# Ark. Code Ann. § 23-42-505: Denial or revocation of exemption > Arkansas · Statutes · In force URL: https://www.frixlaw.com/law-library/statutes/STATE_AR_T23_C42_S5_S23-42-505 ## Section - **Citation:** Ark. Code Ann. § 23-42-505 - **Heading:** Denial or revocation of exemption - **Jurisdiction:** Arkansas - **Kind:** Statutes - **Status:** In force - **Text as of:** August 14, 2026 - **Source:** Compiled text - **Location:** AR Code / Title 23 / Chapter 42 / Subchapter 5 / Section 23-42-505 ## Text (a) The Securities Commissioner may, by order, deny or revoke any exemption specified in § 23-42-503(a)(7) or (8), (b), or (c) or § 23-42-504(a) with respect to a specific security or transaction. (b) (1) No such order may be entered without appropriate prior notice to all interested parties, opportunity for hearing, and written findings of fact and conclusions of law, except that the commissioner may by order summarily deny or revoke any of the specified exemptions pending final determination of any proceeding under this section. (2) Upon the entry of a summary order, the commissioner shall promptly notify all interested parties that it has been entered and of the reasons therefor and that within fifteen (15) days of the receipt of a written request the matter will be set down for hearing. (c) (1) If no hearing is requested and none is ordered by the commissioner, the order will remain in effect until it is modified or vacated by the commissioner. (2) If a hearing is requested or ordered, the commissioner, after notice of and opportunity for hearing to all interested persons, may modify or vacate the order or extend it until final determination. (d) No order under this section may operate retroactively. (e) No person may be considered to have violated § 23-42-501 or § 23-42-502 by reason of any offer or sale effected after the entry of an order under this section if he or she sustains the burden of proof that he or she did not know and, in the exercise of reasonable care, could not have known of the order. Acts 1959, No. 254, § 14; 1961, No. 248, § 7; 1977, No. 493, § 9; A.S.A. 1947, § 67-1248; Acts 1997, No. 173, § 22. (a) The Securities Commissioner may, by order, deny or revoke any exemption specified in § 23-42-503(a)(7) or (8), (b), or (c) or § 23-42-504(a) with respect to a specific security or transaction. (b) (1) No such order may be entered without appropriate prior notice to all interested parties, opportunity for hearing, and written findings of fact and conclusions of law, except that the commissioner may by order summarily deny or revoke any of the specified exemptions pending final determination of any proceeding under this section. (2) Upon the entry of a summary order, the commissioner shall promptly notify all interested parties that it has been entered and of the reasons therefor and that within fifteen (15) days of the receipt of a written request the matter will be set down for hearing. (1) No such order may be entered without appropriate prior notice to all interested parties, opportunity for hearing, and written findings of fact and conclusions of law, except that the commissioner may by order summarily deny or revoke any of the specified exemptions pending final determination of any proceeding under this section. (2) Upon the entry of a summary order, the commissioner shall promptly notify all interested parties that it has been entered and of the reasons therefor and that within fifteen (15) days of the receipt of a written request the matter will be set down for hearing. (c) (1) If no hearing is requested and none is ordered by the commissioner, the order will remain in effect until it is modified or vacated by the commissioner. (2) If a hearing is requested or ordered, the commissioner, after notice of and opportunity for hearing to all interested persons, may modify or vacate the order or extend it until final determination. (1) If no hearing is requested and none is ordered by the commissioner, the order will remain in effect until it is modified or vacated by the commissioner. (2) If a hearing is requested or ordered, the commissioner, after notice of and opportunity for hearing to all interested persons, may modify or vacate the order or extend it until final determination. (d) No order under this section may operate retroactively. s requested and none is ordered by the commissioner, the order will remain in effect until it is modified or vacated by the commissioner. (2) If a hearing is requested or ordered, the commissioner, after notice of and opportunity for hearing to all interested persons, may modify or vacate the order or extend it until final determination. (d) No order under this section may operate retroactively. (e) No person may be considered to have violated § 23-42-501 or § 23-42-502 by reason of any offer or sale effected after the entry of an order under this section if he or she sustains the burden of proof that he or she did not know and, in the exercise of reasonable care, could not have known of the order. Acts 1959, No. 254, § 14; 1961, No. 248, § 7; 1977, No. 493, § 9; A.S.A. 1947, § 67-1248; Acts 1997, No. 173, § 22. ## Nearby sections - [Ark. Code Ann. § 23-42-501 Sale of unregistered nonexempt securities](https://www.frixlaw.com/law-library/statutes/STATE_AR_T23_C42_S5_S23-42-501.md) - [Ark. Code Ann. § 23-42-502 Filing of prospectus, sales literature, etc](https://www.frixlaw.com/law-library/statutes/STATE_AR_T23_C42_S5_S23-42-502.md) - [Ark. Code Ann. § 23-42-503 Exempted securities](https://www.frixlaw.com/law-library/statutes/STATE_AR_T23_C42_S5_S23-42-503.md) - [Ark. Code Ann. § 23-42-504 Exempted transactions](https://www.frixlaw.com/law-library/statutes/STATE_AR_T23_C42_S5_S23-42-504.md) - [Ark. Code Ann. § 23-42-505 Denial or revocation of exemption](https://www.frixlaw.com/law-library/statutes/STATE_AR_T23_C42_S5_S23-42-505.md) - [Ark. Code Ann. § 23-42-506 Burden of proof of exemption](https://www.frixlaw.com/law-library/statutes/STATE_AR_T23_C42_S5_S23-42-506.md) - [Ark. Code Ann. § 23-42-507 Fraud or deceit in connection with offer, sale, or purchase of securities](https://www.frixlaw.com/law-library/statutes/STATE_AR_T23_C42_S5_S23-42-507.md) - [Ark. Code Ann. § 23-42-508 Market manipulation](https://www.frixlaw.com/law-library/statutes/STATE_AR_T23_C42_S5_S23-42-508.md) - [Ark. Code Ann. § 23-42-509 Covered securities](https://www.frixlaw.com/law-library/statutes/STATE_AR_T23_C42_S5_S23-42-509.md) --- Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/STATE_AR_T23_C42_S5_S23-42-505. Check the current official text before relying on it. Not legal advice.