The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1915-04-01
LEGAL.
Published in The Topeka State Journal
April /, 1851
LEGAL.
SENATE BILL No 431.

or FRAUD in the sale or disposition of
certain securities" herein defined by re-
curing an inspection thereof, providing
Tor such inspection, supervision and reg
ulation of the business of any person,
association, partnership, or corporation,
engaged or intending to engage, whether
as principal, broker or agent, in the sale
OF any such securities in the state of
Kansas as may be necessary to prevent
unfairness, imposition or fraud in the
thereof and repeating chapter 1873 of the
the Session Laws of 1913
Be ii enacted by the Legislature of the
State of Kansas:
Section 1. The term Securities as used
in this act shall be taken to mean stock
certificates, shares, bonds, debentures, GER
tificates of participation, contracts, con-
tracts or bonds for the sale and convey
ance of land on deferred payments or in
the nature thereof by whatsoever name
known or called. The term speculative
taken to mean and ineIudes a. All securfs
ties to promote or induce the sale of which,
PROFIT gain or advantage unusual in the
All. securities for promoting the sale of
cent is offered or paid: (3) Ali securities
into the specified par value of which the
profit or possible loss equal or predomi-
nate over the elements of reasonable certain
ties the value of which materially depends
on proposed or promisd future promotion
or development rather than on present
tangible assets and conditions; ~ The
securities of any enterprise, association,
partnership or corporation which has in
sets as a material part thereof, patents,
formulate, goodwill, promotion, or intangi-
to issue material part of it's securities in
payment for formulae, patents, good will
ties made or issued in e fnrtheran zee or pro
motion of any enterprise or scheme for the
sale of unimproved or undeyeloped land on
ro 70 not limo
plan, when such lands are not situate in
the state of Kansas and the value of such
performance of any stipulation by the pro-
motors of such enterprise to furnish irriga-
value enhancing utility or improvement:
The term Speculative enterprise" used
In this this act shall be taken to mean any
activity for the promotion or furtherance of
which Speculative securities herein
defined are made, issued, sold, or offered
for sale.
Sec. 2 1t shall be hereafter unlawful
for any person, co-partnership, association,
or corporation hereinafter called the pro-
moter, either as principal, or through brok-
ers or agents, to sell or offer for sale or
by means of any advertisements, circulars,
or prospectus, or by any other form of
public offering, to attempt to promote the
sale of any speculative securities in this
state, unless there first shall have been
filed with the bank commissioner: "a A
CD A statement in substantial detail of
the assets and liabilities of the person or
ties and of any person or company guaran-
teeing the same, including specifically the
total amount of such securities and of any
securities prior thereto in interest or lien,
authorized OF issued by any such person
or company; go If such securities are Sc.
such mortgage or of the instrument Great
ing such lien, and competent appraisal
by, with a specific statement of all prior
liens 18th thereon if any, a. full statement
fngs. actual or Estimated, Of any person or
company making and issuing or guaran-
teeing such securities, or of any property
90 All knowledge or information in the
possession of such promoter relative to
or of the property or earning power of
the person or company making and 1ssu-
of any general or public prospectus or adj
vertising matter which is to be used in
saeh
shall be used unless the same has been
filed hereunder; % The names, addresses
and selling territory in this state of any
agents by or through whom any such Sc
curities are to be sold, and no such agents
with respect to them has been filed here
under, and there shall have been paid to
the bank commissioner registration fee
of one dollar for each such agent. The
payment of such fee shall be payment in
OF al a eeS not Ee first OF daT OF
March next following; 90 The name and
address of such promoter, including, the
and addresse5 Of the d}rectofs
per- eentum @nu or more. Of the capital Stock
If the promoter be corporation or associ-
the plan on which the business enter
prise is to be conducted; (1O) The articles
of co-partnership or association, and all
other papers pertaining to its organiza-
ton, if the securities be insured or guaran-
teed by. a co-partnership or unincorporated
association: Cd A copy of its charter and
bylaws if the securities be issued guar
anteed by a corporation; (12) filing fee
of twenty-five ($2a.00) dollars.
Sec. 3. Every foreign corporation before
selling or offering for sale any speculative
securities. in this state shall also file its
may be commenced against it in the prop
er courts of any county in this state in
which a cause of action may arise, by the
service of process on the secretary of state,
and STIMULATING and agreeing that. such
service of process on the secretary of state
shall be taken and held in all courts, to be
as valid and binding as If due service had
eeding maze to +be laws Of ths or anv other
state, and such instrument shall be anthem
ticated by the seal of said foreign corpora
ton: and shall be accompanied by a duly
certified copy of the order or resolution
of the board of directors, trustees: or man
ayers of the corporation authorizing the
said secretary and president to execute the
same.
soon as is practical. to
examine the statement and documents so
filed and if said bank commissioner shall
deem it advisable, he shall make, or have
made, detailed inspection. examination.
audit and investigation of the affairs of the
makers guarantors of such securities
which said inspection, examination audit
and investigation shall be at the promoters
expense. AS part of the aforesaid in
spection, examination, audit and investiga-
ton. the bank commissioner may cause an
appraisal to be made of the property of the
maker guarantor, including the value
of patents. formulae, good will. promotion.
and intangible assets and shall furnish
full and complete statement or report of
his inspection and investigation aforesaid
to the Charter Board. The Charter Board
shall. within ten days thereafter, exam
inc the statements or report, and give the
promoter a hearing If he so desires. If the
Charter Board finds no legal objection to
the enterprise. or securities, it shall direct
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