Absent a separate state tolling rule, a buyer discovers a violation four years after the securities sale. What result follows under the NASAA-updated 1956 USA Section 410(f)?

AThe action is timely whenever discovery occurs
BThe Section 410 action is barred because the three-year outside period after the sale has expired✓ Correct answer
CThere is never a limitation period for a minor
DThe buyer automatically receives two additional years

Explanation

Why B — The Section 410 action is barred because the three-year outside period after the sale has expired

The model provision bars a Section 410 action at the earlier of three years after the sale or two years after discovery. Tolling based on minority depends on separately applicable state law and should not be presented as a uniform rule supplied by Section 410 itself.

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