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Visitors Visa Extension

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Visa Void after application of extension is rejected???
Is this true that once extension of visitor's visa is applied and rejected, the 10 yr visa of that person stands cancelled? I came through a website which tells about the recent changes, that the visa is not cancelled provided the extension is applied timely and the person returns back to the country within the grace period provided...Please let me know the authenticity of the website I mention below and how true is this law?

http://library.findlaw.com/2000/Mar/21/127115.html
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