Page:United States Statutes at Large Volume 78.djvu/888

 846 Ante, p. 8 3 1.

Post, p. 847.

PUBLIC LAW 88-563-SEPT. 2, 1964

[78 STAT.

the acquisition (in a transaction subject to the rules of such exchange or association as described in section 4918(c) or (d)) of stock or a debt obligation which but for the provisions of section 4918, would be payable by the person acquiring the stock or debt obligation, if such member or member organization— "(1) willfully effects the sale of such stock or debt obligation or furnishes a written confirmation with respect to the purchase or sale of such stock or debt obligation other than in accordance with the requirements described in section 4918(c) or (d); or " (2) has actual knowledge that— " (A) the certificate of American ownership or the blanket certificate of American ownership (referred to in section 4918) in his possession in connection with the sale of such stock or debt obligation is false in any material respect; or " (B) the person who executed and filed the blanket certificate of American ownership in his possession was not a United States person at the time of sale. "(c) FALSE CERTIFICATE OF SALES TO FOREIGN PERSONS.—In addi^JQJ^ ^Q ^j^g criminal penalty imposed by section 7241, any person who willfully executes a certificate of sales to foreign persons described in section 4919(b)(2) which contains a misstatement of material fact shall be liable to a penalty equal to 125 percent of the amount of the tax imposed by section 4911 on the acquisition by the underwriter of the stock or debt obligation with respect to which such certificate is executed. " (d) FALSE CONFIRMATIONS OR COMPARISONS FURNISHED BY DEALERS.— "(1) MEMBERS OF NATIONAL SECURITIES EXCHANGES.—A mem-

ber or member organization of a national securities exchange described in section 4919(b)(3)(A) who, in a transaction subject to the rules of such exchange as described in such section, willfully furnishes a written confirmation or comparison which contains a misstatement of material fact or which fails to state a material fact shall be liable to a penalty equal to 125 percent of the amount of the tax imposed by section 4911 on the acquisition of the debt obligation by the dealer for whose benefit such confirmation or comparison is furnished. "(2) DEALERS.—Any person who sells as a dealer a debt obligation in a transaction subject to the rules of a national securities exchange as described in section 4919(b)(3)(A), in which such sale is effected on his behalf by a member or member organization of such exchange, and who willfully fails to disclose to such member or member organization that such sale is being made by him as a dealer, shall be liable to a penalty equal to 125 percent of the amount of the tax imposed on his acquisition of such debt obligation. "(3) MEMBERS OF NATIONAL SECURITIES ASSOCIATIONS.—A member or member organization of a national securities association described in section 4 9 1 9 (b)(3)(B) who willfully furnishes a written confirmation described in such section (in a transaction subject to the rules of such association as described in such section) which contains a misstatement of material fact or which fails to state a material fact shall be liable to a penalty equal to 125 percent of the amount of the tax imposed by section 4911 on the acquisition of the debt obligation by the dealer for whose benefit such confirmation is furnished. "(e)

PENALTY TO B E I N L I E U or TAX I N CERTAIN CASES.—Unless

the person acquiring the stock or debt obligation involved had actual knowledge that the certificate was false in any material respect, the

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