(a) The commissioner may issue a stop order denying effectiveness to or suspending or revoking the effectiveness of any registration or certificate issued as a result of a filing pursuant to paragraph (5) or (16) of Code Section 10-5-9 (and shall give notice of such issuance pursuant to Code Section 10-5-16) if he finds that the order is in the public interest and that:

(1) The registration statement or documents required to be filed pursuant to paragraph (5) or (16) of Code Section 10-5-9 as of their effective date, or as of any earlier date in the case of an order denying effectiveness, contain an untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein not misleading;

(2) Any prospectus used or to be used in connection with the offering contains an untrue statement of a material fact or omits to state a material fact required to be stated therein or necessary to make the statements therein not misleading;

(3) This chapter or any rule, order, or condition lawfully imposed under this chapter has been willfully violated in connection with the offering by:

(A) The person filing the registration statement;

(B) The issuer, any partner, executive officer, or director of the issuer, any person occupying a similar status or performing similar functions, or any affiliate, but only if the person filing the registration statement is directly or indirectly controlled by or acting for the issuer; or

(C) Any underwriter;

(4) The security registered or exempted or sought to be registered or exempted is the subject of a stop order of any federal or state securities commission or agency or similar order or a permanent or temporary injunction of any court of competent jurisdiction entered under any other federal or state Act applicable to the offering; but:

(A) The commissioner may not institute a proceeding against an effective registration statement or certificate of exemption under this paragraph more than one year from the date of the order or injunction relied on; and

(B) The commissioner may not enter an order under this paragraph on the basis of an order or injunction entered under any other state Act unless that order or injunction was based on facts which would currently constitute a ground for a stop order under this Code section;

(5) The offering has worked or tended to work a fraud upon purchasers or would so operate;

(6) The security is sought to be registered by notification and is not eligible for such registration; or (7) With respect to filings pursuant to paragraph (5) or (16) of Code Section 10-5-9, the offering is a blank check offering.

(b) The commissioner may by order summarily postpone or suspend the effectiveness of the registration statement or certificate of exemption pending final determination of any proceeding under this Code section. Upon the entry of the order, the commissioner shall promptly notify by telephone or telegraph the issuer, any person on whose behalf such distribution is being made, and the representative of the underwriters that it has been entered and of the reasons therefor and that within 15 days after the receipt of a written request the matter will be set down for hearing. 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. If a hearing is requested or ordered, the commissioner, after notice of an opportunity for hearing to each person specified in subsection (a) of Code Section 10-5-16, may modify or vacate the order or extend it until final determination.

(c) No stop order issued under any part of this Code section except the first sentence of subsection (b) of this Code section shall become effective until and unless the commissioner has complied with Code Section 10-5-16.

(d) The commissioner may vacate or modify a stop order if he finds that the conditions which prompted its entry have changed or that it is otherwise in the public interest to do so.