Page:United States Statutes at Large Volume 48 Part 1.djvu/933

 73d C ONGRESS. SESS. II. CH. 404 . JU NE 6, 1934 . 907 "(1) When a prospectus is used more than thirteen months after Stat ements in pro - the effective date of the registration statement, the information in the speetus . statements contained therein shall be as of a date not more than twelve months prior to such use, so far as such information is known to the user of such prospectus or can be furnished by such user without unreasonable effort or expense ." SEC. 206 . (a) Section 11 (a) of such Act is amended by adding Ante, p. after the last line thereof the following new sentence : "If such Fals e registration person acquired the security after the issuer has made generally st te men abilities . available to its security holders an earning statement covering a period of at least twelve months beginning after the effective date of the registration statement, then the right of recovery under this subsection shall be conditioned on proof that such person acquired the security relying upon such untrue statement in the registration statement or relying upon the registration statement and not know- ing of such omission, but such reliance may be established without proof of the reading of the registration statement by such person ." (b) Clauses (C) and (D) of paragraph (3) of section 11 (b) of Ante, p .83. such Act are amended to read as follows : " (C) as regards an part (. Statement tb.r than s o . of expert o 10. f the registration statement purporting to be made on the authority of an expert (other than himself) or purporting to be a copy of or extract from a report or valuation of an expert (other than him- self), he had no reasonable ground to believe and did not believe, at the time such part of the registration statement became effective, that the statements therein were untrue or that there was an omission to state a material fact required to be stated therein or necessary to make the statements therein not misleading, or that such part of the registration statement did not fairly represent the statement of the expert or was not a fair copy of or extract from the report or valuation of the expert ; and (D) as regards any part of the Public officials and registration statement purporting to be a statement made by an documents . official person or purporting to be a copy of or extract from a public official doc ument, he had no reasonabl e ground to be lieve and did not believe, at the time such part of the registration statement became effective, that the statements therein were untrue, or that there was an omission to state a material fact required to be stated ther ein or n eces sary to make the sta teme nts ther ein not misl eadi ng, or that such part of the registration statement did not fairly repre- sent the statement made by the official person or was not a fair copy of or extract from the public official document ." (c) Subsection (c) of such section 11 is amended to read as follows " (c) In determining, for the purpose of paragraph (3) of sub- gaRa adbl e in net t section (b) of this section, what constitutes reasonable investigation belief. and reasonable ground for belief, the standard of reasonableness Ante, p. 83. shall be that required of a prudent man in the management of his own pr operty ." (d) Subsection (e) of such section 11 is amended to read as follows " (e) The suit authorized under subsection (a) may be to recover suits erable as damages. such damages as shall represent the difference between the amount Ante, p. 83. paid for the security (not exceeding the price at which the security was offered to the public) and (1) the value thereof as of the time such suit was brought, or (2) the price at which such security shall have been disposed of in the market before suit, or (3) the price at which such security shall have been disposed of after suit but before judgment if such damages shall be less than the damages repre- senting the difference between the amount paid for the security (not exceeding the price at which the security was offered to the
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