TITLE 6

Commerce and Trade

SUBTITLE IV

Commercial Development

CHAPTER 73. SECURITIES ACT

Subchapter VII. Miscellaneous Provisions


(a) A document is filed when it is received by the Director or a designee as stipulated by rule or order. Other than filing fees, the Director may waive document filing requirements.

(b) The information contained in or filed with any registration statement, application, report or filing may be made available to the public under such rules as the Director prescribes.

(c) It is unlawful for the Director or any employee to use for personal benefit any information which is filed with or obtained by the Director and which is not made public. No provision of this chapter authorizes the Director or any employee to disclose any such information except among themselves or when necessary or appropriate in a proceeding or investigation under this chapter except as provided in subsection (b) of this section above.

(d) No provision of this chapter either creates or derogates from any privilege which exists at common law or otherwise when documentary or other evidence is sought under a subpoena directed to the Director or any of the Director's employees.

6 Del. C. 1953, § 7326; 59 Del. Laws, c. 208, § 1; 63 Del. Laws, c. 161, § 2; 68 Del. Laws, c. 181, § 24; 70 Del. Laws, c. 186, § 1; 71 Del. Laws, c. 162, § 26; 78 Del. Laws, c. 175, §§ 110. 118; 79 Del. Laws, c. 182, § 3.;

Every applicant for registration under this chapter, every person making a notice filing pursuant to this chapter, and every issuer which proposes to offer a security in this State through any person acting on an agency basis in the common-law sense shall file with the Director, in such form as the Director by rule prescribes, an irrevocable consent appointing the Director or the Director's successor in office to be the person's attorney to receive service of any lawful process in any noncriminal suit, action or proceeding against the person or the person's successor executor or administrator which arises under this chapter or any rule or order hereunder after the consent has been filed, with the same force and validity as if served personally on the person filing the consent. A person who has filed such a consent in connection with a previous registration or notice filing need not file another. Service may be made by leaving a copy of the process in the office of the Director, but it is not effective unless the plaintiff, who may be the Director in a suit, action or proceeding instituted by the Director, forthwith sends notice of the service and a copy of the process by registered mail to the defendant or respondent at the defendant's or respondent's last address on file with the Director, and the plaintiff's affidavit of compliance with this section is filed in the case on or before the return day of the process, if any, or within such further time as the Court allows.

When any person, including any nonresident of this State, engages in conduct prohibited or made actionable by this chapter or any rule or order hereunder, and the person has not filed a consent to service of process under this section and personal jurisdiction over the person cannot otherwise be obtained in this State, that conduct shall be considered equivalent to the person's appointment of the Director or the Director's successor in office to be the person's attorney to receive service of any lawful process in any noncriminal suit, action or proceeding against the person or the person's successor, executor or administrator which grows out of that conduct and which is brought under this chapter or any rule or order hereunder, with the same force and validity as if served on the person personally. Service may be made in the same manner as stated above.

6 Del. C. 1953, § 7327; 59 Del. Laws, c. 208, § 1; 70 Del. Laws, c. 186, § 1; 71 Del. Laws, c. 162, § 27; 78 Del. Laws, c. 175, §§ 111, 118; 79 Del. Laws, c. 182, § 3.;

(a) All moneys as described in subsection (b) of this section shall be credited by the State Treasurer to a fund to be known as the "Investor Protection Fund.''

(b) The Investor Protection Fund will be a revolving fund and shall be funded as follows:

(1) Beginning on July 1 of each year (after the funds for the operations of the Investor Protection Unit have been deposited and credited to the Securities Administrative Payroll Appropriation pursuant to the Budget Act for that fiscal year) any moneys collected by the Unit shall be credited to the Investor Protection Fund and shall continue to be credited to the fund until such time as the amount so credited to the fund equals $100,000. Such $100,000 shall be in addition to any moneys credited to the Investor Protection Fund under any other provision in this section.

(2) Any moneys paid pursuant to court order or judgment, including costs and attorney's fees, in a securities action brought by the Attorney General or the Investor Protection Director pursuant to this chapter shall be credited to the Investor Protection Fund; and

(3) Any moneys received by the Director pursuant to any settlement agreement shall be credited to the Investor Protection Fund.

(c) Any fines, costs or other moneys (except those obtained as restitution or rescission) received by the Director as a result of an administrative order (other than a consent order) shall be credited to the General Fund.

(d) If, at the end of any fiscal year, the balance in the Investor Protection Fund exceeds $300,000, the excess shall be withdrawn from the Investor Protection Fund and deposited in the General Fund.

(e) The Attorney General is authorized to expend from the Investor Protection Fund such moneys as are necessary for:

(1) The payment of costs, expenses and charges incurred in the preparation, institution and maintenance of administrative and court actions authorized under this chapter;

(2) The payment of costs, expenses and charges incurred in the training and education of Investor Protection Unit personnel; and

(3) The payment of costs, expenses and charges incurred in connection with the dissemination of information to the public, to include the costs of printing copies of this statute and the Director's administrative rules. Moneys from the Investor Protection Fund may not be used for any purpose unrelated to the administration or enforcement of this chapter.

(f) The Attorney General and the Investor Protection Director shall provide such reports as to the expenditure of moneys from the Investor Protection Fund to the Director of the Office of Management and Budget and the Controller General, and in such detail as they require.

67 Del. Laws, c. 274, § 13; 69 Del. Laws, c. 64, § 99; 70 Del. Laws, c. 560, § 7; 75 Del. Laws, c. 88, § 21(3); 78 Del. Laws, c. 175, §§ 81-85, 113, 118; 79 Del. Laws, c. 182, §§ 1-3.;

In no case shall the Attorney General or the Director, or any person designated by them, in the administration of this chapter incur any official or personal liability by instituting an injunction or any judicial proceeding, or administrative order or proceeding.

6 Del. C. 1953, § 7328; 59 Del. Laws, c. 208, § 1; 78 Del. Laws, c. 175, §§ 112, 118; 79 Del. Laws, c. 182, § 3.;