Ch. 517

1996 LAWS OF MARYLAND

(II) A SELLER, ANY PARTNER, OFFICER, OR DIRECTOR OF THE
SELLER, OR ANY PERSON OCCUPYING A SIMILAR STATUS OR PERFORMING SIMILAR
FUNCTIONS AS THE SELLER; OR

(III) A PERSON THAT DIRECTLY OR INDIRECTLY CONTROLS OR IS
CONTROLLED BY THE SELLER IF THE PERSON HUNG THE REGISTRATION IS
DIRECTLY OR INDIRECTLY CONTROLLED BY OR ACTING FOR THE SELLER;

(3)     EXCEPT AS PROVIDED IN PARAGRAPH (4) OF THIS SUBSECTION, THE
BUSINESS OPPORTUNITY REGISTERED OR SOUGHT TO BE REGISTERED IS THE
SUBJECT OF AN ORDER DENYING, SUSPENDING, OR REVOKING A REGISTRATION OR
A PERMANENT OR TEMPORARY INJUNCTION OF ANY COURT OF COMPETENT
JURISDICTION;

(4)     THE SELLER'S ENTERPRISE OR METHOD OF BUSINESS, OR THAT OF
THE BUSINESS OPPORTUNITY, INCLUDES OR WOULD INCLUDE ACTIVITIES THAT
ARE ILLEGAL WHERE PERFORMED;

(5)     THE BUSINESS OPPORTUNITY OR THE OFFERING OF A BUSINESS
OPPORTUNITY HAS WORKED OR TENDED TO WORK A FRAUD UPON PURCHASERS
OR WOULD SO OPERATE;

(6)     THERE HAS BEEN A FAILURE TO FILE ANY DOCUMENTS OR
INFORMATION REQUIRED BY § 14-113.1; OR

(7)     THE SELLER'S LITERATURE OR ADVERTISING IS MISLEADING,
INCORRECT, INCOMPLETE, OR DECEPTIVE.

(B)     (1) THE COMMISSIONER MAY ENTER A DENIAL ORDER IF THE
COMMISSIONER FINDS THAT THE ORDER IS IN THE PUBLIC INTEREST AND THE
SELLER HAS FAILED TO PAY THE PROPER REGISTRATION FEE.

(2) THE COMMISSIONER SHALL VACATE ANY SUCH ORDER WHEN THE
DEFICIENCY HAS BEEN CORRECTED.

(C)     THE COMMISSIONER MAY NOT:

(1)     INSTITUTE A PROCEEDING AGAINST AN EFFECTIVE REGISTRATION
UNDER SUBSECTION (A)(3) OF THIS SECTION MORE THAN 1 YEAR AFTER THE DATE
OF THE ORDER OR INJUNCTION RELIED ON; OR

(2)     PASS AN ORDER UNDER SUBSECTION (A)(3) OF THIS SECTION ON
THE BASIS OF AN ORDER OR INJUNCTION ENTERED UNDER ANY OTHER STATE ACT
UNLESS THAT ORDER OR INJUNCTION WAS BASED ON FACTS WHICH WOULD
CURRENTLY CONSTITUTE GROUNDS FOR AN ORDER UNDER THIS SECTION.

(D)    BY ORDER, THE COMMISSIONER SUMMARILY MAY POSTPONE OR
SUSPEND THE EFFECTIVENESS OF THE REGISTRATION PENDING FINAL
DETERMINATION OF ANY PROCEEDING UNDER THIS SECTION.

(E)     UPON THE ENTRY OF THE ORDER, THE COMMISSIONER SHALL PROMPTLY
NOTIFY THE SELLER:

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