441-035-0230 - Burden of Proof

441-035-0230. Burden of Proof

Under ORS 59.275, issuers, broker-dealers, and salespersons relying upon the OIO rules bear the burden of proving they satisfy all the conditions of the OIO in any civil, criminal, or administrative action brought under or in connection with Oregon Securities Law.

(1) The isolated and inadvertent failure to comply with the disclosure requirements under OAR 441-035-0120(1) will result in the loss of the exemption only as to the specific sales if the seller demonstrates to the Director that they acted in good faith and sustains the burden of proof that they acted without intent to violate OAR 441-035-0120(1) and provides the correct disclosures to the purchaser and offers to cancel or rescind the sale not more than 10 business days after the discovery of the violation. The rescission offer must be held open for at least 30 calendar days.

(2) The isolated and inadvertent failure to comply with the reporting requirements under OAR 441-035-0125 and records requirements under OAR 441-035-0225 will not itself result in the loss of the OIO exemption provided that the seller demonstrates to the Director that they acted in good faith and sustains the burden of proof that they acted without intent to violate OAR 441-035-0125 or 441-035-0225 and they submit the required report or records within 10 days after discovery.

(3)The isolated and inadvertent failure to comply with the purchaser limitations under OAR 441-035-0090(3) will result in the loss of the exemption only as to the specific sales provided that the seller demonstrates to the Director that they acted in good faith and sustains the burden of proof that they acted without intent to violate OAR 441-035-0090(3) and the seller either cancels or rescinds the sale within 30 calendar days after discovery of the violation.

(FCS 1-2015, f. & cert. ef. 1-15-15; FSR 12-2017, amend filed 12/28/2017, effective 1/1/2018)

Statutory/Other Authority: ORS 59.035 & 17 CFR ยง 230.147A

Statutes/Other Implemented: ORS 59.035

The following state regulations pages link to this page.