NC Register Volume 16 Issue 15 - Office of Administrative Hearings

(2) an originally executed copy of a Form U-2 orsimilar consent to service of process wherebythe Salesman names the North CarolinaSecretary of State as an agent duly authorizedto accept service of process on behalf of theSalesman;(3) a certification by the securities regulatoryagency of the jurisdiction in Canada fromwhich the Salesman will be effectingtransactions into this state stating that theSalesman is both registered and in goodstanding as a securities salesman in thatjurisdiction; and(4) a filing fee in the amount of fifty-five dollars($55.00).(c) If any information contained in any document filed with theAdministrator by any dealer or salesman who has registeredpursuant to G.S. 78A-36.1 is or becomes inaccurate orincomplete in any material respect, the dealer or salesman shallfile a correcting amendment as soon as practicable, but in noevent later than 30 days following the date on which suchinformation becomes inaccurate or incomplete.History Note: Authority G.S. 78A-36.1; 78A-49;Temporary Adoption Eff. January 15, 2002.SECTION .1500 – MISCELLANEOUS PROVISIONS18 NCAC 06 .1501 RESCISSION OFFERS(a) All rescission offers under G.S. 78A-56(g) shall be typed orprinted and shall be captioned in bold print or type "RescissionOffer." Offers must set forth in bold type the name of thesecurity with respect to which the offer is made and the date ofthe transaction involved. Offers must be signed by the offeror orits authorized officer.(b) Every rescission offer to a purchaser under G.S.78A-56(g)(1) shall set forth with particularity the facts out ofwhich liability under G.S. 78A-56 may have arisen and, in theevent of a violation of G.S. 78A-56(a)(2), the correct, true, oromitted facts. It shall advise the purchaser of his potential rightsunder G.S. 78A-56 if a violation of that section were found andstate the effect on those rights of the purchaser's failure to acceptthe offer within 30 days from its receipt. The offer shall includea form for the purchaser's written acceptance of the offeraddressed to the offeror or the depository to which it is to besent. The offer must expire by its own terms not less than 30days after its receipt by the purchaser and must provide, by itsterms, that acceptance is effective if the purchaser either delivershis written acceptance to the address specified in the offer ormails that acceptance, postage prepaid, with a postmark not laterthan midnight of the thirtieth day following his receipt of theoffer. The offer shall not require that the purchaser return thesecurity with his acceptance; the offer may, however, requirethat the purchaser deliver any security he still holds and averified statement of the transactions in which he disposed ofany security to the offeror or to a depository specified in theoffer within a period of not less than 45 days from the receipt ofthe offer in order to receive payment thereunder. The offer mayprovide that any offeree who delivers a timely writtenacceptance but fails to delivery any security held by him and thestatement of the transactions in which he disposed of anyTEMPORARY RULES16:15 NORTH CAROLINA REGISTER February 1, 20021726security within the time specified in the offer shall be deemed tohave failed to accept such an offer in writing within a specifiedperiod as required by G.S. 78A-56(g)(1).(c) Every rescission offer to a seller pursuant to G.S.78A-56(g)(2) shall set forth with particularity the facts out ofwhich liability under G.S. 78A-56 may have arisen and, in theevent of a violation of G.S. 78A-56(a)(2), the correct, true, oromitted facts. It shall advise the seller of his rights under G.S.78A-56 if a violation of that section is found and state the effecton those rights of the seller's failure to accept the offer within 30days from the receipt. The offer shall include a form for theseller's written acceptance of the offer addressed to the offeror orthe depository to which it is to be sent. The offer must expire byits own terms not less than 30 days after its receipt by the sellerand may provide, by its terms, that acceptance is effective if theseller either delivers his written acceptance to the addressspecified in the offer or mails that acceptance, postage prepaid,with a postmark not later than midnight of the thirtieth dayfollowing his receipt of the offer. The offeror is not required toreturn the security with the offer; the offer may require that theseller deliver the sum necessary to rescind to the offeror or to adepository specified in the offer within a period of not less than45 days from the receipt of the offer in order to receive thesecurity. The offer may provide that any offeree who delivers atimely written acceptance but fails to deliver the sum necessaryto rescind the transaction specified in the offer shall be deemedto have failed to accept such an offer in writing within aspecified period as required by G.S. 78A-56(g)(2).(d) The person making the rescission offer shall file a copy ofthe rescission offer with the Administrator at least 10 daysbefore delivering the offer to the offeree. The copy filed withthe Administrator shall be addressed to: Rescission Offers, NorthCarolina Securities Division, 300 N. Salisbury Street, Room100, Raleigh, N.C. 27603-5909.History Note: Authority G.S. 78A-56(g)(3);Eff. April 1, 1981;Temporary Amendment Eff. January 14, 2002.SECTION .1700 - REGISTRATION OF INVESTMENTADVISERS AND INVESTMENT ADVISERREPRESENTATIVES18 NCAC 06 .1702 APPLICATION FORINVESTMENT ADVISER REGISTRATION/NOTICEFILING FOR INVESTMENT ADVISER COVEREDUNDER FEDERAL LAW(a) The application for initial registration as an investmentadviser pursuant to Section 78C-17(a) of the Act shall be madeby completing Form ADV (Uniform Application for InvestmentAdviser Registration) (17 C.F.R. 279.1) in accordance with theform instructions and by filing the form with IARD (theInvestment Adviser Registration Depository). The initialapplication shall also include the following:(1) Proof of compliance by the investment adviserwith the examination requirements of Rule.1709;(2) Such financial statements as set forth in Rule.1708, including at the time of application, acopy of the balance sheet for the last fiscalyear, and if such balance sheet is as of a date