2012

LAWS OF MARYLAND

[Ch. 311

The reference to "city" is deleted as
unnecessary in light of the definition of
"county" in §1-101 of this article.

The only other changes are technical changes
in style.

11-703. CIVIL LIABILITIES.

(A)       WHEN SELLER IS LIABLE.

A PERSON IS CIVILLY LIABLE TO THE PERSON BUYING A
SECURITY FROM HIM IF HE:

(1)              OFFERS OR SELLS THE SECURITY IN
VIOLATION OF §§ 11-300(B), 11-401, OR 11-501 OF THIS
TITLE, OR OF ANY RULE OR ORDER UNDER §11-205 OF THIS
TITLE WHICH REQUIRES THE AFFIRMATIVE APPROVAL OF SALES
LITERATURE BEFORE IT IS USED; OR

(2)            OFFERS OR SELLS THE SECURITY BY MEANS
OF ANY UNTRUE STATEMENT OF A MATERIAL FACT OR ANY
OMISSION TO STATE A MATERIAL FACT NECESSARY IN ORDER TO
MAKE THE STATEMENTS MADE, IN THE LIGHT OF THE
CIRCUMSTANCES UNDER WHICH THEY ARE MADE, NOT MISLEADING,
THE BUYER NOT KNOWING OF THE UNTRUTH OR OMISSION, AND IF
HE DOES NOT SUSTAIN THE BURDEN OF PROOF THAT HE DID NOT
KNOW, AND IN THE EXERCISE OF REASONABLE CARE COULD NOT
HAVE KNOWN, OF THE UNTRUTH OR OMISSION.

(B)   EXTENT OF LIABILITY.

(1)    A BUYER MAY SUE EITHER AT LAW OR IN
EQUITY:

(I) ON TENDER OF THE SECURITY, TO RECOVER THE
CONSIDERATION PAID FOR THE SECURITY, TOGETHER WITH
INTEREST AT 6 PERCENT PER YEAR FROM THE DATE OF PAYMENT,
COSTS, AND REASONABLE ATTORNEYS' FEES, LESS THE AMOUNT OF
ANY INCOME RECEIVED ON THE SECURITY; OR

(II) IF HE NO LONGER OWNS THE SECURITY, FOR
DAMAGES .

(2)    DAMAGES ARE THE AMOUNT     THAT WOULD BE
RECOVERABLE ON A TENDER LESS THE VALUE OF     THE SECURITY
WHEN THE BUYER DISPOSED OF IT AND INTEREST   AT 6 PERCENT
PER YEAR FROM THE DATE OF DISPOSITION.

(C) OTHERS JOINTLY AND SEVERALLY LIABLE WITH
SELLER.

(1) EVERY PERSON WHO DIRECTLY OR INDIRECTLY
CONTROLS A SELLER LIABLE UNDER SUBSECTION (A) OF THIS