§ 78A-37. Registration procedure.
§ 78A‑37. Registrationprocedure.
(a) A dealer orsalesman may obtain an initial or renewal registration by filing with theAdministrator an application together with a consent to service of processpursuant to G.S. 78A‑63(f). The application shall contain whateverinformation the Administrator by rule requires concerning such matters as (i)the applicant's form and place of organization; (ii) the applicant's proposedmethod of doing business; (iii) the qualifications and business history of theapplicant; in the case of a dealer, the qualifications and business history ofany partner, officer, or director, any person occupying a similar status orperforming similar functions, or any person directly or indirectly controllingthe dealer, and a representation that the applicant dealer is duly registeredas a dealer under the Securities Exchange Act of 1934; (iv) any injunction oradministrative order or conviction of a misdemeanor involving a security or anyaspect of the securities business and any conviction of a felony; and (v) theapplicant's financial condition and history. If no denial order is in effectand no proceeding is pending under G.S. 78A‑39, registration becomeseffective at noon of the thirtieth day after an application is filed. TheAdministrator may by rule or order specify an earlier effective date and may byorder defer the effective date until noon of the thirtieth day after the filingof any amendment. Registration of a dealer automatically constitutesregistration of any salesman who is a partner, executive officer, or director,or a person occupying a similar status or performing similar functions. Afterthe Administrator institutes a proceeding under G.S. 78A‑39 to postponeor deny an application for registration, withdrawal of the application shall beallowed only at such time and under such conditions as the Administrator may byorder determine.
(b) Every applicant forinitial or renewal registration shall pay a filing fee of three hundred dollars($300.00) in the case of a dealer and one hundred twenty‑five dollars($125.00) in the case of a salesman. The Administrator may by rule reduce theregistration fee proportionately when the registration will be in effect forless than a full year.
(c) A registered dealermay file an application for registration of a successor, whether or not thesuccessor is then in existence, for the unexpired portion of the year. Thereshall be no filing fee.
(d) The Administratormay by rule require registered dealers to post surety bonds in amounts up toone hundred thousand dollars ($100,000) and salesmen to post surety bonds inamounts up to ten thousand dollars ($10,000), and may determine theirconditions. Any appropriate deposit of cash or securities shall be accepted inlieu of any bond so required. No bond may be required of any registrant whosenet capital, which may be defined by rule, exceeds one hundred thousand dollars($100,000). Every bond shall provide for suit thereon by any person who has acause of action under G.S. 78A‑56 and, if the Administrator by rule ororder requires, by any person who has a cause of action not arising under thisChapter. Every bond shall provide that no suit may be maintained to enforce anyliability on the bond unless brought within two years after the sale or other actupon which it is based. (1925, c. 190, s. 19; 1927, c. 149, s. 19; 1955, c. 436, s. 9; 1959,c. 1122; 1971, c. 831, s. 1; 1973, c. 1380; 1983, c. 713, s. 48; c. 817, ss. 9,10; 1987, c. 566, s. 1; 1991 (Reg. Sess., 1992), c. 965, s. 2; 2002‑126,s. 29A.34; 2003‑413, s. 3; 2009‑451, s. 24.1(a).)