§ 7-11-607 - Rescission and settlement offers.
SECTION 7-11-607
§ 7-11-607 Rescission and settlementoffers. – (a) No purchaser may obtain relief under § 7-11-605(a) if, before suit iscommenced, the purchaser:
(1) Receives a written offer:
(i) Stating the respect in which liability under §7-11-605 may have arisen and fairly advising the purchaser of the purchaser'srights of rescission;
(ii) If the basis for relief under § 7-11-605(a) is aviolation of § 7-11-501 or 7-11-503 of this chapter, including financialand other information necessary to correct all material misstatements oromissions in the information which was required by this chapter to be furnishedto the purchaser as of the time of the sale of the security to the purchaser;
(iii) Offering to repurchase the security for cash, payableon delivery of the security, equal to the consideration paid, plus interest atthe legal rate of this state from the date of payment, less income received onthe security, or, if the purchaser no longer owns the security, offering to paythe purchaser upon acceptance of the offer an amount in cash equal to thedamages computed under § 7-11-605(a); and
(iv) Stating that the offer may be accepted by the purchaserwithin thirty (30) days after the date of its receipt by the purchaser or anyshorter period, not less than three (3) days, the director, by order,prescribes; and
(2) Fails to accept the offer, in writing within the periodspecified under subdivision (1)(iv).
(b) The director may prescribe by rule the form in which theinformation specified in subsection (a) must be contained in an offer madeunder subsection (a).
(c) An offer under subsection (a) must be delivered to theofferee or sent in a manner which assures actual receipt by the offeree.
(d) If, after acceptance, a rescission offer is not performedin accordance with either its terms or this section, the offeree may obtainrelief under § 7-11-605 without regard to this section.