§ 4.1.2.4

• Jurisdiction: Arizona

§ 4.1.2.4 Bankruptcy

Federal legislation enacted in 2002 is designed to eliminate defenses to securities violations based on bankruptcy.⁶⁶⁶ Debts arising from judgments based on violations of state-law securities-fraud statutes⁶⁶⁷ as well as state-law registration violations⁶⁶⁸ are nondischargeable under this bankruptcy provision.

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Notes:

^[666] See Sarbanes-Oxley Act of 2002, Pub. L. No. 107-204, § 803, 116 Stat. 745, 801 (codified at 11 U.S.C. §523(a)(19) (2016)). Section 523(a)(19) reads in relevant part:

(a) discharge under section 727, 1141, 1192 1228(a), 1228(b), or 1328(b) of this title does not discharge an individual debtor from any debt—

. . .

(19) that--

(A) is for—

(i) the violation of any of the Federal securities laws (as that term is defined in section 3(a)(47) of the...