reglab/statecodes huggingface dataset:
North Carolina Administrative Code › Title 18 - SECRETARY OF STATE › Chapter 06 - SECURITIES DIVISION › Subchapter A - RECODIFIED RULES › Section .1300 - REGISTRATION OF SECURITIES › Section 06A .1303 - REGISTRATION BY QUALIFICATION

Current through Register Vol. 39, No. 2, July 15, 2024
(a)
				  Application for registration by qualification shall be filed with the
				  administrator using the Uniform Application To Register Securities (Form U-1).
				  Documents necessary to establish eligibility for registration by qualification
				  shall be attached.
(b) As a
				  condition to registration by qualification the applicant shall prepare a
				  prospectus which shall, after approval by the administrator, be sent or given
				  to each person to whom an offer is made before or concurrently with whichever
				  of the following events first occurs:
(1) the
				  first written offer made to him (otherwise than by means of a public
				  advertisement) by or for the account of the issuer or any other person on whose
				  behalf the offering is being made, or by any underwriter or dealer who is
				  offering part of an unsold allotment or subscription taken by him as a
				  participant in the distribution;
(2) the confirmation of any sale made by or
				  for the account of any such person;
(3) payment pursuant to any such sale;
				  or
(4) delivery of the security
				  pursuant to any sale.
North Carolina Administrative Code › Title 18 - SECRETARY OF STATE › Chapter 06 - SECURITIES DIVISION › Subchapter A - RECODIFIED RULES › Section .1300 - REGISTRATION OF SECURITIES › Section 06A .1304 - SECURITIES REGISTRATION AND FILING FEES

Current through Register Vol. 39, No. 2, July 15, 2024
(a) All fees
				  are payable to the Office of the Secretary of State and shall be submitted with
				  the application for original, renewal, or additional registration. The filing
				  fee shall be retained by the administrator in all cases.
(b) The aggregate offering amount of an
				  original or amended registration may be increased prior to or after the
				  effectiveness of the registration by providing the administrator the following:
(1) An additional registration filing fee of
				  fifty dollars ($50.00) if such filing occurs after the effective date of the
				  offering; and
(2) An amendment to
				  the Uniform Application to Register Securities (Form U-1).
Additional registrations shall be effective when the
					 administrator so orders.
North Carolina Administrative Code › Title 18 - SECRETARY OF STATE › Chapter 06 - SECURITIES DIVISION › Subchapter A - RECODIFIED RULES › Section .1300 - REGISTRATION OF SECURITIES › Section 06A .1305 - SPONSORSHIP BY DEALER

Current through Register Vol. 39, No. 2, July 15, 2024
(a) Except where
				  the conditions of
				  G.S.
				  78A-2(2)d.3. or 78A-2(2)d.4.
				  are met, no securities will be considered for registration unless the
				  application therefor is sponsored by a North Carolina registered dealer with a
				  statement of its desire and intent to offer such securities to the investing
				  public in North Carolina. Sponsorship of an issue by a North Carolina
				  registered dealer may be accomplished by the dealer signing the application
				  form as applicant, or in lieu thereof, the sponsoring dealer may wire or write
				  the administrator stating its intention to sponsor the issue in this State. The
				  statement of sponsorship will not be accepted from the dealer's attorney unless
				  a power of attorney has been given to the attorney by the dealer and a copy of
				  the power of attorney is submitted together with letter of
				  sponsorship.
(b) No issuer shall be
				  permitted to qualify as a dealer for the purpose of offering its own securities
				  pursuant to a registration in this State.
Authority
					 G.S.
					 78A-2(2);
					 78A-49(a);
Eff. April 1, 1981;
Amended Eff. October 1, 1988;
Pursuant to
					 G.S.
					 150B-21.3A, rule is necessary without
					 substantive public interest Eff. December 6,
					 2016.
North Carolina Administrative Code › Title 18 - SECRETARY OF STATE › Chapter 06 - SECURITIES DIVISION › Subchapter A - RECODIFIED RULES › Section .1300 - REGISTRATION OF SECURITIES › Section 06A .1306 - CONFIRMATION OF REGISTRATION

Current through Register Vol. 39, No. 2, July 15, 2024
Registrations are effective upon confirmation in writing by
					 the administrator and shall remain effective until the offering is completed,
					 unless a stop order is in effect. It is recommended that a dealer make no sales
					 or related transactions until confirmation of registration is
					 received.
Authority
					 G.S.
					 78A-25(c);
					 78A-26(c);
					 78A-27(c);
					 78A-29;
					 78A-49(a);
Eff. April 1, 1981;
Pursuant to
					 G.S.
					 150B-21.3A, rule is necessary without
					 substantive public interest Eff. December 6,
					 2016.
North Carolina Administrative Code › Title 18 - SECRETARY OF STATE › Chapter 06 - SECURITIES DIVISION › Subchapter A - RECODIFIED RULES › Section .1300 - REGISTRATION OF SECURITIES › Section 06A .1307 - COMMISSIONS AND EXPENSES

Current through Register Vol. 39, No. 2, July 15, 2024
(a) The
				  aggregate amount of all payments including commissions, compensation,
				  discounts, fees, remuneration, mark-ups, and service charges paid or to be
				  paid, directly or indirectly, to underwriters, dealers, salesmen and finders
				  with respect to the public offering of securities shall not exceed ten percent
				  of the aggregate selling price of the securities. For the purposes of this
				  Paragraph (a), the aggregate amount of all payments shall exclude payments
				  related to justifiable due diligence investigation of the issuer.
(b) The aggregate amount of all payments
				  including commissions, discounts, fees, remuneration, mark-ups, and service
				  charges as computed in Paragraph (a) of this Rule and other selling expenses as
				  described in Paragraph (d) of this Rule incurred or to be incurred in
				  connection with the offer or sale of securities:
(1) Twenty percent of the gross proceeds of
				  the offering for public offerings of two million five hundred thousand dollars
				  ($2,500,000) or less;
(2) Eighteen
				  percent of the gross proceeds of the offering for public offerings over two
				  million five hundred thousand dollars ($2,500,000) and up to seven million five
				  hundred thousand dollars ($7,500,000); or
(3) Fifteen percent of the gross proceeds of
				  the offering for public offerings that exceed seven million five hundred
				  thousand dollars ($7,500,000).
North Carolina Administrative Code › Title 18 - SECRETARY OF STATE › Chapter 06 - SECURITIES DIVISION › Subchapter A - RECODIFIED RULES › Section .1300 - REGISTRATION OF SECURITIES › Section 06A .1309 - REPEALED - ADVERTISEMENTS NOT DEEMED PROSPECTUS: ETC. (REPEALED)

Current through Register Vol. 39, No. 2, July 15, 2024
Authority
					 G.S.
					 78A-49(a);
Eff.
					 April 1, 1981;
Repealed Eff. January 1,
					 1984.
North Carolina Administrative Code › Title 18 - SECRETARY OF STATE › Chapter 06 - SECURITIES DIVISION › Subchapter A - RECODIFIED RULES › Section .1300 - REGISTRATION OF SECURITIES › Section 06A .1310 - OFFERING PRICE

Current through Register Vol. 39, No. 2, July 15, 2024
(a) A waiver of the
				  two-day advance filing of the final offering price requirement of
				  G.S.
				  78A-26(c)(iii) shall be
				  permitted if the final pricing information is furnished to the administrator
				  contemporaneously with notice of the Securities and Exchange Commission
				  effectiveness.
(b) The final
				  offering price information shall be filed in the following format:
Re: (Title of Offering)
Date SEC effective:
Total number of units/shares/interests:
Total aggregate dollar amount:
Initial public offering price:
Underwriting commission (percentage):
States in which registration has been withdrawn and the
					 reason for the withdrawal.
Authority
					 G.S.
					 78A-26(c);
					 78A-49(a);
Eff. April 1, 1981;
Amended Eff. September 1, 1995; October 1,
					 1988;
Pursuant to
					 G.S.
					 150B-21.3A, rule is necessary without
					 substantive public interest Eff. December 6,
					 2016.
North Carolina Administrative Code › Title 18 - SECRETARY OF STATE › Chapter 06 - SECURITIES DIVISION › Subchapter A - RECODIFIED RULES › Section .1300 - REGISTRATION OF SECURITIES › Section 06A .1311 - REPEALED - SHELF REGISTRATIONS (REPEALED)

Current through Register Vol. 39, No. 2, July 15, 2024
Authority
					 G.S.
					 78A-49(a);
Eff.
					 April 1, 1981;
Repealed Eff. January 1,
					 1984.
North Carolina Administrative Code › Title 18 - SECRETARY OF STATE › Chapter 06 - SECURITIES DIVISION › Subchapter A - RECODIFIED RULES › Section .1300 - REGISTRATION OF SECURITIES › Section 06A .1312 - REPEALED - REGISTRATION OF REAL ESTATE SECURITIES (REPEALED)

Current through Register Vol. 39, No. 2, July 15, 2024
Authority
					 G.S.
					 78A-49(a);
Eff.
					 April 1, 1981;
Amended Eff. January 1, 1984;
Repealed
					 Eff. October 1, 1988.
North Carolina Administrative Code › Title 18 - SECRETARY OF STATE › Chapter 06 - SECURITIES DIVISION › Subchapter A - RECODIFIED RULES › Section .1300 - REGISTRATION OF SECURITIES › Section 06A .1313 - REGISTRATION OF DIRECT PARTICIPATION PROGRAM SECURITIES

Current through Register Vol. 39, No. 2, July 15, 2024
(a) As a condition to the registration of
				  direct participation program securities, the issuer or dealer(s) effecting
				  sales of such securities pursuant to such registration shall:
(1) deliver to each offeree of the security
				  in this State prior to any sale of the security to such offeree, a written
				  statement of the investor suitability standards which each offeree must meet in
				  order to purchase the security. The statement may be contained in any offering
				  circular, prospectus or other written document delivered to the offeree;
				  and
(2) determine, prior to the
				  sale of the security to each person in this State, that the person meets the
				  investor suitability standards applicable to the security. For purposes of this
				  determination, the issuer or dealer(s) shall be entitled to rely conclusively
				  upon a written statement or questionnaire signed by the person and received in
				  good faith and without knowledge that the information stated therein is
				  inaccurate.
North Carolina Administrative Code › Title 18 - SECRETARY OF STATE › Chapter 06 - SECURITIES DIVISION › Subchapter A - RECODIFIED RULES › Section .1300 - REGISTRATION OF SECURITIES › Section 06A .1314 - ESCROW AGREEMENTS

Current through Register Vol. 39, No. 2, July 15, 2024
Where, as a condition to registration of a security in
					 North Carolina, an escrow agreement is required, such agreement shall provide
					 that all funds shall be returned immediately to the investors in full, without
					 reduction of any fees, commissions or expenses unless a specified dollar amount
					 of offering proceeds are received by the escrow agent within a specified
					 period. The time period specified in any escrow agreement may be extended for a
					 time certain if agreed upon by all persons who have theretofore contracted to
					 purchase the security. The escrow agent shall be a federal bank regulated by
					 the Comptroller of the Currency or a state bank regulated by the appropriate
					 state authority. Other depositories may be approved by the administrator on a
					 case by case basis. The provisions of the NASAA "Statement of Policy Regarding
					 the Impoundment of Proceeds", as found at CCH NASAA Reports 2151 et seq. (as
					 may be amended from time to time), are incorporated herein by reference. Where
					 an escrow agreement is required as a condition of registration of a security in
					 North Carolina, the NASAA Model Security Escrow Agreement, as found at CCH
					 NASAA Reports 1651, may be used to satisfy such requirement.
Authority
					 G.S.
					 78A-28(g);
					 78A-49(a);
Eff. April 1, 1981;
Amended Eff. September 1, 1990;
Pursuant to
					 G.S.
					 150B-21.3A, rule is necessary without
					 substantive public interest Eff. December 6,
					 2016.
North Carolina Administrative Code › Title 18 - SECRETARY OF STATE › Chapter 06 - SECURITIES DIVISION › Subchapter A - RECODIFIED RULES › Section .1300 - REGISTRATION OF SECURITIES › Section 06A .1315 - NOTICE OF COMPLETION OF OFFERING/FINAL SALES REPORT

Current through Register Vol. 39, No. 2, July 15, 2024
Each issuer shall provide to the administrator, within
					 thirty days of completion of the offering of registered securities, the
					 following information:
(1) Date of
				  completion of the offering;
(2)
				  Aggregate offering amount of securities sold in this state expressed in units
				  and dollars;
(3) Except where the
				  offering was made by or through sponsoring dealer(s) pursuant to Rule .1305 of
				  this Section, the aggregate amount of commissions, discounts, finder's fees or
				  other similar remuneration or compensation paid for soliciting any purchasers
				  of the securities in this state, and the name(s) of the person(s) to whom such
				  amount was paid;
(4) Where material
				  deviations of the sources and uses of the proceeds of the offering have
				  occurred as compared with the proposed sources and uses of the proceeds as
				  previously disclosed to the administrator, then the issuer shall provide a
				  written explanation of such deviations; and
(5) Other information as the administrator
				  may require by order.
Authority
					 G.S.
					 78A-49(a);
Eff.
					 April 1, 1981;
Amended Eff. January 1, 1984;
Pursuant
					 to G.S.
					 150B-21.3A, rule is necessary without
					 substantive public interest Eff. December 6,
					 2016.
North Carolina Administrative Code › Title 18 - SECRETARY OF STATE › Chapter 06 - SECURITIES DIVISION › Subchapter A - RECODIFIED RULES › Section .1300 - REGISTRATION OF SECURITIES › Section 06A .1316 - LEGENDS REQUIRED

Current through Register Vol. 39, No. 2, July 15, 2024
(a) The information
				  required by this Rule .1316 shall be printed in capital letters in bold-face
				  roman type at least as high as ten-point modern type, and at least two points
				  leaded.
(1) The following information shall
				  appear on the cover page of any prospectus utilized for the purpose of offering
				  and selling securities subject to registration by the provisions of the
				  Securities Act of 1933, as amended, and subject to registration by the
				  provisions of Chapter 78A of the North Carolina General Statutes:
THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY
					 THE SECURITIES AND EXCHANGE COMMISSION NOR HAS THE SECURITIES AND EXCHANGE
					 COMMISSION OR ANY STATE SECURITIES COMMISSION PASSED UPON THE ACCURACY OR
					 ADEQUACY OF THIS PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL
					 OFFENSE;
(2) The following
				  information, to the extent appropriate, shall appear on the cover page of any
				  document utilized in connection with the offer and sale of securities which are
				  exempt from registration under the Securities Act of 1933, as amended, but
				  subject to a filing requirement under Chapter 78A of the North Carolina General
				  Statutes:
IN MAKING AN INVESTMENT DECISION INVESTORS MUST RELY ON
					 THEIR OWN EXAMINATION OF THE ISSUER AND THE TERMS OF THE OFFERING, INCLUDING
					 THE MERITS AND RISKS INVOLVED. THESE SECURITIES HAVE NOT BEEN RECOMMENDED BY
					 ANY FEDERAL OR STATE SECURITIES COMMISSION OR REGULATORY AUTHORITY.
					 FURTHERMORE, THE FOREGOING AUTHORITIES HAVE NOT CONFIRMED THE ACCURACY OR
					 DETERMINED THE ADEQUACY OF THIS DOCUMENT. ANY REPRESENTATION TO THE CONTRARY IS
					 A CRIMINAL OFFENSE; and
(3)
				  If these securities are offered or sold pursuant to Section 4(2) of the
				  Securities Act of 1933, as amended, or under the provisions of Regulation D,
				  the following statement shall also appear on the cover page of any offering
				  document utilized in connection with the offer and sale of the securities:
THESE SECURITIES ARE SUBJECT TO RESTRICTIONS ON
					 TRANSFERABILITY AND RESALE AND MAY NOT BE TRANSFERRED OR RESOLD EXCEPT AS
					 PERMITTED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND THE APPLICABLE
					 STATE SECURITIES LAWS, PURSUANT TO REGISTRATION OR EXEMPTION THEREFROM.
					 INVESTORS SHOULD BE AWARE THAT THEY WILL BE REQUIRED TO BEAR THE FINANCIAL
					 RISKS OF THIS INVESTMENT FOR AN INDEFINITE PERIOD OF TIME.
North Carolina Administrative Code › Title 18 - SECRETARY OF STATE › Chapter 06 - SECURITIES DIVISION › Subchapter A - RECODIFIED RULES › Section .1300 - REGISTRATION OF SECURITIES › Section 06A .1317 - AMENDMENT OF FILINGS

Current through Register Vol. 39, No. 2, July 15, 2024
Where any information in or exhibits attached to a
					 registration statement is amended in any way subsequent to the filing of such
					 statement, the applicant shall file with the administrator in a timely fashion
					 a copy of such registration statement and exhibits with such amendments clearly
					 marked thereon.
Authority
					 G.S.
					 78A-49(a);
Eff.
					 October 1, 1988;
Pursuant to
					 G.S.
					 150B-21.3A, rule is necessary without
					 substantive public interest Eff. December 6,
					 2016.
North Carolina Administrative Code › Title 18 - SECRETARY OF STATE › Chapter 06 - SECURITIES DIVISION › Subchapter A - RECODIFIED RULES › Section .1300 - REGISTRATION OF SECURITIES › Section 06A .1318 - AUTOMATIC WITHDRAWAL OF APPLICATION FOR REGISTRATION

Current through Register Vol. 39, No. 2, July 15, 2024
Where an application for registration of a security has
					 remained pending for at least one year following the date of its filing, and
					 the delay in completion of its examination by the administrator is due to a
					 deficiency in filing attributable to the applicant, the administrator shall
					 withdraw such application automatically and shall retain all fees submitted
					 with it.
Authority
					 G.S.
					 78A-29(a);
					 78A-49(a);
Eff. October 1, 1988;
Pursuant to
					 G.S.
					 150B-21.3A, rule is necessary without
					 substantive public interest Eff. December 6,
					 2016.
North Carolina Administrative Code › Title 18 - SECRETARY OF STATE › Chapter 06 - SECURITIES DIVISION › Subchapter A - RECODIFIED RULES › Section .1300 - REGISTRATION OF SECURITIES › Section 06A .1319 - REQUIRED DISCLOSURES: VIATICAL SETTLEMENT CONTRACTS

Current through Register Vol. 39, No. 2, July 15, 2024
(a) Disclosures Prior to Payment of
				  Consideration. On or before the date the viatical settlement purchaser remits
				  consideration pursuant to the purchase agreement, the purchaser shall be
				  provided with the following written disclosures in addition to any disclosures
				  set forth in
				  G.S.
				  78A-13:
(1)
				  An explanation of how the insurance company will be notified of the insured's
				  death and who will be responsible for filing a claim for benefits with the
				  insurance company;
(2) The name and
				  address of the person who will receive notices from the insurance company,
				  including, but not limited to, notices of a change in status of the insurance
				  policy, a change in premium payments, a reduction in death benefits on a
				  converted policy, and the end of the term for a term life insurance policy;
				  and
(3) The specific services to be
				  provided by the escrow agent, and the fees charged by the escrow
				  agent.
North Carolina Administrative Code › Title 18 - SECRETARY OF STATE › Chapter 06 - SECURITIES DIVISION › Subchapter A - RECODIFIED RULES › Section .1300 - REGISTRATION OF SECURITIES › Section 06A .1320 - VIATICAL SETTLEMENT CONTRACT SUITABILITY REQUIREMENTS

Current through Register Vol. 39, No. 2, July 15, 2024
(a) Suitability Standards. Sales of viatical
				  settlement contracts may be made only to either accredited investors as defined
				  in 17 C.F.R.
				  230.501(a), (and as
				  subsequently amended) or to qualified institutional buyers as defined in
				  17 C.F.R.
				  230. 144A, (and as subsequently
				  amended).
(b) Limit on Size of
				  Investment. The amount of the investment of any purchaser may not exceed five
				  percent of the net worth of that purchaser.
(c) The administrator may require higher
				  investor suitability standards with respect to a particular security offering
				  or transaction where necessary for the protection of investors.
Authority
					 G.S.
					 78A-49;
					 78A-13(b)(2)l;
					 78A-17(19);
Temporary Adoption Eff. April 1, 2002;
Eff. April 1,
					 2003;
Pursuant to
					 G.S.
					 150B-21.3A, rule is necessary without
					 substantive public interest Eff. December 6,
					 2016.
North Carolina Administrative Code › Title 18 - SECRETARY OF STATE › Chapter 06 - SECURITIES DIVISION › Subchapter A - RECODIFIED RULES › Section .1400 - REGISTRATION OF DEALERS AND SALESMEN › Section 06A .1401 - APPLICATION FOR REGISTRATION OF DEALERS

Current through Register Vol. 39, No. 2, July 15, 2024
(a) The
				  application for registration as a dealer shall contain the following:
(1) an executed Uniform Application for
				  Registration as a Dealer (Form BD) and the appropriate schedules thereto or the
				  appropriate successor form;
(2) a
				  fee as required by
				  G.S.
				  78A-37(b);
(3) evidence of current registration as a
				  dealer with the Securities and Exchange Commission under the Securities
				  Exchange Act of 1934;
(4) evidence
				  of compliance with Rule .1410 of this Section; and
(5) any other information necessary for the
				  Administrator to determine whether the Administrator may take action pursuant
				  to G.S.
				  78A-39.
North Carolina Administrative Code › Title 18 - SECRETARY OF STATE › Chapter 06 - SECURITIES DIVISION › Subchapter A - RECODIFIED RULES › Section .1400 - REGISTRATION OF DEALERS AND SALESMEN › Section 06A .1402 - APPLICATION FOR REGISTRATION OF SALESMEN

Current through Register Vol. 39, No. 2, July 15, 2024
(a) The
				  application for registration as a salesman shall contain the following:
(1) an executed Uniform Application for
				  Securities and Commodities Industry Representative and/or Agent (Form U-4) or
				  the appropriate successor form;
(2)
				  a fee as required by
				  G.S.
				  78A-37(b); and
(3) evidence of a passing grade of seventy
				  percent on either:
(A) the Uniform Securities
				  Agent State Law Examination (USASLE - Series 63); or
(B) both the Uniform Combined State Law
				  Examination (Series 66 Exam) and the General Securities Representative
				  Examination (Series 7 Exam) as well as the appropriate NASD examination as
				  required by Rule .1413 of this Section.
North Carolina Administrative Code › Title 18 - SECRETARY OF STATE › Chapter 06 - SECURITIES DIVISION › Subchapter A - RECODIFIED RULES › Section .1400 - REGISTRATION OF DEALERS AND SALESMEN › Section 06A .1403 - TERMINATION OF REGISTRATION OF DEALER

Current through Register Vol. 39, No. 2, July 15, 2024
(a) When a
				  dealer seeks to terminate registration, notice shall be filed with the
				  administrator on the Uniform Notice of Termination of a Broker-Dealer (Form
				  BDW) or the appropriate successor form accompanied by any outstanding dealer's
				  license. Termination shall not be effective until receipt by the administrator
				  of any dealer's license that may be outstanding. Dealers shall be held
				  accountable for all acts until actual receipt of any outstanding license by the
				  administrator.
(b) Termination by
				  the Securities and Exchange Commission of a dealer's registration shall
				  immediately terminate such dealer's registration in North Carolina. The dealer
				  must file with the administrator a Uniform Notice of Termination of a
				  Broker-Dealer (Form BDW) or the appropriate successor form accompanied by any
				  outstanding dealer's license as soon as practicable but in no event later than
				  10 business days.
(c) Terminating
				  dealers shall comply with Rule .1408 of this Section with respect to each of
				  their salesmen.
Authority
					 G.S.
					 78A-36(a);
					 78A-39(e);
					 78A-49(a);
Eff. April 1, 1981;
Amended Eff. January 1, 1984;
Pursuant to
					 G.S.
					 150B-21.3A, rule is necessary without
					 substantive public interest Eff. December 6,
					 2016.
North Carolina Administrative Code › Title 18 - SECRETARY OF STATE › Chapter 06 - SECURITIES DIVISION › Subchapter A - RECODIFIED RULES › Section .1400 - REGISTRATION OF DEALERS AND SALESMEN › Section 06A .1404 - CHANGE IN NAME OF DEALER

Current through Register Vol. 39, No. 2, July 15, 2024
Where only a change in the name of the dealer applicant or
					 registrant occurs, an amended Form BD shall be filed with the administrator
					 together with any amendments to the organizational documents, or accompanying
					 letters of explanation, within 30 days of the date of the change. The dealer
					 shall return its license and new license will be issued reflecting the name
					 change. There will be no fee for reissuance of the license. Each salesman shall
					 retain either his salesman's license if the dealer is a non-NASD member firm or
					 his notice of NASAA/NASD Central Registration Depository effectiveness for
					 North Carolina if the dealer is a NASD member firm and this license or notice
					 shall suffice as evidence of licensing under the new dealer name until
					 renewal.
Authority
					 G.S.
					 78A-37(c);
					 78A-49(a);
Eff. April 1, 1981;
Amended Eff. November 1, 1982;
Pursuant to
					 G.S.
					 150B-21.3A, rule is necessary without
					 substantive public interest Eff. December 6,
					 2016.
North Carolina Administrative Code › Title 18 - SECRETARY OF STATE › Chapter 06 - SECURITIES DIVISION › Subchapter A - RECODIFIED RULES › Section .1400 - REGISTRATION OF DEALERS AND SALESMEN › Section 06A .1405 - DEALER MERGER/CONSOLIDATION/ACQUISITION/SUCCESSION

Current through Register Vol. 39, No. 2, July 15, 2024
(a) When there is a merger, consolidation,
				  acquisition, succession, or other fundamental change the surviving or new
				  entity shall file with the administrator, prior to such fundamental change, an
				  amended Form BD or successor form, with the plan of fundamental change and a
				  letter or any documents of explanation including the date of mass transfer of
				  salesmen pursuant to Paragraph (c) of this Rule if contemplated. As soon as
				  practicable, but not later than 30 days after the fundamental change, the
				  surviving or new entity shall file with the administrator the current financial
				  statements of the surviving or new entity; the amended or new charter and
				  by-laws; and, if applicable, a copy of the certificate of merger, consolidation
				  or other fundamental change.
(b)
				  The registration of the surviving or new entity will be granted by the
				  administrator on the same date that the fundamental change becomes effective.
				  Where the fundamental change results in a change in the name of the surviving
				  or new entity from the name listed on any outstanding dealer's license, the
				  license shall be returned and a new license reflecting the new name will be
				  issued. There will be no fee for reissuance of a license.
(c) Dealers shall effect mass transfers of
				  salesmen in the following manner:
(1) Where
				  the surviving or new entity is a NASD member firm, it shall follow the
				  NASAA/NASD Central Registration Depository procedures for effecting a mass
				  transfer of salesmen from the nonsurviving entity to the surviving or new
				  entity. For any salesman not to be transferred, the surviving or new entity
				  shall timely terminate registration of that salesman pursuant to the NASAA/NASD
				  Central Registration Depository procedures. There will be no fee for these
				  transfers.
(2) Where the surviving
				  or new entity is a non-NASD member firm, it shall file with the Securities
				  Division a Form U-4 or successor form for each salesman to be transferred from
				  the nonsurviving entity to the surviving or new entity and a Form U-5 or
				  successor form for each salesman not to be transferred. Each transferred
				  salesman shall retain his salesman's license or notice of registration which
				  shall suffice as evidence of registration with the surviving or new entity
				  until renewal. The transfer of the salesman is effective upon receipt of the
				  Form U-4 or successor form by the Securities Division. All Form U-5's or
				  successor forms shall be filed as soon as practicable but no later than 10
				  business days after the fundamental change. A regular application fee shall be
				  paid by the surviving or new dealer for each agent in such transfer.
North Carolina Administrative Code › Title 18 - SECRETARY OF STATE › Chapter 06 - SECURITIES DIVISION › Subchapter A - RECODIFIED RULES › Section .1400 - REGISTRATION OF DEALERS AND SALESMEN › Section 06A .1406 - EXPIRATION AND RENEWAL OF DEALER REGISTRATION

Current through Register Vol. 39, No. 2, July 15, 2024
(a) A
				  dealer registration shall expire on December 31 of each year unless timely
				  renewed.
(b) A NASD member firm
				  shall renew according to NASAA/NASD Central Registration Depository
				  procedures.
(c) A non-NASD member
				  firm shall renew by filing the following with the administrator at least 15
				  days before the expiration date:
(1)
				  Application of Dealer In Securities For Renewal Of Registration;
(2) Fee in the amount of two hundred dollars
				  ($200.00) for the dealer renewal payable to the North Carolina Secretary of
				  State; and
(3) Renewal of its
				  salesmen pursuant to Rule .1407 of this Section.
North Carolina Administrative Code › Title 18 - SECRETARY OF STATE › Chapter 06 - SECURITIES DIVISION › Subchapter A - RECODIFIED RULES › Section .1400 - REGISTRATION OF DEALERS AND SALESMEN › Section 06A .1407 - EXPIRATION AND RENEWAL OF SALESMAN'S REGISTRATION

Current through Register Vol. 39, No. 2, July 15, 2024
A salesman's registration shall expire on December 31 of
					 each year unless renewed. A dealer shall file the following at least 15 days
					 before the expiration date to renew its salesmen's registration:
(1) Dealers that are NASD member firms shall
				  renew all salesmen by complying with the procedures for renewal of salesmen as
				  required by the NASAA/NASD Central Registration Depository along with the
				  payment of fifty-five dollars ($55.00) for each salesman made payable to the
				  National Association of Securities Dealers.
(2) Dealers that are non-NASD member firms
				  shall renew all salesmen by filing with the Securities Division a listing of
				  all salesmen to be renewed along with their current addresses and social
				  security numbers. The salesman renewal list shall be submitted in alphabetical
				  order as follows: last name, first name, middle name or maiden name; current
				  address; social security number. A fee of fifty-five dollars ($55.00) for each
				  salesman made payable to the North Carolina Secretary of State shall be
				  submitted along with the salesman renewal list.
Authority
					 G.S.
					 78A-36(c);
					 78A-37(a);
					 78A-37(b);
					 78A-40(a);
					 78A-49(a);
Eff. April 1, 1981;
Amended Eff. September 1, 1995; October 1,
					 1988; January 1, 1984; November 1, 1982;
Pursuant to
					 G.S.
					 150B-21.3A, rule is necessary without
					 substantive public interest Eff. December 6,
					 2016.
North Carolina Administrative Code › Title 18 - SECRETARY OF STATE › Chapter 06 - SECURITIES DIVISION › Subchapter A - RECODIFIED RULES › Section .1400 - REGISTRATION OF DEALERS AND SALESMEN › Section 06A .1408 - TERMINATION OF SALESMAN'S REGISTRATION

Current through Register Vol. 39, No. 2, July 15, 2024
(a) When
				  a salesman withdraws, cancels or otherwise terminates registration, the dealer
				  for which the salesman is registered shall file such information, as follows:
(1) A Uniform Termination Notice For
				  Securities Industry Registration (Form U-5) to be filed with the NASAA/NASD
				  Central Registration Depository if the dealer is a NASD member firm;
				  or
(2) If the dealer is a non-NASD
				  member firm then the Uniform Termination Notice For Securities Industry
				  Registration (Form U-5) shall be filed directly with the Securities
				  Division.
North Carolina Administrative Code › Title 18 - SECRETARY OF STATE › Chapter 06 - SECURITIES DIVISION › Subchapter A - RECODIFIED RULES › Section .1400 - REGISTRATION OF DEALERS AND SALESMEN › Section 06A .1409 - EXPIRED - TRANSFER OF SALESMAN'S REGISTRATION

Current through Register Vol. 39, No. 2, July 15, 2024
Authority
					 G.S.
					 78A-36(b);
					 78A-49(a);
Eff. April 1, 1981;
Amended Eff. November 1, 1982;
Legislative Objection Lodged Eff. February 1, 1983;
Curative
					 Amended Eff. February 1, 1983;
Amended Eff. September 1, 1995;
					 October 1, 1988; January 1, 1984;
Expired Eff. January 1, 2017
					 pursuant to
					 G.S.
					 150B-21.3A.
North Carolina Administrative Code › Title 18 - SECRETARY OF STATE › Chapter 06 - SECURITIES DIVISION › Subchapter A - RECODIFIED RULES › Section .1400 - REGISTRATION OF DEALERS AND SALESMEN › Section 06A .1410 - MINIMUM FINANCIAL REQUIREMENTS FOR DEALERS

Current through Register Vol. 39, No. 2, July 15, 2024
(a) Each
				  dealer registered or required to be registered under this Act shall comply with
				  SEC Rules 15c3-1, 15c3-2, and 15c3-3 (17 C.F.R. 240.15c3-1,
				  17 C.F.R. 240.15c3-2, and
				  17 C.F.R.
				  240.15c3-3), as amended from
				  time to time.
(b) Any dealer who
				  fails to maintain the minimum net capital requirement of Paragraph (a) of this
				  Rule shall immediately suspend offers and sales of securities, notify the
				  administrator within three business days of such fact, and shall not resume
				  such operations until evidence has been submitted to and approved in writing by
				  the administrator that the requirements of Paragraph (a) of this Rule have been
				  met.
Authority
					 G.S.
					 78A-37(d);
					 78A-49(a);
Eff. April 1, 1981;
Amended Eff. October 1, 1988, January 1,
					 1984;
Temporary Amendment Eff. October 1, 1997;
Amended
					 Eff. August 1, 1998;
Pursuant to
					 G.S.
					 150B-21.3A, rule is necessary without
					 substantive public interest Eff. December 6,
					 2016.
North Carolina Administrative Code › Title 18 - SECRETARY OF STATE › Chapter 06 - SECURITIES DIVISION › Subchapter A - RECODIFIED RULES › Section .1400 - REGISTRATION OF DEALERS AND SALESMEN › Section 06A .1411 - RECORD KEEPING REQUIREMENTS FOR DEALERS

Current through Register Vol. 39, No. 2, July 15, 2024
(a)
				  Unless otherwise provided by order of the Securities and Exchange Commission,
				  each dealer registered or required to be registered under this Act shall make,
				  maintain and preserve books and records in compliance with U.S. Securities and
				  Exchange Commission Rules 17a-3 and 17a-4 (17 C.F.R. 240.17a-3
				  and 17 C.F.R. 240.17a-4) and with
				  section 15 of the Securities Exchange Act of 1934 (15 U.S.C. 78o) and
				  the rules promulgated thereunder, as amended from time to time.
(b) To the extent required by the Securities
				  Exchange Act of 1934 or the rules adopted thereunder, every dealer registered
				  or required to be registered under this Act shall maintain within this State,
				  in a readily accessible location, all records required by this Rule. A written
				  request for the waiver of the provisions of this Section may be made to the
				  administrator to permit any registered dealer to maintain any of the records
				  required by this Section, in some place other than the State of North Carolina.
				  In determining whether or not the provisions of this Section shall be waived
				  the administrator may consider, among other things, whether the main office of
				  the dealer is in a place outside the State of North Carolina or whether the
				  dealer clears all or some of its transactions and uses all or some of the
				  bookkeeping facilities of some other dealer whose main office is outside the
				  State of North Carolina.
Authority
					 G.S.
					 78A-38(a)(b)(d);
					 78A-49(a);
Eff. April 1, 1981;
Temporary Amendment Eff. October 1,
					 1997;
Amended Eff. August 1, 1998;
Pursuant to
					 G.S.
					 150B-21.3A, rule is necessary without
					 substantive public interest Eff. December 6,
					 2016.
North Carolina Administrative Code › Title 18 - SECRETARY OF STATE › Chapter 06 - SECURITIES DIVISION › Subchapter A - RECODIFIED RULES › Section .1400 - REGISTRATION OF DEALERS AND SALESMEN › Section 06A .1412 - FINANCIAL STATEMENTS

Current through Register Vol. 39, No. 2, July 15, 2024
Each dealer registered or required to be registered under
					 this Act shall comply with SEC Rule
					 17a-11 (17 C.F.R.
					 240.17a-11), as amended from time to time,
					 and shall file with the Administrator upon request copies of notices and
					 reports required under SEC Rules 17a-5, 17a-10, and 17a-11 (17 C.F.R.
					 240.17a-5,
					 17 C.F.R. 240.17a-10, and
					 17 C.F.R.
					 240.17a-11), as amended from time to
					 time.
Authority
					 G.S.
					 78A-38(b);
					 78A-49(c);
Eff. April 1, 1981;
Amended Eff. September 1, 1995;
Temporary Amendment Eff. October 1, 1997;
Amended Eff. August 1,
					 1998;
Pursuant to
					 G.S.
					 150B-21.3A, rule is necessary without
					 substantive public interest Eff. December 6,
					 2016.
North Carolina Administrative Code › Title 18 - SECRETARY OF STATE › Chapter 06 - SECURITIES DIVISION › Subchapter A - RECODIFIED RULES › Section .1400 - REGISTRATION OF DEALERS AND SALESMEN › Section 06A .1413 - SALESMAN EXAMINATION REQUIRED

Current through Register Vol. 39, No. 2, July 15, 2024
(a) Every
				  application for registration as a salesman shall show evidence of a minimum
				  passing grade of seventy percent on either:
(1) the Uniform Securities Agent State Law
				  Examination (USASLE - Series 63); or
(2) both the Uniform Combined State Law
				  Examination (Series 66 Exam) and the General Securities Representative
				  Examination (Series 7 Exam). These examinations are given by the National
				  Association of Securities Dealers (NASD). Each application for registration
				  must also show that the applicant has passed the appropriate NASD exam
				  applicable to applicants for registration as a securities salesman. The
				  scheduled dates, times and locations may be obtained by contacting the NASD,
				  Central Registration Depository, P.O. Box 9401, Gaithersburg, MD 28898-9401
				  (301) 590-6500 or the Securities Division.
North Carolina Administrative Code › Title 18 - SECRETARY OF STATE › Chapter 06 - SECURITIES DIVISION › Subchapter A - RECODIFIED RULES › Section .1400 - REGISTRATION OF DEALERS AND SALESMEN › Section 06A .1416 - REPORTING REQUIREMENTS OF DEALERS AND SALESMEN

Current through Register Vol. 39, No. 2, July 15, 2024
(a) All
				  bankruptcies of dealers or salesmen registered with the Securities Division
				  must be reported to the administrator within 30 days after the filing of the
				  petition for bankruptcy.
(b) All
				  arbitrations involving dealers or salesmen registered with the Securities
				  Division must be reported to the administrator within 30 days of the conclusion
				  of the proceeding. Such report must include the terms of the
				  settlement.
(c) Any fundamental
				  alterations in the structure or operation of the dealer must be reported to the
				  administrator within 30 days. For a period of 60 days following such
				  notification, the administrator shall reserve the right to review the dealer's
				  registration in light of the alterations reported. For the purposes of this
				  Rule .1416, "fundamental alteration" is defined as any of the following:
(1) the opening or closing of any office,
				  including the office of any salesperson operating apart from the dealer's
				  premises,
(2) any merger,
				  consolidation, acquisition, or succession participated in by the dealer,
				  or
(3) the replacement of any
				  partner, executive officer, director, or any person occupying a similar status
				  or performing similar functions, as well as any significant changes in the
				  duties or responsibilities assigned to any such position.
North Carolina Administrative Code › Title 18 - SECRETARY OF STATE › Chapter 06 - SECURITIES DIVISION › Subchapter A - RECODIFIED RULES › Section .1400 - REGISTRATION OF DEALERS AND SALESMEN › Section 06A .1417 - APPLICATION FOR LIMITED REGISTRATION OF CANADIAN SECURITIES DEALERS AND SALESMEN

Current through Register Vol. 39, No. 2, July 15, 2024
(a) An applicant for limited registration as
				  a dealer pursuant to
				  G.S.
				  78A-36.1 (the "Dealer") shall file the
				  following with the Administrator:
(1) a
				  representation that the Dealer does not have an office or physical presence in
				  this state;
(2) a representation
				  that the Dealer is a resident of Canada;
(3) a representation that the Dealer will
				  engage only in the activities described in
				  G.S.
				  78A-36.1(j) in this
				  state;
(4) a completed application
				  for registration as a securities dealer in the form required by the
				  jurisdiction in Canada in which the Dealer has its head office;
(5) an originally executed copy of a Form U-2
				  or similar consent to service of process whereby the Dealer names the North
				  Carolina Secretary of State as an agent duly authorized to accept service of
				  process on behalf of the Dealer;
(6) either:
(A) a certification by the securities
				  regulatory agency of each jurisdiction in Canada from which the Dealer will be
				  effecting transactions into this state stating that the Dealer is both
				  registered and in good standing as a securities dealer in that jurisdiction,
				  or
(B) a certification by the
				  Investment Dealers Association of Canada confirming that the applicant
				  maintains a membership in good standing with the Investment Dealers Association
				  of Canada;
(7) evidence
				  that the Dealer is a member of a Canadian self-regulatory organization ("SRO"),
				  the Bureau des services financiers, or a Canadian stock exchange; and
(8) a filing fee as required by
				  G.S.
				  78A-36.1(i) and
				  G.S.
				  78A-37(b).
North Carolina Administrative Code › Title 18 - SECRETARY OF STATE › Chapter 06 - SECURITIES DIVISION › Subchapter A - RECODIFIED RULES › Section .1500 - MISCELLANEOUS PROVISIONS › Section 06A .1502 - APPLICATION TO EXCHANGE SECURITIES

Current through Register Vol. 39, No. 2, July 15, 2024
(a) The
				  application and all accompanying documents shall be typed or printed and
				  submitted to the administrator in duplicate. The application shall be signed
				  and dated by the applicant or by a person authorized to act in the applicant's
				  behalf.
(b) The application shall
				  contain the following information:
(1) the
				  name, state of incorporation, and principal office address of any person
				  proposing to issue securities or deliver other consideration in the proposed
				  exchange.
(2) a brief description
				  of the proposed transaction.
(3) a
				  list and a description of the securities or other consideration to be issued or
				  delivered in the proposed exchange.
(4) a list and a description of the bona fide
				  securities, claims or property interests for which the securities or other
				  consideration referred to in Subparagragph (b)(3) of this Rule are to be
				  exchanged, including the name and state of incorporation of the issuer of any
				  such bona fide securities.
(5) a
				  brief statement of the terms and conditions under which the securities or other
				  consideration will be issued and exchanged or delivered and exchanged for the
				  bona fide securities, claims or property interests.
(6) a list of the names of all persons to
				  whom the securities will be issued or other consideration delivered in the
				  exchange. If some or all of such persons are to receive the securities or other
				  consideration by virtue of their ownership of shares of stock in a corporation,
				  the applicant may comply with this requirement by submitting a list which shows
				  the shareholders of the corporation and the number of shares held by each
				  shareholder as of a date not more than 30 days prior to the filing of the
				  application.
(7) a statement
				  setting forth proposed findings of fact which the applicant requests that the
				  administrator find and incorporate in the written decision with respect to the
				  application.
(8) the date, which
				  shall be within 30 days of the date of filing of the application, on which the
				  applicant requests that the hearing be held.
(9) any additional information which the
				  applicant desires the administrator to consider. The administrator may require
				  the applicant to submit other information in addition to the information
				  required by this Rule. The administrator may also waive or modify the
				  requirements of this Rule by allowing the applicant to submit less information
				  than this Rule would otherwise require.
North Carolina Administrative Code › Title 18 - SECRETARY OF STATE › Chapter 06 - SECURITIES DIVISION › Subchapter A - RECODIFIED RULES › Section .1500 - MISCELLANEOUS PROVISIONS › Section 06A .1503 - FORM OF CONSENT TO SERVICE OF PROCESS

Current through Register Vol. 39, No. 2, July 15, 2024
If the filing of a consent to service of process is
					 required by statute or rule, the consent shall name the Secretary of State as
					 service agent and shall be filed using the Uniform Consent to Service of
					 Process (Form U-2) and if applicable, the Uniform Form of Corporate Resolution
					 (Form U-2A). Both Form U-2 and Form U-2A shall be properly signed and
					 acknowledged before a notary.
Authority
					 G.S.
					 78A-49(a);
					 78A-63(f);
Eff. April 1, 1981;
Amended Eff. January 1, 1984;
Pursuant to
					 G.S.
					 150B-21.3A, rule is necessary without
					 substantive public interest Eff. December 6,
					 2016.
North Carolina Administrative Code › Title 18 - SECRETARY OF STATE › Chapter 06 - SECURITIES DIVISION › Subchapter A - RECODIFIED RULES › Section .1500 - MISCELLANEOUS PROVISIONS › Section 06A .1504 - REQUEST FOR INTERPRETATIVE OPINIONS: NO ACTION LETTERS

Current through Register Vol. 39, No. 2, July 15, 2024
(a)
				  Requests for interpretative opinions and "no-action" letters shall be directed
				  to the administrator and shall contain the following:
(1) specific facts surrounding the proposed
				  transaction in letter form with the identity of the persons involved;
(2) the statutory and/or rule citation upon
				  which the request is based;
(3)
				  statement of the applicant's requested interpretation supported by appropriate
				  reasoning or justification and applicable case law or administrative opinions
				  or decisions;
(4) any other
				  relevant information or exhibits that the applicant desires the administrator
				  to consider; and
(5) a fee in the
				  amount of one hundred fifty dollars ($150.00).
North Carolina Administrative Code › Title 18 - SECRETARY OF STATE › Chapter 06 - SECURITIES DIVISION › Subchapter A - RECODIFIED RULES › Section .1500 - MISCELLANEOUS PROVISIONS › Section 06A .1505 - REPEALED - LEGENDS REQUIRED (REPEALED)

Current through Register Vol. 39, No. 2, July 15, 2024
Authority
					 G.S.
					 78A-10(a);
					 78A-17(9)(a);
					 78A-49(b);
Eff. April 1, 1981;
Repealed Eff. January 1,
					 1984.
North Carolina Administrative Code › Title 18 - SECRETARY OF STATE › Chapter 06 - SECURITIES DIVISION › Subchapter A - RECODIFIED RULES › Section .1500 - MISCELLANEOUS PROVISIONS › Section 06A .1506 - REPEALED - PUBLIC INFORMATION (REPEALED)

Current through Register Vol. 39, No. 2, July 15, 2024
Authority
					 G.S.
					 78A-46(a);
					 78A-49(a);
					 78A-49(g);
					 78A-50(c);
					 132-1.1;
Eff. April
					 1, 1981;
Amended Eff. January 1, 1984;
Repealed Eff.
					 August 1, 1998.