Oregon Administrative Rules
Chapter 441 - DEPARTMENT OF CONSUMER AND BUSINESS SERVICES, FINANCE AND SECURITIES REGULATION
Division 35 - SECURITIES TRANSACTIONS EXEMPT FROM REGISTRATION
Section 441-035-0230 - Burden of Proof

(1) The isolated and inadvertent failure to comply with the disclosure requirements under OAR 441-035-0120(1) will result in the loss of the exemption only as to the specific sales if the seller demonstrates to the Director that they acted in good faith and sustains the burden of proof that they acted without intent to violate OAR 441-035-0120(1) and provides the correct disclosures to the purchaser and offers to cancel or rescind the sale not more than 10 business days after the discovery of the violation. The rescission offer must be held open for at least 30 calendar days.

(2) The isolated and inadvertent failure to comply with the reporting requirements under OAR 441-035-0125 and records requirements under OAR 441-035-0225 will not itself result in the loss of the OIO exemption provided that the seller demonstrates to the Director that they acted in good faith and sustains the burden of proof that they acted without intent to violate OAR 441-035-0125 or 441-035-0225 and they submit the required report or records within 10 days after discovery.

(3)The isolated and inadvertent failure to comply with the purchaser limitations under OAR 441-035-0090(3) will result in the loss of the exemption only as to the specific sales provided that the seller demonstrates to the Director that they acted in good faith and sustains the burden of proof that they acted without intent to violate OAR 441-035-0090(3) and the seller either cancels or rescinds the sale within 30 calendar days after discovery of the violation.