1. No action shall be maintained to enforce any liability created under either section 502.501 or section 502.503, subsection 1 insofar as it relates to section 502.501 unless brought within two years after the violation upon which it is based.
2. No action shall be maintained to enforce any liability created under either section 502.502 or section 502.503, subsection 1, insofar as it relates to section 502.502, unless brought within the shorter of the following two periods:
a. Five years after the act or transaction constituting the violation; or
b. Two years after the plaintiff receives actual notice of, or upon the exercise of reasonable diligence should have known of, the facts constituting the violation.
3. No action shall be maintained to enforce any right of indemnification or contribution created by section 502.503, subsection 2 unless brought within one year after final judgment based upon the liability for which the right of indemnification or contribution exists.
4. No purchaser may commence an action under section 502.501, 502.502 or 502.503 if:
a. Before suit is commenced, the purchaser has received a written offer:
(1) Stating in reasonable detail why liability under such section may have arisen and fairly advising the purchaser of the purchaser's rights;
(2) Offering to repurchase the security for cash, payable on delivery of the security, equal to the consideration paid, together with interest at the legal rate from the date of payment, less the amount of any income or distributions, in cash or in kind, received thereon or, if the purchaser no longer owns the security, offering to pay the purchaser upon acceptance of the offer an amount in cash equal to the damages computed in accordance with section 502.502, subsection 1; and
(3) Stating that the offer may be accepted by the purchaser at any time within a specified period of not less than thirty days after the date of receipt thereof, or such shorter period as the administrator may by rule prescribe; and
b. The purchaser has failed to accept such offer in writing within the specified period.
5. No seller may commence an action under section 502.501, 502.502 or 502.503 if:
a. Before suit is commenced, the seller has received a written offer:
(1) Stating in reasonable detail why liability under such section may have arisen and fairly advising the seller of the seller's rights;
(2) Offering to return the security plus the amount of any income or distributions, in cash or in kind, received thereon upon payment of the consideration received, or, if the purchaser no longer owns the security, offering to pay the seller upon acceptance of the offer an amount in cash equal to the damages computed in accordance with section 502.502, subsection 2; and
(3) Stating that the offer may be accepted by the seller at any time within a specified period of not less than thirty days after the date of receipt thereof, or such shorter period as the administrator may by rule prescribe; and
b. The seller has failed to accept the offer in writing within the specified period.
6. Offers under subsection 4 or 5 shall be in the form and contain the information the administrator by rule prescribes. Every offer under either subsection shall be delivered to the offeree personally or sent by certified mail addressed to the offeree at the offeree's last known address. If an offer is not performed in accordance with its terms, suit by the offeree under section 502.501, 502.502 or 502.503 shall be permitted without regard to subsections 4 and 5 of this section.
[C77, 79, 81, § 502.504]
Referred to in §502.302
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