Just as with federal law, state law contains requirements and prohibitions that explicitly deal with the sale of securities. The law authorizes the banking commissioner to enforce these laws. It empowers him to issue cease and desist orders, require restitution or disgorgement, and impose civil penalties of up to $ 10,000 for each violation. In addition, violators are subject to criminal penalties of up to 10 years in prison for defrauding investors. State law also authorizes private lawsuits for damages resulting from a violation of the state's securities laws including the right to recover costs and reasonable attorneys' fees.

State law also contains anti-fraud prohibitions in connection with the sale of business opportunities. It empowers the banking commissioner to enforce the prohibitions and provides an array of criminal and civil remedies similar to those provided by the state securities law to be used against violators.

In addition to these state civil and criminal remedies, directors and officers also are subject to private lawsuits, which may be filed directly against the director or officer, or may be filed by shareholders on behalf of the corporation (derivative lawsuits). Typically private lawsuits allege that the director or officer breached some duty he owed to the corporation or shareholders, violated some federal or state law, or engaged in some other misconduct.