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UNLICENSED BROKER-DEALER RESCISSION OFFER FORM

 

 

[Offeror Name]

[Offeror Address]

 

[Date]

 

[Investor Name]

[Investor Address]

 

RE: RESCISSION OFFER

 

Dear [Investor Name]:

 

            On [Date of Transaction] you purchased [Number and Type of Security] in [Issuer/Investment Name] for a total investment of $ [Total Dollar Amount Invested].

 

Our offer and sale of this investment to you may have violated some of the provisions of the Maine Uniform Securities Act (the “Act”).  Specifically, Sections 16401 and 16402 of the Act prohibit a broker-dealer or agent from transacting business in Maine unless licensed with the Maine Office of Securities (the “Office”) or exempt from licensing under the Act.  When we sold you the [Type of Security], [Name of broker-dealer/agent] was not licensed with the Office or exempt from licensing.  Therefore, Section 16509(4) of the Act provides that we may be liable to you for effecting sales as an unlicensed [broker-dealer/agent]. 

 

We are offering to repurchase your [Type of Security] from you for cash.  If you accept this offer, we will pay you the amount of your purchase price, $ [Total Dollar Amount Invested], plus interest at [ * ]% from the date of your purchase, $ [Dollar Amount], {minus the income you have received, $ [Dollar Amount]}, for a total repurchase price of $ [Dollar Amount].  We will pay you this amount when we receive the certificates representing your [Type of Security].

 

This offer extinguishes any right you may have to bring an action against [broker-dealer/agent] for these possible violations of the Act, whether or not you accept the offer.

 

You have 30 days from the date you receive this letter to accept this offer.  Attached to this letter is a form for you to complete and return to us.  Check the box that corresponds to your decision, sign and date the form, and mail the form in the enclosed envelope.  Please fill out and return the form even if you decide to keep your investment.  If you do not respond within 30 days after you receive this letter, we will not repurchase your [type of security] and you will remain an investor in [Issuer/Investment name].

 

If you have any questions about this rescission offer, you may contact [Contact Name at Offeror] at [Phone Number].

 

[Salutation]

 

 

[*Note to Offeror: The “legal rate of interest” is described at 14 M.R.S.A. §1602-B(3).  It is also calculated annually and posted on the Office of Securities web site at: http://www.maine.gov/pfr/sec/sec_forms.htm]


To:      [Contact Name at Offeror]

            [Offeror Name]

            [Offeror Address]

           

RE: RESCISSION OFFER

 

Dear [Contact Name at Offeror]:

 

            I have received your letter dated [Date of Letter] and considered your offer of rescission respecting my investment in [Issuer/Investment Name].

 

            _____ I accept the offer of rescission.  Please return my invested capital to me with interest.

 

            _____ I do not accept the offer of rescission.  I want to keep my investment.

 

 

 

Date: _______________                Signature: ____________________________

                                                                                    [Type Investor Name]