North Carolina Administrative Code › Title 21 - OCCUPATIONAL LICENSING BOARDS AND COMMISSIONS › Chapter 23 - IRRIGATION CONTRACTORS' › Section .0100 - LICENSING › Section 23 .0102 - SURETY BONDS AND LEGAL STATUS

Current through Register Vol. 39, No. 2, July 15, 2024
(a) For
				purposes of this Section a corporate entity is a person as defined in
				G.S.
				89G-1(5) who engages in
				irrigation contracting, other than natural persons. A natural person licensed
				by the Board shall post a surety bond or irrevocable letter of credit for his
				or her individual license listing his or her name and the name of any
				corporation, partnership, limited liability corporation, limited liability
				partnership, or assumed or registered business name under which he or she does
				business.
(b) If any licensed
				individual employed by a corporate entity does irrigation contracting on his or
				her own behalf, outside the scope of his or her employment, agency, or other
				relationship with the corporate entity named on the surety bond or irrevocable
				letter of credit submitted to the Board, that individual licensee must obtain
				and post a separate surety bond or irrevocable letter of credit with the Board,
				naming himself or herself as principal.
(c) When a licensed individual terminates his
				or her relationship (e.g. employment, partnership, or agency) with a corporate
				entity that lists the individual on a surety bond or irrevocable letter of
				credit, the licensed individual shall purchase and post his or her own surety
				bond or irrevocable letter of credit with the Board. The licensed individual
				shall report the termination to the Board within five business days of its
				effective date.
(d) If a licensed
				individual uses a corporate entity to engage in irrigation contracting and is
				required to file any corporate documents with the North Carolina Secretary of
				State pursuant to North Carolina law or rules, the individual licensee who
				qualifies said corporate entity to engage in irrigation contracting shall
				notify the Board of having filed corporate documents by providing the Board
				with copies of the same within five business days of the filing date. In lieu
				of submitting paper copies of such filings, the individual licensee may submit
				an e-mail to the Board's administrator including a link to the filed corporate
				documents on the North Carolina Secretary of State's website within 24 hours of
				those documents being available on said website.
(e) If a corporate entity's ownership changes
				or the right to control the corporate entity passes from one person or group to
				another person, group, or receiver, the individual licensee who qualifies that
				corporate entity to engage in irrigation contracting shall notify the Board
				within five business days of the date when the change in the right of control
				becomes effective. Such changes include the addition of or termination of
				partnerships, changes in corporate form such as from corporation to limited
				liability company, sale or transfer of a controlling interest in the corporate
				entity, merger of the corporate entity with another person, or dissolution of
				the person's corporate or other legal status.
(f) An individual licensee who qualifies a
				corporate entity to engage in irrigation contracting shall notify the Board in
				a timely fashion of the beginning of any of the following legal actions in
				which the corporate entity, as the petitioner or respondent:
(1) has been named a respondent under an
				action for legal dissolution by the North Carolina Department of Justice or by
				a partner, shareholder, or such other person that may have the right or
				authority to bring such action;
(2)
				has been notified of its administrative dissolution by the North Carolina
				Secretary of State; or
(3) has been
				notified of the initiation of any legal proceeding that may affect its
				corporate form, ownership, right of control, or otherwise affect its status or
				ability to comply with G.S. 89G and the Board's rules.
Notice to the Board shall be timely if the Board receives
				  written notice or e-mail of such action within 10 business days of the receipt
				  of notice or service of legal process by the individual licensee or the
				  registered agent of the corporate entity.