{"data":{"id":"us-ky/krs-292.390","jurisdiction":"us-ky","citation":"KRS 292.390","heading":"Denial, suspension, and revocation of registration.","body":"(1) The commissioner may issue a stop order denying effectiveness to, or suspending or\nrevoking the effectiveness of, any registration statement if he finds that the order is\nin the public interest and that:\n(a) The registration statement as of its effective d ate or as of any earlier date in\nthe case of an order denying effectiveness, or any amendment under KRS\n292.380(5) as of its effective date, is incomplete in any material respect or\ncontains any statement which was, in the light of the circumstances under\nwhich it was made, false or misleading with respect to any material fact;\n(b) Any provision of this chapter or any rule, order, or condition lawfully imposed\nunder this chapter has been willfully violated, in connection with the offering\nby:\n1. The person filing the registration statement;\n2. The issuer, any partner, officer, or director of the issuer, any person\noccupying a similar status or performing similar functions, or any person\ndirectly or indirectly controlling or controlled by the issuer, but only  if\nthe person filing the registration statement is directly or indirectly\ncontrolled by or acting for the issuer; or\n3. Any underwriter;\n(c) The security registered or sought to be registered is the subject of an\nadministrative stop order or a similar ord er or a permanent or temporary\ninjunction of any court of competent jurisdiction entered under any other\nfederal or state act applicable to the offering; but:\n1. The commissioner may not institute a proceeding against an effective\nregistration statement under this paragraph more than one (1) year from\nthe date of the order or injunction relied on; and\n2. He may not enter an order under this paragraph on the basis of an\ninjunction entered under any other state act unless that order or\ninjunction was based on facts which would currently constitute a ground\nfor a stop order under this section;\n(d) The issuer's enterprise or method of business includes or would include\nactivities which are illegal where performed;\n(e) The offering has worked or tended to work a fraud upon purchasers or would\nso operate;\n(f) The offering has been, or would be, made with unreasonable amounts of\nunderwriters' and sellers' discounts, commissions, or other compensations, or\npromoters' profits or participation, or unreasonable amounts or kinds of\noptions;\n(g) When a security is sought to be registered by notification it is not eligible for\nsuch registration;\n(h) When a security is sought to be registered by coordination, there has been a\nfailure to comply with the undertaking required by KRS 292.360(2)(g);\n(i) The applicant or registrant has failed to pay the proper registration fee; but the\ncommissioner may enter only a denial order under this paragraph and he shall\nvacate any such order when the deficiency has been corrected;\n(j) Commissions, compensation, and selling and other transaction expenses\ngreater than twenty percent (20%) in the aggregate, or such other  amount\nspecified in the guidelines adopted by the North American Securities\nAdministrators Association, would be paid directly or indirectly, in\nconsideration for the sale of securities sought to be registered.\n(2) The commissioner may not enter a stop or der against an effective registration\nstatement on the basis of a fact or transaction known to him when the registration\nstatement became effective unless the proceeding is instituted within the next thirty\n(30) days.\n(3) The commissioner may by order summ arily postpone or suspend the effectiveness\nof the registration statement pending final determination of any proceeding under\nthis section. Upon the entry of a stop order under any part of this section, the\ncommissioner shall promptly notify the issuer of the securities, the applicant or\nregistrant, and the person on whose behalf the securities are to be or have been\noffered that the order has been entered and of the reasons therefor and that within\nfifteen (15) days after the receipt of a written request the matter will be set down for\nhearing. If no hearing is requested within fifteen (15) days and none is ordered by\nthe commissioner, the commissioner shall enter his written findings of fact and\nconclusions of law and the order will remain in effect until it is modified or vacated\nby the commissioner. If a hearing is requested or ordered, the commissioner, after\nnotice of and opportunity for hearing to the issuer and to the applicant or registrant,\nshall enter his written finding of fact and conclusions of law and may modify or\nvacate the order. The commissioner may modify or vacate a stop order if he finds\nthat the conditions which prompted its entry have changed or that it is otherwise in\nthe public interest to do so.","path":["KRS Chapter 292"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=15553","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:57:23Z","sha256":"f80fa4a8971347f00c24378bea5f327661648c07085dfe971f6b45136d85831a","source_id":"us-ky","stale":false,"prev":"us-ky/krs-292.380","next":"us-ky/krs-292.400"},"notice":"GroundRules: Original legal text. Not legal advice."}