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292.420 Burden of proving exemption.
(1)
(2)
(3)
In any proceeding under this chapter, the burden of proving an exemption or
an exception from a definition is upon the person claiming it.
The commissioner may require any person, who is selling or offering for sale or
who is about to sell or offer for sale or who has sold or offered for sale any
security within this state, to file a statement of the claim of exemption, if any,
upon which such person is relying, and if any time, in the opinion of the
commissioner, the information contained in such statement filed is misleading,
incorrect, inadequate, or fails to establish the right of exemption, the
commissioner may require such person, agent, or investment adviser to file
such information as may in his opinion be necessary to establish the claimed
exemption. The refusal to furnish information as required by order of the
commissioner pursuant to the provisions of this subsection, within a reasonable
time to be fixed by the commissioner, shall be proper ground for the entry of an
order by the commissioner suspending and/or canceling the registration of the
broker-dealer, agent or investment adviser.
The commissioner shall have authority at all times to consider and determine
whether any proposed sale, transaction, issue, or security is entitled to an
exemption or an exception from the definition accorded by this chapter,
provided, however, that the commissioner in his or her discretion may decline
to exercise such authority as to any proposed sale, transaction, issue, or
security. Any interested party desiring the commissioner to exercise such
authority shall submit to the commissioner a verified statement of all material
facts relating to the proposed sale, transaction, issue, or security, which
verified statement shall be accompanied by a request for a ruling as to the
particular exemption or exception from definition, together with a filing fee of
two hundred fifty dollars ($250). After such notice to interested parties as the
commissioner shall deem proper and after a hearing, if any, the commissioner
may enter an order finding the proposed sale, transaction, issue, or security
entitled or not entitled to the exemption or the exception from definition as
claimed. An order so entered, unless an appeal be taken therefrom in the
manner prescribed in this chapter, shall be binding upon the commissioner,
provided that the proposed sale, transaction, issue, or security when
consummated or issued conforms in every relevant and material particular with
the facts as set forth in the verified statement as submitted.
Effective:July 15, 2010
History: Amended 2010 Ky. Acts ch. 24, sec. 871, effective July 15, 2010. -Amended 1998 Ky. Acts ch. 20, sec. 15, effective July 15, 1998. -- Amended
1994 Ky. Acts ch. 165, sec. 14, effective July 15, 1994. -- Amended 1982 Ky.
Acts ch. 346, sec. 9, effective July 15, 1982. -- Amended 1980 Ky. Acts ch. 368,
sec. 7, effective July 15, 1980. -- Amended 1972 Ky. Acts ch. 265, sec. 12. -Created 1960 Ky. Acts ch. 110, sec. 21, effective January 1, 1961.
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