1346.092 
 LISL 2 
 1921 
 
 
 c .3 
 
 L^^rinted by authority of the State of Illinois.] 
 
 THE ILLINOIS SECURITIES LAW. 
 
 § 1. Name of law. 
 
 § 2. Words and phrases defined. 
 
 § 3. Division and classification of 
 
 securities. 
 
 § 4. Class “A” securities defined— 
 
 not subject to provisions of 
 Act, 
 
 § 5. Class “B” securities or exempt¬ 
 
 ed sales defined. 
 
 § 6. Class “C” securities defined. 
 
 § 7, Class “C” securities—statement 
 
 —preliminary approval—bond 
 and regulations relating to 
 sales. 
 
 § 8. Class “D” securities defined. 
 
 § 9. Statements to be filed relative 
 
 to Class “D” securities—de¬ 
 tail of information required— 
 irrevocable contract for issuer 
 to receive at least 80% of pro¬ 
 ceeds of sale—summary state¬ 
 ments — information verified 
 by officers of issuer. 
 
 § 10. Class “D” securities—inventory 
 and appraisement — Secretary 
 of State may designate ap¬ 
 praiser—qualifications of ap¬ 
 praisers. 
 
 § 11. Examination by certified public 
 accountant — compensation — 
 investigation by Secretary of 
 State—when capital to be held 
 intact—may require bond and 
 financial statements. 
 
 § 12. Stock issued or to be issued for 
 intangible property to be 
 placed in escrow. 
 
 § 13. Qualification of solicitors, agents 
 or brokers offering securities 
 of issuer. 
 
 § 14. Dealer may sell Class “D” se¬ 
 curities which have qualified 
 by submitting statement of 
 amount, description and price 
 of securities—qualification, ex¬ 
 perience, etc. of dealer. 
 
 § 15. Twenty-five copies of summary 
 of Class “D” securities to be 
 deposited with Secretary of 
 State—caption of summary. 
 
 § 16. Issuers and individuals to file 
 irrevocable consents to service 
 of process. 
 
 § 17. Secretary of State to examine 
 statements—may refuse to file 
 — may propound interroga¬ 
 tories. 
 
 § 18. Circuit Court of Sangamon 
 County given jurisdiction to 
 re\ '^w ao+ions of Secretary of 
 State witii 1 ight of appeal by 
 either party. 
 
 § 19. Inducements made to procure 
 filing to be reduced to writ¬ 
 ing. 
 
 §20. Supplemental statements to be 
 filed. 
 
 § 21. Every advertisement to bear a 
 caption — copy of advertise¬ 
 ment to be filed with Secre¬ 
 tary of State within ten days 
 of issue—no reference to be 
 made concerning compliance 
 with Act. 
 
 § 22. Secretary of State to mail copy 
 of summary statements to 
 any one requesting same. 
 
 §23. Secretary of State may pre¬ 
 scribe and furnish forms. 
 
 §24. Injunctions to prevent sales— 
 and to enforce provisions of 
 the Act—power of Secretary 
 of State to suspend or cancel 
 permission to sell securities. 
 
 §25. Documents filed in office of Sec¬ 
 retary of State open to in¬ 
 spection of the public. 
 
 § 26. Fees—see also section 7. 
 
 § 27, Oaths to be administered by an 
 officer of and in the State of 
 Illinois. 
 
 § 28. Additional copies of statements 
 to be submitted on request of 
 the Secretary of State. 
 
 § 29. Broker, etc. offering to sell se¬ 
 curities without compliance 
 with Act guilty of a misde¬ 
 meanor—penalty. 
 
 § 30. Issuer offering to sell securities 
 without compliance with Act 
 guilty of a misdemeanor— 
 penalty. 
 
 § 31. Person or corporation violating 
 Act guilty of a misdemeanor— 
 penalty. 
 
 ILLINOIS STATE LIBRARY 
 
 1129 00360 6852 
 
2 
 
 
 THE ILLINOIS SECUI 
 
 § 32. False statements made by brok¬ 
 er, etc. not authorized by 
 issuer guilty of a misdemeanor 
 —penalty. 
 
 § 33. Signing any statement, etc. 
 
 knowing same to be false is 
 prima facie evidence of knowl¬ 
 edge of falsity — perjury — 
 penalty. 
 
 § 34. Sale of ser'urities with knowl¬ 
 edge of the insolvency of the 
 issuer makes party selling 
 same guilty of embezzlement 
 —penalty. 
 
 § 35. Any person interested may main¬ 
 tain action to recover money 
 in excess of 20% not paid to 
 issuer. 
 
 §36. Sale contrary to information 
 filed, or on other terms is 
 prima facie evidence of fraud. 
 
 § 37. Sales contrary to Act void—lia¬ 
 bility to the purchaser for 
 the amount paid with reason¬ 
 able attorney’s fees in law or 
 equity. Burden of proof to 
 establish exemption rests urn 
 on issuer or seller in all civil 
 and criminal actions—viola¬ 
 tions to be referred to proper 
 officers for prosecution. So¬ 
 licitors, agents, brokers, 
 officers, directors and all per- 
 
 ( Approved and in Force June 10, 
 
 June ] 
 
 HES LAW—Continued. 
 
 sons who shall sell or offer 
 for sale securities or aid or 
 assist therein deemed equally 
 guilty and may be punished 
 in county in which offer or 
 sale was made or in county 
 of delivery. Certificate of 
 compliance or non-compliance 
 with provisions by the Secre¬ 
 tary of State shall constitute 
 prima facie evidence and shall 
 be admissible in evidence in 
 any action at law or in equity. 
 
 § 38. Act does not relieve corpora¬ 
 tions from making reports as 
 required to be made under 
 other existing laws. 
 
 § 39. Foreign corporations desiring to 
 sell securities must comply 
 with the law regulating ad¬ 
 mission of such corporations. 
 
 § 
 
 40. 
 
 Prosecutions under Act to 
 
 be 
 
 
 
 brought 
 
 within five years. 
 
 
 § 
 
 41. 
 
 Invalidity 
 
 of one provision 
 
 or 
 
 
 
 section 
 
 does not affect 
 
 re- 
 
 
 
 mainder 
 
 of Act. 
 
 
 § 
 
 42. 
 
 Acts repealed—certificate or 
 
 evi- 
 
 dence of compliance with law 
 repealed not to be exhibited— 
 contractual obligations not im¬ 
 paired. 
 
 I § 43. Emergency. 
 
 1919, AS Amended by Act Approved 
 
 L, 1921.) 
 
 An Act relating to the sale or other disposition of securities and pro¬ 
 viding jjenalties for the violation thereof and to repeal Acts in con¬ 
 flict th'e7‘ewith. 
 
 Section 1. Be it enacted hy the People of the State of Illinois, 
 represented in the General Assembly: This Act shall be known as 
 ‘‘The Illinois Securities Law.-’^ 
 
 § 2. The words and phrases used herein shall, unless the context 
 otherwise indicates, have the following meaning: 
 
 The word “securities’^ shall mean and include stock, treasury stock, 
 bonds, debentures, investment contracts, notes, evidences of indebted¬ 
 ness, participation certificates, certificates of shares or interest, preor¬ 
 ganization certificates and subscriptions, certificates evidencing shares 
 of or interest in trust estates or associations, profit sharing agreements 
 or certificates; or any certificate, contract or instalment whatsoever, 
 representing or constituting evidence of, or secured by, title to or interest 
 in, or any lien or charge upon, the capital or any property or assets of 
 the Issuer thereof, and any oil, gas or mining lease, and interests, units 
 or shares in any such lease or leases. 
 
 The word “issuer” shall include every person and every company, 
 trust, partnership or association incorporated or unincorporated here¬ 
 tofore or hereafter formed which shall have issued or which shall here- 
 
after issue any security sold or offered for sale to any person or persons 
 in this State. « 
 
 The word ‘^file’’ or ^Tling’^ within the meaning of this Act^ shall 
 mean the endorsement thereof by the Secretary of State on any state¬ 
 ment or document received of the word ^^filed’^ followed by the month, 
 day, year, and name of Secretary of State, for the purpose of showing 
 that, in his opinion, the issuer, solicitor, agent, broker, dealer or owner 
 has complied with the provisions of this Act. 
 
 The term ‘'sale’" shall mean and include contracts and agreements 
 whereby securities are sold, traded or exchanged for money, property 
 or other thing of value, or amj transfer or agreement to transfer, in 
 trust or otherwise. Any secmdty given or delivered with, or as a bonus 
 on account of, any purchase of securities or other thing of value, shall 
 be conclusively presumed, to constitute a part of the subject of such 
 purchase and to have been sold for value. The term ''self means any 
 act by which a sale is made and the term ‘'sale'' or ‘'offer for sale’' shall 
 include a siihscription, an option of sale, a., solicitation of sale, an attempt 
 to sell, or an offer to sell, directly or by an agent, by a circular, letter or 
 advertising, or otherwise; provided, however, that nothing herein shall 
 limit or diminish the full meaning of the terms “sale,” “sell” or “offer 
 for sale” as used by or accepted in courts of law or equity. (As amended 
 by Act approved June 11, 1921. 
 
 § 3. For the purposes of this Act securities are divided into four 
 classes, as follows: 
 
 (1) Securities, the inherent qualities of which assure their sale 
 and disposition v/ithout the perpetration of fraud, which shall be known 
 as securities in Class 
 
 (2) Securities, the inherent qualities of which, or in the nature 
 of one or both parties to the sale thereof, assure their sale and dis¬ 
 position without the perpetration of fraud, which shall be known as 
 securities in Class 
 
 (3) Securities based on established income, which shall be known 
 
 as securities in Class • 
 
 (4) Securities based on prospective income, which shall be known 
 as securities in Class “D”. 
 
 § 4. Securities in Class ^^A^^ shall comprise securities: 
 
 (4) Issued or guaranteed by a government or governmental 
 agency, or by any body having power of taxation or assessment; 
 
 (2) Issued by any National or State bank or trust company, 
 building and loan association of this State, or insurance company or¬ 
 ganized or under the supervision of the Department of Trade and 
 Commerce of this State; 
 
 (3) Issued or guaranteed by any corporation operating any pub¬ 
 lic utility in the United States or any state thereof or in the Dominion 
 of Canada or any pn'ovmce thereof wherein there is or was at the time 
 of issuance thereof in effect any law regulating such utilities and the 
 issue of securities by such corporation, and evidences of indebtedness 
 secured by collateral consisting of any securities herein above in this 
 paragraph three (3) described, provided that such collateral securities 
 
4 
 
 equal ill par value 125% of the par value of the evidences of indehied- 
 ness so secured; 
 
 (4) Listed and dealt in on the Xew York, Boston or Cliicago 
 Stock Exchange, respectively, pursuant to official authorization by such 
 exchanges, respective!}', and securities senior to any securities so listed 
 and dealt in, or guaranteed hy any corporation, the common capital 
 stock of luhich is so listed and dealt in; 
 
 (5) Issued and outstanding in the hands of the pahlie prior to 
 June 10, 1919, of corporations ivhose business has been continuously 
 in operation since that date, provided, that financial statements of the 
 issuing corporation appeared in any standard manual of securities for 
 the year 1920, approved by the Secretary of State, or provided that 
 quotations of such securities have appeared in tabulated market reports 
 published as neivs items, and not as advertising^ in a daily neivspaper of 
 general circulation published in the English language, in any city of 
 two hundred thousand inhabitants or over in the State of Illinois, at 
 least twelve times in each of the years 1919 and 1920, respectively, and 
 at least twelve times during the twelve calendar months next preceding 
 the offering for sale thereof; 
 
 (6) Issued by any corporation organized not for pecuniary profit 
 or organized exclusively for educational, benevolent, fraternal, charitable 
 or reformatory purposes; 
 
 (?) Being notes or bonds secured by a mortgage lien upon real 
 estate or leasehold (other than oil, gas and mining leases) in any state 
 or territory of the United States or in the Dominion of Canada: (a) 
 when the mortgage is a first mortgage on real estate and when the 
 aggregate face value of such notes or bonds (but not including inter¬ 
 est notes or coupons) secured thereby does not exceed the fair market 
 cash value of such real estate; (b) tvhen the aggregate face value of 
 the notes or bonds (but not including interest notes or coupons) se¬ 
 cured by a first mortgage lien upon real estate and buildings, in good 
 faith, forthwith to be erected thereon, according to the terms of the' 
 mortgage, does not exceed the fair market cash value of such real estate 
 and buildings alid each of such notes or bonds secured thereby (but not 
 including interest notes or coupons) bears across the face and text 
 thereof a legend, in red letters not less than one-half inch in height 
 stating that the note or bond is a construction note or bond; (c) when 
 the mortgage lien is a junior mortgage upon real estate, or is on a lease¬ 
 hold (other than oil, gas and mining leases) and the aggregate face 
 value of such mortgage and notes or bonds secured thereby, together 
 with all other existing prior and / or concurrent liens of equal or 
 superior rank, (but not including interest notes or coupons) does not 
 exceed the fair market cash value of such real estate or leasehold, pro¬ 
 vided, that in case of a junior mortgage lien on real estate or a mortgage 
 lien on a leasehold the mortgage and notes or bonds secured thereby 
 (but not including interest notes or coupons) shall each bear across the 
 face and text thereof a legend in red letters not less than one-half inch 
 in height, stating (1) that the mortgage is a junior mortgage, if that 
 be the case, and (2) that the mortgage is on a leasehold, if that be the 
 case; 
 
5 
 
 (8) Being a note secured by first mortgage upon tangible or phy¬ 
 sical propert}^ Avhen such mortgage is assigned with sucli securities 
 to the purchaser; 
 
 (9) Evidencing indebtedness due under any contract made in pur¬ 
 suance to the provisions of any statute of any state of 'the United 
 States providing for the acquisition of personal property under con¬ 
 ditional sale contract; 
 
 (10) Being negotiable promissory notes given for full value and 
 for the sole purpose of evidencing or extending the time of payment 
 of the price of goods, Avares or merchandise purchased by the issuer 
 of such notes in the ordinary course of business, and commercial paper 
 or other evidence of indebtedness running not more than twelve months 
 from the date of issue; 
 
 (11) Being subscriptions for or sales of shares of tJie capital 
 stock of a corporation prior to the incorporation thereof under the laws 
 of the State of Illinois, tvJven no expense is incurred, or no commission, 
 compensation or remuneration is paid ox given for or in connectiori ivith 
 the sale or disposition of such securities; 
 
 (12) Bonds or notes secured by lien on vessels shown by policies 
 of marine insurance taken out in responsible companies to be of value, 
 after deducting any or all other indebtexhiess secured by pnor lieri^ of 
 7ioi less than 125% of the par amount of such bonds or notes; 
 
 Securities in Class and the sales thereof shall not be subject 
 to the provisions of this Act. (As amended by Act approved June 11, 
 1921. 
 
 § 5. Securities in Class being exempted sales, shall include: 
 
 (1) An isoladed sale of any security by a bona fide owner tdiereof, 
 or his representative, for the owneEs account, such sate not being made 
 in the course of repeated and successive transactions of a like character, 
 and such owner not being a broker or dealer in securities or an under¬ 
 writer of such securities; 
 
 (2) Capital stock of a corporation tvhen sold or distributed by it 
 among its stockholders without the payment of any commission or ex¬ 
 penses to agents, solicitors or brokers, and without incurring any lia¬ 
 bility for any expenses whatsoever, in connection wdth the distribution 
 thereof; 
 
 (3) Securities tvhen sold by or to any bank, trust company or in¬ 
 surance company or association organized under the banking or in¬ 
 surance laws of this State or of the United States, or doing business 
 in this State under the supervision of the Department of Trade and 
 Commerce; or of the Auditor of Public Accounts; or by or to any 
 building and loan association organized and doing business under tb.e 
 laws of this State, or any public sinking fund trustees; 
 
 (4) Securities when sold to- any corporation, or any broker or 
 dealer in securities; 
 
 (5) Securities when sold or offered for sale at any judicial, exe¬ 
 cutors or administrators sale, or at any sale by a receiver or trustee 
 in insolvency or bankruptcy, or at a public sale by auction held at an 
 advertised time and place. 
 
Securities when disposed of by the persons and in the manner 
 provided by this section, shall not be subject to the provisions of this 
 Act m such transactionsj provided, however, that such securities shall 
 not he resold, except as is in this section provided, without compliance 
 with the provisions of this Act. (As amended by Act approved June 
 11, 1921. 
 
 § 0. Securities in Class shall comprise the following: 
 
 Those issued by a person, corporation, firm, trust, partnership or 
 association owning a property, business or industry which has been 
 in continuous operation not less than two year^ /'jd which has shown 
 during a period of not less Jhan two years ^mor to the filing of the 
 statement herein provided for, average annual net profit?^ exclusive of 
 all prior charges, as follows: 
 
 (1) In the case of interest bearing securities, not less than one 
 and one-half times the annual interest charge thereon and upon ail 
 other outstanding interest bearing obligations of epial rank; 
 
 (2) In the case of preferred stock, not less than one and one- 
 half times the annual dividend on such preferred stock and on, all 
 other outstanding stock of equal rank; 
 
 (3) In the case of common stock, :iot less than 3% per annum 
 upon such common stock, ( or in the cr^se of common stock of no par 
 value, upon the price at which the srme is, or is to he, offered), and 
 on all other outstanding common stork. (As amended by Act approved 
 June 11, 1921. 
 
 § 7. Securities in Class ‘‘0^^ may be disposed of, sold or offered 
 for sale upon compliance with the following conditions, and not other¬ 
 wise : 
 
 (a) A statement shall be filed in the office of the Secretary of 
 State: 
 
 (1) Describing the evidences of indebtedness, preferred stock or 
 common stock intended to be offered or sold; 
 
 (2) Stating the law under which and the time when the issuer 
 was organized; 
 
 (3) CiviDg a detailed statement of the assets and liabilities of 
 such issuer and income or profit and loss statement, and giving an 
 analysis of surplus account; 
 
 (4) Giving the names and addresses of its principal officers and 
 of its directors or trustees; 
 
 (5) Giving pertinent facts, data, and information establishing 
 that the securities to be offered are securities in Class 
 
 Such statement shall be verified bv the oath-of not less than two 
 credible persons having knowledge of the facts. Not less than twenty- 
 five copies of such statement, wholly printed or wholly typewritten, 
 shall at the time of filing the original statement be filed with the Secre¬ 
 tary of State. The printed or typewritten copies so filed shall bear 
 at the top in bold faced type the expression: 
 
 ^^Securities in Class ^C’ under Illinois Securities Law,’’ followed 
 by the expression, also in bold faced type: 
 
 ‘"^This statement is prepared by parties interested in' the sale of 
 securities herein mentioned. Neither the State of Illinois, nor any 
 
7 
 
 officer of the State, assumes any responsibility for any statement con¬ 
 tained herein nor recommends any of the securities described below/^ 
 
 (b) By and ivitli the consent and approval in writing of the Sec¬ 
 retary of State any security in Class ‘‘C may he offered for sale or 
 sold before the filing of the statement with respect thereto herein above 
 in Paragraph (a) of this section seven (7) referred to, any tiling in this 
 statute to the contrary notwithstanding such consent to be conditioned 
 upon there being deposited in the office of the Secretary of State by the 
 issuer or any party interested in the sale of such security: 
 
 1. A notice briefly describing the securities to be offered and 
 stating the price at which such securities are to be offered to the pub¬ 
 lic, the amount of the issue and the amount to be Isold in Illinois; 
 
 2. The fee with respect to such securities prescribed- in section 26 
 of this statute; 
 
 3. A copy of the circular to be used m selling or offering for sale 
 such securities; 
 
 4. Such additional information as may be required' by the Secre¬ 
 tary of State; provided that within thirty days after the deposit of 
 such documents, or ivithin such further time as the Secretary of State 
 may prescidbe, there shall be filed in the office of the Secretary of State 
 the statement with respect to such securities provided for in Paragraph 
 (a) of this section seven (7); and further provided, that no issuer o'!* 
 other party shall offer, advertise or sell any such security prior to the 
 filing by the Secretary of State of the statement herein above in Para¬ 
 graph (a) prescribed unless such issuer or other party shall have on file 
 in the office of the Secretary of State an irrevocable consent and power 
 of attorney ivith respect to the sale of Glass ‘‘C securities as provided 
 in section 16 of this Act; and shall also have on file in the office of the 
 Secretary of State a good and sufficient bond in the sum of not less than 
 $50,000.00, payable to the People of the State of Illinois, for the pro¬ 
 tection, use and benefit of purchasers and of all persons in interest, 
 executed by a surety or guaranty company authorized to do b^isiness in 
 this State conditioned that in the event the staiement ivith respect to 
 any securities shall not be filed, as above provided, the obligor in such 
 bond, will repay to any purchaser from such obligor, on demand and 
 tender of such securities, the purchase price paid therefor. (As 
 cimended by Act approved June 11, 1921. 
 
 § 8. All securities other than those falling within Class 
 and respectively, shall be known as securities in Class 
 
 § 9. 2^0 security in Class shall be sold or offered for sale 
 
 until there shall have been filed in the office of the Secretary of State, 
 statements and documents as follows: 
 
 (1) A description and amount of the securities intended to be 
 offered for sale; 
 
 /2) If the issuer is a corporation, a certified copy oi the charter 
 or articles of incorporation and by-laws; 
 
 (3) If the issuer is a firm, trust, partnership or unincorporated 
 association, a copy of the articles of partnership, association or trust 
 agreement; 
 
8 
 
 (4) The names, addresses and prior occupations during a period 
 of not less than ten (10) years prior to filing such statement (giving- 
 details as to time, place and address of employer and reasons for dis¬ 
 continuance of employment) of the officers, directors or trustees of the 
 issuer, if it be a corporation, or of the persons composing the issuer, if 
 the issuer be a non-incorporated association; 
 
 (5) A description of the nature of the industry engaged in or in¬ 
 tended to be engaged in and tlie approximate time when such industry 
 was or will be established; 
 
 (6) An inventory showing the assets of the issuer; 
 
 (7) An appraisement of the assets of the issuer; 
 
 (8) A statement in detail of the gross income of the issuer and 
 the source or sources thereof and of its operating and -other expenses 
 for a period of twelve (12) months prior to the date of filing sucli 
 statement, or for the period of the existence of the issuer if less than 
 two years prior to the date of filing; 
 
 (9) A copy of the most recent balance sheet of the issuer, show¬ 
 ing the financial condition of the issuer at a date not more than thirtv 
 (30) days prior to the date of filing, and giving an analysis of surplus 
 account from inception of such issuer ; 
 
 (10) A copy of the mortgage, trust deed, indenture or writing 
 securing the securities, [or] whereunder the same are issued, if any 
 such instrument there be; 
 
 (11) A copy of the form of the securities intended to be offered; 
 
 (12) A copy of any and all subscription blanks to be used in the 
 sale thereof, which subscription blanks shall have printed thereon, 
 ^‘These are speculative securities^k 
 
 (13) A statement as to the manner in which the securities are to 
 be offered and sold; 
 
 (14) If the securities be intended to be offered and sold by the 
 issuer through solicitors, agents or brokers, an irrevocable contract 
 executed by each such solicitor, agent or broker authorized to offer or 
 sell such securities bv or on behalf of the issuer to the effect that the 
 
 xJ 
 
 issuer will receive in cash not less than 80% of the proceeds of each 
 sale of the securities without deduction for any commission .or ex¬ 
 penses, directly or indirectly, and without liability to pay any sum 
 whatsoever as commission or expenses or for services in and about 
 such sale; 
 
 If the securities shall have been or be intended to be- sold to any 
 dealer, solicitor, agent or broker and intended to be by such dealer, 
 solicitor, agent or broker sold to the public for their own account, a 
 statement verified under oath, establishing that the price paid to the 
 issuer was or will be without any fixed or contingent right in the issuer 
 to demand or receive any additional sum on account of such securities 
 or the sale thereof ; 
 
 (15) A summary of the material facts disclosed by the preceding 
 statements; 
 
 (IG) Such other facts relative to such securities as the Secretary 
 of State shall prescribe. 
 
9 
 
 Such statements and documents shall;, except as otherwise pro¬ 
 vided herein be verified by the oath of not less than two oi the officers 
 of the issuer;, if the issuer be a corporation^ or by not less than two 
 members of a firm^ trust;, partnership or association;, if the issuer be 
 non-incorporated. 
 
 The Secretary of State may require further and additional veri¬ 
 fication under the oaths of other persons. % 
 
 § 10. With the statement required to be filed in the office of the 
 Secretarv of State with reference to securities in Class there 
 
 shall also be filed an inventory, in such detail as the Secretary of State 
 shall require; showing the assets of the issuer as of a date not more 
 than thirty (30) days prior to the date of filing thereof. Such inven¬ 
 tory shall be accompanied by an appraisement made by a disinterested 
 qualified person or persons who may he selected hy the Secretary of 
 State, showing the value of the assets described in such inventory. 
 The person or persons making such appraisement shall state in such 
 appraisement the character and nature of their experience and their 
 qualifications to value such property and all the facts or considerations 
 on the basis of which their estimate of values is predicated. 
 
 Such appraisement shall be verified by the oath of the person or 
 persons making the same. (As amended by Act approved June 11, 
 1921. 
 
 § 11. At any time, either before or after the filing of any state¬ 
 ment required by this Act to be filed with reference to securities in 
 Class or Class the Secretary of State ma}^ designate a certified 
 public accountant to make an examination of the books, records, 
 papers and documents, of the issuer and make a report of the exam¬ 
 ination thereof to the Secretarv of State. The Secretarv of State shall 
 
 K/ Kf 
 
 fix the compensation of such certified public accountant in advance and 
 shall notify the issuer thereof of the amount so fixed, which compensa¬ 
 tion shall be paid by the issuer to such certified public accountant as 
 his compensation for making such examination. 
 
 The Secretary of State may secure information from or through 
 others and may malce or cause to he ^ made investigations respecting 
 the business, affairs and property of the issuer, and in financing hy 
 the sale of securities in Class the Secretary of Stale in his dis¬ 
 cretion may require that the capital to he ohtained hy such sales, he 
 held intact until the completion of the sale of securities, or so much 
 or such portion of the issue to he sold as may in the opinion of the 
 Secretary of State prevent loss of such capital or fraud upon the pur¬ 
 chasers of such securities, and for such purpose talce bond to the 
 People of the State of Illinois for the use and heneft of such purchasers 
 with sufficient sureties, or may accept other safeguards in lieu thereof; 
 and may require financial statements and reports of the issuer so often 
 as circumstances appear to 'warrant. (As amended by Act a])provcd 
 June 11, 1921. 
 
 § 12. If the statement as to securities in Class shall disclose 
 that any of such securities shall have been or shall be intended to be 
 issued for any patent right, copyright, trade-mark, process or good 
 will, or for promotion fees or expenses, or for otlier intangible assets, 
 
10 
 
 the amount and nature tliereof, shall be fully set forth, and securities 
 issued in payment of such patent right, copyright, trade-mark, process 
 or good will, or for promotion fees or expenses, or for other intangible 
 assets, shall be delivered in escrow to such bank or trust company as 
 shall be designated by the Secretary of State under an escrow agree¬ 
 ment that the owners of such securities shall in case of dissolution or 
 insolvency not participate in the assets of the corporation until after 
 the owners 'of all other securities have been paid in full. Such escrow 
 agreement shall remain in full force until the securities of the issuer 
 thereof are qualified under Class hereof. 
 
 § 13. If the statement as to securities in Class “D’’ discloses that 
 such securities are intended to be offered or sold by the issuer, through 
 a solicitor, agent or broker, a statement giving the names, residences, 
 qualifications, occupations and business experience of such solicitor, 
 agent or broker for a period of ten years prior to the filing, and the 
 name and address of each employer, the period of employment and 
 reason for resignation or discharge, shall be filed in the office of the 
 Secretary of State. The signatures of each and every of such solicitors, 
 agents or brokers, shall be attached to such statement. If after the 
 filing of such statement the issuer shall appoint any additional solicitor, 
 agent or broker to offer or sell such securities before any such addi¬ 
 tional solicitor, agent or broker, shall offer or sell any such securities, 
 there shall be filed like statements. 
 
 § 14. After qualification of securities in Class by the issuer, 
 ain^ dealer or owner may sell such securities upon filing in the office of 
 the Secretary of State, a statement verified b}'’ the oath of such dealer 
 or owjier as otherwise provided by this Act, a statement of the amouni; 
 and description of the securities to be sold by him or it, the maximum 
 pi'ice for which they are to be sold, his or its address by street and 
 number, qualification, occupation, and business experience of such 
 dealer or owner for a period of ten years prior to filing such .statement, 
 giving name and address of each employer, tire period of emplo 3 nnont 
 and the reason for resignation or discharge. 
 
 § 15. ^^'ot less than 25 printed or typewritten copies of the sum¬ 
 
 mary of the statement required- to be filled with reference to securities 
 in Class shall be deposited in the office of the Secretary of State. 
 The printed or typewritten copies so deposited shall bear at the top in 
 bold face type the expression: 
 
 ‘^Securities in Class Tl’ under Illinois Securities Law: These are 
 speculative securities,^’ followed by the expression, also in bold face 
 type: 
 
 ‘‘This statement is prepared by parties interested in the sale of 
 securities herein mentioned. iMeither the State of Illinois nor any 
 officer of the State assumes anv responsibilitv for any statement con- 
 tained herein nor recommends any of the securities described below.” 
 
 § 16. Before any securities in Classes ^^C” or “D” shall be sold 
 or offered for sale the issuer or person intending to sell or offer for 
 sale such securities shall file in the office of the Secretarv of State a 
 written irrevocable consent and power-of-attorne}^ that suits at law or 
 in equit}' arising out of or founded upon the sale or offering for sale 
 
11 
 
 of any of such securities may he commenced against the corporation or 
 person executing such power-of-attorney in any court of competent 
 jurisdiction within this State, in any county in which the plaintilf or 
 complainant resides, or in which tlie cause of action may have arisen, 
 by the service of process upon the Secretary of State, and therein 
 agreeing and stipulating that such service of process upon the Secre¬ 
 tary of State shall be taken and held in all courts to be as valid and 
 binding, as if due service had been made upon the corporation or per¬ 
 son executing such power-of-attorney, according to the law of this State. 
 Such instrument if the owner be a corporation^ shall be signed by its 
 chief executive and chief recording officer under its corporate seal, if it 
 have [has] one, pursuant to a resolution of its governing body, a certi- 
 led copy of which resolution shall be attached to such irrevocable con¬ 
 sent and power-of-attorney, or if a person or a non-incorporated 
 association then signed and acknowledged by such person or by all the 
 members of such non-incorporated association. Whenever any process 
 is served upon the Secretary of State, he shall at once forward a copy 
 of the same by registered mail to the defendant at liis or its last address 
 of record in the office of the Secretary of State. 
 
 § 17. Before tiling any statement or document with reference to 
 securities in Class or Class the Secretary of State shall within 
 a reasonable time examine the same and, if the same is incomplete, 
 inadequate, evasive or otherwise not in conformity with the provisions 
 of this Act, or if the sale or offering for sale of securities based upon 
 the plan or scheme evidenced by the statements and documents offered 
 to be filed, would in the opinion of the Secretary of State work or tend 
 to wmrk a fraud upon the purchaser of such securities the Secretary 
 of State shall refuse to file the same. Otherwise such statements or 
 documents shall be filed by the Secretary of State. Upon the filing of 
 such statements or documents by the Secretary of State, the issuer, 
 solicitor, agent, broker, dealer or owner may proceed to sell the amount 
 of securities proposed to be sold or disposed of in this State, but no 
 written or printed evidence of the compliance with this Act shall be 
 issued by the Secretary of State. The Secretary of State may, either 
 before or after such statements and documents are filed, propound in¬ 
 terrogatories to the persons filing, or offering to file^ such statements or 
 documents, respecting any facts required to be stated with reference 
 to such securities. Such interrogatories shall be answered under oath. 
 If such interrogatories relate to a statement or document offered to be 
 filed, such statement or document shall not be filed until such iiiterro- 
 gatoi’ies are answered, and not then unless such statement and docu¬ 
 ment and the answers to such interrogatories disclose conformity with 
 this Act. If such interrogatories relate to a statement or document 
 already filed, such interrogatories shall be answered within twenty 
 days or within such further time as the Secretary of State shall pre¬ 
 scribe. If not answered within twenty days or witliin any extension 
 thereof, the sale or offering for sale of the securities coveied by tlie 
 statement or document to which the interrogatories relate, shall be 
 unlawful. 
 
12 
 
 § .18. Whenever the Secj'etary of State refuses to file any state- ' * 
 nient or document presented under the provisions of this Act, the 
 person presenting such statement or documents for filing ma\' within 
 thirty da 3 ^s thereafter, file a petition in the Circuit Court of Sanga- ^ 
 mon County, against the Secretary of State, officially as defendant, 
 to review his action in refusing to file such statement or document, 
 alleging therein, under*oath, in brief detail, the right of the petitio-ner 
 to sell securities in this State, and praying that the Secretary of State 
 be required to file in his office such statement or document. 
 
 If, upon a hearing, the court shall find upon consideration of the 
 slatement or document and other pertinent evidence that the sale or 
 offering for sale of securities upon the basis, plan or scheme evidenced 
 therein and thereby will not work or tend to work a fraud upon the 
 purchaser or purchasers of such securities, and shall further find that 
 the Secretary of State wrongfully concluded that the sale or offering 
 for sale of such securities would ivork or tend to work a fraud upon 
 purchasers thereof, and that the petitioner is entitled to the benefits 
 of and has complied with the provisions of this Act, the couit may 
 order such statement or document filed. 
 
 Either party to such suit shall have the right to prosecute an ap¬ 
 peal from the order or judgment of the court. Judgment against the 
 petitioner shall not bar his right to file a new statement or document 
 under the provisions of this Act, nor shall judgment in favor of the 
 petitioner prevent the Secretary of State from thereafter applying for an 
 injunction, or otherwise proceeding, as is provided in this Act. ^Merely 
 technical irregularities in the procedure of the Secretary of State shall 
 be disregarded and the burden of proof on all questions in controversy 
 shall rest upon the petitioner. (As amended by Act approved June 11. 
 
 1921. 
 
 § 19. Every expression or statement made as an inducement to 
 ])rocure the filing of the information required by the provisions of this 
 Act, either concerning Class ^^C^^ or Class securities, shall be re¬ 
 duced to writing and verified under oath Iw the person making such 
 expression or statement. 
 
 § 20. So long as any security is sold or offered for sale under the 
 provisions of this Act, such person, issuer, dealer, solicitor, agent or 
 broker shall on or before the expiration of each six months’ period, 
 from the date of filing the original statements and documents, and 
 of teller if required by the Secretary of State, file new or supplemental 
 statements disclosing: 
 
 (1) The amount of securities sold, the sale price thereof and the 
 amount of cash proceeds received therefor by the issuer; 
 
 (2) All changes in the financial conditions of the issuer or in its 
 management or property, accompanied by a copy of the most recent 
 balance sheet of the issuer showing the financial condition of the issuer 
 at a date not more than 30 days prior to the date of such filing, and 
 such other facts as the Secretary of State may require. 
 
 Such supplemental statement shall also be accompanied by not 
 less than twenty-five wholly typewritten or printed copies of such sum- 
 
13 
 
 mary of such supplemental statement, which summary shall be tiled 
 in the office of the Secretary of State. 
 
 . Such supplemental statement shall be verified in the same manner 
 as the original statement. 
 
 § 21. Each financial statement, prospectus, advertisement, circular 
 and document circulated, published or distributed for the purpose of 
 effecting sales of securities in Class shall contain the words, in 
 
 boid faced type, ^^Securities in Class under Illinois Securities Law. 
 These are speculative securities.^’ But it shall be unlawful to make 
 any other reference in any such matter to the fact that the issuer, 
 solicitor, agent or broker has complied with the provisions of this Act. 
 All such matter shall also contain a statement of the assets, liabilities, 
 income and expenses of the issuer, the law under which the issuer was 
 incorporated or organized, and the names and addresses of all officers, 
 directors or trustees, of the issuer or of the owner of the property con¬ 
 stituting the basis of the issue of such securities. A copy of each such 
 financial statement, prospectus, advertisement, circular and document 
 so circulated, published or distributed shall be filed in the office of the 
 Secretary of State within ten (10) days after the first circulation, 
 publication or distribution thereof. It shall be unlawful to print, pub¬ 
 lish, circulate or distribute such matter showing the earnings of other 
 companies or corporations engaged in a similar business. 
 
 It shall be unlawful for any issuer, solicitor, agent or broker in 
 any advertisement intended to promote the sale of securities in Class 
 
 to make any reference whatsoever to the fact that such issuer, 
 solicitor, agent or broker has complied with the provisions of this Act. 
 
 § 22. The Secretary of State shall, upon request therefor, mail or 
 deliver to any person a copy of the summary of the statements or supple¬ 
 mental statements required to be deposited in his office. 
 
 § 23. The Secretary of State may prescribe and furnish forms for 
 all statements and documents and summaries required by this Act to 
 be filed in his office and such statements, documents and summaries 
 shall follow substantially the forms so prescribed. 
 
 § 24. (1) In case any statement or document submitted or filed 
 
 in the office of the Secretary of State shall, in the judgment of the 
 Secretary of State, in any material part thereof be inadequate, in¬ 
 sufficient or not in compliance with this Act, or in case the basi^, plan 
 or scheme disclosed by such statements or documents, adopted or filed, 
 would, in the judgment of the Secretary of State, work or tend to work 
 a fraud upon purchases, or if it shall be made to appear to the Secretary 
 of State, by complaint, through investigation or otherwise, that the 
 statements and documents filed with respect to any securities are false 
 or deceptive in any material particular, or if it shall be made to appear 
 to the Secretary of State that insolvency erists or that conditions with 
 respect to any such securities have so changed that the further sale or 
 offering for sale thereof would ivorh or tend to irorlc a fraud on pur¬ 
 chasers thereof, or that any of the terms and provisions of this Act, have 
 not been complied with, or if it shall appear .to the Secrelary of State 
 by complaint, upon investigation or otherivise, that an}! securities have 
 been sold or are being offered for sale ivithout compliance iciih, or in 
 violation of any of the provisions of this Act, the Secretary of State 
 
14 
 
 shal], in the name of tlie TeopJe of the State of Illinois, through the 
 Attorney General, apply for an injunction in any court of com}>etent 
 jurisdiction to restrain the further sale or offering for sale of such 
 securities; and (he cowi shall have potaer to restram the sale or offering 
 for sale of such securities upon such application and may grant injunc-. 
 tions to enforce the provisions of this Act, in addition to the penalties 
 and other remedies in this Act provided; the pelitioner shall not he 
 required to give bond in such proceedings and eitlher party to such suit 
 shall have the right to prosecute an appeal from th^e order or judgment 
 of the court. 
 
 (2) The Secretary of State shall also have the power at any time, 
 after five days notice to the seller of securities, ivhen insolvency exists or 
 tvhen in the opinion of the Secretary of State' the further sale of such 
 securities would luorh or tend to ivorlc a fraud upon purchasers thereof, 
 to suspend or cancel permission to sell such securities in this State, and 
 thereafter the sale or offer for sale of such securities shall he unlaivful, 
 and may rescind such action when it shall he made to appear that further 
 sales of such securities will not ivorlc or tend to work fraud upon pur¬ 
 chasers, the order suspending or cancelling such authority to sell securi¬ 
 ties and any recision thereof shall he reduced to writing and signed hy 
 the Secretary of State; any issuer, corporation or person aggrieved or 
 interested in any such suspension or cancellation order aforesaid shall 
 have the right to have the action and decision of the Secretary of State 
 revieived hy the Circuit Court of Sangamon County, the procedure and 
 rights under this paragraph two (2) of this section shall he governed hy 
 the provisions of section 18 of this Act in so far as such provisions may 
 he applied. 
 
 (3) In no case shall the Secretary of State incur any official or 
 personal liahility hy instituting injunction or other proceedings, or hy 
 the suspension or cancellation of the right or authority to sell securities. 
 (As amended by Act approved June 11, 1921. 
 
 § 25. All statements and documents and all other matters filed 
 in the office of the Secretary of State under the provisions of this Act 
 shall at all proper hours he available for public inspection. 
 
 § 26. Before filing any statements required to be filed liereunder 
 with reference to securities in Class ‘^C’^ or in Class the person 
 so filing such statements shall pay in advance to the Secretary of State 
 a fee of one-twentieth of one per cent of the amount of the securities 
 to be offered for sale in this State, but in no case shall the fee be less 
 than twenty-five dollars ($25.00) or more than three hundred dollars 
 ($300.00). 
 
 § 27. All oaths required by this Act relating to securities in Class 
 shall be taken before an officer of this State, authorized to ad¬ 
 minister oaths therein. 
 
 § 28. Whenever in this Act copies of statements or other docu¬ 
 ments are required to be furnished to the Secretary of State for dis¬ 
 tribution, additional copies as requested by the Secretary of State, 
 shall be supplied by the parties filing the original copies or by parties 
 interested in the disposition of such securities. 
 
§ 29. Any solicitor, agent or broker, selling or offering to sell any 
 securities in Class without compliance with the provisions of this 
 Act, shall be deemed guilty of a misdemeanor and upon conviction 
 thereof, shall be punished by a fine of not less than one hundred dol¬ 
 lars ($100.00), and not more than five thousand dollars ($5,000.00) 
 for the first offense and not less than one thousand dollars ($1,000.00), 
 nor more than ten thousand dollars ($10,000.00) for the second or any 
 subsequent offense, or by imprisonment in the county jail not more 
 than one year or may be punished by both such fine and imprisonment, 
 in the discretion of the court. 
 
 § 30. Any issuer of securities or any officer, director, trustee or 
 agent thereof, selling or offering to sell any securities in Class 
 without full compliance with the provisions of this Act, shall be 
 deemed guilty of a misdemeanor and upon conviction thereof shall be 
 fined in any sum not exceeding ten thousand dollars ($10,000.00) for 
 the first offense and not to exceed twent,y-five thousand dollars 
 ($25,000.00) for the second or any subsequent offense, and the officer, 
 director, trustee or agent thereof, or the issuer (if a natural person) 
 may be punished by imprisonment in the county jail not exceeding one 
 year or may be punished by both such fine and imprisonment, in the 
 discretion of the court. 
 
 § 31. Any person or corporation, whether acting on his or its 
 own behalf or on behalf of another violating any of the provisions 
 of this Act, shall be deemed guilty of a misdemeanor and on con¬ 
 viction thereof shall be fined not less than one hundred dollars 
 ($100.00) nor more than five hundred dollars ($500.00) for the first 
 offense and not less than five hundred dollars ($500.00), nor more 
 than one thousand dollars ($1,000.00) for the second or any subse¬ 
 quent offense, or imprisonment in the county jail for not more than 
 six months for the first offense nor more than one year for the second 
 or any subsequent offense, or shall be subject to both such fine and 
 imprisonment, in the discretion of the court. 
 
 § 32. Any dealer, agent, solicitor or broker, who shall make any 
 statement or representation not authorized by the issuer, or any state¬ 
 ment or representation at variance with, or not reasonably predicated 
 upon the statements and documents filed by the issuer in the office of 
 the Secretary of State, ^shall be guilty of a misdemeanor, and upon 
 conviction thereof, shall be fined in any sum not to exceed one thousand 
 dollars ($1,000.00) for the first offense, and not to exceed five thou¬ 
 sand dollars ($5,000.00) for the second or any subsequent offense, or 
 imprisoned in the county jail not more than six months for the first 
 offense, nor more than one year for the second or any subsequent offense, 
 or shall be subject to both such fine and imprisonment, in the discretion 
 of the court. 
 
 § 33. Any person signing any statement, list, inventory, balance 
 sheet or other paper or document required by any provision of this 
 Act to be verified or sworn to, knowing any representation therein 
 contained to be false or untrue (and the depositing of any such state¬ 
 ment or document in the office of the Secretary of State shall be deemed 
 prirna fade evidence of knowledge of the falsity thereof or of any repre- 
 
16 
 
 sentation tlierein contained, and of the wilful signing of such statement 
 or document)^ shall be deemed guilty of perjury and shall be subject 
 to the penalties by the law of this State prescribed therefor. 
 
 § 34. It shall be unlawful for any officer, director, trustee, 
 solicitor, agent or broker of or for any issuer, knowing such issuer 
 to be insolvent, to sell anv securities issued bv such issuer; and anv 
 such officer, director, trustee, solicitor, agent or broker who shall make 
 any sale of any securities ot' and for any such issuer, and by reason 
 of such insolvency of such issuer, the price paid for such securities 
 or any part thereof shall be lost to the purchaser, shall be deemed, 
 guilty of embezzlement and upon conviction thereof shall be fined in 
 a sum not less than one thousand dollars ($1,000.00) nor more than 
 ten thousand dollars ($10,000.00) or may be imprisoned in the State 
 penitentiary for not less than one vear nor more than five vears. or 
 
 X. %J «y‘ %j y 
 
 may be both fined and imprisoned, in the discretion of the court. 
 For the purpose of this section, an issuer shall be deemed insolvent 
 whenever the aggregate of its property shall not, at a fair valuation, 
 be sufficient in amount to pay its debts. 
 
 § 35. Any person interested in sepurities in Class may main¬ 
 tain in the name of the issuer an action at law or suit in chancerv 
 
 •/ 
 
 for the use of the issuer, against the solicitor, agent or broker of such 
 issuer, jointly or severally, to recover of such solicitor, agent or broker 
 all moneys in excess of 20% of the proceeds of the sales of securities 
 made by such solicitor, agent or broker and not turned into the treasury 
 of the issuer. 
 
 § 36. It shall be unlawful-for any officer, director, solicitor, broker 
 or agent, to sell or offer for sale any securities in Class in any 
 
 other manner or form than specifically set forth in the information 
 recjuired to be filed in section 9 of this Act, and any offer or sale upon 
 any other terms or conditions other than set forth, shall be considered 
 prima facie evidence that such officer, director, trustee, solicitor or 
 agent offered or sold same for the purpose of defrauding the investor 
 to whom such Security was offered or sold. 
 
 § 3T. (1) Every sale and contract of sale made in violation of 
 
 an}^ of the provisions of this Act shall be void at the election of the 
 purchaser, and the seller of the securities so sold, the offi-cers and 
 directors of the seller, and each and every solicitor, agent or broker 
 of or for such seller, who shall have knoAvingly performed, any act 
 or in any way furthered such sale, shall be jointly and severally liable, 
 in an action at law or m equity, upon tender to the seller or in court 
 of the securities sold, to the purchaser for the amount paid, the con¬ 
 sideration given or the value thereof, together with his reasonable 
 attorney’s fees in any action brought for such recovery. 
 
 (2) In any action, civil or criminal, nliere the seller or issuer re¬ 
 lies for his defense upon any of the exemptions provided for in\ this 
 Act, the burden of proof to establish such exemption, shall be upon 
 such issuer or seller. 
 
 (3) The Secretary of State shall have the pou'cr to male such 
 investigations under this Act as he may deem proper and expedient, 
 and to refer any complaint, together with information relative thereto. 
 
17 
 
 to the proper officers of the coiuitij in ivhich any violation may have 
 occurred. 
 
 (Jf) For the purposes of this Act all persons, soliciiors, agents, 
 hrolcers, officers and directors of the seller, irho shall sell or offer for 
 sale securities in violation of the provisions of this Act, or ivho shall in 
 any manner authorize, aid or ass'ist in any nnlawful sale or offering for 
 sale, shall he deemed equally guilty, and may he tried and punished in 
 the county in which said unlawful sale or offering for sale was made, 
 or in the county in ivliich the securities so sold or offered for sale, ivere 
 delivered or proposed to he delivered to the purchaser thereof. 
 
 (5) In any prosecuiion, action, suit or proceeding hefore any of 
 the several courts of this State based upon or arising out of or under 
 the provisions of this Act, a certificate under the seal! of State, duly 
 signed hy the Secretary of State, showing compliance or non-compliance 
 ivith the provisions of the Tllinois Securities Laiu^ respecting the securi¬ 
 ties in question or respecting compliance or non-compliance loith the 
 provisions of the Act hy any issuer, solicitor, agent, hrolcer, dealer or 
 otvner, shall constitute prima facie evidence of such compliance or of 
 such non-compliance ivith the provisions of this Act, as the case may he, 
 and shall he admissihle in evidence m any action at law or in equity to 
 enforce the provisions of this Act. (As amended bv Act approved June 
 11, 1921. 
 
 § 38. Nothing in this Act shall be construed to relieve corpora¬ 
 tions from making reports now or hereafter required by law to be 
 made to the Secretary of State or paying the fees now or hereafter 
 to be paid by corporations. This Act shall not be construed to repeal 
 any law now in force regulating the organization of corporations in 
 this State or the admission of any foreign corporation, but the pro¬ 
 visions of this Act shall be construed to be additional to any provision 
 regulating the organization of a corporation under the laws of Illinois 
 or the admission of a foreign corporation to do business in this State. 
 
 § 39. If the issuer of any securities be a foreign corporation, end 
 such issuer shall desire to make sales of such securities under the 
 provisions of this Act, no statement or document relating to such 
 sales shall be filed in the office of the Secretarv of State until such 
 foreign corporation has complied with the law regulating the admis¬ 
 sion of foreign corporations to transact business in this State. 
 
 § 40. No prosecution for violation of any provision of this Act 
 shall bar or be barred by any prosecution for the violation of any other 
 provisions of this Act or of any other statute; but all prosecutions and 
 all civil actions to recover money or for other purposes under this Act 
 or based upon any provision of this Act must be commenced within 
 five years after the commission of the act complained of. 
 
 § 41. The invalidity ot any section or provision of this Act shall 
 not affect the remainder thereof. 
 
 § 42. An Act entitled, “An Act to prevent fraud in the sale and 
 disposition of stocks, bonds or other securities sold or offered for sale 
 within the State of Illinois, by any dealer, firm, company, association oi* 
 corporation, foreign or domestic, by requiring an inspection of such 
 
18 
 
 stocks, bonds, or other securities and an inspection of the business of 
 such persons, firms, companies, associations or corporations, including 
 dealers and agents, and such regulation and supervision of the business 
 of said persons, fiimis, companies, associations or corporations, includ¬ 
 ing dealers and agents, as may be necessary to prevent fraud in the sale 
 within the State, of any stocks, bonds or other securities, and providing 
 penalties for the violation thereof,^^ filed June 29, 1917, in effect Janu- 
 . ary 1, 1918, is hereby repealed, and all other Acts and parts of Acts 
 insofar as they conflict with this Act are hereby repealed. 
 
 It shall hereafter he unlawful for any person or corporation to 
 exhibit or in anv wise make use of anv certificate issued by the Secre- 
 tary of State under any of the provisions of the Act hereby repealed for 
 the purpose of making or in endeavoring to make any sale of securities. 
 
 This repeal shall not affect any contract rights which have arisen 
 under the law hereby repealed, or under the administration thereof, nor 
 invalidate any deposits in escrow or contracts entered into by the issuer 
 of securities for the benefit or security of any person. The Secretary 
 of State shall in all such cases proceed in all respects touching such con¬ 
 tracts and escrows as if such law had not been repealed. 
 
 § 43. Whereas, an emergency exists, therefore this Act shall be 
 in force and effect from and after its passage and approval. 
 
 Approved June 10, 1919. 
 
 Compiled by 
 Louis L. Emmerson, 
 Secretary of State. 
 
 Illinois'State Journal Co. 
 Springfield, Illinois 
 19 2 2 
 
 76430—lOM