Corporations, Associations, and Partnerships
Rhode Island Uniform Securities Act
Enforcement and Civil Liability
R.I. Gen. Laws § 7-11-607
§ 7-11-607. Rescission and settlement offers.
(a) No purchaser may obtain relief under § 7-11-605(a) if, before suit is commenced, 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's rights of rescission;
(ii) If the basis for relief under § 7-11-605(a) is a violation of § 7-11-501 or 7-11-503 of this chapter, including financial and other information necessary to correct all material misstatements or omissions in the information that was required by this chapter to be furnished to the purchaser as of the time of the sale of the security to the purchaser;
(iii) Offering to repurchase the security for cash, payable on delivery of the security, equal to the consideration paid, plus interest at the legal rate of this state from the date of payment, less income received on the security, or, if the purchaser no longer owns the security, offering to pay the purchaser upon acceptance of the offer an amount in cash equal to the damages computed under § 7-11-605(a); and
(iv) Stating that the offer may be accepted by the purchaser within thirty (30) days after the date of its receipt by the purchaser or any shorter period, not less than three (3) days, the director, by order, prescribes; and
(2) Fails to accept the offer, in writing, within the period specified under subsection (a)(1)(iv).
(b) The director may prescribe by rule the form in which the information specified in subsection (a) must be contained in an offer made under subsection (a).
(c) An offer under subsection (a) must be delivered to the offeree or sent in a manner that assures actual receipt by the offeree.
(d) If, after acceptance, a rescission offer is not performed in accordance with either its terms or this section, the offeree may obtain relief under § 7-11-605 without regard to this section.
History of Section.
P.L. 1990, ch. 460, § 2.