reglab/statecodes huggingface dataset:
2023 Maryland Statutes › Corporations and Associations › Title 11 - Maryland Securities Act › Subtitle 2 - Division of Securities › Section 11-205 - Filing of Sales and Advertising Literature

The Commissioner by rule or order may require the filing of any prospectus, pamphlet, circular, form letter, advertisement, or other sales literature or advertising communication, whether communicated in hard copy, electronic means, or otherwise, addressed or intended for distribution to prospective investors, including clients or prospective clients of an investment adviser, unless the security or transaction is exempted by Subtitle 6 of this title or the security is a federal covered security or the transaction is with respect to a federal covered security.
2023 Maryland Statutes › Corporations and Associations › Title 11 - Maryland Securities Act › Subtitle 2 - Division of Securities › Section 11-206 - Administrative Files and Opinions

(a)    A document is filed when it is received by the Commissioner.
(b)    (1)    The Commissioner shall keep a register of every application for registration, every notice filing, and every registration statement which is or has ever been effective under this title and every denial, suspension, or revocation order which is entered under this title.
(2)    The register shall be open for public inspection.
(c)    The information contained in or filed with any registration statement, application, notice filing, or report may be made available to the public under the rules which the Commissioner prescribes.
(d)    (1)    On request and at the reasonable charges which he prescribes, the Commissioner shall furnish to any person photostatic or other copies, certified under his seal of office if requested, of any entry in the register or any document which is a matter of public record.
(2)    In any proceeding or prosecution under this title, any copy so certified is prima facie evidence of the contents of the entry or document certified.
(e)    The Commissioner may honor requests from interested persons for interpretative opinions. The fee for issuance of an interpretative opinion is $100.
2023 Maryland Statutes › Corporations and Associations › Title 11 - Maryland Securities Act › Subtitle 2 - Division of Securities › Section 11-207 - Use or Disclosure of Information

(a)    It is unlawful for the Commissioner or any of the officers or employees in the Division of Securities to use for personal benefit any information which is filed with or obtained by the Commissioner and which is not made public.
(b)    No provision of this title authorizes the Commissioner or any of his officers or employees to disclose any such information except among themselves or when necessary or appropriate in a proceeding or investigation under this title.
(c)    No provision of this title either creates or derogates from any privilege which exists at common law or otherwise when documentary or other evidence is sought under a subpoena directed to the Commissioner or any of his officers or employees.
2023 Maryland Statutes › Corporations and Associations › Title 11 - Maryland Securities Act › Subtitle 2 - Division of Securities › Section 11-208 - Securities Act Registration Fund

(a)    In this section, “Fund” means the Securities Act Registration Fund.
(b)    There is a Securities Act Registration Fund.
(c)    The purpose of the Fund is to help fund the direct and indirect costs of administering and enforcing the Maryland Securities Act.
(d)    The Commissioner shall administer the Fund.
(e)    (1)    The Fund is a special, nonlapsing fund that is not subject to § 7–302 of the State Finance and Procurement Article.
(2)    The State Treasurer shall hold the Fund separately, and the Comptroller shall account for the Fund.
(f)    The Fund consists of:
(1)    Fees distributed to the Fund under § 11–407(a)(2) of this title;
(2)    Money appropriated in the State budget to the Fund; and
(3)    Any other money from any other source accepted for the benefit of the Fund.
(g)    The Fund may be used only to administer and enforce the Maryland Securities Act.
(h)    (1)    The State Treasurer shall invest the money of the Fund in the same manner as other State money may be invested.
(2)    Any interest earnings of the Fund shall be credited to the General Fund of the State.
(i)    Expenditures from the Fund may be made only in accordance with the State budget.
(j)    Money expended from the Fund used to administer and enforce the Maryland Securities Act is supplemental to and is not intended to take the place of funding that otherwise would be appropriated to administer and enforce the Maryland Securities Act.
2023 Maryland Statutes › Corporations and Associations › Title 11 - Maryland Securities Act › Subtitle 2 - Division of Securities › Section 11-209 - Action for Violation of 8-801 of Criminal Law Article

(a)    The Commissioner may:
(1)    (i)    Bring a civil action for damages against a person that violates § 8–801 of the Criminal Law Article on behalf of a victim of the violation or, if the victim is deceased, the victim’s estate;
(ii)    Recover damages under this subsection for property loss or damage; and
(iii)    If the Commissioner prevails in an action brought under this paragraph, recover the costs of the action for the use of the Office of the Attorney General; and
(2)    (i)    Bring a civil action for damages on behalf of a susceptible adult or older adult who is authorized to bring a cause of action under § 13–603 of the Estates and Trusts Article; and
(ii)    If the Commissioner prevails in an action brought under this paragraph, recover the costs of the action for the use of the Office of the Attorney General.
(b)    A conviction for a violation of § 8–801 of the Criminal Law Article is not a prerequisite for maintenance of an action under subsection (a) of this section.
2023 Maryland Statutes › Corporations and Associations › Title 11 - Maryland Securities Act › Subtitle 3 - Fraudulent and Other Prohibited Practices › Section 11-301 - Offers, Sales, or Purchases

It is unlawful for any person, in connection with the offer, sale, or purchase of any security, directly or indirectly to:
(1)    Employ any device, scheme, or artifice to defraud;
(2)    Make any untrue statement of a material fact or omit to state a material fact necessary in order to make the statements made, in the light of the circumstances under which they are made, not misleading; or
(3)    Engage in any act, practice, or course of business which operates or would operate as a fraud or deceit on any person.
2023 Maryland Statutes › Corporations and Associations › Title 11 - Maryland Securities Act › Subtitle 3 - Fraudulent and Other Prohibited Practices › Section 11-303 - Misleading Filings

It is unlawful for any person to make or cause to be made, in any document filed with the Commissioner or in any proceeding under this title, any statement which is, at the time and in the light of the circumstances under which it is made, false or misleading in any material respect.
2023 Maryland Statutes › Corporations and Associations › Title 11 - Maryland Securities Act › Subtitle 3 - Fraudulent and Other Prohibited Practices › Section 11-304 - Unlawful Representations Concerning Registration, Notice Filing, or Exemption

(a)    (1)    Neither the fact that an application for registration under Subtitle 4 of this title or a registration statement or notice filing under Subtitle 5 of this title has been filed, nor the fact that a person or security is effectively registered constitutes a finding by the Commissioner that any document filed under this title is true, complete, and not misleading.
(2)    Neither any such fact nor the fact that an exemption or exception is available for a security or a transaction means that the Commissioner has passed in any way on the merits or qualifications of, or has recommended or given approval to, any person, security, or transaction.
(b)    It is unlawful to make, or cause to be made, to any prospective purchaser, customer, or client any representation inconsistent with subsection (a) of this section.
2023 Maryland Statutes › Corporations and Associations › Title 11 - Maryland Securities Act › Subtitle 3 - Fraudulent and Other Prohibited Practices › Section 11-305 - Senior Investment Protection

(a)    It is unlawful for any person to use a senior or retiree credential or designation in a way that is or would be misleading in connection with:
(1)    The offer, sale, or purchase of securities;
(2)    Receiving, directly or indirectly, any consideration from another person for advising the other person as to the value of securities or their purchase or sale; or
(3)    Acting as a broker–dealer, agent, investment adviser, or investment adviser representative.
(b)    The Commissioner by rule or order shall define what constitutes a misleading use of a senior or retiree credential or designation for purposes of subsection (a) of this section.
(c)    A violation of a rule or order adopted under subsection (b) of this section also constitutes a dishonest or unethical practice for purposes of § 11–302(a)(3) of this subtitle and § 11–412(a)(7) of this title.
(d)    The Commissioner by rule or order may provide exemptions from subsections (a) and (c) of this section, where such exemptions are consistent with the public interest and within the purposes fairly intended by the policy and provisions of this title.
(e)    This section does not limit any powers of the Commissioner granted under this title.
2023 Maryland Statutes › Corporations and Associations › Title 11 - Maryland Securities Act › Subtitle 3 - Fraudulent and Other Prohibited Practices › Section 11-306 - Dishonest or Unethical Practices by Broker-Dealer or Agent Prohibited

A person who engages in the business of effecting transactions in securities for the account of others or for the person’s own account or who acts as a broker–dealer or agent may not engage in dishonest or unethical practices in the securities or investment advisory business.
2023 Maryland Statutes › Corporations and Associations › Title 11 - Maryland Securities Act › Subtitle 4 - Requirements of Broker-Dealers, Agents, Investment Advisers, Investment Adviser Representatives, and Federal Covered Advisers › Section 11-401 - Transaction of Business by Unregistered Person Unlawful

(a)    Except as provided in subsection (d) of this section, a person may not transact business in this State as a broker–dealer or agent unless the person is registered under this subtitle.
(b)    A person may not transact business in this State as an investment adviser or as an investment adviser representative unless:
(1)    The person is registered as an investment adviser or an investment adviser representative under this subtitle; or
(2)    The person’s only clients in this State are investment companies as defined in the Investment Company Act of 1940, or insurance companies; or
(3)    The person has no place of business in this State; and
(i)    The person’s only clients in this State are investment companies as defined in the Investment Company Act of 1940, other investment advisers, federal covered advisers, broker-dealers, banks, trust companies, savings and loan associations, insurance companies, employee benefit plans with assets of not less than $1,000,000, and governmental agencies or instrumentalities, whether acting for themselves or as trustees or fiduciaries with investment control, or other institutional investors as are designated by rule or order of the Commissioner; or
(ii)    During the preceding 12-month period, the person has had no more than five clients who:
1.    Are residents of the State; and
2.    Are not the types of clients described in item (i) of this paragraph.
(c)    A federal covered adviser may not conduct advisory business in this State unless the federal covered adviser conducts the advisory business in accordance with § 11-405(b) of this subtitle or subsection (b)(2) or (3) of this section.
(d)    A person that transacts business in this State as a federal exempt broker–dealer is not required to register under subsection (a) of this section.
(e)    By rule or order, the Commissioner may modify the requirements of this section or exempt any broker–dealer, investment adviser, or federal covered adviser from the requirements of this section if the Commissioner determines that:
(1)    Compliance with this section is not necessary or appropriate for the protection of investors; and
(2)    The exemption is consistent with the public interest and within the purposes fairly intended by the policy and provisions of this title.
2023 Maryland Statutes › Corporations and Associations › Title 11 - Maryland Securities Act › Subtitle 4 - Requirements of Broker-Dealers, Agents, Investment Advisers, Investment Adviser Representatives, and Federal Covered Advisers › Section 11-403 - Expiration

Unless sooner terminated under other provisions of this title, the registration of each broker-dealer, agent, investment adviser, and investment adviser representative and the notice filing of each federal covered adviser expires December 31, unless renewed.
2023 Maryland Statutes › Corporations and Associations › Title 11 - Maryland Securities Act › Subtitle 4 - Requirements of Broker-Dealers, Agents, Investment Advisers, Investment Adviser Representatives, and Federal Covered Advisers › Section 11-404 - Agent or Representative Terminating Connection With Broker-Dealer, Issuer, or Investment Representative; Beginning Connection With Another Principal

(a)    (1)    The registration of an agent expires when the agent terminates a connection with a registered broker-dealer or with an issuer.
(2)    The registration of an investment adviser representative expires when the representative terminates a connection with:
(i)    An investment adviser registered under this subtitle; or
(ii)    A federal covered adviser subject to notice filing under § 11-405(b) of this subtitle.
(b)    (1)    When a person who is currently registered as an agent under this subtitle begins a connection with another broker-dealer or issuer, the person shall file an application for initial registration as provided in § 11-405 of this subtitle and shall pay the fee required by § 11-407 of this subtitle.
(2)    When a person who is currently registered as an investment adviser representative under this subtitle begins a connection with another investment adviser or federal covered adviser, the person shall file an application for initial registration as provided in § 11-405 of this subtitle and pay the fee required by § 11-407 of this subtitle.
(c)    Unless the Commissioner takes action under §§ 11-412 through 11-414 of this subtitle to deny or suspend the registration, the agent or investment adviser representative registration shall become effective 30 days after receipt of the application by the Commissioner and shall continue in effect until it expires under the provisions of § 11-403 of this subtitle or under the provisions of this section, whichever would occur earlier. The Commissioner may waive the 30-day period or any portion of it at the Commissioner’s discretion.
2023 Maryland Statutes › Corporations and Associations › Title 11 - Maryland Securities Act › Subtitle 4 - Requirements of Broker-Dealers, Agents, Investment Advisers, Investment Adviser Representatives, and Federal Covered Advisers › Section 11-406 - Renewal Registration

(a)    A broker-dealer or investment adviser may obtain a renewal registration by filing with the Commissioner or any entity the Commissioner designates by rule or order an application containing whatever information the Commissioner by rule requires to keep current the information contained in the application for initial registration.
(b)    A broker-dealer or issuer may obtain a renewal registration for the agents associated with it by filing with the Commissioner or any entity the Commissioner designates by rule or order an application containing the names of the agents associated with it and a certification that, to the best knowledge, information, and belief of the broker-dealer or issuer:
(1)    There has been no change in the information contained in the agents’ applications for the registration then currently in effect; or
(2)    If there has been any such change, specifying the change.
(c)    A federal covered adviser who has filed a notice under § 11-405(b) of this subtitle or an investment adviser may obtain a renewal registration for the investment adviser representatives associated with it by filing with the Commissioner or any entity the Commissioner designates by rule or order an application containing the names of the representatives associated with it and a certification that, to the best knowledge, information, and belief of the federal covered adviser or the investment adviser:
(1)    There has been no change in the information contained in the investment adviser representatives’ applications for the registration currently in effect; or
(2)    If there has been any such change, specifying the change.
(d)    An application for renewal registration is effective on receipt by the Commissioner of the proper application and fee or on the expiration of the previous registration, whichever date is later.
2023 Maryland Statutes › Corporations and Associations › Title 11 - Maryland Securities Act › Subtitle 4 - Requirements of Broker-Dealers, Agents, Investment Advisers, Investment Adviser Representatives, and Federal Covered Advisers › Section 11-407 - Filing Fee

(a)    (1)    An applicant for initial or renewal registration as a broker–dealer shall pay a fee of $250.
(2)    (i)    An applicant for initial or renewal registration or transfer of registration as an agent shall pay a fee of $50.
(ii)    From the fee paid under this paragraph, $15 shall be distributed to the Securities Act Registration Fund established under § 11–208 of this title.
(b)    (1)    An applicant for initial or renewal registration as an investment adviser shall pay a fee of $300.
(2)    A federal covered adviser filing notice under § 11–405(b) of this subtitle shall pay an initial fee of $300 and a renewal fee of $300.
(3)    A private fund adviser filing notice under § 11–405(c) of this subtitle shall pay an initial fee of $300 and a renewal fee of $300.
(4)    An applicant for initial or renewal registration or transfer of registration as an investment adviser representative shall pay a fee of $50.
(c)    The Commissioner by rule may waive or reduce for any class of applicant the application of the fee requirements set forth in subsection (b) of this section.
(d)    If an application is denied or an application or notice filing is withdrawn, the Commissioner shall retain the fee.
2023 Maryland Statutes › Corporations and Associations › Title 11 - Maryland Securities Act › Subtitle 4 - Requirements of Broker-Dealers, Agents, Investment Advisers, Investment Adviser Representatives, and Federal Covered Advisers › Section 11-408 - Successors

(a)    A registered broker-dealer or investment adviser may file an application for registration of a successor, whether or not the successor is then in existence, for the unexpired portion of the year. There is no fee.
(b)    The registration of a predecessor remains effective as the registration of a successor for 60 days after the succession, if:
(1)    A broker-dealer or investment adviser succeeds to and continues the business of a registered broker-dealer or investment adviser; and
(2)    The successor files an application for registration within 30 days after the succession.
(c)    A federal covered adviser who has filed a notice under § 11-405(b) of this subtitle may file a notice filing of a successor for the unexpired portion of the year, whether or not the successor is in existence at the time of the filing. There is no fee.
(d)    The notice filing of a federal covered adviser stands as the notice filing of a successor for 60 days after the succession if:
(1)    The federal covered adviser succeeds to and continues the business of a federal covered adviser that has filed a notice under § 11-405(b) of this subtitle; and
(2)    The successor files a notice filing within 30 days after the succession.
(e)    (1)    Each registered agent of a broker-dealer and each registered representative of an investment adviser whose successor is registered in accordance with subsection (a) or (b) of this section shall continue to be registered in accordance with rules that the Commissioner adopts.
(2)    A registered investment adviser representative of a federal covered adviser whose successor has filed in accordance with subsection (d) of this section shall continue to be registered in accordance with rules that the Commissioner adopts.
2023 Maryland Statutes › Corporations and Associations › Title 11 - Maryland Securities Act › Subtitle 4 - Requirements of Broker-Dealers, Agents, Investment Advisers, Investment Adviser Representatives, and Federal Covered Advisers › Section 11-409 - Capital and Financial Requirements

(a)    The Commissioner may require by rule or order:
(1)    A minimum capital for a registered broker-dealer, subject to the limitations of § 15 of the Securities Exchange Act of 1934; and
(2)    Minimum financial requirements for an investment adviser, subject to the limitations of § 222 of the Investment Advisers Act of 1940.
(b)    These financial requirements may include different requirements for those investment advisers who maintain custody of clients’ funds or securities, or who require payment more than 6 months in advance of fees in excess of $500, and those investment advisers who do not.
2023 Maryland Statutes › Corporations and Associations › Title 11 - Maryland Securities Act › Subtitle 4 - Requirements of Broker-Dealers, Agents, Investment Advisers, Investment Adviser Representatives, and Federal Covered Advisers › Section 11-410 - Surety

(a)    (1)    The Commissioner may require by rule or order a registered broker-dealer or agent to post a bond or deposit cash or any other equivalent form of security in amounts that the Commissioner may require.
(2)    The Commissioner’s authority to adopt rules or issue orders under paragraph (1) of this subsection is subject to the limitations of § 15 of the Securities Exchange Act of 1934.
(3)    The Commissioner may require by rule or order a registered investment adviser or representative who has custody of client funds or securities or requires payments of more than 6 months in advance of fees in excess of $500 to post a bond or deposit cash or any other equivalent form of security in amounts that the Commissioner requires.
(4)    The Commissioner’s authority to adopt rules or issue orders under paragraph (3) of this subsection is subject to the limitations of § 222 of the Investment Advisers Act of 1940.
(b)    The condition of such bond or equivalent form of security shall be that the registrant will comply with the provisions of this title and the rules and regulations issued under this title.
(c)    The bond or equivalent form of security may be drawn to cover the original registration and any renewals of the registration.
(d)    Every bond or equivalent form of security shall provide that:
(1)    A suit may not be maintained to enforce any liability on the bond or equivalent form of security unless brought within two years after the contract of sale or other act on which the suit is based; and
(2)    The liability of the surety on each bond or equivalent form of security to all persons aggrieved may not in any event exceed in the aggregate the penal sum of the bond.
2023 Maryland Statutes › Corporations and Associations › Title 11 - Maryland Securities Act › Subtitle 4 - Requirements of Broker-Dealers, Agents, Investment Advisers, Investment Adviser Representatives, and Federal Covered Advisers › Section 11-413 - Summary Postponement or Suspension

(a)    The Commissioner by order summarily may postpone or suspend registration pending final determination of any proceeding under § 11-412 of this subtitle.
(b)    On the entry of the order, the Commissioner promptly shall notify the applicant or registrant, as well as the employer or prospective employer if the applicant or registrant is an agent or investment adviser representative:
(1)    That it has been entered;
(2)    The reasons for its entry; and
(3)    That within 15 days after the receipt of a written request the matter will be set down for hearing.
(c)    (1)    If a hearing is not requested and one is not ordered by the Commissioner, the order will remain in effect until it is modified or vacated by the Commissioner.
(2)    If a hearing is requested or ordered, the Commissioner, after notice and opportunity for hearing, may modify or vacate the order or extend it until final determination.
2023 Maryland Statutes › Corporations and Associations › Title 11 - Maryland Securities Act › Subtitle 4 - Requirements of Broker-Dealers, Agents, Investment Advisers, Investment Adviser Representatives, and Federal Covered Advisers › Section 11-414 - Cancellation of Registration or Application; Abandonment of Notice Filing

(a)    By order, the Commissioner may cancel a registration or application, if the Commissioner finds that the applicant or registrant:
(1)    Has abandoned the application;
(2)    Is no longer in existence;
(3)    Has ceased to do business as a broker-dealer, agent, investment adviser, or investment adviser representative;
(4)    Is subject to an adjudication of mental incompetence or the control of a committee, conservator, or guardian; or
(5)    Cannot be located after reasonable search.
(b)    The Commissioner may deem abandoned a notice filing that a federal covered adviser has filed under § 11-405 of this subtitle, if the Commissioner finds that the federal covered adviser:
(1)    Has abandoned the notice filing;
(2)    Is no longer in existence;
(3)    Has ceased to do business as a federal covered adviser;
(4)    Is subject to adjudication of mental incompetence or to the control of a committee, conservator, or guardian; or
(5)    Cannot be located after a reasonable search.
2023 Maryland Statutes › Corporations and Associations › Title 11 - Maryland Securities Act › Subtitle 4 - Requirements of Broker-Dealers, Agents, Investment Advisers, Investment Adviser Representatives, and Federal Covered Advisers › Section 11-415 - Withdrawal From Registration

(a)    Withdrawal from registration as a broker-dealer, agent, investment adviser, or investment adviser representative becomes effective 90 days after receipt of an application to withdraw or within any shorter period of time which the Commissioner determines, unless:
(1)    A revocation or suspension proceeding is pending when the application is filed; or
(2)    A proceeding to revoke, suspend, or impose conditions on the withdrawal is instituted within 90 days after the application is filed.
(b)    If a proceeding is pending or instituted, withdrawal becomes effective at the time and on the conditions the Commissioner by order determines.
(c)    If no proceeding is pending or instituted and withdrawal automatically becomes effective, the Commissioner nevertheless may institute a revocation or suspension proceeding under § 11-412(a)(2) of this subtitle within 2 years after withdrawal became effective and enter a revocation or suspension order as of the last date on which registration was effective.
2023 Maryland Statutes › Corporations and Associations › Title 11 - Maryland Securities Act › Subtitle 4 - Requirements of Broker-Dealers, Agents, Investment Advisers, Investment Adviser Representatives, and Federal Covered Advisers › Section 11-416 - Prerequisites to Order

An order may not be entered under any part of §§ 11-412 through 11-415 of this subtitle, except § 11-413(a), without:
(1)    Appropriate prior notice to the applicant or registrant, or person submitting a notice filing, as well as the employer or prospective employer if the applicant or registrant is an agent or investment adviser representative;
(2)    Opportunity for hearing; and
(3)    Written findings of fact and conclusions of law.
2023 Maryland Statutes › Corporations and Associations › Title 11 - Maryland Securities Act › Subtitle 4 - Requirements of Broker-Dealers, Agents, Investment Advisers, Investment Adviser Representatives, and Federal Covered Advisers › Section 11-417 - Fine for Violation of Title

On notice and hearing as provided in § 11-416 of this subtitle, the Commissioner may fine any broker-dealer, agent, investment adviser, or investment adviser representative up to a maximum amount of $5,000 for any single violation of this title.
2023 Maryland Statutes › Corporations and Associations › Title 11 - Maryland Securities Act › Subtitle 5 - Registration of Securities › Section 11-501 - Registration Requirement

A person may not offer or sell any security in this State unless:
(1)    The security is registered under this title;
(2)    The security or transaction is exempted under Subtitle 6 of this title; or
(3)    The security is a federal covered security.
2023 Maryland Statutes › Corporations and Associations › Title 11 - Maryland Securities Act › Subtitle 5 - Registration of Securities › Section 11-505 - Filing of Registration Statement

(a)    A registration statement may be filed by the issuer, any other person on whose behalf the offering is to be made, or a registered broker-dealer.
(b)    A registration statement may be filed in the manner and form designated by rule or order of the Commissioner, including filing by electronic transmission.
2023 Maryland Statutes › Corporations and Associations › Title 11 - Maryland Securities Act › Subtitle 5 - Registration of Securities › Section 11-506 - Filing Fee

(a)    Except as provided in § 11–510.1 of this subtitle, a person filing an application to register securities shall pay a fee of 0.1 percent of the maximum aggregate offering price at which the securities are to be offered in this State, but the fee may not be less than $500 or more than $1,500.
(b)    (1)    Except as provided in paragraph (2) of this subsection, a person required to submit a filing in accordance with an exemption granted under this title shall pay a fee of $400 for each filing.
(2)    A person required to submit a filing in accordance with the exemption granted under § 11–601(16) of this title shall pay a fee of $100 for each filing.
(3)    A person required to submit a notice of the offer or sale of federal covered securities under § 11–503.1(c) of this subtitle shall pay:
(i)    A fee of $100 for each filing; and
(ii)    An additional fee of $150 for each filing made after the filing due date.
(c)    The Commissioner shall retain the fee, if:
(1)    An application to register securities is withdrawn before the effective date;
(2)    A notice of the offer or sale of a federal covered security is withdrawn; or
(3)    A preeffective stop order is entered under §§ 11–511 through 11–513 of this subtitle.
2023 Maryland Statutes › Corporations and Associations › Title 11 - Maryland Securities Act › Subtitle 5 - Registration of Securities › Section 11-507 - Matters Required to Be Specified in Registration Statement

(a)    Every registration statement shall specify:
(1)    The amount of securities to be offered in this State;
(2)    The states in which a registration statement or similar document in connection with the offering has been or is to be filed; and
(3)    Any adverse order, judgment, or decree entered in connection with the offering by the regulatory authorities in each state, any court, or the Securities and Exchange Commission.
(b)    Any document filed under this subtitle may be incorporated by reference in the registration statement to the extent that the document is currently accurate.
(c)    The Commissioner by rule or otherwise may permit the omission of any item of information or document from any registration statement.
2023 Maryland Statutes › Corporations and Associations › Title 11 - Maryland Securities Act › Subtitle 5 - Registration of Securities › Section 11-508 - Effective Period of Registration Statement; Withdrawal of Registration Statement; Abandonment of Registration Statement

(a)    A registration statement remains effective for 1 year after its effective date unless the Commissioner by rule or order extends the period of effectiveness. A registration statement is not effective while a stop order is in effect under §§ 11-511 through 11-513 of this subtitle.
(b)    A registration statement may be withdrawn only in the discretion of the Commissioner.
(c)    A registration statement that has not been made effective within 1 year from the date of initial filing may be deemed abandoned by the Commissioner.
2023 Maryland Statutes › Corporations and Associations › Title 11 - Maryland Securities Act › Subtitle 5 - Registration of Securities › Section 11-509 - Reports by Person Filing Registration Statement

As long as a registration statement registered by qualification or notification is effective, the Commissioner by rule or order may require the person who filed the registration statement to file reports, not more often than quarterly, to keep reasonably current the information contained in the registration statement and to disclose the progress of the offering.
2023 Maryland Statutes › Corporations and Associations › Title 11 - Maryland Securities Act › Subtitle 5 - Registration of Securities › Section 11-510 - Amendment of Registration Statement to Increase Securities Proposed to Be Offered

(a)    A registration statement relating to a security registered under § 11-502, § 11-503, or § 11-504 of this subtitle may be amended after its effective date so as to increase the securities specified as proposed to be offered.
(b)    The amendment becomes effective when the Commissioner so orders.
(c)    The person filing the amendment shall pay a filing fee, calculated in the manner specified in § 11-506 of this subtitle, with respect to the additional securities proposed to be offered.
2023 Maryland Statutes › Corporations and Associations › Title 11 - Maryland Securities Act › Subtitle 5 - Registration of Securities › Section 11-511 - Denial, Suspension, and Revocation of Registration

(a)    The Commissioner may issue a stop order denying effectiveness to, or suspending or revoking the effectiveness of, any registration statement if he finds that the order is in the public interest and that:
(1)    The registration statement as of its effective date or as of any earlier date in the case of an order denying effectiveness, any amendment under § 11–510 of this subtitle as of its effective date, or any report under § 11–509 of this subtitle is incomplete in any material respect or contains any statement which was, in the light of the circumstances under which it was made, false or misleading with respect to any material fact;
(2)    Any provision of this title or any rule, order, or condition lawfully imposed under this title has been willfully violated, in connection with the offering, by:
(i)    The person filing the registration statement;
(ii)    The issuer, any partner, officer, or director of the issuer, any person occupying a similar status or performing similar functions, or any person directly or indirectly controlling or controlled by the issuer, but only if the person filing the registration statement is directly or indirectly controlled by or acting for the issuer; or
(iii)    Any underwriter;
(3)    The security registered or sought to be registered is the subject of an administrative stop order or similar order or a permanent or temporary injunction of any court of competent jurisdiction entered under any other federal or State act applicable to the offering, but:
(i)    The Commissioner may not institute a proceeding against an effective registration statement under this item (3) more than one year from the date of the order or injunction relied on; and
(ii)    He may not enter an order under this item (3) on the basis of an order or injunction entered under any other State act unless that order or injunction was based on facts which would currently constitute a ground for a stop order under this section;
(4)    The enterprise or method of business of the issuer includes or would include activities which are illegal where performed;
(5)    The offering has worked or tended to work a fraud on purchasers or would so operate;
(6)    If a security is sought to be registered by notification, it is not eligible for the registration;
(7)    If a security is sought to be registered by coordination, there has been a failure to comply with the undertaking required by § 11–503(b)(4) of this subtitle; or
(8)    The applicant or registrant has failed to pay the proper filing fee, but the Commissioner may enter only a denial order under this item (8) and he shall vacate the order when the deficiency is corrected.
(b)    The Commissioner may not institute a stop–order proceeding against an effective registration statement on the basis of a fact or transaction known to him when the registration statement became effective unless the proceeding is instituted within the next 30 days.
2023 Maryland Statutes › Corporations and Associations › Title 11 - Maryland Securities Act › Subtitle 5 - Registration of Securities › Section 11-512 - Summary Postponement or Suspension

(a)    The Commissioner by order summarily may postpone or suspend the effectiveness of the registration statement pending final determination of any proceeding under § 11-511 of this subtitle.
(b)    On the entry of the order, the Commissioner promptly shall notify each person specified in § 11-513 of this subtitle:
(1)    That it has been entered;
(2)    The reasons for its entry; and
(3)    That within 15 days after the receipt of a written request the matter will be set down for hearing.
(c)    (1)    If a hearing is not requested and one is not ordered by the Commissioner, the order will remain in effect until it is modified or vacated by the Commissioner.
(2)    If a hearing is requested or ordered, the Commissioner, after notice of and opportunity for hearing to each person specified in § 11-513 of this subtitle, may modify or vacate the order or extend it until final determination.
2023 Maryland Statutes › Corporations and Associations › Title 11 - Maryland Securities Act › Subtitle 5 - Registration of Securities › Section 11-513 - Prerequisites to Stop Order

A stop order may not be entered under any part of § 11–503.1, § 11–511, or § 11–512 of this subtitle, except § 11–512(a) of this subtitle, without:
(1)    Appropriate prior notice to the applicant or registrant, the issuer, and the person on whose behalf the securities are to be or have been offered;
(2)    Opportunity for hearing; and
(3)    Written findings of fact and conclusions of law.
2023 Maryland Statutes › Corporations and Associations › Title 11 - Maryland Securities Act › Subtitle 6 - Exemptions › Section 11-603 - Denial or Revocation of Exemption

(a)    (1)    The Commissioner by order may deny or revoke any exemption specified in § 11–601(9), (11), or (17) or § 11–602 of this subtitle with respect to a specific security or transaction.
(2)    The order may not be entered without appropriate prior notice to all interested parties, opportunity for hearing, and written findings of fact and conclusions of law, except that the Commissioner by order summarily may deny or revoke any of the specified exemptions pending final determination of any proceeding under this subsection.
(b)    On the entry of a summary order, the Commissioner promptly shall notify every interested party:
(1)    That it has been entered;
(2)    The reasons for its entry; and
(3)    That within 15 days of the receipt of a written request the matter will be set down for hearing.
(c)    (1)    If a hearing is not requested and one is not ordered by the Commissioner, the order will remain in effect until it is modified or vacated by the Commissioner.
(2)    If a hearing is requested or ordered, the Commissioner, after notice of and opportunity for hearing to every interested person, may modify or vacate the order or extend it until final determination.
(3)    An order under this section may not operate retroactively.
(4)    A person may not be considered to have violated § 11–205 or § 11–501 of this title by reason of any offer or sale effected after the entry of an order under this section if he sustains the burden of proof that he did not know, and in the exercise of reasonable care could not have known, of the order.
2023 Maryland Statutes › Corporations and Associations › Title 11 - Maryland Securities Act › Subtitle 6 - Exemptions › Section 11-604 - Burden of Proof

(a)    In a civil or administrative proceeding under this title, a person claiming an exemption or an exception from a definition has the burden of proving the exemption or exception.
(b)    In a criminal proceeding under this title, the burden of going forward with evidence of a claim or exemption or exception from a definition is on the person claiming it.
2023 Maryland Statutes › Corporations and Associations › Title 11 - Maryland Securities Act › Subtitle 7 - Enforcement and Penalties › Section 11-701 - Investigations and Subpoenas

(a)    In his discretion, the Commissioner may:
(1)    Make public or private investigations within or outside of this State as he considers necessary to:
(i)    Determine whether any person has violated or is about to violate any provision of this title or any rule or order under this title; or
(ii)    Aid in the enforcement of this title or in the prescribing of rules and forms under this title;
(2)    Require or permit any person to file a statement in writing, under oath or otherwise as the Commissioner determines, as to all the facts and circumstances concerning the matter to be investigated; and
(3)    Publish information concerning any violation of this title or any rule or order under this title.
(b)    For the purpose of any investigation or proceeding under this title, the Commissioner or any officer designated by him may administer oaths and affirmations, subpoena witnesses, compel their attendance, take evidence, and require the production of any books, papers, correspondence, memoranda, agreements, or other documents or records which the Commissioner considers relevant or material to the inquiry.
(c)    (1)    In case of contumacy by or refusal to obey a subpoena issued to any person, the circuit court of the county in which the person resides or transacts business, on application by the Commissioner, may issue to the person an order requiring him to appear before the Commissioner or the officer designated by him to produce documentary evidence if so ordered or to give evidence touching the matter under investigation or in question.
(2)    Failure to obey the order of the court may be punished by the court as a contempt of court.
(d)    A person is not excused from attending and testifying or from producing any document or record before the Commissioner, or in obedience to the subpoena of the Commissioner or any officer designated by him, or in any proceeding instituted by the Commissioner, on the ground that the testimony or evidence, documentary or otherwise, required of him may tend to incriminate him or subject him to a penalty or forfeiture. However, an individual may not be prosecuted or subjected to any penalty or forfeiture for or on account of any specific subject concerning which he is compelled, after claiming his privilege against self-incrimination as to that specific subject, to testify or produce evidence, documentary or otherwise, except that the individual testifying is not exempt from prosecution and punishment for perjury or contempt committed in testifying.
2023 Maryland Statutes › Corporations and Associations › Title 11 - Maryland Securities Act › Subtitle 7 - Enforcement and Penalties › Section 11-701.1 - Actions to Be Taken by Commissioner

(a)    Whenever the Commissioner determines that a person has engaged or is about to engage in any act or practice constituting a violation of any provision of this title or any rule or order under this title or that a person has knowingly or recklessly provided substantial assistance, is knowingly or recklessly providing substantial assistance, or is about to knowingly or recklessly provide substantial assistance to another person in connection with an act, a practice, or a course of business constituting a violation of this title or a rule adopted or an order issued under this title, and that immediate action against such person is in the public interest, the Commissioner may in his discretion issue, without a prior hearing, a summary order directing such person to cease and desist from engaging in such activity, provided that the summary cease and desist order gives the person:
(1)    Notice of the opportunity for a hearing before the Commissioner to determine whether the summary cease and desist order should be vacated, modified, or entered as final; and
(2)    Notice that the summary cease and desist order will be entered as final if such person does not request a hearing within 15 days of receipt of the summary cease and desist order.
(b)    Whenever the Commissioner determines after notice and a hearing (unless the right to notice and a hearing is waived) that a person has engaged in any act or practice constituting a violation of any provision of this title or any rule or order under this title or that a person has knowingly or recklessly provided substantial assistance to another person in connection with an act, a practice, or a course of business constituting a violation of this title or a rule adopted or an order issued under this title, the Commissioner may in his discretion and in addition to taking any other action authorized under this title:
(1)    Issue a final cease and desist order against such person;
(2)    Censure such person if such person is registered under this title;
(3)    Bar such person from engaging in the securities business or investment advisory business in this State;
(4)    Issue a penalty order against such person imposing a civil penalty up to the maximum amount of $5,000 for any single violation of this title; or
(5)    Take any combination of the actions specified in this subsection.
2023 Maryland Statutes › Corporations and Associations › Title 11 - Maryland Securities Act › Subtitle 7 - Enforcement and Penalties › Section 11-702 - Remedies

(a)    Whenever it appears to the Commissioner that any person is about to engage in any act or practice constituting a violation of any provision of this title or any rule or order under this title or that the person is about to knowingly or recklessly provide substantial assistance to another person in connection with an act, a practice, or a course of business constituting a violation of this title or a rule adopted or an order issued under this title, he may in his discretion bring an action to obtain 1 or more of the following remedies:
(1)    A temporary restraining order; or
(2)    A temporary or permanent injunction.
(b)    Whenever it appears to the Commissioner that any person has engaged in any act or practice constituting a violation of any provision of this title or any rule or order under this title or that a person has knowingly or recklessly provided substantial assistance, is knowingly or recklessly providing substantial assistance, or is about to knowingly or recklessly provide substantial assistance to another person in connection with an act, a practice, or a course of business constituting a violation of this title or a rule adopted or an order issued under this title, the Commissioner may in the Commissioner’s discretion bring an action to obtain one or more of the following remedies:
(1)    A temporary restraining order;
(2)    A temporary or permanent injunction;
(3)    A civil penalty up to a maximum amount of $5,000 for any single violation of this title;
(4)    A declaratory judgment;
(5)    The appointment of a receiver or conservator for the defendant or the defendant’s assets;
(6)    A freeze of the defendant’s assets;
(7)    Rescission;
(8)    Restitution;
(9)    Disgorgement;
(10)    Payment of prejudgment and postjudgment interest; and
(11)    Any other relief as the court deems just.
(c)    An action under this section is not subject to the provisions of § 5–107 of the Courts and Judicial Proceedings Article.
(d)    The Commissioner may not be required to post a bond in any action under this section.