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"This statement is prepared by parties interested in the sale of securities herein mentioned. Neither the State of Illinois nor any officer of the State assumes any responsibility for any statement contained 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 Secretary of State a written irrevocable consent and power-of-attorney, that suits at law or in equity arising out of or founded upon the sale or offering for sale of any of such securities may be 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 plaintiff or complainant resides, or in which the 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 Secretary 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 person executng 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 certified copy of which resolution shall be attached to such irrevocable consent 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 his or its last address of record in the office of the Secretary of State.

§ 17. Before filing any statement or document with reference to securities in Class "C" or Class "D" 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 work 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 interrogatories 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 interrogatories are answered, and not then unless such statement and docu

ment and the answers to such interrogatories disclose conformity wi this Act. If such interrogatories relate to a statment or docume already filed, such interrogatories shall be answered within twenty da or within such further time as the Secretary of State shall prescri If not answered within twenty days or within any extension therethe sale or offering for sale of the securities covered by the stateme or document to which the interrogatories relate, shall be unlawful.

§ 18. Whenever the Secretary of State refuses to file any stat ment or document presented under the provisions of this Act, the p son presenting such statement or document for filing, may within thin days thereafter, in the Circuit Court of Sangamon County, file a petiti against the Secretary of State, officially as defendant alleging there under oath in brief detail, the plaintiff's right to sell securities this State, and praying that the Secretary of State be required to file his office such statement or document. The court may make su orders and decrees as the equities and exigencies of the case may 1 quire. Judgment against the plaintiff shall be final. Judgment again the plaintiff shall not bar his right to file new statements or documen under the provisions of this Act, nor shall judgment in favor of th plaintiff prevent the Secretary of State from thereafter applying fo an injunction, or otherwise proceeding, as is provided in this Ac Merely technical irregularities in the procedure of the Secretary State shall be disregarded and the burden shall rest upon the plainti to prove his right to sell securities in this State.

§ 19. Every expression or statement made as an inducement t procure the filing of the information required by the provisions of thi Act, either concerning Class "C" or Class "D" securities, shall be re duced to writing and verified under oath by the person making suck 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 of broker shall on or before the expiration of each six months' period from the date of filing the original statements and documents, and oftener if required by the Secretary of State, file new or supplementa 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 summary of such supplemental statement, which summary shall be filed 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 "D" shall contain the words, in Fold faced type, "Securities in Class 'D' 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, Loome 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 constituting 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, publish, 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 "C" 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 supplemental 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. In case any statement or document 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, insufficient or not in compliance with this Act, or in case the plan or scheme disclosed by such statements or documents so filed, would, in the judgment of the Secretary of State, work or tend to work a fraud upon the people, or if it shall be made to appear to the Secretary of State, by complaint or otherwise, that the statements and documents filed with respect to any securities are false in any material particular, or if it shall be made to appear to the Secretary of State that conditions with respect to such securities have so changed that the further sale or offering for sale thereof would tend to operate as a fraud upon the people, or that any of the terms and provisions of this Act, are not complied with, the Secretary of State shall, in the name of the people of the State of Illinois, through the Attorney General, apply for an injunction in any Court of competent jurisdiction to restrain the further sale of such securities. The court may grant a temporary injunction and may make such orders and decrees, from time to time, as the equities and exigencies of the case may require. The complainant shall not be required to give bond. In no case shall the Secretary of State incur any official or personal liability by instituting such injunction proceedings.

§ 25. All statements and documents and all other matters filed the office of the Secretary of State under the provisions of this Aet sh at all proper hours be available for public inspection.

§ 26. Before filing any statements required to be filed hereund with reference to securities in Class "C" or in Class "D" the person filing such statements shall pay in advance to the Secretary of Sta a fee of one-twentieth of one per cent of the amount of the securit to be offered for sale in this State, but in no case shall the fee be l than twenty-five dollars ($25.00) or more than three hundred dolla ($300.00).

§ 27. All oaths required by this Act relating to securities in Cla "D" shall be taken before an officer of this State, authorized to a minister oaths therein.

§ 28. Whenever in this Act copies of statements or other doc ments are required to be furnished to the Secretary of State for d tribution, additional copies as requested by the Secretary of State, sha be supplied by the parties filing the original copies or by parties inte ested in the disposition of such securities.

29. Any solicitor, agent or broker, selling or offering to sell a securities in Class "D" without compliance with the provisions of th Act, shall be deemed guilty of a misdemeanor and upon convictio thereof, shall be punished by a fine of not less than one hundred dolla ($100.00), and not more than five thousand dollars ($5,000.00) for th first offense and not less than one thousand dollars ($1,000.00), n more than ten thousand dollars ($10,000.00) for the second or an subsequent offense, or by imprisonment in the county jail not mor than one year or may be punished by both such fine and imprisonmen in the discretion of the court.

§ 30. Any issuer of securities or any officer, director, trustee o agent thereof, selling or offering to sell any securities in Class "D without full compliance with the provisions of this Act, shall be deeme guilty of a misdemeanor and upon conviction thereof shall be fined i any sum not exceeding ten thousand dollars ($10,000.00) for the firs offense and not to exceed twenty-five thousand dollars ($25,000.00) fo the second or any subsequent offense, and the officer, director, truste or agent thereof, or the issuer (if a natural person) may be punishe by imprisonment in the county jail not exceeding one year or may b punished by both such fine and imprisonment, in the discretion of th court.

§ 31. Any person or corporation, whether acting on his or it own behalf or on behalf of another violating any of the provision 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 subsequent 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 mprisonment, 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 statement 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 Qollars ($1,000.00) for the first offense, and not to exceed five thousand 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 statement or document in the office of the Secretary of State shall be deemed prima facie evidence of knowledge of the falsity thereof or of any representation therein 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 any securities issued by such issuer; and any such officer, director, trustee, solicitor, agent or broker who shall make any sale of any securities of 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 year nor more than five years, or 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 securities in Class "D" may maintair in the name of the issuer an action at law or suit in chancery 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 "D", in any other manner or form than specifically set forth in the information

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