Page:United States Statutes at Large Volume 48 Part 1.djvu/110

 84 73d CONGRESS. SESS. I. CH. 38. MAY 27, 1933 . Civil liabilities con- nected with pr ospec- tuses a nd comm unica- tions. Sales through inter- state commerce and mails. Ante, p.77. Thr oug h false pros- pectuses, etc. Ante, p. 75. Recovery by p ur- chaser. Limitation of actions. Post, p. 908. Contrary stipulations void. Liabi lity of co ntrol - ling persons. Post, p. 908. CIVI L LIABILITIES ARISING IN CONNECTION WITH PROSPECTUSES AND COMMUNICATIONS SEC. 12. Any person who- (1) sells a security in violation of section 5, or (2) sells a security (whether or not exempted by the provi- sions of section 3, other than paragraph (2) of subsection (a) thereof), by the use of any means or instruments of transporta- tion or communication in interstate commerce or of the mails, by means of a prospectus or oral communication, which includes an untrue statement of a material fact or omits to state a mate- rial fact necessary in order to make the statements, in the light of the cir cu mst an ces under whi ch th ey we re made, not misleading (the purchaser not knowing of such untruth or omission), and who shall not sustain the burden of proof that he did not know, and in the exercise of reasonable care could not have known, of such untruth or omission, shall b e liable to the person p urchasin g such s ecurity from him, who may sue either at law or in equity in any court of competent juris- diction, to recover the consideration paid for such security with interest thereon, less the amount of any income received thereon, upon the t ender of such security, or for d amages ifheno longer owns the security. LIMITATION OF ACTIONS SEC. 13. No action shall be maintained to enforce any liability created under s ection 1 1 or sec tion 12 (2) unle ss broug ht withi n two years after the discovery of the untrue statement or the omission, or after such discovery should have been made by the exercise of reason- able diligence, or, if the action is to enforce a liability created under section 12 (1), unless brought within two years after the violation upon which it is based. In no event shall any such action be brought to enforce a liability created under section 11 or section 12 (1) more than ten years after the security was bona fide offered to the public. CONTRARY STIPULATIONS VOID SEC. 1 4 . Any c ondition, stipul ation, o r provis ion bind ing any per- son acquiring any security to waive compliance with any provision of this title or of the rules and regulations of the Commission shall be void. LIABIL ITY OF CONTRO LLING P ERSONS SEC. 15 . Every person who, by or through stock ownership, agency, or otherwise, or who, pursuant to or in connection with an agree- ment or understanding with one or more other persons by or through stock ownership, agency, or otherwise, controls any person liable under section 11 or 12, shall also be liable jointly and severally with and to the same extent as such controlled person to any person to whom such controlled person is liable. AD DIT ION AL REMEDIES Remedies to be ditional to existing SEC. 16 . The rights and remedies provided by this title shall be in rights, etc. addition to any and all other rights and remedies that may exist at law or in equity. FR AUD ULE NT INT ERST ATE TR ANS ACT IONS Fraudulent in- terstate transactions. SEC. 17. (a) It shall be unlawful for any person in the sale of any securities by the use of any means or instruments of transportation