GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION LAW 2001-149
AN ACT to repeal an obsolete provision in the north carolina securities act.
The General Assembly of North Carolina enacts:
SECTION 1. G.S. 78A-16(8) is repealed.
SECTION 2. G.S. 78A-18(a) reads as rewritten:
"(a)
The Administrator may by order deny or revoke any exemption specified in subdivisions
(8), subdivision (9), (11), or (15) of G.S. 78A-16 or in 78A-17 with
respect to a specific security or transaction. No such order may be entered
without appropriate prior notice to all interested parties, opportunity for
hearing, and written findings of fact and conclusions of law, except that the
Administrator may by order summarily deny or revoke any of the specified
exemptions pending final determination of any proceeding under this section.
Upon the entry of a summary order, the Administrator shall promptly notify all
interested parties that it has been entered and of the reasons therefor and
that within 15 days of the receipt of a written request the matter will be set
down for hearing. If no hearing is requested and none is ordered by the
Administrator, the order will remain in effect until it is modified or vacated
by the Administrator. If a hearing is requested or ordered, the Administrator,
after notice of an opportunity for hearing to all interested persons, may not
modify or vacate the order or extend it until final determination. No order
under this subsection may operate retroactively. No person may be considered to
have violated G.S. 78A-24 or 78A-49(d) by reason of any offer or sale effected
after the entry of an order under this subsection if he sustains the burden of
proof that he did not know, and in the exercise of reasonable care could not
have known, of the order."
SECTION 3. This act is effective when it becomes law.
In the General Assembly read three times and ratified this the 24th day of May, 2001.
s/ Beverly E. Perdue
President of the Senate
s/ James B. Black
Speaker of the House of Representatives
s/ Michael F. Easley
Governor
Approved 11:26 a.m. this 31st day of May, 2001