Minnesota Statutes
Chapter 80A — Regulation Of Securities
Section 80A.54 — Section 306; Denial, Suspension, And Revocation Of Securities Registration.

(a) Stop orders. The administrator may issue a stop order denying effectiveness to, or suspending or revoking the effectiveness of, a registration statement if the administrator finds that the order is in the public interest and that:
(1) the registration statement as of its effective date or before the effective date in the case of an order denying effectiveness, an amendment under section 80A.53(i) as of its effective date, or a report under section 80A.53(h), is incomplete in a material respect or contains a statement that, in the light of the circumstances under which it was made, was false or misleading with respect to a material fact;
(2) this chapter or a rule adopted or order issued under this chapter or a condition imposed under this chapter has been willfully violated, in connection with the offering, by:
(A) the person filing the registration statement, if the person is directly or indirectly controlled by or acting for the issuer;
(B) the issuer;
(C) a partner, officer, or director of the issuer or a person having a similar status or performing similar functions;
(D) a promoter of the issuer;
(E) a person directly or indirectly controlling or controlled by the issuer; or
(F) an underwriter;
(3) the security registered or sought to be registered is the subject of a permanent or temporary injunction of a court of competent jurisdiction or an administrative stop order or similar order issued under any federal, foreign, or state law other than this chapter applicable to the offering, but the administrator may not institute a proceeding against an effective registration statement under this paragraph more than one year after the date of the order or injunction on which it is based, and the administrator may not issue an order under this paragraph on the basis of an order or injunction issued under the securities act of another state unless the order or injunction was based on conduct that would constitute, as of the date of the order, a ground for a stop order under this section;
(4) the issuer's enterprise or method of business includes or would include activities that are unlawful where performed;
(5) the terms of the securities offering are unfair and inequitable; provided, however, that the commissioner may not determine that an offering is unfair and inequitable solely on the grounds that the securities are to be sold at an excessive price where the offering price has been determined by arm's-length negotiation between nonaffiliated parties. The selling price of any security being sold by a broker-dealer licensed in this state who is unaffiliated with the issuer shall be presumed to have been determined by arm's-length negotiation;
(6) with respect to a security sought to be registered under section 80A.51, there has been a failure to comply with the undertaking required by section 80A.51(b)(4); or
(7) the applicant or registrant has not paid the filing fee, but the administrator shall void the order if the deficiency is corrected.
(b) Institution of stop order. The administrator may not institute a stop order proceeding against an effective registration statement on the basis of conduct or a transaction known to the administrator when the registration statement became effective unless the proceeding is instituted within 30 days after the registration statement became effective.
(c) Summary process. The administrator may summarily revoke, deny, postpone, or suspend the effectiveness of a registration statement pending final determination of an administrative proceeding. Upon the issuance of the order, the administrator shall promptly notify each person specified in subsection (d) that the order has been issued; the reasons for the revocation, denial, postponement, or suspension; and that within 15 days after the receipt of a request in a record from the person the matter will be scheduled for a hearing. If a hearing is not requested and none is ordered by the administrator, within 30 days after the date of service of the order, the order becomes final. If a hearing is requested or ordered, the administrator, after notice of and opportunity for hearing for each person subject to the order, may modify or vacate the order or extend the order until final determination.
(d) Procedural requirements for stop order. A stop order may not be issued under this section without:
(1) appropriate notice to the applicant or registrant, the issuer, and the person on whose behalf the securities are to be or have been offered;
(2) an opportunity for hearing; and
(3) findings of fact and conclusions of law in a record in accordance with chapter 14.
(e) Modification or vacation of stop order. The administrator may modify or vacate a stop order issued under this section if the administrator finds that the conditions that caused its issuance have changed or that it is necessary or appropriate in the public interest or for the protection of investors.
2006 c 196 art 1 s 15,52; 2008 c 256 s 6; 2013 c 106 s 2

Structure Minnesota Statutes

Minnesota Statutes

Chapters 80 - 80A — Securities

Chapter 80A — Regulation Of Securities

Section 80A.40 — Section 101; Short Title.

Section 80A.41 — Section 102; Definitions.

Section 80A.42 — Section 103; References To Federal Statutes.

Section 80A.43 — Section 104; References To Federal Agencies.

Section 80A.44 — Section 105; Electronic Records And Signatures.

Section 80A.45 — Section 201; Exempt Securities.

Section 80A.46 — Section 202; Exempt Transactions.

Section 80A.461 — Mnvest Registration Exemption.

Section 80A.47 — Section 203; Additional Exemptions And Waivers.

Section 80A.48 — Section 204; Denial, Suspension, Revocation, Condition, Or Limitation Of Exemptions.

Section 80A.49 — Section 301; Securities Registration Requirement.

Section 80A.50 — Section 302; Federal Covered Securities; Small Corporate Offering Registration.

Section 80A.51 — Section 303; Securities Registration By Coordination.

Section 80A.52 — Section 304; Securities Registration By Qualification.

Section 80A.53 — Section 305; Securities Registration Filings.

Section 80A.54 — Section 306; Denial, Suspension, And Revocation Of Securities Registration.

Section 80A.55 — Section 307; Waiver And Modification.

Section 80A.56 — Section 401; Broker-dealer Registration Requirement And Exemptions.

Section 80A.57 — Section 402; Agent Registration Requirement And Exemptions.

Section 80A.58 — Section 403; Investment Adviser Registration Requirement And Exemptions.

Section 80A.60 — Section 405; Federal Covered Investment Adviser Notice Filing Requirement.

Section 80A.61 — Section 406; Registration By Broker-dealer, Agent, Funding Portal, Investment Adviser, And Investment Adviser Representative.

Section 80A.62 — Section 407; Succession And Change In Registration Of Broker-dealer Or Investment Adviser.

Section 80A.63 — Section 408; Termination Of Employment Or Association Of Agent And Transfer Of Employment Or Association.

Section 80A.64 — Section 409; Withdrawal Of Registration Of Broker-dealer, Agent, And Investment Adviser.

Section 80A.65 — Section 410; Fees And Expenses.

Section 80A.66 — Section 411; Postregistration Requirements.

Section 80A.67 — Section 412; Denial, Revocation, Suspension, Withdrawal, Restriction, Condition, Or Limitation Of Registration.

Section 80A.68 — Section 501; General Fraud.

Section 80A.69 — Section 502; Prohibited Conduct In Providing Investment Advice.

Section 80A.70 — Section 503; Evidentiary Burden.

Section 80A.71 — Section 504; Filing Of Sales And Advertising Literature.

Section 80A.72 — Section 505; Misleading Filings.

Section 80A.73 — Section 506; Misrepresentations Concerning Registration Or Exemption.

Section 80A.74 — Section 507; Qualified Immunity.

Section 80A.75 — Section 508; Criminal Penalties.

Section 80A.76 — Section 509; Civil Liability.

Section 80A.77 — Section 510; Rescission Offers.

Section 80A.78 — Section 601; Administration.

Section 80A.79 — Section 602; Investigations And Subpoenas.

Section 80A.80 — Section 603; Civil Enforcement.

Section 80A.81 — Section 604; Administrative Enforcement.

Section 80A.82 — Section 605; Rules, Forms, Orders, Interpretative Opinions, And Hearings.

Section 80A.83 — Section 606; Administrative Files And Opinions.

Section 80A.84 — Section 607; Public Records; Confidentiality.

Section 80A.85 — Section 608; Uniformity And Cooperation With Other Agencies.

Section 80A.86 — Section 609; Judicial Review.

Section 80A.87 — Section 610; Jurisdiction.

Section 80A.88 — Section 611; Service Of Process.

Section 80A.89 — Section 612; Severability Clause.

Section 80A.90 — Section 703; Application Of Act To Existing Proceeding And Existing Rights And Duties.

Section 80A.91 — Agent Errors And Omissions Insurance; Choice Of Source.