COMPILED CODE - Iowa Legislature - State of Iowa

361
Tit. XVII, Ch. 5. INVESTMENT COMPANIES. §§ 5432-a3-5438-al.
12 shall be paid to the agent only out of the purchase price of the stock and
13 then only when and as such purchase price is paid by the purchaser.
[39 G. A., ch. 189, § 5.]
SBC. 5432-a3. Bésale contracts.
1 No resale contract shall be entered into in the state of Iowa in
2 connection with the sale of any stock, bonds or other security contem-
3 plated by this chapter, unless such resale contract is in writing signed
4 by the parties and is accompanied by a performance bond in the penal
5 sum of at least twice the amount in sudi resale contract, which bond
6 shall be signed by himself and a responsible surety company authorized
7 to do business in Iowa.
[39 G. A., ch. 189, § 5.]
SEC. 5438. False representations punished—penalty.
1 Any person, firm, association, company or corporation, or any
2 agent or representative thereof, whether subject to the provisions of
3 this chapter or otherwise, that sells, offers for sale ox negotiates for
4 the sale of any stocks, bonds, or other securities within this state,
5 and knowingly makes any false representations or statement as to the
6 nature, character or value of such security, or the amount of the earn-
7 ing power of such security whether in the nature of interest, dividends
8 or otherwise, or knowingly makes any false or fraudulent representa-
9 tion concerning the financial condition, the assets or the property of
10 the company, firm or corporation issuing said security, or knowingly
11 makes any other false or fraudulent representation to any person for
12 the purpose of inducing said person to purchase said security, or con-
13 ceals any material fact in the advertisement or prospectus of such
14 security for the purpose of defrauding the purchaser, or knowingly
15 violates any of the provisions of this chapter with intent to defraud,
16 shall be deemed guilty of a felony and upon conviction thereof shall
17 be punished by a fine of not less than five hundred dollars or more
18 than five thousand dollars or by imprisonment in the penitentiary or
19 reformatory for not more than five years or by both such fine and im-
20 prisonment.
[S. S., '15, § 1920-u21 ; 39 G. A., ch. 189, § 4.]
NOTE: The above section has been compiled by applying 39 G. A., ch. 189,
| 4 to section 5438 of the compiled code instead of applying it to section 1920-U21
of the supplemental supplement to the code, 1915. This has been necessary in
order to give the proper meaning to the section. The difficulty evidently came
about because of the difference in the numbers of the lines in the two sections.
SEC. 5438-al. Promotion by state officials and employees.
1. No state official or employee of the state of Iowa shall use his name
2 in his official capacity in connection with the indorsement or recom-
3 mendation of the organization or the promotion of any company or in
4 the disposal to the public of its securities, nor shall anyone use the sta-
5 tionery of the state of Iowa or of any official thereof in connection with
6 any such transaction. Whoever violates the aforesaid provision shall,
7 upon conviction, by any court of competent jurisdiction, be deemed
8 guilty of a misdemeanor and fined in any sum not to exceed five hun-
9 dred dollars or be punished by confinement in a county jail for not more
10 than ninety days, or by both such fine and imprisonment.
[39 G. A., ch. 189, § 5.]