ÔÐ ¤ô Ðà Ü àThe€division€may€by€rule€or€order€require€the€filing€of€any€prospectus,€pamphlet,€circular,€formÐ à Ðletter,€advertisement,€or€other€sales€literature€or€advertising€communication€addressed€or€intendedÐ |Ì Ðfor€distribution€to€prospective€investors,€including€clients€or€prospective€clients€of€an€investmentÐ h¸ Ðadviser€unless€the€security€or€transaction€is€exempted€by€Section€61-1-14€or€is€a€federal€coveredÐ T ¤ Ðsecurity.Ð @!  ÐÌÔ‡,òÜòX,X`,ÔHistory:€As€last€amended€by€Chapter€160,€ðð€7,€Laws€of€Utah€1997.Ô#†,X`,Xò,òÜp‘#ÔÐ #h" ÐÔ‡,òÜòX,X`,ÔAdministrative€Rules:€This€section€is€cited€in€or€interpreted€by€the€following€administrative€rule(s):€€R164„18.Ô#†,X`,Xò,òÜ ’#ÔÐ Ü#,# Ðò òÌÔ  Ô61-1-15.5.€€€Federal€covered€securities.Ô €eÕ’ÔÔ‡X`,XX,X`,Ôó óÐ Œ%Ü % Ðà Ü àÔ#†,X`,XXX`,“#ÔÔ‡X`,XX,X`,Ô(1)€€The€division€by€rule€or€order€may€require€the€filing€of€any€of€the€following€documentsÐ x&È!& Ðwith€respect€to€a€covered€security€under€Section€18(b)(2)€of€the€Securities€Act€of€1933:Ð d'´"' ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(a)€€prior€to€the€initial€offer€of€federal€covered€security€in€this€state,€a€notice€form€as€prescribedÐ <)Œ$) Ðby€the€division€or€all€documents€that€are€part€of€a€federal€registration€statement€filed€with€theÐ (*x%* ÐSecurities€and€Exchange€Commission€under€the€Securities€Act€of€1933,€together€with€a€consent€toÐ +d&+ Ðservice€of€process€signed€by€the€issuer€and€a€filing€fee€as€determined€under€Section€Ý‚}ÿÝÝ  Ý61-1-18.4Ý‚}ÿa–ññ@ÝÝ  Ý;Ð ,P', Ð‡Ý ƒ _PÿÝà Ü àÝ  Ý(b)€€after€the€initial€offer€of€such€federal€covered€security€in€this€state,€all€documents€that€areÐ ° Ðpart€of€an€amendment€to€a€federal€registration€statement€filed€with€the€U.S.€Securities€andÐ œì ÐExchange€Commission€under€the€Securities€Act€of€1933,€which€shall€be€filed€concurrently€withÐ ˆØ Ðthe€division;Ð tÄ ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(c)€€a€report€of€the€value€of€federal€covered€securities€offered€or€sold€in€this€state,€together€withÐ L œ Ða€filing€fee€as€determined€under€Section€Ý‚}ÿÝÝ  Ý61-1-18.4Ý‚}ÿ,™ññ@ÝÝ  Ý;€andÐ 8 ˆ ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(d)€€a€notice€filing€under€this€section€shall€be€effective€for€one€year€and€shall€be€renewedÐ  ` Ðannually€in€order€to€continue€to€offer€or€sell€the€federal€covered€securities€for€which€the€noticeÐ ü L  Ðwas€filed.Ð è 8  ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(2)€€With€respect€to€a€security€that€is€a€covered€security€under€Section€18(b)(4)(D)€of€theÐ À  ÐSecurities€Act€of€1933,€the€division€by€rule€or€order€may€require€the€issuer€to€file€a€notice€on€SECÐ ¬ü  ÐForm€D€and€a€consent€to€service€of€process€signed€by€the€issuer€no€later€than€15€days€after€the€firstÐ ˜è  Ðsale€of€such€covered€security€in€this€state,€together€with€a€filing€fee€as€determined€under€SectionÐ „Ô  ÐÝ‚}ÿÝÝ  Ý61-1-18.4Ý‚}ÿ¿œññ@ÝÝ  Ý.Ð pÀ ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(3)€€The€division€by€rule€or€order€may€require€the€filing€of€a€document€filed€with€the€SecuritiesÐ H˜ Ðand€Exchange€Commission€under€the€Securities€Act€of€1933,€with€respect€to€a€covered€securityÐ 4„ Ðunder€Securities€Act€of€1933,€Section€18(b)(3)€or€(4),€together€with€a€filing€fee€as€determinedÐ  p Ðunder€Section€Ý‚}ÿÝÝ  Ý61-1-18.4Ý‚}ÿ­žññ@ÝÝ  Ý.Ð  \ ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(4)€€Upon€approval€by€a€majority€of€the€commission,€the€director,€by€means€of€an€adjudicativeÐ ä4 Ðproceeding€conducted€in€accordance€with€Title€63G,€Chapter€4,€Administrative€Procedures€Act,Ð Ð  Ðmay€issue€a€stop€order€suspending€the€offer€and€sale€of€a€federal€covered€security,€except€aÐ ¼  Ðcovered€security€under€Section€18(b)(1)€of€the€Securities€Act€of€1933,€if€the€director€finds€that€theÐ ¨ø Ðorder€is€in€the€public€interest€and€there€is€a€failure€to€comply€with€any€condition€established€underÐ ”ä Ðthis€section.Ð €Ð ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(5)€€The€division€by€rule€or€order€may€waive€any€or€all€of€the€provisions€of€this€section.Ô#†,X`,XXX`,ƒ“#ÔÐ X ¨ ÐÌÔ‡,òÜòX,X`,ÔHistory:€As€enacted€by€Chapter€351,€Laws€of€Utah€2009.Ð 0"€  ÐÔ#†,X`,Xò,òÜW¢#ÔÌò òÔ  Ô61-1-16.€False€statements€unlawful.ó óÔ r€è¢ÔÐ à#0" Ðà Ü àIt€is€unlawful€for€any€person€to€make€or€cause€to€be€made,€in€any€document€filed€with€theÐ Ì$ # Ðdivision€or€in€any€proceeding€under€this€chapter,€any€statement€which€is,€at€the€time€and€in€theÐ ¸%!$ Ðlight€of€the€circumstances€under€which€it€is€made,€false€or€misleading€in€any€material€respect.Ð ¤&ô!% ÐÌÔ‡,òÜòX,X`,ÔHistory:€As€last€amended€by€Chapter€284,€ðð€20,€Laws€of€Utah€1983.Ð |(Ì#' ÐÔ#†,X`,Xò,òܧ¤#ÔÔ‡,òÜòX,X`,ÔAdministrative€Rules:€This€section€is€cited€in€or€interpreted€by€the€following€administrative€rule(s):€R164-10.Ô#†,X`,Xò,òÜB¥#ÔÔ‡,òÜòX,X`,ÔÐ @)$( ÐCross-References:€Criminal€Code,€corporation€frauds,€ðð€76-10-701€et€seq.Ð *T%) ÐÔ#†,X`,Xò,òÜó¥#ÔÌò òÔ  ÔÐ ´+'+ Ð61-1-17.€No€finding€by€division€on€merits€-€Contrary€representation€unlawful.Ô r€®¦ÔÐ ° Ðó óà Ü à(1)€€Neither€the€fact€that€an€application€for€registration€or€a€registration€statement€has€beenÐ œì Ðfiled€nor€the€fact€that€a€person€or€security€is€effectively€registered€constitutes€a€finding€by€theÐ ˆØ Ðdivision€that€any€document€filed€under€this€chapter€is€true,€complete,€and€not€misleading.€NeitherÐ tÄ Ðany€such€fact€nor€the€fact€that€an€exemption€or€exception€is€available€for€a€security€or€a€transactionÐ `° Ðmeans€that€the€division€has€passed€in€any€way€upon€the€merits€or€qualifications€of,€orÐ L œ Ðrecommended€or€given€approval€to,€any€person,€security,€or€transaction.Ð 8 ˆ ÐÌà Ü à(2)€€It€is€unlawful€to€make,€or€cause€to€be€made,€to€any€prospective€purchaser,€customer,€orÐ  ` Ðclient€any€representation€inconsistent€with€Subsection€(1).Ð ü L  ÐÌÔ‡,òÜòX,X`,ÔHistory:€As€last€amended€by€Chapter€284,€ðð€21,€Laws€of€Utah€1983.Ð Ô$  ÐÔ#†,X`,Xò,òÜȪ#ÔÌÌò òÔ‡X`,XX,X`,Ô61-1-18€(Superseded€07/01/06)Division€of€Securities€established€--€Director€--€Appointment€--Ð pÀ  ÐFunctions€--€Investigators.Ð \¬  ÐÝ ƒ _PÿÝà Ü àÝ  Ýó ó(1)€(a)€€There€is€established€within€the€Department€of€Commerce€a€Division€of€Securities.Ð H˜ ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(b)€€The€division€is€under€the€direction€and€control€of€a€director.€€The€executive€director€shallÐ  p Ðappoint€the€director€with€the€governor's€approval.Ð  \ ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(c)€€Subject€to€Section€Ý‚}ÿÝÝ  Ý61-1-18.5Ý‚}ÿæ­òòÝÝÝ  Ý,€the€division€shall€administer€and€enforce€this€chapter.Ð ä4 ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(d)€€The€director€shall€hold€office€at€the€pleasure€of€the€governor.Ð ¼  ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(2)€€The€director,€with€the€approval€of€the€executive€director,€may€employ€the€staff€necessaryÐ ”ä Ðto€discharge€the€duties€of€the€division€or€commission€at€salaries€to€be€fixed€by€the€directorÐ €Ð Ðaccording€to€standards€established€by€the€Department€of€Human€Resource€Management.Ð l¼ ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(3)€€An€investigator€employed€pursuant€to€Subsection€(2)€who€meets€the€training€requirementsÐ D” Ðof€Subsection€Ý‚}ÿÝÝ  Ý53-13-105Ý‚}ÿ±ƒÝÝ  Ý(3)€may€be€designated€a€special€function€officer,€as€defined€in€SectionÐ 0 € ÐÝ‚}ÿÝÝ  Ý53-13-105Ý‚}ÿº±ƒÝÝ  Ý,€by€the€director,€but€is€not€eligible€for€retirement€benefits€under€the€Public€SafetyÐ !l ÐEmployee's€Retirement€System.Ô#†,X`,XXX`,h«#Ôò òÐ "X  ÐÌÔ‡,òÜòX,X`,Ôó óHistory:€As€last€amended€by€Chapter€351,€Laws€of€Utah€2009.Ð à#0" ÐAdministrative€Rules:€This€section€is€cited€in€or€interpreted€by€the€following€administrative€rule(s):€R164-18.Ð ¤$ô# ÐCross-References:€Divisions€created€in€Department€of€Commerce,€ðð€13-1-2Ô#†,X`,Xò,òÜŲ#Ô.Ð h%¸ $ Ðò òÌòŒòÔ  Ô61-1-18.1.€Technical€experts€and€specialists€-€Employment€-€Contracts.óŒóÔ r€E´ÔÐ @'"& Ðó óà Ü àThe€director€may€employ€or€contract€with€technical€experts€and€specialists€including€but€notÐ ,(|#' Ðlimited€to€certified€public€accountants,€appraisers,€engineers,€and€tax€accountants€to€conduct€orÐ )h$( Ðparticipate€in€any€examination,€audit,€investigation€or€proceeding.Ð *T%) ÐÌÔ‡,òÜòX,X`,ÔHistory:€As€last€amended€by€Chapter€284,€ðð€23,€Laws€of€Utah€1983.ò òÔ#†,X`,Xò,òܶ#ÔÐ Ü+,'+ ЇòŒòÔ  Ô61-1-18.2.€Budget€-€Annual€report.óŒóÔ r€´¶ÔÐ ° Ðó óÔ‡X`,XX,X`,ÔThe€director€shall€annually€prepare€and€submit€to€the€executive€director:Ð œì ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(1)€€a€budget€for€the€expenses€of€the€division€and€commission€for€the€administration€andÐ tÄ Ðenforcement€of€this€chapter€for€the€next€fiscal€year;€andÐ `° ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(2)€€a€report€outlining€the€division's€and€commission's€work€for€the€preceding€fiscal€year.Ô#†,X`,XXX`,·#ÔÐ 8 ˆ ÐÌÔ‡,òÜòX,X`,ÔHistory:€As€last€amended€by€Chapter351,€Laws€of€Utah€2009.Ô#†,X`,Xò,òÜ-¹#ÔÐ  ` Ðò òÌòŒòÔ  Ô61-1-18.3.€Information€obtained€by€division€-€Use€for€personal€benefit€prohibited€-Ð À   ÐDisclosure.óŒóÔ r€Å¹ÔÐ ¬ü  Ðó óÔ‡X`,XX,X`,Ô(1)€€It€is€unlawful€for€an€employee€of€the€division€or€a€member€of€the€commission€to€use€forÐ ˜è  Ðpersonal€benefit€any€non-public€information€that€is€filed€with€or€obtained€by€the€division€orÐ „Ô  Ðcommission.Ð pÀ  ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(2)€€This€chapter€does€not€authorize€the€division,€an€employee€of€the€division,€the€commission,Ð H˜ Ðor€a€member€of€the€commission€to€disclose€information€described€in€Subsection€(1),€except€amongÐ 4„ Ðthemselves€or€when€necessary€or€appropriate€in€a€proceeding€or€investigation€under€this€chapter.Ð  p ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(3)€€No€provision€of€this€chapter€either€creates€or€derogates€from€a€privilege€that€exists€atÐ øH Ðcommon€law€or€otherwise€when€documentary€or€other€evidence€is€sought€under€subpoena€directedÐ ä4 ÐtoÐ Ð  ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(a)€€the€division;Ð ¨ø ÐÝ ƒ _PÿÝà Ü àÝ  Ý(b)€€the€commission;Ð ”ä ÐÝ ƒ _PÿÝà Ü àÝ  Ý(c)€€a€member€of€the€commission;€orÐ €Ð ÐÝ ƒ _PÿÝà Ü àÝ  Ý(d)€€an€employee€of€the€division.Ô#†,X`,XXX`,sº#ÔÐ l¼ ÐÌÔ‡,òÜòX,X`,ÔHistory:€As€last€amended€by€Chapter€351,€Laws€of€Utah€2009.Ð D” Ðò òÔ#†,X`,Xò,òÜ»¿#ÔÌòŒòÔ  Ô61-1-18.4.€Fees€collected€by€division.óŒóÔ r€TÀÔÐ ô D Ðó óà Ü àThe€Division€of€Securities€shall€establish,€charge,€and€collect€fees€pursuant€to€SectionÐ à!0  Ð63-38-3.2,€except€when€it€can€be€demonstrated€that€the€fee€amount€should€be€based€on€factorsÐ Ì"! Ðother€than€cost,€for€the€following:Ð ¸#" ÐÌà Ü à(1)€the€fair€and€reasonable€cost€of€any€examination,€audit,€or€investigation€authorized€orÐ %à $ Ðrequired€by€this€chapter€or€other€state€law;Ð |&Ì!% ÐÌà Ü à(2)€certificate€of€serving€and€mailing€process€served€upon€the€division€in€any€action€orÐ T(¤#' Ðproceeding€commenced€or€prosecuted€in€this€state€against€any€person€who€has€appointed€theÐ @)$( Ðdivision€its€agent€as€provided€in€Subsection€61-1-26(7);€andÐ ,*|%) ÐÌà Ü à(3)€copies€and€authentication€of€all€papers,€publications,€data,€and€other€records€available€toÐ ,T'+ Ðthe€public€or€issued€under€the€division's€authority.Ð ° ÐÌÔ‡,òÜòX,X`,ÔHistory:€As€last€amended€by€Chapter€313,€ðð€77,€Laws€of€Utah€1994.Ð ˆØ ÐÔ#†,X`,Xò,òܘÄ#ÔÌÔ‡X`,XX,X`,Ôò ò61-1-18.5.€Securities€Commission€--€Transition.ó óÐ 8ˆ ÐÝ ƒ _PÿÝà Ü àÝ  Ý(1)€(a)€€There€is€created€a€Securities€Commission.Ð $ t ÐÝ ƒ _PÿÝà Ü àÝ  Ý(b)€€The€division€shall€provide€staffing€to€the€commission.Ð  ` ÐÝ ƒ _PÿÝà Ü àÝ  Ý(2)€(a)€€The€commission€shall:Ð ü L ÐÝ ƒ _PÿÝà Ü àÝ  Ý(i)€€formulate€and€make€recommendations€to€the€director€regarding€policy€and€budgetaryÐ è 8 Ðmatters;Ð Ô $  ÐÝ ƒ _PÿÝà Ü àÝ  Ý(ii)€€submit€recommendations€regarding€registration€requirements;Ð À   ÐÝ ƒ _PÿÝà Ü àÝ  Ý(iii)€€formulate€and€make€recommendations€to€the€director€regarding€the€establishment€ofÐ ¬ü  Ðreasonable€fees;Ð ˜è  ÐÝ ƒ _PÿÝà Ü àÝ  Ý(iv)€act€in€an€advisory€capacity€to€the€director€with€respect€to€the€exercise€of€the€director'sÐ „Ô  Ðduties,€powers,€and€responsibilities;Ð pÀ  ÐÝ ƒ _PÿÝà Ü àÝ  Ý(v)€€conduct€an€administrative€hearing€under€this€chapter€that€is€not:Ð \¬  ÐÝ ƒ _PÿÝà Ü àÝ  Ý(A)€€delegated€by€the€commission€to€an€administrative€law€judge€or€the€division€relating€to€aÐ H˜ Ðviolation€of€this€chapter;€orÐ 4„ ÐÝ ƒ _PÿÝà Ü àÝ  Ý(B)€€expressly€delegated€to€the€division€under€this€chapter;Ð  p ÐÝ ƒ _PÿÝà Ü àÝ  Ý(vi)€€except€as€provided€in€Subsection€(2)(b),€impose€a€sanction€as€provided€in€this€chapter;Ð  \ ÐÝ ƒ _PÿÝà Ü àÝ  Ý(vii)€€review€rules€made€by€the€division€for€purposes€of€concurrence€in€accordance€withÐ øH ÐSection€Ý‚}ÿÝÝ  Ý61-1-24Ý‚}ÿÌ ÝdÝÝ  Ý;€andÐ ä4 ÐÝ ƒ _PÿÝà Ü àÝ  Ý(viii)€€perform€other€duties€as€this€chapter€provides.Ð Ð  ÐÝ ƒ _PÿÝà Ü àÝ  Ý(b)€(i)€€The€commission€may€delegate€to€the€division€the€authority€to€impose€a€sanction€underÐ ¼  Ðthis€chapter.Ð ¨ø ÐÝ ƒ _PÿÝà Ü àÝ  Ý(ii)€€If€under€Subsection€(2)(b)(i)€the€commission€delegates€to€the€division€the€authority€toÐ ”ä Ðimpose€a€sanction,€a€person€who€is€subject€to€the€sanction€may€petition€the€commission€for€reviewÐ €Ð Ðof€the€sanction.Ð l¼ ÐÝ ƒ _PÿÝà Ü àÝ  Ý(iii)€€A€person€who€is€sanctioned€by€the€division€in€accordance€with€this€Subsection€(2)(b)€mayÐ X¨ Ðseek€agency€review€by€the€executive€director€only€after€the€commission€reviews€the€division'sÐ D” Ðaction.Ð 0 € ÐÝ ƒ _PÿÝà Ü àÝ  Ý(3)€(a)€€The€governor€shall€appoint€five€members€to€the€commission€with€the€consent€of€theÐ !l ÐSenate€as€follows:Ð "X  ÐÝ ƒ _PÿÝà Ü àÝ  Ý(i)€€two€members€from€the€securities€brokerage€community:Ð ô"D! ÐÝ ƒ _PÿÝà Ü àÝ  Ý(A)€€who€are€not€from€the€same€broker-dealer€or€affiliate;€andÐ à#0" ÐÝ ƒ _PÿÝà Ü àÝ  Ý(B)€€who€have€at€least€five€years€prior€experience€in€securities€matters;Ð Ì$ # ÐÝ ƒ _PÿÝà Ü àÝ  Ý(ii)€€one€member€from€the€securities€section€of€the€Utah€State€Bar:Ð ¸%!$ ÐÝ ƒ _PÿÝà Ü àÝ  Ý(A)€€whose€practice€primarily€involves:Ð ¤&ô!% ÐÝ ƒ _PÿÝà Ü àÝ  Ý(I)€€corporate€securities;€orÐ 'à"& ÐÝ ƒ _PÿÝà Ü àÝ  Ý(II)€€representation€of€plaintiffs€in€securities€cases;Ð |(Ì#' ÐÝ ƒ _PÿÝà Ü àÝ  Ý(B)€€who€does€not€routinely€represent€clients€involved€in:Ð h)¸$( ÐÝ ƒ _PÿÝà Ü àÝ  Ý(I)€€civil€or€administrative€litigation€with€the€division;€orÐ T*¤%) ÐÝ ƒ _PÿÝà Ü àÝ  Ý(II)€€criminal€cases€brought€under€this€chapter;€andÐ @+&* ÐÝ ƒ _PÿÝà Ü àÝ  Ý(C)€€who€has€at€least€five€years€prior€experience€in€securities€matters;Ð ,,|'+ ÐÝ ƒ _PÿÝà Ü àÝ  Ý(iii)€€one€member€who€is€an€officer€or€director€of€a€business€entity€not€subject€to€the€reportingÐ ° Ðrequirements€of€Section€13€or€15(d)€of€the€Securities€Exchange€Act€of€1934€;€andÐ œì ÐÝ ƒ _PÿÝà Ü àÝ  Ý(iv)€€one€member€from€the€public€at€large€who€has€no€active€participation€in€the€securitiesÐ ˆØ Ðbusiness.Ð tÄ ÐÝ ƒ _PÿÝà Ü àÝ  Ý(b)€€A€member€may€not€serve€more€than€two€consecutive€terms.Ð `° ÐšÝ ƒ _PÿÝà Ü àÝ  Ý(4)€(a)€€Except€as€required€by€Subsection€(4)(b)€and€subject€to€Subsection€(4)(c),€as€terms€ofÐ L œ Ðcurrent€members€expire,€the€governor€shall€appoint€a€new€member€or€reappointed€member€to€aÐ 8 ˆ Ðfour-year€term.Ð $ t ÐšÝ ƒ _PÿÝà Ü àÝ  Ý(b)€€Notwithstanding€Subsection€(4)(a),€the€governor€shall,€at€the€time€of€appointment€orÐ  ` Ðreappointment,€adjust€the€length€of€terms€to€ensure€that€the€terms€of€commission€members€areÐ ü L  Ðstaggered€so€that€approximately€half€of€the€commission€is€appointed€every€two€years.šÐ è 8  ÐÝ ƒ _PÿÝà Ü àÝ  Ý(c)€€For€purposes€of€making€an€appointment€to€the€commission,€the€governor:Ð Ô$  ÐÝ ƒ _PÿÝà Ü àÝ  Ý(i)€€shall€as€of€May€12,€2009:Ð À  ÐÝ ƒ _PÿÝà Ü àÝ  Ý(A)€€appoint€all€five€members€of€the€commission;€andÐ ¬ü  ÐÝ ƒ _PÿÝà Ü àÝ  Ý(B)€€stagger€the€terms€of€the€five€members€of€the€commission€to€comply€with€SubsectionÐ ˜è  Ð(4)(b);€andÐ „Ô  ÐÝ ƒ _PÿÝà Ü àÝ  Ý(ii)€€may€not€consider€the€commission€an€extension€of€the€previous€Securities€Advisory€Board.Ð pÀ ÐÝ ƒ _PÿÝà Ü àÝ  Ý(d)€€When€a€vacancy€occurs€in€the€membership€for€any€reason,€the€governor€shall€appoint€aÐ \¬ Ðreplacement€member€for€the€unexpired€term.Ð H˜ ÐÝ ƒ _PÿÝà Ü àÝ  Ý(e)€€A€member€shall€serve€until€the€member's€respective€successor€is€appointed€and€qualified.Ð 4„ ÐÝ ƒ _PÿÝà Ü àÝ  Ý(f)€€The€commission€shall€annually€select€one€member€to€serve€as€chair€of€the€commission.Ð  p ÐÝ ƒ _PÿÝà Ü àÝ  Ý(5)€(a)€€The€commission€shall€meet:Ð  \ ÐÝ ƒ _PÿÝà Ü àÝ  Ý(i)€€at€least€quarterly€on€a€regular€date€to€be€fixed€by€the€commission;€andÐ øH ÐÝ ƒ _PÿÝà Ü àÝ  Ý(ii)€€at€such€other€times€at€the€call€of:Ð ä4 ÐÝ ƒ _PÿÝà Ü àÝ  Ý(A)€€the€director;€orÐ Ð  ÐÝ ƒ _PÿÝà Ü àÝ  Ý(B)€€any€two€members€of€the€commission.Ð ¼  ÐÝ ƒ _PÿÝà Ü àÝ  Ý(b)€€A€majority€of€the€commission€shall€constitute€a€quorum€for€the€transaction€of€business.Ð ¨ø ÐÝ ƒ _PÿÝà Ü àÝ  Ý(c)€€An€action€of€the€commission€requires€a€vote€of€a€majority€of€members€present.Ð ”ä ÐÝ ƒ _PÿÝà Ü àÝ  Ý(6)€€A€member€of€the€commission€shall,€by€sworn€and€written€statement€filed€with€theÐ €Ð ÐDepartment€of€Commerce€and€the€lieutenant€governor,€disclose€any€position€of€employment€orÐ l¼ Ðownership€interest€that€the€member€has€with€respect€to€an€entity€or€business€subject€to€theÐ X ¨ Ðjurisdiction€of€the€division€or€commission.€€This€statement€shall€be€filed€upon€appointment€andÐ D!” Ðmust€be€appropriately€amended€whenever€significant€changes€occur€in€matters€covered€by€theÐ 0"€  Ðstatement.Ð #l! ÐÝ ƒ _PÿÝà Ü àÝ  Ý(7)€(a)€€A€member€may€not€receive€compensation€or€benefits€for€the€member's€services,€butÐ $X" Ðmay€receive€per€diem€and€expenses€incurred€in€the€performance€of€the€memberððs€official€duties€atÐ ô$D # Ðthe€rates€established€by€the€Division€of€Finance€under€Sections€Ý‚}ÿÝÝ  Ý63A-3-106Ý‚}ÿŠæƒÝÝ  Ý€and€Ý‚}ÿÝÝ  Ý63A-3-107Ý‚}ÿÖæƒÝÝ  Ý.Ð à%0!$ ÐÝ ƒ _PÿÝà Ü àÝ  Ý(b)€€A€member€may€decline€to€receive€per€diem€and€expenses€for€the€member's€service.Ð Ì&"% ÐÝ ƒ _PÿÝà Ü àÝ  Ý(8)€(a)€€A€rule€or€form€made€by€the€division€under€this€section€that€is€in€effect€on€May€11,Ð ¸'#& Ð2009,€is€considered€to€have€been€concurred€with€by€the€commission€as€of€May€12,€2009,€until€theÐ ¤(ô#' Ðcommission€acts€on€the€rule€or€form.Ð )à$( ÐÝ ƒ _PÿÝà Ü àÝ  Ý(b)€€For€a€civil€or€administrative€action€pending€under€this€chapter€as€of€May€12,€2009,Ð |*Ì%) Ðbrought€under€the€authority€of€division€under€this€chapter€as€in€effect€May€11,€2009€that€may€beÐ h+¸&* Ðbrought€only€by€the€commission€under€this€chapter€as€in€effect€on€May€12,€2009:Ð ° ÐÝ ƒ _PÿÝà Ü àÝ  Ý(i)€€the€action€shall€be€considered€brought€by€the€commission;€andÐ œì ÐÝ ƒ _PÿÝà Ü àÝ  Ý(ii)€€the€commission€may€take€any€act€authorized€under€this€chapter€regarding€that€action.Ô#†,X`,XXX`,4Å#ÔÐ ˆØ ÐÌÔ‡,òÜòX,X`,ÔHistory:€As€last€amended€by€Chapter€351,€Laws€of€Utah€2009.Ð `° ÐÔ#†,X`,Xò,òÜ­ë#ÔÌÔ  Ôò ò61-1-18.6.€Procedures€-€Adjudicative€proceedings.ó óÔ @ìÔÐ  ` Ðà Ü àÔ‡X`,XX,X`,ÔThe€commission€and€division€shall€comply€with€the€procedures€and€requirements€of€TitleÐ ü L Ð63G,€Chapter€4,€Administrative€Procedures€Act,€in€€an€adjudicative€proceeding€under€this€chapter.Ô#†,X`,XXX`,¸ì#ÔÐ è 8 ÐÌÔ‡,òÜòX,X`,ÔHistory:€As€enacted€by€Chapter€351,€Laws€of€Utah€2009.Ô#†,X`,Xò,òÜÜí#ÔÐ À   ÐÌÔ  Ôò ò61-1-18.7.€Funding€of€securities€investor€education€and€training.ó óÔ jîÔÐ pÀ  Ðà Ü àÔ‡X`,XX,X`,Ô(1)€(a)€€There€is€created€a€restricted€special€revenue€fund€known€as€the€"Securities€InvestorÐ \¬  ÐEducation€and€Training€Fund"€to€provide€revenue€for€educating€the€public€and€the€securitiesÐ H˜  Ðindustry€as€provided€in€this€section.Ð 4„  ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(b)€€For€purposes€of€this€section,€"fund"€means€the€Securities€Investor€Education€and€TrainingÐ  \ ÐFund.Ð øH ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(2)€€All€money€received€by€the€state€by€reason€of€civil€penalties€ordered€and€administrativeÐ Ð  Ðfines€collected€pursuant€to€this€chapter€shall€be€deposited€in€the€fund,€and€subject€to€theÐ ¼  Ðrequirements€of€Title€51,€Chapter€5,€Funds€Consolidation€Act.Ð ¨ø ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(3)€€A€fine€collected€by€the€division€after€July€1,€1989,€pursuant€to€a€voluntary€settlement€orÐ €Ð Ðadministrative€order€shall€be€deposited€into€the€fund.Ð l¼ ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(4)€(a)€€The€fund€shall€earn€interest.Ð D” ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(b)€€All€interest€earned€on€fund€monies€shall€be€deposited€into€the€fund.Ð l ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(5)€€Notwithstanding€Title€63J,€Chapter€1,€Budgetary€Procedures€Act,€the€director€may€useÐ ô D Ðmonies€in€the€fund,€upon€concurrence€of€the€commission€and€the€executive€director€of€theÐ à!0  ÐDepartment€of€Commerce,€in€a€manner€consistent€with€the€duties€of€the€division€and€commissionÐ Ì"! Ðunder€this€chapter€and€only€for€any€or€all€of€the€following€and€the€expense€of€providing€them:Ð ¸#" ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(a)€€education€and€training€of€Utah€residents€in€matters€concerning€securities€laws€andÐ %à $ Ðinvestment€decisions,€by€publications€or€presentations;Ð |&Ì!% ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(b)€€education€of€registrants€and€licensees€under€this€chapter,€by:Ð T(¤#' ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(i)€€publication€of€this€chapter€and€rules€and€policy€statements€and€opinion€letters€issued€underÐ ,*|%) Ðthis€chapter;€andÐ +h&* ÐÐ ,T'+ ÐÝ ƒ _PÿÝà Ü àÝ  Ý(ii)€€sponsorship€of€seminars€or€meetings€to€educate€registrants€and€licensees€as€to€theÐ ° Ðrequirements€of€this€chapter;€andÐ œì ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(c)€€investigation€and€litigation.Ð tÄ ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(6)€€If€the€balance€in€the€fund€exceeds€$100,000€at€the€close€of€any€fiscal€year,€the€excess€shallÐ L œ Ðbe€transferred€to€the€General€Fund.Ô#†,X`,XXX`,òî#ÔÐ 8 ˆ ÐÌÔ‡,òÜòX,X`,ÔHistory:€As€enacted€by€Chapter€351,€Laws€of€Utah€2009.Ô#†,X`,Xò,òÜRú#ÔÐ  ` ÐÌÔ  Ôò ò61-1-19.€Investigations€authorized.ó óÔ àúÔÐ À   Ðà Ü àÔ‡X`,XX,X`,Ô(1)€(a)€€The€division€may€make€any€public€or€private€investigations€within€or€without€this€stateÐ ¬ü  Ðas€the€division€considers€necessary€to€determine€whether€a€person€has€violated,€is€violating,€or€isÐ ˜è  Ðabout€to€violate€this€chapter€or€a€rule€or€order€issued€under€this€chapter.Ð „Ô  ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(b)€€To€aid€in€the€enforcement€of€this€chapter€or€in€the€prescribing€of€rules€and€forms€issuedÐ \¬  Ðunder€this€chapter,€the€division€may€require€or€permit€a€person€to€file€a€statement€in€writing,€underÐ H˜ Ðoath€or€otherwise€as€to€all€the€facts€and€circumstances€concerning€the€matter€to€be€investigated.Ð 4„ ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(c)€€The€division€may€publish€information€concerning€a€violation€of€this€chapter€or€theÐ  \ Ðviolation€of€a€rule€or€order€issued€under€this€chapter.Ð øH ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(2)€€For€the€purpose€of€an€investigation€or€proceeding€under€this€chapter,€the€division,€theÐ Ð  Ðcommission,€or€an€employee€designated€by€the€division€may:Ð ¼  ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(a)€€administer€an€oath€or€affirmation;Ð ”ä ÐÝ ƒ _PÿÝà Ü àÝ  Ý(b)€€subpoena€a€witness€and€compel€the€attendance€of€the€witness;Ð €Ð ÐÝ ƒ _PÿÝà Ü àÝ  Ý(c)€€take€evidence;€andÐ l¼ ÐÝ ƒ _PÿÝà Ü àÝ  Ý(d)€€require€the€production€of€any€books,€papers,€correspondence,€memoranda,€agreements,€orÐ X¨ Ðother€documents€or€records€€relevant€or€material€to€the€investigation.Ô#†,X`,XXX`,Jû#ÔÐ D” ÐÌÔ‡,òÜòX,X`,ÔHistory:€As€last€amended€by€Chapter€351,€Laws€of€Utah€2009.Ð !l ÐCross-References:€Contempt,€Title€78,€Chapter€32;€Perjury,€ðððð€76-8-501€to€76-8-505.Ô#†,X`,Xò,òÜS#ÔÐ à!0  ÐÌÔ  Ôò ò61-1-20.€Enforcement.ó óÔ TÔÐ #à" Ðà Ü àÔ‡X`,XX,X`,ÔWhenever€it€appears€to€the€director€that€a€person€has€engaged,€is€engaging,€or€is€about€toÐ |$Ì# Ðengage€in€an€act€or€practice€constituting€a€violation€of€this€chapter€or€a€rule€or€order€under€thisÐ h%¸ $ Ðchapter,€in€addition€to€specific€powers€granted€in€this€chapter:Ð T&¤!% ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(1)€(a)€€the€director€may€issue€an€order€directing€the€person€to€appear€before€the€commissionÐ ,(|#' Ðand€show€cause€why€an€order€should€not€be€issued€directing€the€person€to€cease€and€desist€fromÐ )h$( Ðengaging€in€the€act€or€practice,€or€doing€an€act€in€furtherance€of€the€activity;Ð *T%) ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(b)€€the€order€to€show€cause€shall€state€the€reasons€for€the€order€and€the€date€of€the€hearingÐ Ü+,'+ Ð‡Ý ƒ _PÿÝà Ü àÝ  Ý(c)€€the€director€shall€promptly€serve€a€copy€of€the€order€to€show€cause€upon€a€person€namedÐ ° Ðin€the€order;Ð œì ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(d)€€the€commission€shall€hold€a€hearing€on€the€order€to€show€cause€no€sooner€than€tenÐ tÄ Ðbusiness€days€after€the€order€is€issued;Ð `° ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(e)€€after€a€hearing,€the€commission€may€issue€an€order€to€cease€and€desist€from€engaging€in€anÐ 8 ˆ Ðact€or€practice€constituting€a€violation€of€this€chapter€or€a€rule€or€order€under€this€chapter;Ð $ t ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(f)€€the€commission€may€impose€a€fine;Ð ü L  ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(g)€€the€commission€may€bar€or€suspend€that€person€from€associating€with€a€licensedÐ Ô$  Ðbroker-dealer€or€investment€adviser€in€this€state;€andÐ À  ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(h)€€the€commission€may€impose€a€combination€of€sanctions€in€Subsections€(1)(e)€through€(g).Ð ˜è  ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(2)€(a)€€The€director€may€bring€an€action€in€the€appropriate€district€court€of€this€state€or€theÐ pÀ Ðappropriate€court€of€another€state€to€enjoin€an€act€or€practice€and€to€enforce€compliance€with€thisÐ \¬ Ðchapter€or€a€rule€or€order€under€this€chapter;Ð H˜ ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(b)€€upon€a€proper€showing€in€an€action€brought€under€this€section,€the€court€may:Ð  p ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(i)€€issue€a€permanent€or€temporary,€prohibitory€or€mandatory€injunction;Ð øH ÐÝ ƒ _PÿÝà Ü àÝ  Ý(ii)€€issue€a€restraining€order€or€writ€of€mandamus;Ð ä4 ÐÝ ƒ _PÿÝà Ü àÝ  Ý(iii)€€enter€a€declaratory€judgment;Ð Ð  ÐÝ ƒ _PÿÝà Ü àÝ  Ý(iv)€€appoint€a€receiver€or€conservator€for€the€defendant€or€the€defendant's€assets;Ð ¼  ÐÝ ƒ _PÿÝà Ü àÝ  Ý(v)€€order€disgorgement;Ð ¨ø ÐÝ ƒ _PÿÝà Ü àÝ  Ý(vi)€€order€rescission;Ð ”ä ÐÝ ƒ _PÿÝà Ü àÝ  Ý(vii)€€order€restitution;Ð €Ð ÐÝ ƒ _PÿÝà Ü àÝ  Ý(viii)€€impose€a€fine€of€not€more€than€$10,000€for€each€violation€of€the€chapter;€andÐ l¼ ÐÝ ƒ _PÿÝà Ü àÝ  Ý(ix)€€enter€any€other€relief€the€court€considers€just;€andÐ X ¨ ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(c)€€the€court€may€not€require€the€division€to€post€a€bond€in€an€action€brought€under€thisÐ 0"€  ÐSubsection€(2).Ð #l! ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(3)€€An€order€issued€under€Subsection€(1)€shall€be€accompanied€by€written€findings€of€fact€andÐ ô$D # Ðconclusions€of€law.Ô#†,X`,XXX`,°#ÔÐ à%0!$ ÐÌÔ‡,òÜòX,X`,ÔHistory:€As€last€amended€by€Chapter€351,€Laws€of€Utah€2009.Ô#†,X`,Xò,òÜü#ÔÐ ¸'#& ÐÔ‡,òÜòX,X`,ÔAdministrative€Rules:€This€section€is€cited€in€or€interpreted€by€the€following€administrative€rule(s):€R164„14,€R164„Ð |(Ì#' Ð18.Ô#†,X`,Xò,òÜŽ#ÔÐ @)$( ÐÌÔ  Ôò ò61-1-21.€Penalties€for€violations.ó óÔ €asÔÐ ð*@&* Ðà Ü àÔ‡X`,XX,X`,Ô(1)€€A€person€is€guilty€of€a€third€degree€felony€who€willfully€violates:Ð Ü+,'+ Ð‡Ý ƒ _PÿÝà Ü àÝ  Ý(a)€€a€provision€of€this€chapter€except€Sections€Ý‚}ÿÝÝ  Ý61-1-1Ý‚}ÿ±€is€ÝÝ  Ý€and€Ý‚}ÿÝÝ  Ý61-1-16Ý‚}ÿú€is€ÝÝ  Ý;Ð ° ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(b)€€an€order€issued€under€this€chapter;€orÐ ˆØ ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(c)€€Section€Ý‚}ÿÝÝ  Ý61-1-16Ý‚}ÿò€is€ÝÝ  Ý€knowing€the€statement€made€is€false€or€misleading€in€a€material€respect.Ð `° ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(2)€€A€person€who€willfully€violates€Section€Ý‚}ÿÝÝ  Ý61-1-1Ý‚}ÿê€is€ÝÝ  Ý:Ð 8 ˆ ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(a)€€is€guilty€of€a€third€degree€felony€if,€at€the€time€the€crime€was€committed,€the€property,Ð  ` Ðmoney,€or€thing€unlawfully€obtained€or€sought€to€be€obtained€was€worth€less€than€$10,000;Ð ü L  ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(b)€€is€guilty€of€a€second€degree€felony€if:Ð Ô$  ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(i)€€at€the€time€the€crime€was€committed,€the€property,€money,€or€thing€unlawfully€obtained€orÐ ¬ü  Ðsought€to€be€obtained€was€worth€$10,000€or€more;€orÐ ˜è  ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(ii)€(A)€€at€the€time€the€crime€was€committed,€the€property,€money,€or€thing€unlawfullyÐ pÀ Ðobtained€or€sought€to€be€obtained€was€worth€less€than€$10,000;€andÐ \¬ ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(B)€€in€connection€with€that€violation,€the€violator€knowingly€accepted€any€moneyÐ 4„ Ðrepresenting:Ð  p ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(I)€€equity€in€a€person's€primary€residence;Ð øH ÐÝ ƒ _PÿÝà Ü àÝ  Ý(II)€€a€withdrawal€from€an€individual€retirement€account;€orÐ ä4 ÐÝ ƒ _PÿÝà Ü àÝ  Ý(III)€€a€withdrawal€from€a€qualified€retirement€plan€as€defined€in€the€Internal€Revenue€Code;Ð Ð  ÐorÐ ¼  ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(c)€€is€guilty€of€an€enhanced€second€degree€felony€punishable€by€imprisonment€for€anÐ ”ä Ðindeterminate€term€of€not€less€than€three€years€or€more€than€15€years€if:Ð €Ð ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(i)€€at€the€time€the€crime€was€committed,€the€property,€money,€or€thing€unlawfully€obtained€orÐ X ¨ Ðsought€to€be€obtained€was€worth€$10,000€or€more;€andÐ D!” ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(ii)€€in€connection€with€that€violation,€the€violator€knowingly€accepted€any€moneyÐ #l! Ðrepresenting:Ð $X" ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(A)€€equity€in€a€person's€primary€residence;Ð à%0!$ ÐÝ ƒ _PÿÝà Ü àÝ  Ý(B)€€a€withdrawal€from€an€individual€retirement€account;€orÐ Ì&"% ÐÝ ƒ _PÿÝà Ü àÝ  Ý(C)€€a€withdrawal€from€a€qualified€retirement€plan€as€defined€in€the€Internal€Revenue€Code.Ð ¸'#& ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(3)€€A€person€may€not€be€imprisoned€for€the€violation€of€an€order€issued€under€this€chapter€ifÐ )à$( Ðthe€person€proves€that€the€person€had€no€knowledge€of€the€order.Ð |*Ì%) ÐÐ h+¸&* ÐÝ ƒ _PÿÝà Ü àÝ  Ý(4)€€In€addition€to€any€other€penalty€for€a€criminal€violation€of€this€chapter,€the€sentencingÐ ° Ðjudge€may€impose€a€penalty€or€remedy€provided€for€in€Subsection€Ý‚}ÿÝÝ  Ý61-1-20Ý‚}ÿŸ#ƒÝÝ  Ý(2)(b).Ô#†,X`,XXX`,Ü#ÔÐ œì ÐÌÔ‡,òÜòX,X`,ÔHistory:€As€last€amended€by€Chapter€351,€Laws€of€Utah€2009.Ô#†,X`,Xò,òÜ$$#ÔÐ tÄ ÐÌò òÔ‡X`,XX,X`,Ô61-1-21.1ó óÝ‚sT5ÿÝò òÝ  Ý€Limitation€of€prosecutions.ó óÝ‚sÿå$ ÝÐ $ t Ðà Ü àÝ  ÝÝ ƒ _PÿÝà  àÝ  Ý(1)€€No€indictment€or€information€may€be€returned€or€civil€complaint€filed€under€thisÐ  ` Ðchapter€more€than€five€years€after€the€alleged€violation.Ð ü L ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(2)€€As€to€causes€of€action€arising€from€violations€of€this€chapter,€the€limitation€ofÐ Ô $  Ðprosecutions€provided€in€this€section€supersedes€the€limitation€of€actions€provided€in€SectionÐ À   ÐÝ‚}ÿÝÝ  Ý76-1-302Ý‚}ÿX'ƒÝÝ  Ý€and€Title€78B,€Chapter€2,€Statutes€of€Limitations.Ô#†,X`,XXX`,º$#ÔÐ ¬ü  ÐÌÔ‡X`,XX,X`,ÔÔ‡òÜòXX`,ÔHistory:€As€last€amended€by€Chapter€216,€ðð€5,€Laws€of€Utah€1992.Ô#†,òÜòòòÜ (#ÔÔ#†,X`,Xò,òÜ)(#ÔÐ „Ô  ÐÌÔ  Ôò ò61-1-21.5.€Legal€counsel€-€Prosecutionsó ó.Ô €aç(ÔÐ 4„  Ðà Ü àÔ‡X`,XX,X`,Ô(1)€€The€attorney€general€shall€advise€and€represent€the€division,€the€commission,€and€the€staffÐ $t Ðof€the€division€in€all€civil€matters,€administrative€or€judicial,€requiring€legal€counsel€or€services€inÐ ` ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(a)€€the€exercise€or€defense€of€the€division's€or€commission's€power;€orÐ è8 ÐÝ ƒ _PÿÝà Ü àÝ  Ý(b)€€the€performance€of€the€division's€or€commission's€duties.Ð Ô$ ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(2)€€With€the€concurrence€of€the€attorney€general,€the€staff€of€the€division€may€represent€theÐ ¬ü Ðdivision€in€hearings€conducted€during€the€course€of€adjudicative€proceedings€of€the€commissionÐ ˜è Ðor€the€division.Ð „Ô ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(3)€(a)€€In€the€prosecution€of€all€criminal€actions€under€this€chapter,€the€attorney€general,Ð \¬ Ðcounty€attorney,€or€district€attorney€of€the€appropriate€jurisdiction,€shall€provide€all€legal€servicesÐ H˜ Ðfor€the€division,€the€commission,€and€the€staff€of€the€division.Ð 4„ ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(b)€€The€division€or€commission€may€refer€evidence€that€is€available€concerning€a€violation€ofÐ  \ Ðthis€chapter€for€criminal€prosecution€to:Ð ø H ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(i)€€the€attorney€general;€orÐ Ð" ! ÐÝ ƒ _PÿÝà Ü àÝ  Ý(ii)€€the€appropriate€county€attorney,€district€attorney,€or€United€States€Attorney's€Office.Ð ¼# " ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(4)€€The€attorney€general,€a€county€attorney,€or€a€district€attorney€of€the€appropriateÐ ”%ä $ Ðjurisdiction€may€institute€a€criminal€proceeding€under€this€chapter,€with€or€without€referral€fromÐ €&Ð!% Ðthe€division.Ô#†,X`,XXX`,V)#ÔÐ l'¼"& ÐÌÔ‡,òÜòX,X`,ÔHistory:€As€last€amended€by€Chapter€351,€Laws€of€Utah€2009.Ô#†,X`,Xò,òÜ!1#ÔÐ D)”$( ÐÌÔ  Ôò ò61-1-22.€Sales€and€purchases€in€violation€-€Remedies€-€Limitation€of€actions.ó óÔ €a´1ÔÐ ô*D&* ÐÔ‡X`,XX,X`,Ô(1)€(a)€€This€Subsection€(1)€applies€to€a€person€who:Ð à+0'+ Ð‡Ý ƒ _PÿÝà Ü àÝ  Ý(i)€€offers€or€sells€a€security€in€violation€of:Ð ° ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(A)€€Subsection€Ý‚}ÿÝÝ  Ý61-1-3Ý‚}ÿJ3on€aÝÝ  Ý(1);Ð ˆØ ÐÝ ƒ _PÿÝà Ü àÝ  Ý(B)€€Section€Ý‚}ÿÝÝ  Ý61-1-7Ý‚}ÿÛ3on€aÝÝ  Ý;Ð tÄ ÐÝ ƒ _PÿÝà Ü àÝ  Ý(C)€€Subsection€Ý‚}ÿÝÝ  Ý61-1-17Ý‚}ÿl4on€aÝÝ  Ý(2);Ð `° ÐÝ ƒ _PÿÝà Ü àÝ  Ý(D)€€a€rule€or€order€under€Section€Ý‚}ÿÝÝ  Ý61-1-15Ý‚}ÿ5on€aÝÝ  Ý,€which€requires€the€affirmative€approval€of€salesÐ L œ Ðliterature€before€it€is€used;€orÐ 8 ˆ ÐÝ ƒ _PÿÝà Ü àÝ  Ý(E)€€a€condition€imposed€under€Subsection€Ý‚}ÿÝÝ  Ý61-1-10Ý‚}ÿ&6on€aÝÝ  Ý(4)€or€Ý‚}ÿÝÝ  Ý61-1-11Ý‚}ÿr6on€aÝÝ  Ý(7);€orÐ $ t ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(ii)€€offers,€sells,€or€purchases€a€security€in€violation€of€Subsection€Ý‚}ÿÝÝ  Ý61-1-1Ý‚}ÿC7on€aÝÝ  Ý(2).Ð ü L  ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(b)€€A€person€described€in€Subsection€(1)(a)€is€liable€to€a€person€selling€the€security€to€orÐ Ô$  Ðbuying€the€security€from€the€person€described€in€Subsection€(1)(a).€€The€person€to€whom€theÐ À  Ðperson€described€in€Subsection€(1)(a)€is€liable€may€sue€either€at€law€or€in€equity€to€recover€theÐ ¬ü  Ðconsideration€paid€for€the€security,€together€with€interest€at€12%€per€year€from€the€date€ofÐ ˜è  Ðpayment,€costs,€and€reasonable€attorney€fees,€less€the€amount€of€income€received€on€the€security,Ð „Ô  Ðupon€the€tender€of€the€security€or€for€damages€if€the€person€no€longer€owns€the€security.Ð pÀ ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(c)€€Damages€are€an€amount€calculated€as€follows:Ð H˜ ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(i)€€subtract€from€the€amount€that€would€be€recoverable€upon€a€tender€under€Subsection€(7)(b)Ð  p Ðthe€value€of€the€security€when€the€buyer€disposed€of€the€security;€andÐ  \ ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(ii)€€add€to€the€amount€calculated€under€Subsection€(1)(c)(i)€interest€at:Ð ä4 ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(A)€€12%€per€year:Ð ¼  ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(I)€€beginning€the€day€on€which€the€security€is€purchased€by€the€buyer;€andÐ ”ä ÐÝ ƒ _PÿÝà Ü àÝ  Ý(II)€€ending€on€the€date€of€disposition;€andÐ €Ð ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(B)€€after€the€period€described€in€Subsection€(1)(c)(ii)(A),€12%€per€year€on€the€amount€lost€atÐ X ¨ Ðdisposition.Ð D!” ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(2)€€The€court€in€a€suit€brought€under€Subsection€(1)€may€award€an€amount€equal€to€threeÐ #l! Ðtimes€the€consideration€paid€for€the€security,€together€with€interest,€costs,€and€attorney€fees,€lessÐ $X" Ðany€amounts,€all€as€specified€in€Subsection€(1)€upon€a€showing€that€the€violation€was€reckless€orÐ ô$D # Ðintentional.Ð à%0!$ ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(3)€€A€person€who€offers€or€sells€a€security€in€violation€of€Subsection€Ý‚}ÿÝÝ  Ý61-1-1Ý‚}ÿq@on€aÝÝ  Ý(2)€is€not€liableÐ ¸'#& Ðunder€Subsection€(1)(a)€if€the€purchaser€knew€of€the€untruth€or€omission,€or€the€seller€did€notÐ ¤(ô#' Ðknow€and€in€the€exercise€of€reasonable€care€could€not€have€known€of€the€untrue€statement€orÐ )à$( Ðmisleading€omission.Ð |*Ì%) ÐÐ h+¸&* ÐÝ ƒ _PÿÝà Ü àÝ  Ý(4)€(a)€€Every€person€who€directly€or€indirectly€controls€a€seller€or€buyer€liable€underÐ ° ÐSubsection€(1),€every€partner,€officer,€or€director€of€such€a€seller€or€buyer,€every€person€occupyingÐ œì Ða€similar€status€or€performing€similar€functions,€every€employee€of€such€a€seller€or€buyer€whoÐ ˆØ Ðmaterially€aids€in€the€sale€or€purchase,€and€every€broker-dealer€or€agent€who€materially€aids€in€theÐ tÄ Ðsale€or€purchase€are€also€liable€jointly€and€severally€with€and€to€the€same€extent€as€the€seller€orÐ `° Ðpurchaser,€unless€the€nonseller€or€nonpurchaser€who€is€so€liable€sustains€the€burden€of€proof€thatÐ L œ Ðthe€nonseller€or€nonpurchaser€did€not€know,€and€in€exercise€of€reasonable€care€could€not€haveÐ 8 ˆ Ðknown,€of€the€existence€of€the€facts€by€reason€of€which€the€liability€is€alleged€to€exist.Ð $ t ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(b)€€There€is€contribution€as€in€cases€of€contract€among€the€several€persons€so€liable.Ð ü L  ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(5)€€A€tender€specified€in€this€section€may€be€made€at€any€time€before€entry€of€judgment.Ð Ô$  ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(6)€€A€cause€of€action€under€this€section€survives€the€death€of€a€person€who€might€haveÐ ¬ü  Ѐbeen€a€plaintiff€or€defendant.Ð ˜è  ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(7)€(a)€€An€action€may€not€be€maintained€to€enforce€liability€under€this€section€unless€broughtÐ pÀ Ðbefore€the€earlier€of:Ð \¬ ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(i)€€the€expiration€of€five€years€after€the€act€or€transaction€constituting€the€violation;€orÐ 4„ ÐÝ ƒ _PÿÝà Ü àÝ  Ý(ii)€€the€expiration€of€two€years€after€the€discovery€by€the€plaintiff€of€the€facts€constituting€theÐ  p Ðviolation.Ð  \ ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(b)€€A€person€may€not€sue€under€this€section€if:Ð ä4 ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(i)€€the€buyer€or€seller€received€a€written€offer,€before€suit€and€at€a€time€when€the€buyer€orÐ ¼  Ðseller€owned€the€security,€to€refund€the€consideration€paid€together€with€interest€at€12%€per€yearÐ ¨ø Ðfrom€the€date€of€payment,€less€the€amount€of€any€income€received€on€the€security,€and€the€buyerÐ ”ä Ðor€seller€failed€to€accept€the€offer€within€30€days€of€its€receipt;€orÐ €Ð ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(ii)€€the€buyer€or€seller€received€such€an€offer€before€suit€and€at€a€time€when€the€buyer€or€sellerÐ X ¨ Ðdid€not€own€the€security,€unless€the€buyer€or€seller€rejected€the€offer€in€writing€within€30€days€ofÐ D!” Ðits€receipt.Ð 0"€  ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(8)€€A€person€who€has€made€or€engaged€in€the€performance€of€any€contract€in€violation€of€thisÐ $X" Ðchapter€or€any€rule€or€order€issued€under€this€chapter,€or€who€has€acquired€a€purported€right€underÐ ô$D # Ðany€such€contract€with€knowledge€of€the€facts€by€reason€of€which€its€making€or€performance€wasÐ à%0!$ Ðin€violation,€may€not€base€a€suit€on€the€contract.Ð Ì&"% ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(9)€€A€condition,€stipulation,€or€provision€binding€a€person€acquiring€a€security€to€waiveÐ ¤(ô#' Ðcompliance€with€this€chapter€or€a€rule€or€order€issued€under€this€chapter€is€void.Ð )à$( ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(10)€(a)€€The€rights€and€remedies€provided€by€this€chapter€are€in€addition€to€any€other€rights€orÐ h+¸&* Ðremedies€that€may€exist€at€law€or€in€equity.Ð ° ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(b)€€This€chapter€does€not€create€a€cause€of€action€not€specified€in€this€section€or€SubsectionÐ ˆØ ÐÝ‚}ÿÝÝ  Ý61-1-4Ý‚}ÿ¦Qle€aÝÝ  Ý(6).Ô#†,X`,XXX`,<2#ÔÐ tÄ ÐÌÔ‡X`,XX,X`,ÔÔ‡òÜòXX`,Ôà Ü àHistory:€As€last€amended€by€Chapter€351,€Laws€of€Utah€2009.Ô#†,òÜòòòÜ'R#ÔÔ#†,X`,Xò,òÜFR#ÔÐ L œ Ðà Ü àÔ‡,òÜòX,X`,ÔAdministrative€Rules:€This€section€is€cited€in€or€interpreted€by€the€following€administrative€rule(s):€R331-5.Ð  ` ÐÔ#†,X`,Xò,òÜS#ÔÌÔ  Ôò ò61-1-23.€Review€of€orders.ó óÔ  ÙSÔÐ À  Ðà Ü àÔ‡X`,XX,X`,ÔA€person€aggrieved€by€a€final€order€under€this€chapter€determining€all€of€the€issues€of€anÐ ¬ ü  Ðadjudicative€proceeding€may€obtain€review€of€the€order€by€the€executive€director€in€accordanceÐ ˜ è  Ðwith€Title€63G,€Chapter€4,€Administrative€Procedures€Act.Ô#†,X`,XXX`,:T#ÔÐ „Ô  ÐÌÔ‡,òÜòX,X`,ÔHistory:€As€last€amended€by€Chapter€351,€Laws€of€Utah€2009.Ð \¬  ÐÔ#†,X`,Xò,òÜ­U#ÔÌÔ  Ôò ò61-1-24.€Rules,€forms,€and€orders€of€division.ó óÔ €w@VÔÐ  \  Ðà Ü àÔ‡X`,XX,X`,Ô(1)€(a)€€Subject€to€Subsection€(1)(c),€the€division€may€make,€amend,€or€rescind€a€rule,€form,€orÐ øH Ðorder€when€necessary€to€carry€out€this€chapter.Ð ä4 ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(b)€€For€the€purpose€of€a€rule€or€form,€the€division€may:Ð ¼  ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(i)€€classify€securities,€persons,€and€matters€within€the€jurisdiction€of€the€commission€orÐ ”ä Ðdivision;€andÐ €Ð ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(ii)€€prescribe€different€requirements€for€different€classes.Ð X¨ ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(c)€€The€division€shall€make€rules€in€accordance€with€Title€63G,€Chapter€3,€UtahÐ 0€ ÐAdministrative€Rulemaking€Act,€except€that€the€division€may€not€make,€amend,€or€rescind€a€ruleÐ l Ðor€form€under€this€chapter€without€the€concurrence€of€the€commission.Ð X ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(d)€€In€prescribing€a€rule€or€form,€the€division€may€cooperate€with€the€securities€administratorsÐ à0 Ðof€the€other€states€and€the€Securities€and€Exchange€Commission€to€achieve€maximum€uniformityÐ Ì  Ðin€the€form€and€content€of€registration€statements,€applications,€and€reports€wherever€practicable.Ð ¸!  ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(2)€(a)€€The€division€may€prescribe:Ð #à" ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(i)€€the€form€and€content€of€a€financial€statement€required€under€this€chapter;Ð h%¸ $ ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(ii)€€the€circumstances€under€which€a€consolidated€financial€statement€shall€be€filed;€andÐ @'"& ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(iii)€€whether€or€not€a€required€financial€statement€shall€be€certified€by€an€independent€publicÐ )h$( Ðaccountant.Ð *T%) ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(b)€€A€financial€statement€under€this€chapter€shall€be€prepared€in€accordance€with€generallyÐ Ü+,'+ Ðaccepted€accounting€principles.Ð ° ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(3)€€A€provision€of€this€chapter€that€imposes€liability€does€not€apply€to€an€act€done€or€omittedÐ ˆØ Ðin€good€faith€in€conformity€with€a€rule,€form,€or€order€of€the€division€or€an€order€of€theÐ tÄ Ðcommission,€notwithstanding€that€the€rule,€form,€or€order€may€later€be€amended€or€rescinded€or€beÐ `° Ðdetermined€by€judicial€or€other€authority€to€be€invalid€for€any€reason.Ô#†,X`,XXX`,µV#ÔÐ L œ ÐÌÔ‡,òÜòX,X`,ÔHistory:€As€last€amended€by€Chapter€351,€Laws€of€Utah€2009.Ð $ t ÐAdministrative€Rules:€This€section€is€cited€in€or€interpreted€by€the€following€administrative€rule(s):€R164-1,€Ô#†,X`,Xò,òÜ(a#ÔÔ‡,òÜòX,X`,ÔR164-2,Ô#†,X`,Xò,òÜ)b#ÔÔ‡,òÜòX,X`,ÔÐ è 8 ÐÔ#†,X`,Xò,òÜrb#ÔÔ‡,òÜòX,X`,ÔR164-4,€R164-5,Ô#†,X`,Xò,òÜÉb#ÔÔ‡,òÜòX,X`,Ô€Ô#†,X`,Xò,òÜc#ÔÔ‡,òÜòX,X`,ÔR164-6,Ô#†,X`,Xò,òÜ]c#ÔÔ‡,òÜòX,X`,Ô€R164-9Ô#†,X`,Xò,òܦc#ÔÔ‡,òÜòX,X`,Ô,€Ô#†,X`,Xò,òÜïc#ÔÔ‡,òÜòX,X`,ÔR164-10,€R164-14,€R164-18,€€R164-25.Ô#†,X`,Xò,òÜ3d#ÔÐ ¬ ü  ÐÌÔ  Ôò ò61-1-25.€Record€of€registrations.ó óÔ €w¯dÔÐ \¬  Ðà Ü àÔ‡X`,XX,X`,Ô(1)€€A€document€is€filed€when€it€is€received€by€the€division.Ð H˜  ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(2)€(a)€€The€division€shall€keep€a€register€of:Ð  p  ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(i)€€all€applications€for€registration€and€registration€statements€that€are€or€have€ever€beenÐ øH Ðeffective€under€this€chapter;€andÐ ä4 ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(ii)€€all€denial,€suspension,€or€revocation€orders€entered€under€this€chapter.Ð ¼  ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(b)€€The€register€shall€be€open€for€public€inspection.Ð ”ä ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(3)€€The€information€contained€in€or€filed€with€a€registration€statement,€application,€or€reportÐ l¼ Ðmay€be€made€available€to€the€public€under€the€rules€the€division€prescribes.Ð X¨ ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(4)€(a)€The€division€shall€furnish€to€a€person€a€photostatic€or€other€copy,€certified€under€seal€ifÐ 0€ Ðrequested,€of€an€entry€in€the€register€or€any€document€that€is€a€matter€of€public€record:Ð l ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(i)€€upon€request;€andÐ ôD ÐÝ ƒ _PÿÝà Ü àÝ  Ý(ii)€€at€a€reasonable€charge€prescribed€by€the€division.Ð à0 ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(b)€€In€a€proceeding€or€prosecution€under€this€chapter,€a€copy€certified€under€this€SubsectionÐ ¸!  Ð(4)€is€prima€facie€evidence€of€the€contents€of€the€entry€or€document€certified.Ð ¤"ô! ÐÌÝ ƒ _PÿÝà Ü àÝ  Ý(5)€€The€division€may€issue€an€interpretative€opinion€requested€by€an€interested€person€if€theÐ |$Ì# Ðcommission€concurs€in€the€interpretative€opinion.Ô#†,X`,XXX`,e#ÔÐ h%¸ $ ÐÌÔ‡,òÜòX,X`,ÔHistory:€As€last€amended€by€Chapter€351,€Laws€of€Utah€2009.Ð @'"& ÐAdministrative€Rules:€This€section€is€cited€in€or€interpreted€by€the€following€administrative€rule(s):€R164-25.Ô#†,X`,Xò,òÜ™l#ÔÐ (T#' ÐÌÔ  Ôò ò61-1-26.€Scope€of€the€act€-€Service€of€process.ó óÔ €w°mÔÐ ´)%) ÐÔ‡X`,XX,X`,Ôà Ü à(1)€€Section€61-1-1,€Subsection€61-1-3€€(1),€Sections€61-1-7,€61-1-15.5,€61-1-17,€and€61-1-22Ð  *ð%* Ðapply€to€persons€who€sell€or€offer€to€sell€when:Ð Œ+Ü&+ Їà Ü àà  à(a)€€an€offer€to€sell€is€made€in€this€state;€orÐ ° ÐÌà Ü àà  à(b)€€an€offer€to€buy€is€made€and€accepted€in€this€state.Ð ˆØ ÐÌà Ü à(2)€€Section€61-1-1,€Subsection€61-1-3€€(1),€and€Section€61-1-17€apply€to€persons€who€buy€orÐ `° Ðoffer€to€buy€when:Ð L œ ÐÌà Ü àà  à(a)€€an€offer€to€buy€is€made€in€this€state;€orÐ $ t ÐÌà Ü àà  à(b)€€an€offer€to€sell€is€made€and€accepted€in€this€state.Ð ü L  ÐÌà Ü à(3)€€For€the€purposes€of€this€section,€an€offer€to€sell€or€to€buy€is€made€in€this€state€whether€orÐ Ô$  Ðnot€either€party€is€then€present€in€this€state,€when€the€offer:Ð À  ÐÌà Ü àà  à(a)€€originates€from€this€state;€orÐ ˜è  ÐÌà Ü àà  à(b)€€is€directed€by€the€offeror€to€this€state€and€received€at€the€place€to€which€it€is€directed,Ð pÀ Ðor€at€any€post€office€in€this€state€in€the€case€of€a€mailed€offer.Ð \¬ ÐÌà Ü à(4)€€For€the€purposes€of€this€section,€an€offer€to€sell€or€to€buy€is€accepted€in€this€state€whenÐ 4„ Ðacceptance:Ð  p ÐÌà Ü àà  à(a)€€is€communicated€to€the€offeror€in€this€state;€andÐ øH ÐÌà Ü àà  à(b)€€has€not€previously€been€communicated€to€the€offeror,€orally€or€in€writing,€outside€thisÐ Ð  Ðstate,€and€acceptance€is€communicated€to€the€offeror€in€this€state,€whether€or€not€either€party€isÐ ¼  Ðthen€present€in€this€state,€when€the€offeree€directs€it€to€the€offeror€in€this€state€reasonablyÐ ¨ø Ðbelieving€the€offeror€to€be€in€this€state€and€it€is€received€at€the€place€to€which€it€is€directed€or€atÐ ”ä Ðany€post€office€in€this€state€in€the€case€of€a€mailed€acceptance.Ð €Ð ÐÌà Ü à(5)€€An€offer€to€sell€or€to€buy€is€not€made€in€this€state€when:Ð X ¨ ÐÌà Ü àà  à(a)€€the€publisher€circulates€or€there€is€circulated€on€his€behalf€in€this€state€any€bona€fideÐ 0"€  Ðnewspaper€or€other€publication€of€general,€regular,€and€paid€circulation€which€is€not€published€inÐ #l! Ðthis€state,€or€which€is€published€in€this€state€but€has€had€more€than€2/3€of€its€circulation€outsideÐ $X" Ðthis€state€during€the€past€12€months;€orÐ ô$D # ÐÌà Ü àà  à(b)€€a€radio€or€television€program€originating€outside€this€state€is€received€in€this€state.Ð Ì&"% ÐÌà Ü à(6)€€Section€61-1-2€and€Subsection€61-1-3€(3),€as€well€as€Section€61-1-17€so€far€as€investmentÐ ¤(ô#' Ðadvisers€are€concerned,€apply€when€any€act€instrumental€in€effecting€prohibited€conduct€is€done€inÐ )à$( Ðthis€state,€whether€or€not€either€party€is€then€present€in€this€state.Ð |*Ì%) ÐÐ h+¸&* Ðà Ü à(7)€(a)€€Every€application€for€registration€under€this€chapter€and€every€issuer€which€proposes€toÐ ° Ðoffer€a€security€in€this€state€through€any€person€acting€on€an€agency€basis€in€the€common-lawÐ œì Ðsense€shall€file€with€the€division,€in€such€form€as€it€prescribes€by€rule,€an€irrevocable€consentÐ ˆØ Ðappointing€the€division€or€the€director€to€be€his€attorney€to€receive€service€of€any€lawful€process€inÐ tÄ Ðany€noncriminal€suit,€action,€or€proceeding€against€him€or€his€successor,€executor,€orÐ `° Ðadministrator€which€arises€under€this€chapter€or€any€rule€or€order€hereunder€after€the€consent€hasÐ L œ Ðbeen€filed,€with€the€same€force€and€validity€as€if€served€personally€on€the€person€filing€theÐ 8 ˆ Ðconsent.Ð $ t ÐÌà Ü àà  à(b)€€A€person€who€has€filed€such€a€consent€in€connection€with€a€previous€registration€orÐ ü L  Ðnotice€filing€need€not€file€another.Ð è 8  ÐÌà Ü àà  à(c)€€Service€may€be€made€by€leaving€a€copy€of€the€process€in€the€office€of€the€division,€butÐ À  Ðit€is€not€effective€unless€the€plaintiff,€who€may€be€the€division€in€a€suit,€action,€or€proceedingÐ ¬ü  Ðinstituted€by€it,€sends€notice€of€the€service€and€a€copy€of€the€process€by€registered€mail€to€theÐ ˜è  Ðdefendant€or€respondent€at€his€last€address€on€file€with€the€division,€and€the€plaintiff's€affidavit€ofÐ „Ô  Ðcompliance€with€this€subsection€is€filed€in€the€case€on€or€before€the€return€day€of€the€process,€ifÐ pÀ Ðany,€or€within€such€further€time€as€the€court€allows.Ð \¬ ÐÌà Ü à(8)€(a)€€When€any€person,€including€any€nonresident€of€this€state,€engages€in€conductÐ 4„ Ðprohibited€or€made€actionable€by€this€chapter€or€any€rule€or€order€hereunder,€and€he€has€not€filed€aÐ  p Ðconsent€to€service€of€process€under€Subsection€(7)€and€personal€jurisdiction€over€him€cannotÐ  \ Ðotherwise€be€obtained€in€this€state,€that€conduct€shall€be€considered€equivalent€to€his€appointmentÐ øH Ðof€the€division€or€the€director€to€be€his€attorney€to€receive€service€of€any€lawful€process€in€anyÐ ä4 Ðnoncriminal€suit,€action,€or€proceeding€against€him€or€his€successor€executor€or€administratorÐ Ð  Ðwhich€grows€out€of€that€conduct€and€which€is€brought€under€this€chapter€or€any€rule€or€orderÐ ¼  Ðhereunder,€with€the€same€force€and€validity€as€if€served€on€him€personally.Ð ¨ø ÐÌà Ü àà  à(b)€€Service€may€be€made€by€leaving€a€copy€of€the€process€in€the€office€of€the€division,€butÐ €Ð Ðit€is€not€effective€unless€the€plaintiff,€who€may€be€the€division€in€a€suit,€action,€or€proceedingÐ l¼ Ðinstituted€by€it,€sends€notice€of€the€service€and€a€copy€of€the€process€by€registered€mail€to€theÐ X ¨ Ðdefendant€or€respondent€at€his€last€known€address€or€takes€other€steps€which€are€reasonablyÐ D!” Ðcalculated€to€give€actual€notice,€and€the€plaintiff's€affidavit€of€compliance€with€this€subsection€isÐ 0"€  Ðfiled€in€the€case€on€or€before€the€return€day€of€the€process,€if€any,€or€within€such€further€time€asÐ #l! Ðthe€court€allows.Ð $X" ÐÌà Ü à(9)€€When€process€is€served€under€this€section,€the€court,€or€the€director€shall€order€suchÐ à%0!$ Ðcontinuance€as€may€be€necessary€to€afford€the€defendant€or€respondent€reasonable€opportunity€toÐ Ì&"% Ðdefend.Ô#†,X`,XXX`,n#ÔÐ ¸'#& ÐÌÔ‡,òÜòX,X`,ÔHistory:€As€last€amended€by€Chapter€160,€ðð11,€Laws€of€Utah€1997.Ð )à$( ÐÔ#†,X`,Xò,ò܉#ÔÔ‡,òÜòX,X`,ÔAdministrative€Rules:€This€section€is€cited€in€or€interpreted€by€the€following€administrative€rule(s):€R164-26.Ô#†,X`,Xò,òܶ‰#ÔÔ‡,òÜòX,X`,ÔÐ T*¤%) ÐCross-References:€Corporations€doing€business€in€state€to€have€resident€agent,€ðð€16-10a-1508.Ð +h&* ÐÔ#†,X`,Xò,òÜgŠ#ÔÐ Ü+,'+ ÐÔ  Ôò ò61-1-27.€Construction€of€chapter.ó óÔ €iH‹ÔÐ ° Ðà Ü àThis€chapter€may€be€so€construed€as€to€effectuate€its€general€purpose€to€make€uniform€the€lawÐ œì Ðof€those€states€which€enact€it€and€to€coordinate€the€interpretation€and€administration€of€thisÐ ˆØ Ðchapter€with€the€related€federal€regulation.Ð tÄ ÐÌÔ‡,òÜòX,X`,ÔHistory:€As€last€amended€by€Chapter€284,€ðð€37,€Laws€of€Utah€1983.Ð L œ ÐÔ#†,X`,Xò,òÜ׌#ÔÌÔ  Ôò ò61-1-28.€Citation€of€chapter.ó óÔ €isÔÐ ü L Ðà Ü àThis€chapter€may€be€cited€as€the€Utah€Uniform€Securities€Act.Ð è 8 ÐÌÔ‡,òÜòX,X`,ÔHistory:€As€last€amended€by€Chapter€284,€ðð€38,€Laws€of€Utah€1983.Ô#†,X`,Xò,òÜ*Ž#ÔÐ À   ÐÌÔ  Ôò ò61-1-29.€Savings€clause.ó óÔ €iÆŽÔÐ pÀ  Ðà Ü àIf€any€provision€of€this€chapter€or€its€application€to€any€person€or€circumstance€is€held€invalid,Ð \¬  Ðthe€invalidity€shall€not€affect€other€provisions€or€applications€of€the€chapter€which€can€be€givenÐ H˜  Ðeffect€without€the€invalid€provision€or€application.Ð 4„  ÐÌÔ‡,òÜòX,X`,ÔHistory:€As€last€amended€by€Chapter€284,€ðð€39,€Laws€of€Utah€1983.Ô#†,X`,Xò,òÜ]#ÔÐ  \ ÐÌÔ  Ôò ò61-1-30.€REPEALED.ó óÔ €iùÔÐ ¼  ÐÌÌ€ÌÔ  ÔSunset€Act.Ô €iJ‘Ô€-€See€Section€63-55-261€for€the€repeal€date€of€this€chapterÐ l¼ ÐÌò ò