7 U.S.C. § 13a-2 : US Code - Section 13A-2: Jurisdiction of States

Search 7 U.S.C. § 13a-2 : US Code - Section 13A-2: Jurisdiction of States

(1) Whenever it shall appear to the attorney general of any
State, the administrator of the securities laws of any State, or
such other official as a State may designate, that the interests of
the residents of that State have been, are being, or may be
threatened or adversely affected because any person (other than a
contract market, derivatives transaction execution facility,
clearinghouse, floor broker, or floor trader) has engaged in, is
engaging or is about to engage in, any act or practice constituting
a violation of any provision of this chapter or any rule,
regulation, or order of the Commission thereunder, the State may
bring a suit in equity or an action at law on behalf of its
residents to enjoin such act or practice, to enforce compliance
with this chapter, or any rule, regulation, or order of the
Commission thereunder, to obtain damages on behalf of their
residents, or to obtain such further and other relief as the court
may deem appropriate.
(2) The district courts of the United States, the United States
courts of any territory, and the District Court of the United
States for the District of Columbia, shall have jurisdiction of all
suits in equity and actions at law brought under this section to
enforce any liability or duty created by this chapter or any rule,
regulation, or order of the Commission thereunder, or to obtain
damages or other relief with respect thereto. Upon proper
application, such courts shall also have jurisdiction to issue
writs of mandamus, or orders affording like relief, commanding the
defendant to comply with the provisions of this chapter or any
rule, regulation, or order of the Commission thereunder, including
the requirement that the defendant take such action as is necessary
to remove the danger of violation of this chapter or of any such
rule, regulation, or order. Upon a proper showing, a permanent or
temporary injunction or restraining order shall be granted without
bond.
(3) Immediately upon instituting any such suit or action, the
State shall serve written notice thereof upon the Commission and
provide the Commission with a copy of its complaint, and the
Commission shall have the right to (A) intervene in the suit or
action and, upon doing so, shall be heard on all matters arising
therein, and (B) file petitions for appeal.
(4) Any suit or action brought under this section in a district
court of the United States may be brought in the district wherein
the defendant is found or is an inhabitant or transacts business or
wherein the act or practice occurred, is occurring, or is about to
occur, and process in such cases may be served in any district in
which the defendant is an inhabitant or wherever the defendant may
be found.
(5) For purposes of bringing any suit or action under this
section, nothing in this chapter shall prevent the attorney
general, the administrator of the State securities laws, or other
duly authorized State officials from exercising the powers
conferred on them by the laws of such State to conduct
investigations or to administer oaths or affirmations or to compel
the attendance of witnesses or the production of documentary and
other evidence.
(6) For purposes of this section, "State" means any State of the
United States, the District of Columbia, the Commonwealth of Puerto
Rico, or any territory or possession of the United States.
(7) Nothing contained in this section shall prohibit an
authorized State official from proceeding in State court on the
basis of an alleged violation of any general civil or criminal
antifraud statute of such State.
(8)(A) Nothing in this chapter shall prohibit an authorized State
official from proceeding in a State court against any person
registered under this chapter (other than a floor broker, floor
trader, or registered futures association) for an alleged violation
of any antifraud provision of this chapter or any antifraud rule,
regulation, or order issued pursuant to the chapter.
(B) The State shall give the Commission prior written notice of
its intent to proceed before instituting a proceeding in State
court as described in this subsection and shall furnish the
Commission with a copy of its complaint immediately upon
instituting any such proceeding. The Commission shall have the
right to (i) intervene in the proceeding and, upon doing so, shall
be heard on all matters arising therein, and (ii) file a petition
for appeal. The Commission or the defendant may remove such
proceeding to the district court of the United States for the
proper district by following the procedure for removal otherwise
provided by law, except that the petition for removal shall be
filed within sixty days after service of the summons and complaint
upon the defendant. The Commission shall have the right to appear
as amicus curiae in any such proceeding.