18 NCAC | Title 18 NCAC — Secretary of State

Chapter 01 Departmental Rules

Subchapter A

18 NCAC 01A .0101 Secretary of State {#sec-18-ncac-01a-.0101 omnilex-key=us-nc-regs-official--title-18--18 NCAC 01A .0101}

The Secretary of State is the head of the Department of the Secretary of State. The office of the Secretary of State is located in the Old Revenue Complex, 2 S. Salisbury Street, Raleigh, North Carolina. The mailing address is: North Carolina Department of the Secretary of State, P.O. Box 29622, Raleigh, North Carolina 27626-0622 and the normal business hours are 8:00 a.m. to 5:00 p.m.

History

Authority G.S. 143A-19; 147-34
Eff. February 1, 1976
Amended Eff. April 1, 2003; September 1, 1998
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. September 23, 2017
Transferred from 18 NCAC 02 .0102 Eff. April 1, 2024.

18 NCAC 01A .0102 Structure {#sec-18-ncac-01a-.0102 omnilex-key=us-nc-regs-official--title-18--18 NCAC 01A .0102}

History

Status: repealed
Authority G.S. 147-36
Eff. February 1, 1976
Repealed Eff. September 1, 1988.

18 NCAC 01A .0103 Petition for Rule-Making or Declaratory Ruling {#sec-18-ncac-01a-.0103 omnilex-key=us-nc-regs-official--title-18--18 NCAC 01A .0103}

(a) Petition for Rule-Making. Any person wishing to petition the Department of the Secretary of State requesting the adoption, amendment, or repeal of a rule shall submit his petition in writing to the Department of the Secretary of State, P.O. Box 29622, Raleigh, North Caroli na 27626-0622, in the following form:

(1) Name and address of petitioner;

(2) Any employment or activity engaged in which would be affected by the adoption, amendment, or repeal of the rule;

(3) The text of the proposed rule, amendment or rule to be repealed;

(4) Any data or arguments in support of the petition.

The Secretary of State shall consider the contents of the petition, the opinion of his staff, and the comments of any other interested persons and render a decision within 30 days after submission of a petition.

(b) Petition for Declaratory Ruling. Any person aggrieved may submit a request in writing to the Department of the Secretary of State, P.O. Box 29622, Raleigh, North Carolina 27626-0622 for issuance of a declaratory ruling as to the validity of a rule or as to the applicability to a given state of facts of a statute administered by the department or of a rule or order of the department. A request for a declaratory ruling shall contain the following information:

(1) Name and address of person aggrieved;

(2) Substance of request;

(3) Manner in which the person is directly or indirectly affected substantially in their person, property, or public office or employment by the rule, statute or order of the department.

The Secretary of State shall not issue a declaration ruling if he finds that the person requesting the ruling is not directly or indirectly affected substantially in their person, property, or public office or employment by the rule, statute or order of the department which is the subject of the request; or if the ruling would adversely affect a pending contested case or judicial review of a final decision in a contested case.

History

Authority G.S. 150B-18; 150B-20
Eff. December 10, 1980
Amended Eff. April 1, 2003; November 1, 1988
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. December 20, 2015.

18 NCAC 01A .0201 Purpose {#sec-18-ncac-01a-.0201 omnilex-key=us-nc-regs-official--title-18--18 NCAC 01A .0201}

History

Status: repealed
Authority G.S. 126-34
Eff. February 1, 1976
Repealed Eff. September 1, 1988.

18 NCAC 01A .0202 Policy {#sec-18-ncac-01a-.0202 omnilex-key=us-nc-regs-official--title-18--18 NCAC 01A .0202}

History

Status: repealed
Authority G.S. 126-34
Eff. February 1, 1976
Repealed Eff. September 1, 1988.

18 NCAC 01A .0203 Procedure {#sec-18-ncac-01a-.0203 omnilex-key=us-nc-regs-official--title-18--18 NCAC 01A .0203}

History

Status: repealed
Authority G.S. 126-34
Eff. February 1, 1976
Repealed Eff. September 1, 1988.

18 NCAC 01A .0301 Policy {#sec-18-ncac-01a-.0301 omnilex-key=us-nc-regs-official--title-18--18 NCAC 01A .0301}

History

Status: repealed
Authority G.S. 126-16
Eff. February 1, 1976
Repealed Eff. September 1, 1988.

18 NCAC 01A .0302 Affirmative Action Commitment {#sec-18-ncac-01a-.0302 omnilex-key=us-nc-regs-official--title-18--18 NCAC 01A .0302}

History

Status: repealed
Authority G.S. 126-16
Eff. February 1, 1976
Repealed Eff. September 1, 1988.

18 NCAC 01A .0401 Contents of Petition {#sec-18-ncac-01a-.0401 omnilex-key=us-nc-regs-official--title-18--18 NCAC 01A .0401}

History

Status: repealed
Authority G.S. 150A-16
Eff. February 1, 1976
Repealed Eff. December 10, 1980.

18 NCAC 01A .0402 Submission of Petition {#sec-18-ncac-01a-.0402 omnilex-key=us-nc-regs-official--title-18--18 NCAC 01A .0402}

History

Status: repealed
Authority G.S. 150A-16
Eff. February 1, 1976
Repealed Eff. December 10, 1980.

18 NCAC 01A .0501 Right to Request {#sec-18-ncac-01a-.0501 omnilex-key=us-nc-regs-official--title-18--18 NCAC 01A .0501}

History

Status: repealed
Authority G.S. 150A-17
Eff. February 1, 1976
Repealed Eff. December 10, 1980.

18 NCAC 01A .0502 Contents of Request {#sec-18-ncac-01a-.0502 omnilex-key=us-nc-regs-official--title-18--18 NCAC 01A .0502}

History

Status: repealed
Authority G.S. 150A-17
Eff. February 1, 1976
Repealed Eff. December 10, 1980.

18 NCAC 01A .0503 Submission of Request {#sec-18-ncac-01a-.0503 omnilex-key=us-nc-regs-official--title-18--18 NCAC 01A .0503}

History

Status: repealed
Authority G.S. 150A-17
Eff. February 1, 1976
Repealed Eff. December 10, 1980.

18 NCAC 01A .0504 Refusal of Request {#sec-18-ncac-01a-.0504 omnilex-key=us-nc-regs-official--title-18--18 NCAC 01A .0504}

History

Status: repealed
Authority G.S. 150A-17
Eff. February 1, 1976
Repealed Eff. December 10, 1980.

18 NCAC 01A .0601 inspection {#sec-18-ncac-01a-.0601 omnilex-key=us-nc-regs-official--title-18--18 NCAC 01A .0601}

History

Status: expired
Authority G.S. 25-9-407; 147-37; 132-6; 55-155; 55A-77
Eff. February 1, 1976
Amended Eff. December 10, 1980; July 1, 1979
Expired Eff. January 1, 2016 pursuant to G.S. 150B-21.3A.

18 NCAC 01A .0602 Copies {#sec-18-ncac-01a-.0602 omnilex-key=us-nc-regs-official--title-18--18 NCAC 01A .0602}

History

Status: expired
Authority G.S. 25-9-407; 147-37; 132-6; 55-155; 55A-77
Eff. February 1, 1976
Amended Eff. December 10, 1980; July 1, 1979
Expired Eff. January 1, 2016 pursuant to G.S. 150B-21.3A.

Chapter 02 Trademark Registration

18 NCAC 02 .0101 Functions {#sec-18-ncac-02-.0101 omnilex-key=us-nc-regs-official--title-18--18 NCAC 02 .0101}

History

Status: repealed
Authority G.S. 143A-8; 143A-9; 147-36
Eff. February 1, 1976
Repealed Eff. September 1, 1988.

18 NCAC 02 .0102 SECRETARY OF STATE (transferred to 18 ncac 01 .0101 Eff. April 1, 2024) {#sec-18-ncac-02-.0102 omnilex-key=us-nc-regs-official--title-18--18 NCAC 02 .0102}

18 NCAC 02 .0103 Deputy Secretary of State {#sec-18-ncac-02-.0103 omnilex-key=us-nc-regs-official--title-18--18 NCAC 02 .0103}

History

Status: repealed
Authority G.S. 80-3; 160A-9.4; 160A-29; 160A-39; 160A-51
Eff. February 1, 1976
Amended Eff. September 1, 1988
Repealed Eff. May 1, 2003.

18 NCAC 02 .0104 Agent for Service of Process {#sec-18-ncac-02-.0104 omnilex-key=us-nc-regs-official--title-18--18 NCAC 02 .0104}

History

Status: expired
Authority G.S. 1A-1, Rule 4(j)(4); 120-27; 120-29; 147-39
Eff. February 1, 1976
Amended Eff. September 1, 1988
Expired Eff. October 1, 2017 pursuant to G.S. 150B-21.3A.

18 NCAC 02 .0105 Laws and Journals {#sec-18-ncac-02-.0105 omnilex-key=us-nc-regs-official--title-18--18 NCAC 02 .0105}

History

Status: expired
Authority G.S. 1A-1, Rule 4(j)(4); 120-27; 120-29; 147-39
Eff. February 1, 1976
Amended Eff. September 1, 1988
Expired Eff. October 1, 2017 pursuant to G.S. 150B-21.3A.

18 NCAC 02 .0201 Registration of Legislative Agents {#sec-18-ncac-02-.0201 omnilex-key=us-nc-regs-official--title-18--18 NCAC 02 .0201}

History

Status: repealed
Authority G.S. 120-47.2; 120-47.3; 120-47.4; 120-47.6; 120-47.7; 120-49; 120-50
Eff. February 1, 1976
Amended Eff. September 1, 1988; January 1, 1977
Repealed Eff. August 1, 2000.

18 NCAC 02 .0202 Written Authorization {#sec-18-ncac-02-.0202 omnilex-key=us-nc-regs-official--title-18--18 NCAC 02 .0202}

History

Status: repealed
Authority G.S. 120-47.2; 120-47.3; 120-47.4; 120-47.6; 120-47.7; 120-49; 120-50
Eff. February 1, 1976
Amended Eff. September 1, 1988; January 1, 1977
Repealed Eff. August 1, 2000.

18 NCAC 02 .0203 Reports of Expenditures {#sec-18-ncac-02-.0203 omnilex-key=us-nc-regs-official--title-18--18 NCAC 02 .0203}

History

Status: repealed
Authority G.S. 120-47.2; 120-47.3; 120-47.4; 120-47.6; 120-47.7; 120-49; 120-50
Eff. February 1, 1976
Amended Eff. September 1, 1988; January 1, 1977
Repealed Eff. August 1, 2000.

18 NCAC 02 .0204 Influencing Public Opinion or Legislation {#sec-18-ncac-02-.0204 omnilex-key=us-nc-regs-official--title-18--18 NCAC 02 .0204}

History

Status: repealed
Authority G.S. 120-47.2; 120-47.3; 120-47.4; 120-47.6; 120-47.7; 120-49; 120-50
Eff. February 1, 1976
Amended Eff. September 1, 1988; January 1, 1977
Repealed Eff. August 1, 2000.

18 NCAC 02 .0301 Definitions {#sec-18-ncac-02-.0301 omnilex-key=us-nc-regs-official--title-18--18 NCAC 02 .0301}

As used in this Section the word "mark" shall include both trademarks and service marks, and the word "Department" shall mean the Department of the Secretary of State.

History

Authority G.S. 80-1
Eff. February 1, 1976
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. September 23, 2017.

18 NCAC 02 .0302 Forms {#sec-18-ncac-02-.0302 omnilex-key=us-nc-regs-official--title-18--18 NCAC 02 .0302}

Applications for registration and renewal of marks must be on a current form supplied by the Secretary of State. Requests for forms shall be directed to the Department of the Secretary of State, P.O. Box 29622, Raleigh, North Carolina 27626-0622. The forms are titled "Application for Registration of Trademark or Service Mark" and "Application for Renewal of Registration of Trademark or Service Mark", and both forms contain instructions which must be followed in completing them.

History

Authority G.S. 80-3; 80-5
Eff. February 1, 1976
Amended Eff. April 1, 2003
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. September 23, 2017.

18 NCAC 02 .0303 Registration {#sec-18-ncac-02-.0303 omnilex-key=us-nc-regs-official--title-18--18 NCAC 02 .0303}

(a) Multiple Registrations. Only one mark in one class may be included on each application for registration. A separate application and filing fee is required for each class in which registration is desired.

(b) Description of Mark. A description of the mark, other than merely a word mark, must be set forth in the application including a written description of any designs sought to be registered. All extraneous matter must be omitted.

(c) Description of Goods or Services. The description of the goods or services set forth in the application must contain specific goods or services rather than broad categories of goods or services.

(d) Classification. The classification of goods and services set forth in G.S. 80-9 is established for the convenience of administration. Applications which state a classification which is not appropriate will be changed to the appropriate classification prior to registration.

(e) Specimens. The function of the specimens submitted with the application is to show the mark in use. Actual specimens from one of the methods or modes of use listed in the application must be submitted. Where submission of an actual specimen is not practical due to the size or manner of use, a photograph of the mark in use or a facsimile of the mark showing the mark as used may be submitted.

History

Authority G.S. 80-3; 80-9
Eff. February 1, 1976
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. September 23, 2017.

18 NCAC 02 .0304 Assignment {#sec-18-ncac-02-.0304 omnilex-key=us-nc-regs-official--title-18--18 NCAC 02 .0304}

(a) Any form of assignment of a mark and its registration which meets the requirements of G.S. 80-6 and contains the name and business address of the assignee may be recorded. Suggested forms will be furnished on request to the Department of the Secretary of State.

(b) An executed and properly acknowledged copy of the assignment must be submitted. The assignment will not be returned unless requested.

History

Authority G.S. 80-6
Eff. February 1, 1976
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. September 23, 2017.

18 NCAC 02 .0305 Automatic Transfer {#sec-18-ncac-02-.0305 omnilex-key=us-nc-regs-official--title-18--18 NCAC 02 .0305}

The merger or consolidation of a corporate registrant will be recognized as an automatic transfer of the registration of any mark to the surviving or resulting corporation. Notation in the trademark records of the Department of the Secretary of State of the automatic transfer will be made upon written request from the surviving or resulting corporation subject to the following:

(1) If the articles of merger or consolidation are on file in the corporation records of the department, no additional filing and no recording fee is due.

(2) If the articles of merger or consolidation are not on file in the corporation records of the department, a copy of the articles of merger or consolidation duly certified by the proper official of the state of incorporation must be submitted with the request for automatic transfer of the registration. A recording fee of ten dollars ($10.00) is required.

History

Authority G.S. 80-7
Eff. February 1, 1976
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. September 23, 2017.

18 NCAC 02 .0306 Name Change {#sec-18-ncac-02-.0306 omnilex-key=us-nc-regs-official--title-18--18 NCAC 02 .0306}

If the name of a corporate registrant is changed by amendment to its charter, proper notation of the change will be made in the trademark records upon written request from the registrant subject to the following:

(1) If the charter document effecting the change is on file in the corporation records of the department, no additional filing is required.

(2) If the charter document effecting the change is not on file in the corporation records of the department, a copy of the charter document duly certified by the proper official of the state of incorporation must be submitted with the request.

History

Authority G.S. 80-7
Eff. February 1, 1976
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. September 23, 2017.

18 NCAC 02 .0307 Renewals {#sec-18-ncac-02-.0307 omnilex-key=us-nc-regs-official--title-18--18 NCAC 02 .0307}

(a) Notice of expiration of the registration of a mark will be mailed to the last known address of the registrant at the beginning of the sixth month prior to expiration. A current form "Application for Renewal of Registration of Trademark or Service Mark" will be enclosed with the notice. A separate application must be submitted for each registration for which renewal is sought.

(b) A mark registered under the law in effect prior to January 1, 1968 must be renewed according to the current classification of goods or services. Where the goods or services described in the original application for registration fall in more than one class under the current classification, a separate application for renewal and filing fee must be submitted for each class under which renewal is desired.

(c) The registration of a mark which has been materially changed in use since the original registration may not be renewed, but a new application for registration must be submitted.

History

Authority G.S. 80-5
Eff. February 1, 1976
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. September 23, 2017.

18 NCAC 02 .0308 Other Changes {#sec-18-ncac-02-.0308 omnilex-key=us-nc-regs-official--title-18--18 NCAC 02 .0308}

Changes in the address of the registrant, and a listing of additional goods within the registration classification will be noted in the trademark records of the department upon written request from the registrant.

History

Authority G.S. 80-7
Eff. February 1, 1976
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. September 23, 2017.

Chapter 03 Publications Division

18 NCAC 03 .0101 Location and Hours {#sec-18-ncac-03-.0101 omnilex-key=us-nc-regs-official--title-18--18 NCAC 03 .0101}

History

Status: expired
Authority G.S. 147-36; 147-54.1
Eff. February 1, 1976
Amended Eff. April 1, 2003; September 1, 1988
Pursuant to G.S. 150B-21.3A, rule expired Eff. December 1, 2014.

18 NCAC 03 .0102 Division Head {#sec-18-ncac-03-.0102 omnilex-key=us-nc-regs-official--title-18--18 NCAC 03 .0102}

History

Status: repealed
Authority G.S. 147-54.1
Eff. February 1, 1976
Repealed Eff. September 1, 1988.

18 NCAC 03 .0103 Duties {#sec-18-ncac-03-.0103 omnilex-key=us-nc-regs-official--title-18--18 NCAC 03 .0103}

History

Status: repealed
Authority G.S. 147-54.1; 147-54.2
Eff. February 1, 1976
Repealed Eff. September 1, 1988.

18 NCAC 03 .0201 Publication {#sec-18-ncac-03-.0201 omnilex-key=us-nc-regs-official--title-18--18 NCAC 03 .0201}

History

Status: expired
Authority G.S. 147-36; 147-54.1
Eff. February 1, 1976
Amended Eff. December 10, 1980
Pursuant to G.S. 150B-21.3A, rule expired Eff. December 1, 2014.

18 NCAC 03 .0202 Distribution {#sec-18-ncac-03-.0202 omnilex-key=us-nc-regs-official--title-18--18 NCAC 03 .0202}

History

Status: expired
Authority G.S. 147-36; 147-54.1
Eff. February 1, 1976
Amended Eff. December 10, 1980
Pursuant to G.S. 150B-21.3A, rule expired Eff. December 1, 2014.

18 NCAC 03 .0203 Distribution of Excess Copies {#sec-18-ncac-03-.0203 omnilex-key=us-nc-regs-official--title-18--18 NCAC 03 .0203}

History

Status: expired
Authority G.S. 147-36; 147-54.1
Eff. February 1, 1976
Amended Eff. December 10, 1980
Pursuant to G.S. 150B-21.3A, rule expired Eff. December 1, 2014.

18 NCAC 03 .0301 Publication {#sec-18-ncac-03-.0301 omnilex-key=us-nc-regs-official--title-18--18 NCAC 03 .0301}

History

Status: expired
Authority G.S. 147-54.1
Eff. February 1, 1976
Pursuant to G.S. 150B-21.3A, rule expired Eff. December 1, 2014.

18 NCAC 03 .0302 Distribution {#sec-18-ncac-03-.0302 omnilex-key=us-nc-regs-official--title-18--18 NCAC 03 .0302}

History

Status: expired
Authority G.S. 147-54.1
Eff. February 1, 1976
Pursuant to G.S. 150B-21.3A, rule expired Eff. December 1, 2014.

18 NCAC 03 .0401 Distribution {#sec-18-ncac-03-.0401 omnilex-key=us-nc-regs-official--title-18--18 NCAC 03 .0401}

History

Status: expired
Authority G.S. 147-36; 147-45; 147-48; 147-49; 147-54.1
Eff. February 1, 1976
Pursuant to G.S. 150B-21.3A, rule expired Eff. December 1, 2014.

18 NCAC 03 .0402 Public Sale {#sec-18-ncac-03-.0402 omnilex-key=us-nc-regs-official--title-18--18 NCAC 03 .0402}

History

Status: expired
Authority G.S. 147-36; 147-45; 147-48; 147-49; 147-54.1
Eff. February 1, 1976
Pursuant to G.S. 150B-21.3A, rule expired Eff. December 1, 2014.

18 NCAC 03 .0403 Sales Tax and Postage on Publications {#sec-18-ncac-03-.0403 omnilex-key=us-nc-regs-official--title-18--18 NCAC 03 .0403}

History

Status: expired
Authority G.S. 147-36; 147-45; 147-48; 147-49; 147-54.1
Eff. February 1, 1976
Pursuant to G.S. 150B-21.3A, rule expired Eff. December 1, 2014.

18 NCAC 03 .0501 North Carolina Government: 1585-1974 {#sec-18-ncac-03-.0501 omnilex-key=us-nc-regs-official--title-18--18 NCAC 03 .0501}

History

Status: expired
Authority G.S. 147-36; 147-54.1; Chapter 502, 1975 Session Laws; Joint Resolution, 1939 Session
Eff. February 1, 1976
Pursuant to G.S. 150B-21.3A, rule expired Eff. December 1, 2014.

18 NCAC 03 .0502 Election Returns {#sec-18-ncac-03-.0502 omnilex-key=us-nc-regs-official--title-18--18 NCAC 03 .0502}

History

Status: expired
Authority G.S. 147-36; 147-54.1; Chapter 502, 1975 Session Laws; Joint Resolution, 1939 Session
Eff. February 1, 1976
Pursuant to G.S. 150B-21.3A, rule expired Eff. December 1, 2014.

18 NCAC 03 .0503 Candidates and Nominees List for the General Assembly {#sec-18-ncac-03-.0503 omnilex-key=us-nc-regs-official--title-18--18 NCAC 03 .0503}

History

Status: expired
Authority G.S. 147-36; 147-54.1; Chapter 502, 1975 Session Laws; Joint Resolution, 1939 Session
Eff. February 1, 1976
Pursuant to G.S. 150B-21.3A, rule expired Eff. December 1, 2014.

18 NCAC 03 .0504 Roster and Seating Diagrams for the General Assembly {#sec-18-ncac-03-.0504 omnilex-key=us-nc-regs-official--title-18--18 NCAC 03 .0504}

History

Status: expired
Authority G.S. 147-36; 147-54.1; Chapter 502, 1975 Session Laws; Joint Resolution, 1939 Session
Eff. February 1, 1976
Pursuant to G.S. 150B-21.3A, rule expired Eff. December 1, 2014.

18 NCAC 03 .0601 Annual Reports {#sec-18-ncac-03-.0601 omnilex-key=us-nc-regs-official--title-18--18 NCAC 03 .0601}

History

Status: expired
Authority G.S. 116-44.4(1); 143-47.7; 147-36; 147-39; 147-42; 147-43; 147-54.1
Eff. February 1, 1976
Amended Eff. September 1, 1988
Pursuant to G.S. 150B-21.3A, rule expired Eff. December 1, 2014.

18 NCAC 03 .0602 University Ordinances {#sec-18-ncac-03-.0602 omnilex-key=us-nc-regs-official--title-18--18 NCAC 03 .0602}

History

Status: expired
Authority G.S. 116-44.4(1); 143-47.7; 147-36; 147-39; 147-42; 147-43; 147-54.1
Eff. February 1, 1976
Amended Eff. September 1, 1988
Pursuant to G.S. 150B-21.3A, rule expired Eff. December 1, 2014.

18 NCAC 03 .0603 Deeds {#sec-18-ncac-03-.0603 omnilex-key=us-nc-regs-official--title-18--18 NCAC 03 .0603}

History

Status: expired
Authority G.S. 116-44.4(1); 143-47.7; 147-36; 147-39; 147-42; 147-43; 147-54.1
Eff. February 1, 1976
Amended Eff. September 1, 1988
Pursuant to G.S. 150B-21.3A, rule expired Eff. December 1, 2014.

18 NCAC 03 .0604 State Records Custody {#sec-18-ncac-03-.0604 omnilex-key=us-nc-regs-official--title-18--18 NCAC 03 .0604}

History

Status: expired
Authority G.S. 116-44.4(1); 143-47.7; 147-36; 147-39; 147-42; 147-43; 147-54.1
Eff. February 1, 1976
Amended Eff. September 1, 1988
Pursuant to G.S. 150B-21.3A, rule expired Eff. December 1, 2014.

18 NCAC 03 .0605 Appointments to State Agencies {#sec-18-ncac-03-.0605 omnilex-key=us-nc-regs-official--title-18--18 NCAC 03 .0605}

History

Status: expired
Authority G.S. 116-44.4(1); 143-47.7; 147-36; 147-39; 147-42; 147-43; 147-54.1
Eff. February 1, 1976
Amended Eff. September 1, 1988
Pursuant to G.S. 150B-21.3A, rule expired Eff. December 1, 2014.

18 NCAC 03 .0701 Location and Hours of Operation {#sec-18-ncac-03-.0701 omnilex-key=us-nc-regs-official--title-18--18 NCAC 03 .0701}

History

Status: expired
Authority G.S. 147-36; 147-37; 147-39; 147-54.1
Eff. February 1, 1976
Amended Eff. April 1, 2003; September 1, 1988
Pursuant to G.S. 150B-21.3A, rule expired Eff. December 1, 2014.

18 NCAC 03 .0702 Limit on Number of Requests {#sec-18-ncac-03-.0702 omnilex-key=us-nc-regs-official--title-18--18 NCAC 03 .0702}

History

Status: expired
Authority G.S. 147-36; 147-37; 147-39; 147-54.1
Eff. February 1, 1976
Amended Eff. April 1, 2003; September 1, 1988
Pursuant to G.S. 150B-21.3A, rule expired Eff. December 1, 2014.

18 NCAC 03 .0703 Charges for Copy Services {#sec-18-ncac-03-.0703 omnilex-key=us-nc-regs-official--title-18--18 NCAC 03 .0703}

History

Status: expired
Authority G.S. 147-36; 147-37; 147-39; 147-54.1
Eff. February 1, 1976
Amended Eff. April 1, 2003; September 1, 1988
Pursuant to G.S. 150B-21.3A, rule expired Eff. December 1, 2014.

18 NCAC 03 .0704 No Smoking {#sec-18-ncac-03-.0704 omnilex-key=us-nc-regs-official--title-18--18 NCAC 03 .0704}

History

Status: expired
Authority G.S. 147-36; 147-37; 147-39; 147-54.1
Eff. February 1, 1976
Amended Eff. April 1, 2003; September 1, 1988
Pursuant to G.S. 150B-21.3A, rule expired Eff. December 1, 2014.

Chapter 04 Business Registration Division

18 NCAC 04 .0101 Location and Hours {#sec-18-ncac-04-.0101 omnilex-key=us-nc-regs-official--title-18--18 NCAC 04 .0101}

The Business Registration Division of the Department of the Secretary of State is located in the Old Revenue Complex, 2 S. Salisbury Street, Raleigh, North Carolina 27601. The mailing address is North Carolina Business Registration Division, Department of the Secretary of State, P.O. Box 29622, Raleigh, North Carolina 27626-0622. The hours of the Division are 8:00 a.m. until 5:00 p.m. Monday through Friday excepting legal holidays.

History

Authority G.S. 55-1-30; 55D-5; 57D-1-30
Eff. February 1, 1976
ARRC Objection Lodged June 21, 1990
Temporary Amendment Eff. July 1, 1990 for a Period of 180 Days to Expire on December 27, 1990
ARRC Objection Removed August 20, 1990
Amended Eff. April 1, 2003; February 1, 1991; September 1, 1988
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. December 20, 2015
Amended Eff. April 1, 2024.

18 NCAC 04 .0102 Administration and Functions {#sec-18-ncac-04-.0102 omnilex-key=us-nc-regs-official--title-18--18 NCAC 04 .0102}

(a) The Division shall be responsible for filing and maintaining documents on behalf of corporations, limited liability companies, limited liability partnerships, and limited partnerships whenever filing with the Secretary of State is specified by statute.

(b) The Division prepares and certifies copies of documents on file upon request. Statutory fees shall be charged for preparation and certification.

(c) The Division provides information in response to written or telephone inquiry, based on information contained in documents on file. There shall be no fee for providing information by telephone or letter.

(d) The Division certifies to facts contained in documents on file, based on an examination of its documents and indices.

History

Authority G.S. 55-1-22; 55-1-30; 55A-1-22; 55A-1-30; 55D-5; 55D-10; 55D-15; 57D-1-22; 57D-1-30; 59-84.2; 59-206
Eff. February 1, 1976
ARRC Objection Lodged June 21, 1990
Temporary Amendment Eff. July 1, 1990 For a Period of 180 Days to Expire on December 27, 1990
ARRC Objection Removed August 20, 1990
Amended Eff. March 1, 1996; February 1, 1991
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. December 20, 2015.

18 NCAC 04 .0201 Tender of Fee {#sec-18-ncac-04-.0201 omnilex-key=us-nc-regs-official--title-18--18 NCAC 04 .0201}

Filing of any document shall be accomplished only upon tender of applicable filing fee to the Division.

History

Authority G.S. 55-1-22; 55-1-30; 55A-1-22; 55A-1-30; 55D-5; 57D-1-22; 57D-1-30; 59-1106
Eff. February 1, 1976
Amended Eff. March 1, 1996
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. December 20, 2015.

18 NCAC 04 .0202 Form of Payment {#sec-18-ncac-04-.0202 omnilex-key=us-nc-regs-official--title-18--18 NCAC 04 .0202}

Payment shall be by cash, check or money order. Check or money order shall be payable to Secretary of State, to the State of North Carolina, or to the State Treasurer.

History

Authority G.S. 55-1-22; 55-1-30; 55A-1-22; 55A-1-30; 55D-5; 57D-1-22; 57D-1-30; 59-1106; 147-86.11(e)(6); 147-86.20(2)(a); 147-86.22(b)
Eff. February 1, 1976
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. December 20, 2015.

18 NCAC 04 .0203 Invoices {#sec-18-ncac-04-.0203 omnilex-key=us-nc-regs-official--title-18--18 NCAC 04 .0203}

Upon request for documents on file or certificates of information not accompanied by the applicable fee, the Division shall prepare and remit the material requested, accompanied by an invoice for the applicable fee, unless it is determined by the Business Registration Director that it is in the interest of the state to require prepayment.

History

Authority G.S. 55-1-22; 55-1-30; 55A-1-22; 55A-1-30; 55D-5; 57D-1-22; 57D-1-30; 59-35.2
Eff. February 1, 1976
Amended Eff. March 1, 1996
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. December 20, 2015
Amended Eff. April 1, 2024.

18 NCAC 04 .0204 Cancellation for Nonpayment {#sec-18-ncac-04-.0204 omnilex-key=us-nc-regs-official--title-18--18 NCAC 04 .0204}

After the filing of any document, if the Division determines that the payment of fees and taxes tendered is for any reason insufficient; and, after notice and reasonable opportunity is given to the proper party to submit payment, it is determined that proper payment has not been made, the Secretary of State shall, by appropriate certificate, cancel such filing with a notation that the filing was an error.

History

Authority G.S. 55-1-22; 55-1-30; 55A-1-22; 55A-1-30; 55D-5; 55D-10; 57D-1-22; 57D-1-30; 59-35.2; 59-1106
Eff. February 1, 1976
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. December 20, 2015.

18 NCAC 04 .0205 Overpayment {#sec-18-ncac-04-.0205 omnilex-key=us-nc-regs-official--title-18--18 NCAC 04 .0205}

History

Status: expired
Authority G.S. 55-1-30; 55A-1-30; 55D-5; 57D-1-30
Eff. February 1, 1976
ARRC Objection Lodged June 21, 1990
Temporary Amendment Eff. July 1, 1990 For a Period of 180 Days to Expire on December 27, 1990
ARRC Objection Removed August 20, 1990
Amended Eff. March 1, 1996; February 1, 1991
Expired Eff. January 1, 2016 pursuant to G.S. 150B-21.3A.

18 NCAC 04 .0206 Documents Not Specifically Provided for {#sec-18-ncac-04-.0206 omnilex-key=us-nc-regs-official--title-18--18 NCAC 04 .0206}

When any document is filed for any corporation organized under a statute other than one found in Chapter 55 or 55A, and no fee is specifically provided in the applicable statute, the fee for such filing shall be the fee provided in G.S. 55-1-22 or 55A-1-22 for a comparable type of document, and if no comparable type of document exists, the fee shall be the fee provided in G.S. 55-1-22(a)(26) or 55A-1-22(27).

History

Authority G.S. 55-1-22; 55-1-30; 55A-1-22; 55D-5; 55D-10; 57D-1-22; 57D-1-30
Eff. February 1, 1976
ARRC Objection Lodged June 21, 1990
Temporary Amendment Eff. July 1, 1990 For a Period of 180 Days to Expire on December 27, 1990
ARRC Objection Removed August 20, 1990
Amended Eff. March 1, 1996; February 1, 1991
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. December 20, 2015.

18 NCAC 04 .0301 General Provisions {#sec-18-ncac-04-.0301 omnilex-key=us-nc-regs-official--title-18--18 NCAC 04 .0301}

History

Status: repealed
Filed as a Temporary Repeal Eff. July 1, 1990 For a Period of 180 Days to Expire on December 27, 1990
Authority G.S. 55-168; 55-170; 55A-81; 55A-83; 55B-13; 105-230; 105-232
Eff. February 1, 1976
Repealed Eff. February 1, 1991.

18 NCAC 04 .0302 Execution {#sec-18-ncac-04-.0302 omnilex-key=us-nc-regs-official--title-18--18 NCAC 04 .0302}

When execution is required by any person acting in the capacity of officer, director, incorporator, member, manager, or registered agent, execution by a holder of a power of attorney shall be rejected.

History

Authority G.S. 55-1-20; 55-1-30; 55A-1-20; 55A-1-30; 55D-5; 55D-10; 57D-1-20; 57D-1-30
Eff. February 1, 1976
ARRC Objection Lodged June 21, 1990
Temporary Amendment Eff. July 1, 1990 For a Period of 180 Days to Expire on December 27, 1990
ARRC Objection Removed August 20, 1990
Amended Eff. March 1, 1996; February 1, 1991
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. December 20, 2015.

18 NCAC 04 .0303 Rejection {#sec-18-ncac-04-.0303 omnilex-key=us-nc-regs-official--title-18--18 NCAC 04 .0303}

History

Status: expired
Authority G.S. 55-1-20; 55A-1-20; 55B-3; 55D-5; 55D-15(d); 57D-1-20; 59-35.1; 59-206
Eff. February 1, 1976
ARRC Objection Lodged June 21, 1990
Temporary Amendment Eff. July 1, 1990 for a Period of 180 Days to Expire on December 27, 1990
ARRC Objection Removed August 20, 1990
Amended Eff. March 1, 1996; February 1, 1991
Expired Eff. January 1, 2016 pursuant to G.S. 150B-21.3A.

18 NCAC 04 .0304 Identification of Corporation/Llc and Type of Document {#sec-18-ncac-04-.0304 omnilex-key=us-nc-regs-official--title-18--18 NCAC 04 .0304}

(a) Each document shall consistently identify the corporation or limited liability company executing such document, if executed by a corporation or limited liability company. The entity's name shall be recited throughout the document in the identical form, as to spelling, spacing, and punctuation, as the name appears in the existing charter of the entity.

(b) If captioned, a document shall contain in its caption words identical to the words which appear in the applicable statute to identify the type of document.

(c) Articles of incorporation for a business corporation shall identify the corporation as a "business corporation" or make reference to G.S. Chapter 55. Articles of incorporation for a nonprofit corporation shall identify the corporation as a "nonprofit corporation" or make reference to G.S. Chapter 55A. Articles of incorporation for a professional corporation shall identify the corporation as a "professional corporation" or make reference to G.S. Chapter 55B. Articles of organization for a professional limited liability company shall identify the limited liability company as a "professional limited liability company."

History

Authority G.S. 55-1-30; 55A-1-30; 55B-3; 55B-4; 55D-5; 57D-1-30; 59-35.1
Eff. February 1, 1976
Amended Eff. March 1, 1996
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. December 20, 2015.

18 NCAC 04 .0305 Corrective Filings - Limited Partnerships {#sec-18-ncac-04-.0305 omnilex-key=us-nc-regs-official--title-18--18 NCAC 04 .0305}

History

Status: expired
Authority G.S. 55D-5; 59-202; 59-206; 59-905
Eff. February 1, 1976
ARRC Objection Lodged June 21, 1990
Temporary Amendment Eff. July 1, 1990 For a Period of 180 Days to Expire on December 27, 1990
ARRC Objection Removed August 20, 1990
Amended Eff. March 1, 1996; February 1, 1991
Expired Eff. January 1, 2016 pursuant to G.S. 150B-21.3A.

18 NCAC 04 .0306 Incorporation by Reference {#sec-18-ncac-04-.0306 omnilex-key=us-nc-regs-official--title-18--18 NCAC 04 .0306}

Articles of incorporation or articles of organization in which bylaws or an operating agreement are incorporated by reference shall be rejected. Reference may be made in articles of incorporation or articles of organization to bylaw provisions or provisions in an operating agreement so long as such provisions are not thereby incorporated in the charter.

History

Authority G.S. 55-2-02; 55A-2-02; 55B-3; 55D-5; 57D-2021; 59-35.1
Eff. February 1, 1976
Amended Eff. August 8, 1976
ARRC Objection Lodged June 21, 1990
Temporary Amendment Eff. July 1, 1990 For a Period of 180 Days to Expire on December 27, 1990
ARRC Objection Removed August 20, 1990
Amended Eff. March 1, 1996; February 1, 1991
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. December 20, 2015.

18 NCAC 04 .0307 Application for Reservation of Name {#sec-18-ncac-04-.0307 omnilex-key=us-nc-regs-official--title-18--18 NCAC 04 .0307}

(a) If an applicant requests reservation of more than one name for a corporation, a limited liability company, or a limited partnership, a separate application shall be submitted for each name.

(b) The date of filing shall be the first day in determining the date of expiration of reservation. The reservation shall expire immediately after the termination of filings by the Division on the final day of the reservation period. If the final day of the reservation period is not an operating day of the Division, the reservation shall nevertheless expire on such final day.

(c) A person who wishes to reserve a particular limited partnership name after having reserved that name on a previous occasion may apply to reserve such name again after the elapse of one full business day following the expiration of the previous reservation.

History

Authority G.S. 55D-5; 55D-23; 59-103
Eff. February 1, 1976
ARRC Objection Lodged June 21, 1990
Temporary Amendment Eff. July 1, 1990 For a Period of 180 Days to Expire on December 27, 1990
ARRC Objection Removed August 20, 1990
Amended Eff. March 1, 1996; February 1, 1991
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. December 20, 2015.

18 NCAC 04 .0308 Registered Office and Registered Agent {#sec-18-ncac-04-.0308 omnilex-key=us-nc-regs-official--title-18--18 NCAC 04 .0308}

(a) In the event that a corporation has never designated a registered office or registered agent, or in the event that a corporation's or limited liability company's registered agent has resigned, the entity may designate a registered agent and/or registered office.

(b) The information required for the designation of a registered agent or a registered office shall be set forth in a statement which shall be substantially the same as that provided for in the change of a registered agent or registered office, except that it shall be unnecessary to set forth information concerning the current registered agent or current registered office.

(c) With respect to documents permitted to be filed with the Office of the Secretary of State, a person shall consistently use the same name and same business office address in each instance in which that person serves as registered agent for any corporation or limited liability company.

(d) A person who serves as registered agent for more than one corporation or limited liability company may notify the Secretary of State of the change of the address of the registered offices of such entities by attaching a list of the names of those entities to the statement required to be filed by G.S. 55-5-02, 55-15-08, 55A-5-02, 55A-15-08, or 55D-31.

History

Authority G.S. 55-1-30; 55-5-01; 55-15-07; 55A-1-30; 55A-5-01; 55A-15-07; 55D-5; 55D-30; 55D-31; 55D-32; 57D-1-30; 57D-2-40; 57D-7-06
Eff. February 1, 1976
ARRC Objection Lodged June 21, 1990
Temporary Amendment Eff. July 1, 1990 For a Period of 180 Days to Expire on December 27, 1990
ARRC Objection Removed August 20, 1990
Amended Eff. March 1, 1996; February 1, 1991
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. December 20, 2015
Amended Eff. April 1, 2024.

18 NCAC 04 .0309 Articles of Amendment {#sec-18-ncac-04-.0309 omnilex-key=us-nc-regs-official--title-18--18 NCAC 04 .0309}

(a) Articles of amendment which convert a nonprofit corporation to a business corporation shall not be filed.

(b) Any articles of amendment which convert a corporation organized pursuant to any statute to a corporation organized pursuant to any other statute shall also contain amendments which shall bring its charter into conformity with the statute applicable to organization for the type of corporation to which it is being converted.

History

Authority G.S. 55-10-01; 55A-10-01; 55B-3; 55D-5; 57D-2-22; 59-202
Eff. February 1, 1976
Amended Eff. February 25, 1977
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. December 20, 2015.

18 NCAC 04 .0310 Tax on Filing Doc Which Increase Authorized Capital {#sec-18-ncac-04-.0310 omnilex-key=us-nc-regs-official--title-18--18 NCAC 04 .0310}

History

Status: repealed
Filed as a Temporary Repeal Eff. July 1, 1990 For a Period of 180 Days to Expire on
December 27, 1990
Authority G.S. 55-147; 55-148; 55-156
Eff. February 1, 1976
Amended Eff. August 8, 1976
Repealed Eff. February 1, 1991.

18 NCAC 04 .0311 Art of Merger/Share Exch Involving Foreign Entity {#sec-18-ncac-04-.0311 omnilex-key=us-nc-regs-official--title-18--18 NCAC 04 .0311}

Each foreign entity which is a party to a merger or a share exchange pursuant to G.S. 55-11-07, 55-11-09, 55A-11-06, 55A-11-08, 57D-9-40, 57D-9-41, or 57D-9-42 shall be identified in the articles of merger or share exchange by state or country of incorporation or organization. Articles of merger filed pursuant to these statutes shall contain:

(1) a statement that the merger is permitted by the law of the state or country of incorporation or organization of each foreign entity which is a party, and

(2) a statement that each foreign entity which is a party has complied or shall comply with the applicable laws of its state or country of incorporation or organization regarding such merger.

History

Authority G.S. 55-11-07; 55-11-09; 55A-11-06; 55A-11-08; 55D-5; 57D-9-40; 57D-9-41; 57D-9-42
Eff. February 1, 1976
ARRC Objection Lodged June 21, 1990
Temporary Amendment Eff. July 1, 1990 For a Period of 180 Days to Expire on December 27, 1990
ARRC Objection Removed August 20, 1990
Amended Eff. March 1, 1996; February 1, 1991
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. December 20, 2015
Amended Eff. April 1, 2024.

18 NCAC 04 .0312 Appl for Cert of Authority by Foreign Prof Corporation {#sec-18-ncac-04-.0312 omnilex-key=us-nc-regs-official--title-18--18 NCAC 04 .0312}

History

Status: repealed
Filed as a Temporary Amendment Eff. July 1, 1990 For a Period of 180 Days to Expire on December 27, 1990
ARRC Objection Lodged June 21, 1990
ARRC Objection Removed August 20, 1990
Authority G.S. 55-15-03; 55A-41; 55A-42.1; 55A-70; 55A-72; 55A-81; 55B-2; 55B-4; 55B-15
Eff. February 1, 1976
Amended Eff. February 1, 1991; August 8, 1976
Repealed Eff. March 1, 1996.

18 NCAC 04 .0313 Filing Merger Involving Foreign Corporation {#sec-18-ncac-04-.0313 omnilex-key=us-nc-regs-official--title-18--18 NCAC 04 .0313}

History

Status: repealed
Filed as a Temporary Amendment Eff. July 1, 1990 For a Period of 180 Days to Expire on December 27, 1990
ARRC Objection Lodged June 21, 1990
ARRC Objection Removed August 20, 1990
Authority G.S. 55-15-03; 55A-41; 55A-42.1; 55A-70; 55A-72; 55A-81; 55B-2; 55B-4; 55B-15
Eff. February 1, 1976
Amended Eff. February 1, 1991; August 8, 1976
Repealed Eff. March 1, 1996.

18 NCAC 04 .0314 Filing Evidence of Dissolution of Foreign Nonprofit Corp {#sec-18-ncac-04-.0314 omnilex-key=us-nc-regs-official--title-18--18 NCAC 04 .0314}

History

Status: repealed
Filed as a Temporary Amendment Eff. July 1, 1990 For a Period of 180 Days to Expire on December 27, 1990
ARRC Objection Lodged June 21, 1990
ARRC Objection Removed August 20, 1990
Authority G.S. 55-15-03; 55A-41; 55A-42.1; 55A-70; 55A-72; 55A-81; 55B-2; 55B-4; 55B-15
Eff. February 1, 1976
Amended Eff. February 1, 1991; August 8, 1976
Repealed Eff. March 1, 1996.

18 NCAC 04 .0315 Filing Pursuant to G.s. 55-164.1 {#sec-18-ncac-04-.0315 omnilex-key=us-nc-regs-official--title-18--18 NCAC 04 .0315}

History

Status: repealed
Filed as a Temporary Repeal Eff. July 1, 1990 For a Period of 180 Days to Expire on December 27, 1990
Authority G.S. 55-164.1
Eff. February 1, 1976
Repealed Eff. February 1, 1991.

18 NCAC 04 .0316 Form for Annual Report {#sec-18-ncac-04-.0316 omnilex-key=us-nc-regs-official--title-18--18 NCAC 04 .0316}

A corporation filing its annual report in order to comply with G.S. 55-16-22 or a limited liability company filing an annual report pursuant to G.S. 57D-2-24 shall use the annual report form promulgated by the Secretary of State. Exact copies of the annual report form provided by the Business Registration Division may be made and used to satisfy the annual filing requirement. However, annual reports with formats different from the form prescribed by the Business Registration Division shall not be accepted for filing.

History

Authority G.S. 55-1-21; 55-16-22; 55D-5; 57D-1-21; 57D-1-30; 57D-2-24; 59-84.4; 59-210
Eff. February 1, 1991
ARRC Objection Lodged June 21, 1990
Temporary Adoption Eff. July 1, 1990 For a Period of 180 Days to Expire on December 27, 1990
ARRC Objection Removed August 20, 1990
Amended Eff. March 1, 1996
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. December 20, 2015
Amended Eff. April 1, 2024.

18 NCAC 04 .0317 Authorization of Corrections on Documents {#sec-18-ncac-04-.0317 omnilex-key=us-nc-regs-official--title-18--18 NCAC 04 .0317}

A document that is submitted to the Business Registration Division for filing but rejected because it does not satisfy the requirements of Chapter 55, 55A, 57C, or 59 may be corrected by the examiner in charge of examining the document provided that the examiner is authorized by the person submitting the document to make the correction. Upon receiving such authorization, the examiner shall obtain and record by memorandum the following information:

(1) the name of the entity to which the document relates;

(2) the type of document;

(3) the name of the person authorizing the correction;

(4) the name of the person or entity represented by the person authorizing the correction;

(5) the instructions received by the examiner making the correction;

(6) the time, date, and manner of the authorization, including a telephone number by which the person authorizing the correction may be reached; and

(7) the name of the examiner making the correction.

The memorandum of authorization shall be retained by the Division with the original of the document so corrected. Upon request, a copy of the memorandum of authorization shall be furnished to any person desiring one.

History

Authority G.S. 55D-5; 55D-15; 57D-1-20; 57D-1-30; 59-206
Temporary Adoption Eff. November 10, 1995
Eff. March 1, 1996
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. December 20, 2015
Amended Eff. April 1, 2024.

18 NCAC 04 .0318 Authorization of Foreign Professional Corporations {#sec-18-ncac-04-.0318 omnilex-key=us-nc-regs-official--title-18--18 NCAC 04 .0318}

A foreign professional corporation (as defined in G.S. 55B-16(b)) shall submit with its application for a certificate of authority to transact business in this State a written certification by the applicant corporation to the effect that such corporation meets the definitional requirement of a "foreign professional corporation" as set forth in G.S. 55B-16(b).

History

Authority G.S. 55-1-30; 55B-3; 55B-16; 55D-5; 57D-2-02; 57D-7-03
Temporary Adoption Eff. November 10, 1995
Eff. March 1, 1996
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. December 20, 2015.

18 NCAC 04 .0401 Documents {#sec-18-ncac-04-.0401 omnilex-key=us-nc-regs-official--title-18--18 NCAC 04 .0401}

(a) Copies of documents filed with respect to a limited liability company may be certified as its articles of organization only if such copies begin chronologically with the articles of organization, the latest restated articles of organization, or the latest articles of amendment or articles of merger purporting to rewrite the articles of organization in their entity. If requested, the copies to be certified as the limited liability company's articles of organization shall include only such beginning document, all subsequent articles of amendment, and all subsequent articles of merger. If not otherwise requested, copies to be certified as the articles of organization shall begin chronologically with the latest restatement and shall include all subsequent documents on file.

(b) Copies of documents filed with respect to corporations subject to the provisions of Chapter 55 or Chapter 55A may be certified as the articles of incorporation of such corporation only if such copies begin chronologically with the articles of incorporation or other documents of incorporation, the latest restated articles of incorporation, or the latest articles of amendment or articles of merger purporting to rewrite the corporation's articles of incorporation in their entirety. If requested, the documents requested to be so certified shall include only such beginning document, all subsequent articles of amendment, and all subsequent articles of merger. If not otherwise requested, such documents to be certified shall begin chronologically with the latest restated or rewritten articles of incorporation and shall include all related documents subsequently filed.

(c) When certification of a certificate of limited partnership of a domestic limited partnership or a certificate of authority of a foreign limited partnership is requested, such certification shall include the original certificate of limited partnership or certificate of authority and all amendments or changes thereto.

History

Authority G.S. 55-1-30; 55-1-40(1); 55-10-07(e); 55A-1-30; 55A-1-40(1); 55A-10-06(f); 55D-5; 57D-1-30(2); 57D-2-23(d); 59-206
Eff. February 1, 1976
ARRC Objection Lodged June 21, 1990
Temporary Amendment Eff. July 1, 1990 For a Period of 180 Days to Expire on December 27, 1990
ARRC Objection Removed August 20, 1990
Amended Eff. March 1, 1996; February 1, 1991
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. December 20, 2015.

18 NCAC 04 .0402 Certification of Facts/Certificate of Existence/Authorization {#sec-18-ncac-04-.0402 omnilex-key=us-nc-regs-official--title-18--18 NCAC 04 .0402}

No certification of facts, certificate of existence, or certificate of authorization shall contain information relating to more than one corporation or limited liability company unless such information pertains to a merger to which such corporations or limited liability companies were parties.

History

Authority G.S. 55-1-28; 55A-1-28; 55D-5; 57D-1-24; 59-209
Eff. February 1, 1976
ARRC Objection Lodged June 21, 1990
Temporary Amendment Eff. July 1, 1990 For a Period of 180 Days to Expire on December 27, 1990
ARRC Objection Removed August 20, 1990
Amended Eff. March 1, 1996; February 1, 1991; September 1, 1988
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. December 20, 2015.

18 NCAC 04 .0501 General {#sec-18-ncac-04-.0501 omnilex-key=us-nc-regs-official--title-18--18 NCAC 04 .0501}

(a) The Secretary of State expressly reserves the right pursuant to G.S. 55-4-01, G.S. 55A-4-01, G.S. 55-15-06, G.S. 55A-15-06, G.S. 55D-20, G.S. 55D-21, G.S. 59-103, or any other applicable statute, to reject filing of any document conferring a corporate, limited liability company, or limited partnership name, if he determines that such name is contrary to law.

(b) When a corporation applies to the Secretary of State for authorization to use a name which is not distinguishable upon his records from a name used, reserved, or registered by another entity, and provides the consent of the other entity to such use, the undertaking required of the consenting entity shall consist of the consenting entity's amendment to the appropriate document filed with the division effecting a change of that entity's name to a name distinguishable on the records of the Secretary of State from the name sought to be used by the applying entity.

History

Authority G.S. 55D-5; 55D-20; 55D-21; 57D-2-21(a)(2); 57D-7-03(a)(1); 59-103
Eff. February 1, 1976
ARRC Objection Lodged June 21, 1990
Temporary Amendment Eff. July 1, 1990 For a Period of 180 Days to Expire on December 27, 1990
ARRC Objection Removed August 20, 1990
Amended Eff. March 1, 1996; February 1, 1991
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. December 20, 2015
Amended Eff. April 1, 2024.

18 NCAC 04 .0502 Words Prohibited in Addition to Statutory Prohibitions {#sec-18-ncac-04-.0502 omnilex-key=us-nc-regs-official--title-18--18 NCAC 04 .0502}

(a) The words "engineer" or "engineering" or their derivatives shall not be included in the corporate name for a corporation unless it is organized pursuant to G.S. Chapter 55B or, if it is a foreign corporation, unless it complies with G.S. 55B-16, provided that the words specified shall not be prohibited in any case where such words are modified by another word or words in such manner as to indicate activity other than the practice of engineering as defined in G.S. 89C-3(b).

(b) The words "surveyor", "survey", "surveying", or their derivatives shall not be included in the corporate name for a corporation unless it is organized pursuant to G.S. 55B or, if it is a foreign corporation, unless it complies with G.S. 55B-16, provided that the words specified shall not be prohibited in any case where such words are modified by another word or words in such manner as to indicate activity other than the practice of land surveying by registered land surveyors as defined in G.S. 89C-3(7).

(c) The words "architecture", "architectural", "architect", or their derivatives shall not be included in the corporate name for a corporation unless it is organized pursuant to G.S. 55B or, if it is a foreign corporation, unless it complies with G.S. 55B-16, provided that the words specified shall not be prohibited in any case where such words are modified by another word or words in such manner as to indicate activity other than the practice of architecture as defined in G.S. 83A-1(7) or landscape architecture as defined in G.S. 89A-1(c).

(d) The word "co-op" shall not be included in a corporate name in which the use of the word "cooperative" is prohibited by G.S. 54-139.

(e) When a document is submitted conferring a corporate name containing the word "wholesale," unless the purpose clause of the document indicates clearly that the corporation shall not engage in retail sales, the Corporations Attorney shall not file the articles unless he finds, pursuant to written assurance by the principals or their attorney, that the corporation shall comply with G.S. 75-29.

(f) The corporate name for a business corporation shall not contain the word "realtor."

(g) The corporate name for a business corporation shall not contain the word "insurance" followed directly by a corporate ending or the word "insurance" followed directly by a geographical designation and a corporate ending.

History

Authority G.S. 54-139; 55B-3; 55B-5; 55B-16; 55D-5; 55D-20; 55D-21; 57D-2-02; 57D-2-21; 57D-7-03; 59-103
Eff. February 1, 1976
ARRC Objection Lodged June 21, 1990
Temporary Amendment Eff. July 1, 1990 For a Period of 180 Days to Expire on December 27, 1990
ARRC Objection Removed August 20, 1990
Amended Eff. March 1, 1996; February 1, 1991; December 10, 1980
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. December 20, 2015.

18 NCAC 04 .0503 Deceptively Similar and Distinguishable Names {#sec-18-ncac-04-.0503 omnilex-key=us-nc-regs-official--title-18--18 NCAC 04 .0503}

(a) Designations of entities, such as "company", "co.", limited", "ltd.", "corporation", "corp.", "incorporated", "inc.", "professional association", "p.a.", "limited liability company", "L.L.C.", "professional limited liability company", and "limited partnership" shall be disregarded in determining if a proposed entity name is distinguishable upon the records of the Secretary of State, provided that such words appear at the end of the proposed entity name. Such words shall not be disregarded in such determination when they appear in the body, rather than at the ending, of the proposed entity name.

(b) Articles, conjunctions, prepositions, punctuation, spaces, and the substitution of an Arabic numeral for a word shall be disregarded in determining whether a proposed entity name is distinguishable upon the records of the Secretary of State or otherwise permissible for use in a proposed entity name.

History

Authority G.S. 55D-5; 55D-20; 55D-21; 55D-22; 57D-1-30; 57D-2-21(a)(2); 59-103
Eff. February 1, 1976
ARRC Objection Lodged June 21, 1990
Temporary Amendment Eff. July 1, 1990 For a Period of 180 Days to Expire on December 27, 1990
ARRC Objection Removed August 20, 1990
Amended Eff. March 1, 1996; February 1, 1991
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. December 20, 2015.

18 NCAC 04 .0504 Filing Fictitious or Assumed Name for Foreign Entity {#sec-18-ncac-04-.0504 omnilex-key=us-nc-regs-official--title-18--18 NCAC 04 .0504}

(a) A foreign corporation, limited liability company, or limited partnership whose name contains a word which is prohibited by statute or by Rule .0502 of this Chapter shall agree to use an assumed or fictitious name as a condition of the issuance of a certificate of authority to transact business in this State.

(b) A foreign entity which has been granted authority to transact business in this State, and which desires to add to or delete from a fictitious name or to adopt a fictitious name in order to avoid or remove a conflict over the use of a name, or which desires to change its assumed or fictitious name, shall file an application for an amended certificate of authority.

History

Authority G.S. 55-15-03; 55-15-04; 55A-15-03; 55A-15-04; 55D-5; 55D-21; 55D-22; 55D-24; 57D-7-03; 57D-7-03(a)(1); 57D-7-04; 59-103; 59-904; 59-905
Eff. February 1, 1976
ARRC Objection Lodged June 21, 1990
Temporary Amendment Eff. July 1, 1990 For a Period of 180 Days to Expire on December 27, 1990
ARRC Objection Removed August 20, 1990
Amended Eff. March 1, 1996; February 1, 1991
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. December 20, 2015.

Chapter 05 Uniform Commercial Code Division

Subchapter A

18 NCAC 05A .0101 Location and Hours {#sec-18-ncac-05a-.0101 omnilex-key=us-nc-regs-official--title-18--18 NCAC 05A .0101}

History

Status: repealed
Authority G.S. 25-9-401; 44-68.1
Eff. February 1, 1976
Amended Eff. March 1, 1996; September 1, 1988
Temporary Repeal Eff. July 2, 2001
Repealed Eff. August 1, 2002.

18 NCAC 05A .0102 Administration and Function {#sec-18-ncac-05a-.0102 omnilex-key=us-nc-regs-official--title-18--18 NCAC 05A .0102}

History

Status: repealed
Authority G.S. 25-9-401; 44-68.1
Eff. February 1, 1976
Amended Eff. March 1, 1996; September 1, 1988
Temporary Repeal Eff. July 2, 2001
Repealed Eff. August 1, 2002.

18 NCAC 05A .0201 Place of Filing {#sec-18-ncac-05a-.0201 omnilex-key=us-nc-regs-official--title-18--18 NCAC 05A .0201}

History

Status: repealed
Authority G.S. 25-9-402(9); .25-9-403; 25-9-403(5); 25-9-404; 25-9-405; 25-9-406; 25-6-407
147-37
Eff. February 1, 1976
Amended Eff. March 1, 1996; September 1, 1988; July 1, 1979
Temporary Repeal Eff. July 2, 2001
Repealed Eff. August 1, 2002.

18 NCAC 05A .0202 Contents of Documents Submitted for Filing {#sec-18-ncac-05a-.0202 omnilex-key=us-nc-regs-official--title-18--18 NCAC 05A .0202}

History

Status: repealed
Authority G.S. 25-9-402(9); .25-9-403; 25-9-403(5); 25-9-404; 25-9-405; 25-9-406; 25-6-407
147-37
Eff. February 1, 1976
Amended Eff. March 1, 1996; September 1, 1988; July 1, 1979
Temporary Repeal Eff. July 2, 2001
Repealed Eff. August 1, 2002.

18 NCAC 05A .0203 Forms {#sec-18-ncac-05a-.0203 omnilex-key=us-nc-regs-official--title-18--18 NCAC 05A .0203}

History

Status: repealed
Authority G.S. 25-9-402(9); .25-9-403; 25-9-403(5); 25-9-404; 25-9-405; 25-9-406; 25-6-407
147-37
Eff. February 1, 1976
Amended Eff. March 1, 1996; September 1, 1988; July 1, 1979
Temporary Repeal Eff. July 2, 2001
Repealed Eff. August 1, 2002.

18 NCAC 05A .0204 Fees {#sec-18-ncac-05a-.0204 omnilex-key=us-nc-regs-official--title-18--18 NCAC 05A .0204}

History

Status: repealed
Authority G.S. 25-9-402(9); .25-9-403; 25-9-403(5); 25-9-404; 25-9-405; 25-9-406; 25-6-407
147-37
Eff. February 1, 1976
Amended Eff. March 1, 1996; September 1, 1988; July 1, 1979
Temporary Repeal Eff. July 2, 2001
Repealed Eff. August 1, 2002.

18 NCAC 05A .0205 Continuations {#sec-18-ncac-05a-.0205 omnilex-key=us-nc-regs-official--title-18--18 NCAC 05A .0205}

History

Status: repealed
Authority G.S. 25-9-402(9); .25-9-403; 25-9-403(5); 25-9-404; 25-9-405; 25-9-406; 25-6-407
147-37
Eff. February 1, 1976
Amended Eff. March 1, 1996; September 1, 1988; July 1, 1979
Temporary Repeal Eff. July 2, 2001
Repealed Eff. August 1, 2002.

18 NCAC 05A .0206 Termination {#sec-18-ncac-05a-.0206 omnilex-key=us-nc-regs-official--title-18--18 NCAC 05A .0206}

History

Status: repealed
Authority G.S. 25-9-402(9); .25-9-403; 25-9-403(5); 25-9-404; 25-9-405; 25-9-406; 25-6-407
147-37
Eff. February 1, 1976
Amended Eff. March 1, 1996; September 1, 1988; July 1, 1979
Temporary Repeal Eff. July 2, 2001
Repealed Eff. August 1, 2002.

18 NCAC 05A .0207 Filing by Mail {#sec-18-ncac-05a-.0207 omnilex-key=us-nc-regs-official--title-18--18 NCAC 05A .0207}

History

Status: repealed
Authority G.S. 25-9-402(9); .25-9-403; 25-9-403(5); 25-9-404; 25-9-405; 25-9-406; 25-6-407
147-37
Eff. February 1, 1976
Amended Eff. March 1, 1996; September 1, 1988; July 1, 1979
Temporary Repeal Eff. July 2, 2001
Repealed Eff. August 1, 2002.

18 NCAC 05A .0208 Over the Counter Filings {#sec-18-ncac-05a-.0208 omnilex-key=us-nc-regs-official--title-18--18 NCAC 05A .0208}

History

Status: repealed
Authority G.S. 25-9-402(9); .25-9-403; 25-9-403(5); 25-9-404; 25-9-405; 25-9-406; 25-6-407
147-37
Eff. February 1, 1976
Amended Eff. March 1, 1996; September 1, 1988; July 1, 1979
Temporary Repeal Eff. July 2, 2001
Repealed Eff. August 1, 2002.

18 NCAC 05A .0209 Refunds {#sec-18-ncac-05a-.0209 omnilex-key=us-nc-regs-official--title-18--18 NCAC 05A .0209}

History

Status: repealed
Authority G.S. 25-9-402(9); .25-9-403; 25-9-403(5); 25-9-404; 25-9-405; 25-9-406; 25-6-407
147-37
Eff. February 1, 1976
Amended Eff. March 1, 1996; September 1, 1988; July 1, 1979
Temporary Repeal Eff. July 2, 2001
Repealed Eff. August 1, 2002.

18 NCAC 05A .0301 Request for Information by Mail {#sec-18-ncac-05a-.0301 omnilex-key=us-nc-regs-official--title-18--18 NCAC 05A .0301}

History

Status: repealed
Authority G.S. 25-9-407
Eff. February 1, 1976
Temporary Repeal Eff. July 2, 2001
Repealed Eff. August 1, 2002.

18 NCAC 05A .0302 Preparation of the Ucc-11 Form {#sec-18-ncac-05a-.0302 omnilex-key=us-nc-regs-official--title-18--18 NCAC 05A .0302}

History

Status: repealed
Authority G.S. 25-9-407
Eff. February 1, 1976
Temporary Repeal Eff. July 2, 2001
Repealed Eff. August 1, 2002.

18 NCAC 05A .0303 Contents of Certified Ucc-11 Form {#sec-18-ncac-05a-.0303 omnilex-key=us-nc-regs-official--title-18--18 NCAC 05A .0303}

History

Status: repealed
Authority G.S. 25-9-407
Eff. February 1, 1976
Temporary Repeal Eff. July 2, 2001
Repealed Eff. August 1, 2002.

18 NCAC 05A .0304 Over the Counter Searches {#sec-18-ncac-05a-.0304 omnilex-key=us-nc-regs-official--title-18--18 NCAC 05A .0304}

History

Status: repealed
Authority G.S. 25-9-407
Eff. February 1, 1976
Repealed Eff. March 1, 1996.

18 NCAC 05A .0305 Fees for Information from the Filing Officer {#sec-18-ncac-05a-.0305 omnilex-key=us-nc-regs-official--title-18--18 NCAC 05A .0305}

History

Status: repealed
Authority G.S. 25-9-407
Eff. February 1, 1976
Amended Eff. March 1, 1996
Temporary Repeal Eff. July 2, 2001
Repealed Eff. August 1, 2001.

18 NCAC 05A .0306 Telephone Searches {#sec-18-ncac-05a-.0306 omnilex-key=us-nc-regs-official--title-18--18 NCAC 05A .0306}

History

Status: repealed
Authority G.S. 25-9-407
Eff. February 1, 1976
Amended Eff. March 1, 1996
Temporary Repeal Eff. July 2, 2001
Repealed Eff. August 1, 2001.

18 NCAC 05A .0401 Filing of Federal Tax Liens {#sec-18-ncac-05a-.0401 omnilex-key=us-nc-regs-official--title-18--18 NCAC 05A .0401}

History

Status: repealed
Authority G.S. 44-68.3; 44-68.4
Eff. February 1, 1976
Temporary Repeal Eff. July 2, 2001
Repealed Eff. August 1, 2002.

18 NCAC 05A .0402 Information from the Filing Officer Regarding Tax Liens {#sec-18-ncac-05a-.0402 omnilex-key=us-nc-regs-official--title-18--18 NCAC 05A .0402}

History

Status: repealed
Authority G.S. 44-68.3; 44-68.4
Eff. February 1, 1976
Temporary Repeal Eff. July 2, 2001
Repealed Eff. August 1, 2002.

18 NCAC 05A .0403 Fees for Information Regarding Tax Liens {#sec-18-ncac-05a-.0403 omnilex-key=us-nc-regs-official--title-18--18 NCAC 05A .0403}

History

Status: repealed
Authority G.S. 44-68.3; 44-68.4
Eff. February 1, 1976
Temporary Repeal Eff. July 2, 2001
Repealed Eff. August 1, 2002.

18 NCAC 05A .0404 Telephone Request for Tax Liens {#sec-18-ncac-05a-.0404 omnilex-key=us-nc-regs-official--title-18--18 NCAC 05A .0404}

History

Status: repealed
Authority G.S. 44-68.3
Eff. February 1, 1976
Repealed Eff. March 1, 1996.

Subchapter B

18 NCAC 05B .0101 Scope {#sec-18-ncac-05b-.0101 omnilex-key=us-nc-regs-official--title-18--18 NCAC 05B .0101}

History

Status: expired
Authority G.S. 25-9-526; 143A-23
Temporary Adoption Eff. July 2, 2001
Temporary Adoption Expired Eff. March 29, 2002.

18 NCAC 05B .0102 Definitions {#sec-18-ncac-05b-.0102 omnilex-key=us-nc-regs-official--title-18--18 NCAC 05B .0102}

In addition to the definitions contained in G.S. 25-9-102, the following terms shall have the respective meanings and shall apply to the rules in this Subchapter:

(1) "Amendment" means a UCC record that amends the information contained in a financing statement. Amendments include assignments, continuations and terminations.

(2) "Assignment" is an amendment that assigns all or part of a secured party's power to authorize an amendment to a financing statement.

(3) "Business to Government (B2G)" relationship means business to government electronic communication and interaction which facilitates the transfer of XML files and documents between business and government, including, but not limited to, electronic filing and on-line searches.

(4) "Correction statement" means a UCC record that indicates that a financing statement is inaccurate or wrongfully filed.

(5) "E-filing account" means the account number a remitter shall be assigned upon subscribing to this method of payment

(6) "Filing office" and "filing officer" mean the Uniform Commercial Code (UCC) Section of the North Carolina Department of the Secretary of State.

(7) "Filing officer statement" means a statement entered into the filing office's information system to correct an error by the filing office.

(8) "FTP site" means the Department's repository that stores UCC filing record data and makes the raw data accessible to subscribers over the internet via file transfer protocol.

(9) "Individual" means a human being, or a decedent in the case of a debtor that is such decedent's estate.

(10) "Initial financing statement" means a UCC record containing the information required to be in an initial financing statement and that causes the filing office to establish the initial record of existence of a financing statement.

(11) "Organization" means a legal person who is not an individual.

(12) "Processing fee" means the fee remitted to the filing office for filing and indexing a UCC record.

(13) "Remitter" means a person who tenders a UCC record to the filing officer for filing, whether the person is a filer or an agent of a filer responsible for tendering the record for filing. "Remitter" does not include a person responsible merely for the delivery of the record to the filing office, such as the postal service or a courier service but does include a service provider who acts as a filer's representative in the filing process.

(14) "UCC" means the Uniform Commercial Code as adopted in North Carolina.

(15) "UCC record" means an initial financing statement, an amendment, an assignment, a continuation, a termination, a filing officer statement, or a correction statement and shall not be deemed to refer exclusively to paper or paper-based writings.

History

Authority G.S. 25-9-102; 25-9-526
Temporary Adoption Eff. July 2, 2001
Eff. August 1, 2002
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. November 12, 2014.

18 NCAC 05B .0103 Place of Filing, Time of Filing, and Methods of Delivery {#sec-18-ncac-05b-.0103 omnilex-key=us-nc-regs-official--title-18--18 NCAC 05B .0103}

(a) The filing party shall have the responsibility to determine if filing is necessary in the UCC Section. The UCC Section shall not give legal assistance to any individual to determine if filing is necessary.

(b) UCC records may be tendered for filing at the filing office as follows:

(1) Personal delivery at the filing office's street address: Old Revenue Building, 2 S. Salisbury Street, P.O. Box 29622, Raleigh, NC 27626-0622. Regular business hours: 8:00 a.m. – 5:00 p.m., Monday through Friday. The file time for a UCC record delivered by this method is when delivery of the UCC record is accepted by the filing office even though the UCC record may not yet have been accepted for filing and subsequently may be rejected.

(2) Courier delivery at the filing office's street address. The file time for a UCC record delivered by this method is, notwithstanding the time of the delivery, at the earlier of the time the UCC record is first examined by a filing officer for processing even though the UCC record may not yet have been accepted for filing and may be subsequently rejected. A UCC record delivered after regular business hours or on a day the filing office is not open for business will shall have a filing time of the close of business on the next day the filing office is open for business.

(3) Postal service delivery, to the filing office's mailing address. The file time for a UCC record delivered by this method is the next close of business following the time of delivery even though the UCC record may not yet have been accepted for filing and may be subsequently rejected. A UCC record delivered after regular business hours or on a day the filing office is not open for business shall have a filing time of the close of business on the next day the filing office is open for business.

(4) Electronic filing: UCC filings, excluding correction statements and filing officer statements, may be transmitted through web site submission, using the current XML standard approved by the International Association of Corporate Administrators. Documentation for the current standard can be obtained at www.sosnc.com/ucc. The file time for a UCC record delivered by this method is the time that the filing office's E-filing system analyzes the relevant transmission and determines that all the required elements of the transmission have been received in a required format and are machine-readable. An E-filing account number shall be assigned to the remitter prior to electronic filings.

(c) UCC search requests shall be delivered to the filing office by any of the means by which UCC records may be delivered to the filing office. Requirements concerning search requests are set forth in Section .0500 of this Subchapter. An Information Request Form shall be used to request a search.

(d) In addition to contacting the Section at the address provided in Subparagraph (c)(1) of this Rule, information may be obtained from the filing office in the following ways:

(1) On-line information service: The filing officer offers on-line information services at www.sosnc.com/ucc.

(2) Electronic Mail: For basic information the UCC Section may be contacted by email at uccmail@sosnc.com. Electronic mail shall not be used for filing UCC records or for requesting searches of the records of financing statements.

(3) Telephone Number: The telephone number of the Section is 919-814-5400.

(4) Fax Number: The fax number of the Section is 919-814-5597.

History

Authority G.S. 25-9-501; 25-9-523; 25-9-526
Temporary Adoption Eff. July 2, 2001
Eff. August 1, 2002
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. November 12, 2014
Amended Eff. February 1, 2021.

18 NCAC 05B .0104 Contents of Records Submitted for Filing {#sec-18-ncac-05b-.0104 omnilex-key=us-nc-regs-official--title-18--18 NCAC 05B .0104}

The filing office shall not be responsible for the sufficiency of the contents of any record submitted for filing. The filing party shall be responsible for seeing that the record meets all of the statutory requirements for a sufficient financing statement. The fact that a record has been accepted for filing shall not indicate that the record is sufficient as a financing statement.

History

Authority G.S. 25-9-516; 25-9-526
Temporary Adoption Eff. July 2, 2001
Eff. August 1, 2002
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. November 12, 2014.

18 NCAC 05B .0105 Approved Forms {#sec-18-ncac-05b-.0105 omnilex-key=us-nc-regs-official--title-18--18 NCAC 05B .0105}

UCC forms may be obtained at the Department's web page at https://www.sosnc.gov.

History

Authority G.S. 25-9-521; 25-9-526
Temporary Adoption Eff. July 2, 2001
Eff. August 1, 2002
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. November 12, 2014
Amended Eff. October 1, 2019.

18 NCAC 05B .0106 Processing Fees and Methods of Payment {#sec-18-ncac-05b-.0106 omnilex-key=us-nc-regs-official--title-18--18 NCAC 05B .0106}

(a) A list of processing fees required by G.S. 25-9-525 and G.S. 147-37 is available upon request.

(b) Processing fees for public records services may be paid by the following methods:

(1) Cash. Payment in cash shall be accepted if paid in person at the filing office.

(2) Checks. Personal checks, cashier's checks and money orders made payable to the NC Department of the Secretary of State shall be accepted for payment.

(3) Electronic funds transfer. E-filing accounts shall be established through an agreement between the filing office and the remitter. Payments shall be made through an automated contract. The filing officer shall deduct processing fees from the remitter's prepaid account when authorized to do so when the remitter files a UCC record with the remitter's E-filing account number.

(4) Prepaid account. A remitter shall open an E-filing account for prepayment of fees by submitting an application prescribed by the filing officer and prepaying an amount not less than five hundred dollars ($500.00), the balance of which shall not fall below thirty dollars ($30.00). The filing officer shall issue an E-filing account number to be used by a remitter who chooses to pay processing fees by this method. The filing officer shall deduct processing fees from the remitter's prepaid account when authorized to do so when the remitter files a UCC record with the remitter's E-filing account number.

(1) Upon receipt of a record without a processing fee, the filing officer shall reject the record.

(2) In the case of bulk filings which have 50 or more records, and the remitter presents records to be filed with a deficient processing fee, a notice of the deficiency shall be sent to the remitter and the records shall be held for a period of 10 business days from the date of the notice for receipt of the fee. Upon receipt of the fee, the documents shall be filed as of the time and date of receipt of the full processing fee. If the fee is not received within 10 business days of the date of the notice, the document shall be returned to the remitter with a written explanation for the refusal to accept the document(s). Processing fees shall not be refundable.

(3) If the remitter presents a UCC record that contains a filing and a search request on the same form with an insufficient fee, the filing officer shall accept the record presented for filing if the fee is enough to cover the filing and reject the search request if the balance of the fee is insufficient to cover the search.

History

Authority G.S. 25-9-525; 25-9-526; 147-37
Temporary Adoption Eff. July 2, 2001
Eff. August 1, 2002
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. November 12, 2014.

18 NCAC 05B .0107 Public Records Services {#sec-18-ncac-05b-.0107 omnilex-key=us-nc-regs-official--title-18--18 NCAC 05B .0107}

(a) The following methods shall be available for obtaining copies of UCC records and copies of data from the UCC information management system:

(1) Copies of individually identified records shall be available in the following forms:

(A) "B2G" Relationship by subscription;

(B) Paper; and

(2) Bulk copies of records of UCC records shall be available in the following forms:

(A) FTP site by subscription; and

(B) Web-based access.

(b) A list of available data elements from the UCC information management system, and the file layout of the data elements, shall be available from the filing officer upon request. Data from the information management system shall be available as follows:

(1) Full Extracts. Bulk data extracts of information from the UCC information management system shall be available on a weekly basis.

(2) Format. Extracts from the UCC information management system shall be available in the following formats:

(A) FTP site by subscription. ASCII Text delimited with tabs between data elements and carriage returns at end of each record. One table per file. The current data layouts shall be on the FTP site;

(B) "B2B Relationship" by subscription; and

(3) Images of records shall be available by subscription by contacting the filing officer.

History

Authority G.S. 25-9-523(d); 25-9-526
Temporary Adoption Eff. July 2, 2001
Eff. August 1, 2002
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. November 12, 2014.

18 NCAC 05B .0108 Fees for Public Records Services {#sec-18-ncac-05b-.0108 omnilex-key=us-nc-regs-official--title-18--18 NCAC 05B .0108}

Fees for public records services shall be established as follows:

(1) Paper copies of individual records shall be two dollars ($2.00) per page.

(2) Reserved.

(3) Bulk Copies of records.

(a) Reserved.

(b) Reserved.

History

Authority G.S. 25-9-523; 25-9-526
Temporary Adoption Eff. July 2, 2001
Eff. August 1, 2002
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. November 12, 2014.

18 NCAC 05B .0201 Role of Filing Officer {#sec-18-ncac-05b-.0201 omnilex-key=us-nc-regs-official--title-18--18 NCAC 05B .0201}

The duties and responsibilities of the filing officer with respect to the administration of the UCC are ministerial. In accepting for filing or refusing to file a UCC record pursuant to the rules in this Subchapter, the filing officer shall do none of the following:

(1) Determine the legal sufficiency or insufficiency of a record;

(2) Determine that a security interest in collateral exists or does not exist;

(3) Determine that information in the record is correct or incorrect, in whole or in part; and

(4) Create a presumption that information in the record is correct or incorrect, in whole or in part.

History

Authority G.S. 25-9-516; 25-9-526
Temporary Adoption Eff. July 2, 2001
Eff. August 1, 2002
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. November 12, 2014.

18 NCAC 05B .0202 Grounds for Refusal of Ucc Document {#sec-18-ncac-05b-.0202 omnilex-key=us-nc-regs-official--title-18--18 NCAC 05B .0202}

(a) As used in this Rule, the term "legible" is not limited to refer only to written expressions on paper: it requires a machine-readable transmission for electronic transmissions and an otherwise readily decipherable transmission in other cases.

(b) Debtor name and address. An initial financing statement or an amendment that purports to add a debtor shall be refused if the document fails to include a legible debtor name and address for a debtor, in the case of an initial financing statement, or for the debtor purporting to be added in the case of such an amendment. If the document contains more than one debtor name or address and some names or addresses are missing or illegible, the filing officer shall index the legible name and address pairings, and provide a notice to the remitter containing the file number of the document identification of the debtor name(s) that was (were) indexed, and a statement that debtors with illegible or missing names or addresses were not indexed.

(c) Additional debtor identification. An initial financing statement or an amendment adding one or more debtors shall be refused if the document fails to identify whether each named debtor (or each added debtor in the case of such an amendment) is an individual (personal name) or an organization (commercial name), if the last name of each individual debtor is not identified, or if, for each debtor identified as an organization, the document does not include in legible form the organization's type, state of organization and organization number, or the SOS ID number in North Carolina, or a statement that it does not have one.

(d) Secured party name and address. An initial financing statement, an amendment purporting to add a secured party of record, or an assignment, shall be refused if the document fails to include a legible secured party (or assignee in the case of an assignment) name and address. If the document contains more than one secured party (or assignee) name or address and some names or addresses are missing or illegible, the filing officer shall refuse the UCC document.

(e) Lack of identification of initial financing statement. A UCC document other than an initial financing statement shall be refused if the document does not provide a file number of a financing statement in the UCC information management system that has not lapsed.

(f) Identifying information. A UCC document that does not identify itself as an amendment or identify an initial financing statement to which it relates, as required by G.S. 25-9-512(1), 25-9-514(b), or 25-9-518(b)(1), is an initial financing statement.

(g) Timeliness of continuation. A continuation shall be refused if it is not received during the six-month period concluding on the day upon which the related financing statement would lapse.

(1) First day permitted. The first day on which a continuation may be filed is the date of the month corresponding to the date upon which the financing statement would lapse, six months preceding the month in which the financing statement would lapse. If there is no such corresponding date during the sixth month preceding the month in which the financing statement would lapse, the first day on which a continuation may be filed is the last day of the sixth month preceding the month in which the financing statement would lapse, although filing by certain means may not be possible on such date if the filing office is not open on such date.

(2) Last day permitted. The last day on which a continuation may be filed is the date upon which the financing statement lapses.

History

Authority G.S. 25-9-515; 25-9-516; 25-9-520(a); 25-9-526
Temporary Adoption Eff. July 2, 2001
Eff. August 1, 2002
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. November 12, 2014.

18 NCAC 05B .0203 Procedure Upon Refusal {#sec-18-ncac-05b-.0203 omnilex-key=us-nc-regs-official--title-18--18 NCAC 05B .0203}

If the filing officer finds grounds to refuse acceptance of a UCC record, the filing officer shall comply with G.S. 25-9-520. All filing and indexing fees are nonrefundable.

History

Authority G.S. 25-9-520; 25-9-526
Temporary Adoption Eff. July 2, 2001
Eff. August 1, 2002
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. November 12, 2014.

18 NCAC 05B .0204 Notification of Defects {#sec-18-ncac-05b-.0204 omnilex-key=us-nc-regs-official--title-18--18 NCAC 05B .0204}

A filing officer from communicating to a filer or a remitter that the filing officer noticed apparent potential defects in a UCC record, whether or not it was filed or refused for filing. However, the filing office is under no obligation to do so. The responsibility for the legal effectiveness of filing rests with filers and remitters and the filing office bears no responsibility for such effectiveness.

History

Authority G.S. 25-9-520; 25-9-526(b)
Temporary Adoption Eff. July 2, 2001
Eff. August 1, 2002
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. November 12, 2014.

18 NCAC 05B .0205 Refusal Errors {#sec-18-ncac-05b-.0205 omnilex-key=us-nc-regs-official--title-18--18 NCAC 05B .0205}

If a secured party or a remitter demonstrates to the satisfaction of the filing officer that a UCC record that was refused for filing should not have been, the filing officer shall file the UCC record as provided in the rules in this Subchapter with a filing date and time assigned when such filing occurs. The filing officer shall also file a filing officer statement that states the effective date and time of filing which shall be the date and time the UCC record was originally tendered for filing.

History

Authority G.S. 25-9-516; 25-9-518; 25-9-526(b)
Temporary Adoption Eff. July 2, 2001
Eff. August 1, 2002
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. November 12, 2014.

18 NCAC 05B .0206 Filing Officer Errors {#sec-18-ncac-05b-.0206 omnilex-key=us-nc-regs-official--title-18--18 NCAC 05B .0206}

The filing office may correct the errors of the filing officer personnel in the UCC information management system at any time. If the correction occurs after the filing officer has issued a certification date, the filing officer shall file a filing officer statement in the UCC information management system identifying the record to which it relates, the date of the correction, and explaining the nature of the corrective action taken. The record shall be preserved as long as the record of the initial financing statement is preserved in the UCC information management system.

History

Authority G.S. 25-9-516; 25-9-517; 25-9-518; 25-9-526
Temporary Adoption Eff. July 2, 2001
Eff. August 1, 2002
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. November 12, 2014.

18 NCAC 05B .0207 Notice of Bankruptcy {#sec-18-ncac-05b-.0207 omnilex-key=us-nc-regs-official--title-18--18 NCAC 05B .0207}

The filing officer shall take no action upon receipt of a notification, formal or informal, of a bankruptcy proceeding involving a debtor named in the UCC information management system.

History

Authority G.S. 25-9-522; 25-9-526
Temporary Adoption Eff. July 2, 2001
Eff. August 1, 2002
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. November 12, 2014.

18 NCAC 05B .0301 Policy Statement {#sec-18-ncac-05b-.0301 omnilex-key=us-nc-regs-official--title-18--18 NCAC 05B .0301}

The filing officer shall use an information management system to store, index, and retrieve information relating to financing statements. The information management system shall include an index of the names of debtors named on financing statements that have not lapsed. The rules in this Section describe the UCC information management system.

History

Authority G.S. 25-9-526(b)(3)
Temporary Adoption Eff. July 2, 2001
Eff. August 1, 2002
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. November 12, 2014.

18 NCAC 05B .0302 Primary Data Elements {#sec-18-ncac-05b-.0302 omnilex-key=us-nc-regs-official--title-18--18 NCAC 05B .0302}

The primary data elements used in the UCC information management system are the following:

(1) Identification numbers.

(a) Each initial financing statement shall be identified by its file number as described in G.S. 25-9-519(b). Identification of the initial financing statement shall be stamped on written UCC records or otherwise permanently associated with the record maintained for UCC records in the UCC information management system. A record shall be created in the information management system for each initial financing statement and all information comprising such record shall be maintained in such system. Such record shall be identified by the same information assigned to the initial financing statement.

(b) A UCC record other than an initial financing statement shall be identified by a unique filing number assigned by the filing officer. In the information management system, records of all UCC records other than initial financing statements shall be linked to the record of their related initial financing statement.

(2) Type of record. The type of UCC record from which data is transferred shall be identified in the information management system from information supplied by the remitter.

(3) Filing date and filing time. The filing date and filing time of UCC records shall be stored in the information management system. Calculation of the lapse date of an initial financing statement shall be based upon the filing date.

(4) Identification of parties. The names and addresses of debtors and secured parties shall be transferred from UCC records to the UCC information management system using one or more data entry or transmittal techniques.

(5) Status of financing statement. In the information management system, each financing statement shall have a status of active or inactive.

(6) Page count. The total number of pages in a UCC record shall be maintained in the information management system.

(7) Lapse indicator. An indicator is maintained by which the information management system identifies whether or not a financing statement shall lapse and, if it does, when it lapses. The lapse date determined as provided in Rule .0405(c) of this Subchapter.

History

Authority G.S. 25-9-519(b); 25-9-526(b)(3)
Temporary Adoption Eff. July 2, 2001
Eff. August 1, 2002
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. November 12, 2014.

18 NCAC 05B .0303 Initial Financing Statement {#sec-18-ncac-05b-.0303 omnilex-key=us-nc-regs-official--title-18--18 NCAC 05B .0303}

Upon the filing of an initial financing statement the status of the parties and the status of the financing statement shall be as follows:

(1) Status of secured party. Each secured party named on an initial financing statement shall be a secured party of record, except that if the UCC record names an assignee, the secured party/assignor shall not be a secured party of record and the secured party/assignee shall be a secured party of record.

(2) Status of debtor. The status of a debtor named on the record shall be active and shall continue as active until one year after the financing statement lapses.

(3) Status of financing statement. The status of the financing statement shall be active. A lapse date shall be calculated, five years from the file date, unless the initial financing statement indicates that it is filed with respect to a public-financing transaction or a manufactured - home transaction, in which case the lapse date shall be 30 years from the file date, or if the initial financing statement indicates that it is filed against a transmitting utility, in which case there shall be no lapse date. A financing statement shall remains active until one year after it lapses, or if it is indicated to be filed against a transmitting utility, until one year after it is terminated with respect to all secured parties of record.

History

Authority G. S. 25-9-511(a); 25-9-514; 25-9-515; 25-9-519(g); 25-9-526
Temporary Adoption Eff. July 2, 2001
Eff. August 1, 2002
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. November 12, 2014.

18 NCAC 05B .0304 Amendment {#sec-18-ncac-05b-.0304 omnilex-key=us-nc-regs-official--title-18--18 NCAC 05B .0304}

The filing office shall act on any UCC record filed with the filing office by adding information obtained from the UCC record to the information system. The filing office shall not act on any UCC record by deleting any information from the information system. An amendment shall have no effect upon the status of the financing statement or parties, except that a continuation may extend the period of effectiveness of a financing statement. The filing office may remove the UCC record and delete the names under which it was indexed one year after lapse. A financing statement filed against a transmitting utility shall lapse when terminated by the last secured party of record.

Upon the filing of an amendment the status of the parties and the status of the financing statement shall be as follows:

(1) Status of secured party and debtor. An amendment shall affect the status of its debtor(s) and secured party(ies) as follows:

(a) Collateral amendment or address change. An amendment that amends only the collateral description or one or more addresses has no effect upon the status of any debtor or secured party. If a statement of amendment is authorized by less than all of the secured parties (or, in the case of an amendment that adds collateral, less than all of the debtors), the statement affects only the interests of each authorizing secured party (or debtor).

(b) Debtor name change. An amendment that changes a debtor's name has no effect on the status of any debtor or secured party, except that the related initial financing statement and all UCC records that include an identification of such initial financing statement shall be cross-indexed in the UCC information management system so that a search under either the debtor's old name or the debtor's new name shall reveal such initial financing statement and such related UCC records. Such a statement of amendment affects only the rights of its authorizing secured party(ies).

(c) Secured party name change. An amendment that changes the name of a secured party has no effect on the status of any debtor or any secured party, but the new name is added to the index as if it were a new secured party of record.

(d) Addition of a debtor. An amendment that adds a new debtor name has no effect upon the status of any party to the financing statement, except the new debtor name shall be added as a new debtor on the financing statement. The addition shall affect only the rights of the secured party(ies) authorizing the statement of amendment.

(e) Addition of a secured party. An amendment that adds a new secured party shall not affect the status of any party to the financing statement, except that the new secured party name shall be added as a new secured party on the financing statement.

(f) Deletion of a debtor. An amendment that deletes a debtor has no effect on the status of any party to the financing statement, even if the amendment purports to delete all debtors.

(g) Deletion of a secured party. An amendment that deletes a secured party of record has no effect on the status of any party to the financing statement, even if the amendment purports to delete all secured parties of record.

(2) Status of financing statement. An amendment shall have no effect upon the status of the financing statement, except that a continuation may extend the period of effectiveness of a financing statement.

History

Authority G.S. 25-9-512; 25-9-526
Temporary Adoption Eff. July 2, 2001
Eff. August 1, 2002
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. November 12, 2014.

18 NCAC 05B .0305 Assignment of Powers of Secured Party of Record {#sec-18-ncac-05b-.0305 omnilex-key=us-nc-regs-official--title-18--18 NCAC 05B .0305}

(a) An assignment shall have no effect on the status of the parties to the financing statement, except that each assignee named in the assignment shall become a secured party of record.

(b) An assignment shall have no effect upon the status of the financing statement.

History

Authority G.S.25-9-514; 25-9-526
Temporary Adoption Eff. July 2, 2001
Eff. August 1, 2002
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. November 12, 2014.

18 NCAC 05B .0306 Continuation {#sec-18-ncac-05b-.0306 omnilex-key=us-nc-regs-official--title-18--18 NCAC 05B .0306}

(a) Upon the timely filing of one or more continuations by any secured party(ies) of record, the lapse date of the financing statement shall be postponed for five years.

(b) The filing of a continuation shall have no effect upon the status of any party to the financing statement.

History

Authority G.S. 25-9-515(e); 25-9-526
Temporary Adoption Eff. July 2, 2001
Eff. August 1, 2002
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. November 12, 2014.

18 NCAC 05B .0307 Termination {#sec-18-ncac-05b-.0307 omnilex-key=us-nc-regs-official--title-18--18 NCAC 05B .0307}

(a) The filing of a termination shall have no effect upon the status of any party to the financing statement.

(b) A termination shall have no effect upon the status of the financing statement and the financing statement shall remain active in the information management system until one year after it lapses, unless the termination relates to a financing statement that indicates it is filed against a transmitting utility, in which case the financing statement shall become inactive one year after it is terminated with respect to all secured parties of record.

History

Authority G.S. 25-9-513; 25-9-526
Temporary Adoption Eff. July 2, 2001
Eff. August 1, 2002
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. November 12, 2014.

18 NCAC 05B .0308 Correction Statement {#sec-18-ncac-05b-.0308 omnilex-key=us-nc-regs-official--title-18--18 NCAC 05B .0308}

The filing of a correction statement shall have no effect upon the status of the financing statement or any party to the financing statement.

History

Authority G.S. 25-9-518; 25-9-526
Temporary Adoption Eff. July 2, 2001
Eff. August 1, 2002
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. November 12, 2014.

18 NCAC 05B .0309 Procedure Upon Lapse {#sec-18-ncac-05b-.0309 omnilex-key=us-nc-regs-official--title-18--18 NCAC 05B .0309}

If there is no timely filing of a continuation with respect to a financing statement, the financing statement shall lapse on its lapse date but no action shall be taken by the filing office. On the first anniversary of such lapse date, the information management systems shall render or shall cause to render the financing statement inactive and the financing statement shall no longer be made available to a searcher unless inactive statements are requested by the searcher and the financing statement is still retrievable by the information management system.

History

Authority G.S. 25-9-515(c); 25-9-526
Temporary Adoption Eff. July 2, 2001
Eff. August 1, 2002
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. November 12, 2014.

18 NCAC 05B .0310 Iaca Standard Adopted {#sec-18-ncac-05b-.0310 omnilex-key=us-nc-regs-official--title-18--18 NCAC 05B .0310}

The XML Format as adopted by the International Association of Corporate Administrators shall be adopted in North Carolina for electronic transmission of UCC records. An E-filing account shall be created before submitting an XML filing. The electronic filing shall pass verification to the DTD (Document Type Definition). Failure to pass this verification shall result in rejection of the record pursuant to G.S. 25-9-516(b)(1).

History

Authority G.S. 25-9-526(b); 25-9-516(b)(1)
Temporary Adoption Eff. July 2, 2001
Eff. August 1, 2002
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. November 12, 2014.

18 NCAC 05B .0311 Implementation Guide {#sec-18-ncac-05b-.0311 omnilex-key=us-nc-regs-official--title-18--18 NCAC 05B .0311}

The filing office shall publish an implementation guide that prescribes the use of the XML Format. The guide shall be available on the Department's web site and to the public upon request.

History

Authority G. S. 25-9-526(b)
Temporary Adoption Eff. July 2, 2001
Eff. August 1, 2002
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. November 12, 2014.

18 NCAC 05B .0312 Direct on-Line Data Entry Procedures {#sec-18-ncac-05b-.0312 omnilex-key=us-nc-regs-official--title-18--18 NCAC 05B .0312}

Upon application and approval of an E-filing account, the remitter shall receive direct on-line data entry procedures to file UCC records on-line. Persons interested in filing records in this manner shall contact the Department at the addresses listed in Rule .0102 of this Subchapter.

History

Authority G.S. 25-9-526
Temporary Adoption Eff. July 2, 2001
Eff. August 1, 2002
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. November 12, 2014.

18 NCAC 05B .0401 Policy Statement {#sec-18-ncac-05b-.0401 omnilex-key=us-nc-regs-official--title-18--18 NCAC 05B .0401}

This Section contains rules describing the indexing and filing procedures of the filing officer upon and after receipt of a UCC document. The filing officer shall promptly file a document that conforms to the rules in this Section. Except as provided in this Section, data shall be transferred from a UCC document to the information management system exactly as the data are set forth in the document. Personnel who create reports in response to search requests shall enter search criteria exactly as set forth on the search request. No effort shall be made to detect or correct errors of any kind that are made by the filer.

History

Authority G.S. 25-9-519; 25-9-526
Temporary Adoption Eff. July 2, 2001
Eff. August 1, 2002
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. November 12, 2014.

18 NCAC 05B .0402 Minimum Standards for Indexing and Filing Ucc Records {#sec-18-ncac-05b-.0402 omnilex-key=us-nc-regs-official--title-18--18 NCAC 05B .0402}

History

Status: expired
Authority G.S. 25-9-526
Temporary Adoption Eff. July 2, 2001
Temporary Adoption Expired Eff. March 29, 2002.

18 NCAC 05B .0403 Document Filing, Review, and Acknowledgment {#sec-18-ncac-05b-.0403 omnilex-key=us-nc-regs-official--title-18--18 NCAC 05B .0403}

(a) Date and time stamp. The date and time of receipt shall be noted on the document or otherwise permanently associated with the record maintained for a UCC document in the UCC information management system at the earliest possible time.

(b) Document review. The filing office shall determine whether a ground exists to refuse the document under Section .0200 of this Subchapter.

(1) File stamp. If there is no ground for refusal of the document, the document shall be stamped or deemed filed and a unique identification number and the filing date shall be stamped on the document or permanently associated with the record of the document maintained in the UCC information management system. The sequence of the identification number shall not be an indication of the order in which the document was received.

(2) Correspondence. If there is a ground for refusal of the document, notification of refusal to accept the document shall be prepared as provided in Section .0200 of this Subchapter. If there is no ground for refusal of the document, an acknowledgment of filing shall be prepared to send to the person who has requested the acknowledgment. If the person who requests the acknowledgment desires an electronic acknowledgment, he shall provide an email address to the filing officer. If the UCC document was tendered in person, notice of the refusal or acknowledgment of the filing shall be given to the remitter by personal delivery if possible. If the UCC document was tendered by E-filing, the acknowledgment shall be in the form of an XML document attached to an email and shall be electronically transmitted to the remitter.

History

Authority G.S. 25-9-519; 25-9-526
Temporary Adoption Eff. July 2, 2001
Eff. August 1, 2002
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. November 12, 2014.

18 NCAC 05B .0404 Entry of Individual and Organizational Names {#sec-18-ncac-05b-.0404 omnilex-key=us-nc-regs-official--title-18--18 NCAC 05B .0404}

(a) This Rule sets forth basic indexing procedures for UCC documents and subsequently provides index retrieval information to persons who search the indexes for UCC data in the information management system.

(b) The names of debtors and secured parties who are "individuals" (human beings, or decedents in the case of a debtor that is such decedent's estate) shall be stored in files that include only the names of individuals, and not the names of organizations. Separate data entry fields shall be established for first (given), middle (given), and last names (surnames) of individuals. A filer shall place the name of a debtor with a single name (e.g., "Cher") in the last name field on the UCC form. The filing officer shall not be responsible for the accurate designation of the components of a name but shall accurately enter the data in accordance with the filer's designations.

(c) The names of debtors and secured parties that are organizations shall be stored in files that include only the names of organization and not the names of individuals. A single field shall be used to store an organization name.

(d) If a trust is named in its organic document(s), its full legal name, as set forth in such document(s), shall be used. Such trusts shall be treated as organizations. If the trust is not so named, the name of the settlor shall be used. If a settlor is indicated to be an organization, the name shall be treated as an organization name. If the settlor is an individual, the name shall be treated as an individual name. A UCC document that uses a settlor's name shall include other information provided by the filer to distinguish the debtor trust from other trusts having the same settlor and all financing statements filed against trusts or trustees acting with respect to property held in trust shall indicate the nature of the debtor. If this is done in, or as part of, the name of the debtor, it shall be entered as if it were part of the name under Rule .0407 of this Section.

History

Authority G.S. 25-9-519; 25-9-526
Temporary Adoption Eff. July 2, 2001
Eff. August 1, 2002
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. November 12, 2014.

18 NCAC 05B .0405 Filing Dates and Lapse Calculations {#sec-18-ncac-05b-.0405 omnilex-key=us-nc-regs-official--title-18--18 NCAC 05B .0405}

(a) The filing date of a UCC document shall be the date the UCC document is received with the proper processing fee if the filing office is open to the public on that date or, if the filing office not so open on the date, the filing date is the next date the filing office is so open, except that, in each case, UCC documents received after 5:00 p.m. shall be deemed received on the following day. The filing officer shall perform any duty relating to the document on the filing date or on a date after filing date.

(b) The filing time of a UCC document shall be determined as provided in Rule .0103 of this Subchapter.

(c) A lapse date shall be calculated for each initial financing statement (unless the debtor is indicated to be a transmitting utility as provided in Rule .0303 of this Subchapter). The lapse date shall be the same date of the same month as the filing date in the fifth year after the filing date or relevant subsequent fifth anniversary thereof if a timely continuation statement is filed, but if the initial financing statement indicates that it is filed with respect to a public-finance transaction or a manufactured-home transaction, the lapse date shall be the same date of the same month as the filing date in the thirtieth year after the filing date. The lapse shall take effect at midnight at the end of the lapse date. The relevant anniversary for a February 29 filing date shall be March 1 in the fifth year following the year of the filing date.

History

Authority G.S. 25-9-515; 25-9-519; 25-9-526
Temporary Adoption Eff. July 2, 2001
Eff. August 1, 2002
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. November 12, 2014.

18 NCAC 05B .0406 Filing Errors {#sec-18-ncac-05b-.0406 omnilex-key=us-nc-regs-official--title-18--18 NCAC 05B .0406}

(a) The filing office may correct the errors of the filing officer personnel in the UCC information management system at any time. If the correction occurs after the filing officer has issued a certification date, the filing officer shall file an administrative action statement in the UCC information management system identifying the record to which it relates, the date of the correction and explaining the nature of the corrective action taken. The record shall be preserved as long as the record of the initial financing statement is preserved in the UCC information management system.

(b) An error by a filer is the responsibility of such filer. It may be corrected by filing an amendment or a correction statement may disclose it.

History

Authority G.S. 25-9-517; 25-9-518; 25-9-526
Temporary Adoption Eff. July 2, 2001
Eff. August 1, 2002
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. November 12, 2014.

18 NCAC 05B .0407 Designated Name Fields {#sec-18-ncac-05b-.0407 omnilex-key=us-nc-regs-official--title-18--18 NCAC 05B .0407}

A filing shall designate whether a name is a name of an individual or an organization and, if an individual also designates the first, middle and last names and any suffix. When this is done, the following rules shall apply:

(1) Organization names. Organization names shall be entered into the UCC information system exactly as set forth in the UCC document, even if it appears that multiple names are set forth in the document or if it appears that the name of an individual has been included in the field designated for an organization name.

(2) Individual names. On a form that designates separate fields for first, middle, and last name and suffix, the filing office shall enter the names into the first, middle, and last name and suffix fields in the UCC information management system exactly as set forth on the form.

(3) The filing office shall use only those forms that designate separate fields for individual and organization names and separate fields for first, middle, and last names and suffix. Such forms shall reduce the possibility of filing office error and help assure that filers' expectations are met.

History

Authority G.S. 25-9-519; 25-9-526
Temporary Adoption Eff. July 2, 2001
Eff. August 1, 2002
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. November 12, 2014.

18 NCAC 05B .0408 Verification of Data Entry {#sec-18-ncac-05b-.0408 omnilex-key=us-nc-regs-official--title-18--18 NCAC 05B .0408}

The filing officer shall use visual verification to verify the accuracy of data entry tasks.

History

Authority G.S. 25-9-519; 25-9-526
Temporary Adoption Eff. July 2, 2001
Eff. August 1, 2002
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. November 12, 2014.

18 NCAC 05B .0409 Creation of New Records {#sec-18-ncac-05b-.0409 omnilex-key=us-nc-regs-official--title-18--18 NCAC 05B .0409}

(a) Initial financing statement. A new record shall be opened in the UCC information management system for each initial financing statement that bears the file number of the financing statement and the date and time filing.

(1) The name and address of each debtor that are legibly set forth in the financing statement shall be entered into the record of the financing statement. Each such debtor name shall be included in the searchable index and shall not be removed until one year after the financing statement lapses. Debtor addresses shall be included in the searchable index.

(2) The name and address of each secured party that are legibly set forth in the financing statement shall be entered into the record of the financing statement.

(3) The record shall be indexed according to the name of the debtor(s) and shall be maintained for public inspection.

(4) A lapse date shall be established for the financing statement, unless the initial financing statement indicates it is filed against a transmitting utility, and the lapse date shall be maintained as part of the record.

(b) Amendment. A record shall be created for the amendment that bears the file number for the amendment and the date and time of filing.

(1) The record of the amendment shall be associated with the record of the related initial financing statement in a manner that shall cause the amendment to be retrievable each time a record of the financing statement is retrieved.

(2) The name and address of each additional debtor and secured party shall be entered into the UCC information management system in the record of the financing statement. Each such additional debtor name shall be added to the searchable index and shall not be removed until one year after the financing statement lapses. Debtor addresses shall be included in the searchable index.

(3) If the amendment is a continuation, a new lapse date shall be established for the financing statement and maintained as part of its record.

(c) Correction statement. A record shall be created for the correction statement that bears the file number for the correction statement and the date and time filing. The record of the correction statement shall be associated with the record of the related initial financing statement in a manner that shall cause the correction statement to be retrievable each time a record of the financing statement is retrieved.

History

Authority G.S. 25-9-519; 25-9-526
Temporary Adoption Eff. July 2, 2001
Eff. August 1, 2002
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. November 12, 2014.

18 NCAC 05B .0410 Archival Documents {#sec-18-ncac-05b-.0410 omnilex-key=us-nc-regs-official--title-18--18 NCAC 05B .0410}

(a) Financing statements shall remain active and searchable for one year after they lapse. The following describes the maintenance of archives of inactive financing statements and the ability of those archived records to be searched.

(1) Paper UCC records shall be on file in the filing office for at least six years, and shall include an additional one year after the record has lapsed. After the six years has lapsed, the records shall be purged and recycled. Paper UCC records may be searched by submitting an Information Request Form to the filing office.

(2) Microfilm of all UCC records dating from 1960 shall be kept on file for public inspection in the record and research areas in the filing office. The availability of these microfilmed records shall be kept until these UCC records are imaged in the information management system. The microfilm shall also be sent to the state records center for archiving. Searches on UCC records on microfilm may be conducted in the filing office.

(3) Electronic images of UCC records dating from 1998 shall be available through the information management system and may be searched through the filing office's web site.

(b) Data in the UCC information management system relating to financing statements that have lapsed shall be retained for five years from the date of lapse and shall thereafter be maintained in archives.

(c) For data that has been placed in an archived status may be searched by submitting an Information Request Form to the filing office.

History

Authority G.S. 25-9-522; 25-9-526
Temporary Adoption Eff. July 2, 2001
Eff. August 1, 2002
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. November 12, 2014.

18 NCAC 05B .0501 General Requirements {#sec-18-ncac-05b-.0501 omnilex-key=us-nc-regs-official--title-18--18 NCAC 05B .0501}

The filing officer shall maintain for public inspection a searchable index for all records of UCC records. The index shall provide for the retrieval of a record by the name of the debtor and by the file number of the initial financing statement and each filed UCC record relating to the initial financing statement.

History

Authority G.S.25-9-523; 25-9-526
Temporary Adoption Eff. July 2, 2001
Eff. August 1, 2002
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. November 12, 2014.

18 NCAC 05B .0502 Search Requests and Reports {#sec-18-ncac-05b-.0502 omnilex-key=us-nc-regs-official--title-18--18 NCAC 05B .0502}

Search requests shall contain the following information:

(1) Name searched. A search request shall set forth the correct name of the debtor to be searched and must specify whether the debtor is an individual or an organization. A search request shall be processed using the name in the exact form it is submitted.

(2) Requesting party. A search request shall include the name and address of the person to whom the search report is to be sent.

(3) Fee. The appropriate fee shall be enclosed, payable by a method described in Rule .0105 of this Subchapter.

(4) Search request with filing. If a filer requests a search at the time a UCC record is filed, the name searched shall be the debtor name as set forth on the form. The requesting party shall be the remitter of the UCC record, and the search request shall be deemed to request a search that would retrieve all financing statements filed on or prior to the date the UCC record is filed.

History

Authority G.S. 25-9-523; 25-9-526
Temporary Adoption Eff. July 2, 2001
Eff. August 1, 2002
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. November 12, 2014.

18 NCAC 05B .0503 Rules Applied to Search Requests {#sec-18-ncac-05b-.0503 omnilex-key=us-nc-regs-official--title-18--18 NCAC 05B .0503}

Search results shall be produced by the application of standardized search logic to the name presented to the filing officer. Human judgment shall not play a role in determining the results of the search. The following rules shall apply to searches:

(1) There shall be no limit to the number of matches that may be returned in response to the search criteria.

(2) No distinction shall be made between upper and lower case letters.

(3) Punctuation marks and accents shall be disregarded.

(4) Words and abbreviations at the end of a name that indicate the existence or nature of an organization as set forth in the "Ending Noise Words" list as promulgated and adopted by IACA shall be disregarded. This list may be viewed or obtained by contacting the UCC Section.

(5) The word "the" at the beginning of the search criteria shall be disregarded.

(6) For first and middle names of individuals, initials shall be treated as the logical equivalent of all names that begin with such initials, and first name and no middle name or initial shall be equated with all middle names and initials. For example, a search request for "John A. Smith" shall cause the search to retrieve all filings against all individual debtors with "John" or the initial "J" as the first name, "Smith" as the last name, and with the initial "A" or any name beginning with "A" in the middle name field. If the search request were for "John Smith" (first and last names with no designation in the middle name field), the search shall retrieve all filings against individual debtors with "John" or the initial "J" as the first name, "Smith" as the last name and with any name or initial or no name or initial in the middle name field.

(7) After using the preceding paragraphs of this Rule to modify the name to be searched, the search shall reveal only names of debtors that are contained in unlapsed financing statements and, exactly match the name requested, as modified.

History

Authority G.S. 25-9-519; 25-9-523; 25-9-526
Temporary Adoption Eff. July 2, 2001
Eff. August 1, 2002
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. November 12, 2014.

18 NCAC 05B .0504 Optional Information {#sec-18-ncac-05b-.0504 omnilex-key=us-nc-regs-official--title-18--18 NCAC 05B .0504}

A UCC search request may contain any of the following information:

(1) The request may limit the records requested by limiting them by the city and state of the debtor, and the date of filing or a range of filing dates. A report created by the filing officer in response to such a request shall contain the statement: "A limited search may not reveal all filings against the debtor searched and the searcher bears the risk of relying on such a search".

(2) The request may ask for copies of UCC records identified on the primary search response.

(3) Instructions on the mode of delivery desired may be requested, if other than by ordinary mail, and shall be honored if the requested mode is available to the filing office.

History

Authority G.S. 25-9-523; 25-9-526
Temporary Adoption Eff. July 2, 2001
Eff. August 1, 2002
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. November 12, 2014.

18 NCAC 05B .0505 Search Responses {#sec-18-ncac-05b-.0505 omnilex-key=us-nc-regs-official--title-18--18 NCAC 05B .0505}

Reports created in response to a search request shall include the following:

(1) Filing officer. Identification of the filing officer and the certification of the filing officer required by law.

(2) Report date. The date the report was generated.

(3) Name searched. Identification of the name searched.

(4) Certification date. The certification date and time for which the search is effective.

(5) Identification of initial financing statements. Identification of each unlapsed initial financing statement filed on or prior to the certification date and time corresponding to the search criteria, by name of debtor, by identification number, and by file date and file time.

(6) History of financing statement. For each initial financing statement on the report, a listing of all related UCC records filed by the filing officer on or prior to the certification date.

(7) Copies. Copies of all UCC records revealed by the search and requested by the searcher.

History

Authority G.S. 25-9-519; 25-9-523; 25-9-526
Temporary Adoption Eff. July 2, 2001
Eff. August 1, 2002
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. November 12, 2014.

18 NCAC 05B .0601 Policy Statement {#sec-18-ncac-05b-.0601 omnilex-key=us-nc-regs-official--title-18--18 NCAC 05B .0601}

The purpose of the rules in this Section is to describe records of liens maintained by the filing office created pursuant to statutes other than the UCC that are treated by the filing officer in a manner substantially similar to UCC records and are included on request with the reports described in Rule .0502 of this Subchapter.

History

Authority G.S. 25-9-519; 25-9-526; 44-68.14(a)(1); 44-68.14(b)
Temporary Adoption Eff. July 2, 2001
Eff. August 1, 2002
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. November 12, 2014.

18 NCAC 05B .0602 Filing {#sec-18-ncac-05b-.0602 omnilex-key=us-nc-regs-official--title-18--18 NCAC 05B .0602}

(a) The UCC Section of the Department shall file Federal Tax Liens on corporations and partnerships whose executive office is located in North Carolina. These liens shall be indexed by the taxpayer's name and shall be available for public inspection. The Internal Revenue Service files Federal tax liens with the Department.

(b) The fee schedule for filing tax liens shall be available upon request.

(c) A notice of a tax lien filed by the Internal Revenue Service shall be filed and indexed in the filing office in the same manner as a UCC initial financing statements as provided in G.S. 25-9-519.

(d) A certificate of release or nonattachment shall be filed and indexed in the same manner as a UCC termination as provided in G.S. 25-9-519, except that the original notice of the tax lien shall not be removed or purged from the information management system in the filing office.

(f) A certificate of discharge or subordination shall be filed and indexed in the same manner as a UCC release of collateral as provided in G.S. 25-9-519.

History

Authority G.S. 25-9-519; 25-9-526; 44-68.14; 44-68.15
Temporary Adoption Eff. July 2, 2001
Eff. August 1, 2002
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. November 12, 2014.

18 NCAC 05B .0603 Requests for Information {#sec-18-ncac-05b-.0603 omnilex-key=us-nc-regs-official--title-18--18 NCAC 05B .0603}

Requests for information on a tax lien shall be handled by the filing officer in the same manner as provided in G.S. 25-9-523(c). The fee for copies, certificates, and requests for information on tax liens is available upon request.

History

Authority G.S. 44.68.14(d); 25-9-519; 25-9-526
Temporary Adoption Eff. July 2, 2001
Eff. August 1, 2002
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. November 12, 2014.

Chapter 06 Securities Division

Subchapter A

18 NCAC 06A .0101 Location and Hours {#sec-18-ncac-06a-.0101 omnilex-key=us-nc-regs-official--title-18--18 NCAC 06A .0101}

History

Status: repealed
Authority G.S. 78A-1; 78A-45; 147-36
Eff. February 1, 1976
Repealed Eff. April 1, 1981.

18 NCAC 06A .0102 Purpose {#sec-18-ncac-06a-.0102 omnilex-key=us-nc-regs-official--title-18--18 NCAC 06A .0102}

History

Status: repealed
Authority G.S. 78A-1; 78A-45; 147-36
Eff. February 1, 1976
Repealed Eff. April 1, 1981.

18 NCAC 06A .0103 Administration {#sec-18-ncac-06a-.0103 omnilex-key=us-nc-regs-official--title-18--18 NCAC 06A .0103}

History

Status: repealed
Authority G.S. 78A-1; 78A-45; 147-36
Eff. February 1, 1976
Repealed Eff. April 1, 1981.

18 NCAC 06A .0201 Prerequisite to Registration {#sec-18-ncac-06a-.0201 omnilex-key=us-nc-regs-official--title-18--18 NCAC 06A .0201}

History

Status: repealed
Authority G.S. 78A-17(3); 78A-36(a); 78A-36(b); 78A-37(a); 78A-38(a); 78A-38(b); 78A-39; 78A-39(a); 78A-39(d); 78A-49(c); 78A-63(f)
Eff. February 1, 1976
Repealed Eff. April 1, 1981.

18 NCAC 06A .0202 Denial or Revocation of Registration {#sec-18-ncac-06a-.0202 omnilex-key=us-nc-regs-official--title-18--18 NCAC 06A .0202}

History

Status: repealed
Authority G.S. 78A-17(3); 78A-36(a); 78A-36(b); 78A-37(a); 78A-38(a); 78A-38(b); 78A-39; 78A-39(a); 78A-39(d); 78A-49(c); 78A-63(f)
Eff. February 1, 1976
Repealed Eff. April 1, 1981.

History

Status: repealed
Authority G.S. 78A-17(3); 78A-36(a); 78A-36(b); 78A-37(a); 78A-38(a); 78A-38(b); 78A-39; 78A-39(a); 78A-39(d); 78A-49(c); 78A-63(f)
Eff. February 1, 1976
Repealed Eff. April 1, 1981.

18 NCAC 06A .0204 Simultaneous Registrations {#sec-18-ncac-06a-.0204 omnilex-key=us-nc-regs-official--title-18--18 NCAC 06A .0204}

History

Status: repealed
Authority G.S. 78A-17(3); 78A-36(a); 78A-36(b); 78A-37(a); 78A-38(a); 78A-38(b); 78A-39; 78A-39(a); 78A-39(d); 78A-49(c); 78A-63(f)
Eff. February 1, 1976
Repealed Eff. April 1, 1981.

18 NCAC 06A .0205 Cancellation of Dealer's Registration {#sec-18-ncac-06a-.0205 omnilex-key=us-nc-regs-official--title-18--18 NCAC 06A .0205}

History

Status: repealed
Authority G.S. 78A-17(3); 78A-36(a); 78A-36(b); 78A-37(a); 78A-38(a); 78A-38(b); 78A-39; 78A-39(a); 78A-39(d); 78A-49(c); 78A-63(f)
Eff. February 1, 1976
Repealed Eff. April 1, 1981.

18 NCAC 06A .0206 Perfection of Cancellation {#sec-18-ncac-06a-.0206 omnilex-key=us-nc-regs-official--title-18--18 NCAC 06A .0206}

History

Status: repealed
Authority G.S. 78A-17(3); 78A-36(a); 78A-36(b); 78A-37(a); 78A-38(a); 78A-38(b); 78A-39; 78A-39(a); 78A-39(d); 78A-49(c); 78A-63(f)
Eff. February 1, 1976
Repealed Eff. April 1, 1981.

18 NCAC 06A .0207 Procedure for Cancellation {#sec-18-ncac-06a-.0207 omnilex-key=us-nc-regs-official--title-18--18 NCAC 06A .0207}

History

Status: repealed
Authority G.S. 78A-17(3); 78A-36(a); 78A-36(b); 78A-37(a); 78A-38(a); 78A-38(b); 78A-39; 78A-39(a); 78A-39(d); 78A-49(c); 78A-63(f)
Eff. February 1, 1976
Repealed Eff. April 1, 1981.

18 NCAC 06A .0208 Cancellation of Salesman's Registration {#sec-18-ncac-06a-.0208 omnilex-key=us-nc-regs-official--title-18--18 NCAC 06A .0208}

History

Status: repealed
Authority G.S. 78A-17(3); 78A-36(a); 78A-36(b); 78A-37(a); 78A-38(a); 78A-38(b); 78A-39; 78A-39(a); 78A-39(d); 78A-49(c); 78A-63(f)
Eff. February 1, 1976
Repealed Eff. April 1, 1981.

18 NCAC 06A .0209 Examination Under Oath {#sec-18-ncac-06a-.0209 omnilex-key=us-nc-regs-official--title-18--18 NCAC 06A .0209}

History

Status: repealed
Authority G.S. 78A-17(3); 78A-36(a); 78A-36(b); 78A-37(a); 78A-38(a); 78A-38(b); 78A-39; 78A-39(a); 78A-39(d); 78A-49(c); 78A-63(f)
Eff. February 1, 1976
Repealed Eff. April 1, 1981.

18 NCAC 06A .0210 Forms {#sec-18-ncac-06a-.0210 omnilex-key=us-nc-regs-official--title-18--18 NCAC 06A .0210}

History

Status: repealed
Authority G.S. 78A-17(3); 78A-36(a); 78A-36(b); 78A-37(a); 78A-38(a); 78A-38(b); 78A-39; 78A-39(a); 78A-39(d); 78A-49(c); 78A-63(f)
Eff. February 1, 1976
Repealed Eff. April 1, 1981.

18 NCAC 06A .0211 Net Capital {#sec-18-ncac-06a-.0211 omnilex-key=us-nc-regs-official--title-18--18 NCAC 06A .0211}

History

Status: repealed
Authority G.S. 78A-17(3); 78A-36(a); 78A-36(b); 78A-37(a); 78A-38(a); 78A-38(b); 78A-39; 78A-39(a); 78A-39(d); 78A-49(c); 78A-63(f)
Eff. February 1, 1976
Repealed Eff. April 1, 1981.

18 NCAC 06A .0212 Records Retention {#sec-18-ncac-06a-.0212 omnilex-key=us-nc-regs-official--title-18--18 NCAC 06A .0212}

History

Status: repealed
Authority G.S. 78A-17(3); 78A-36(a); 78A-36(b); 78A-37(a); 78A-38(a); 78A-38(b); 78A-39; 78A-39(a); 78A-39(d); 78A-49(c); 78A-63(f)
Eff. February 1, 1976
Repealed Eff. April 1, 1981.

18 NCAC 06A .0213 Financial Statements {#sec-18-ncac-06a-.0213 omnilex-key=us-nc-regs-official--title-18--18 NCAC 06A .0213}

History

Status: repealed
Authority G.S. 78A-17(3); 78A-36(a); 78A-36(b); 78A-37(a); 78A-38(a); 78A-38(b); 78A-39; 78A-39(a); 78A-39(d); 78A-49(c); 78A-63(f)
Eff. February 1, 1976
Repealed Eff. April 1, 1981.

18 NCAC 06A .0301 Sponsorship of Own Securities {#sec-18-ncac-06a-.0301 omnilex-key=us-nc-regs-official--title-18--18 NCAC 06A .0301}

History

Status: repealed
Authority G.S. 78A-49(a)
Eff. February 1, 1976
Repealed Eff. April 1, 1981.

18 NCAC 06A .0302 Issuer as Dealer {#sec-18-ncac-06a-.0302 omnilex-key=us-nc-regs-official--title-18--18 NCAC 06A .0302}

History

Status: repealed
Authority G.S. 78A-49(a)
Eff. February 1, 1976
Repealed Eff. April 1, 1981.

18 NCAC 06A .0401 Forms {#sec-18-ncac-06a-.0401 omnilex-key=us-nc-regs-official--title-18--18 NCAC 06A .0401}

History

Status: repealed
Authority G.S. 78A-2(2); 78A-28(b); 78A-29(b)(2); 78A-49(a); 78A-50(c); 132-1.1
Eff. February 1, 1976
Repealed Eff. April 1, 1981.

18 NCAC 06A .0402 Fees {#sec-18-ncac-06a-.0402 omnilex-key=us-nc-regs-official--title-18--18 NCAC 06A .0402}

History

Status: repealed
Authority G.S. 78A-2(2); 78A-28(b); 78A-29(b)(2); 78A-49(a); 78A-50(c); 132-1.1
Eff. February 1, 1976
Repealed Eff. April 1, 1981.

18 NCAC 06A .0403 Sponsorship by Dealer {#sec-18-ncac-06a-.0403 omnilex-key=us-nc-regs-official--title-18--18 NCAC 06A .0403}

History

Status: repealed
Authority G.S. 78A-2(2); 78A-28(b); 78A-29(b)(2); 78A-49(a); 78A-50(c); 132-1.1
Eff. February 1, 1976
Repealed Eff. April 1, 1981.

18 NCAC 06A .0404 Method of Sponsorship {#sec-18-ncac-06a-.0404 omnilex-key=us-nc-regs-official--title-18--18 NCAC 06A .0404}

History

Status: repealed
Authority G.S. 78A-2(2); 78A-28(b); 78A-29(b)(2); 78A-49(a); 78A-50(c); 132-1.1
Eff. February 1, 1976
Repealed Eff. April 1, 1981.

18 NCAC 06A .0405 Conformation of Registration {#sec-18-ncac-06a-.0405 omnilex-key=us-nc-regs-official--title-18--18 NCAC 06A .0405}

History

Status: repealed
Authority G.S. 78A-2(2); 78A-28(b); 78A-29(b)(2); 78A-49(a); 78A-50(c); 132-1.1
Eff. February 1, 1976
Repealed Eff. April 1, 1981.

18 NCAC 06A .0406 Failure to Furnish Information {#sec-18-ncac-06a-.0406 omnilex-key=us-nc-regs-official--title-18--18 NCAC 06A .0406}

History

Status: repealed
Authority G.S. 78A-2(2); 78A-28(b); 78A-29(b)(2); 78A-49(a); 78A-50(c); 132-1.1
Eff. February 1, 1976
Repealed Eff. April 1, 1981.

18 NCAC 06A .0407 Public Information {#sec-18-ncac-06a-.0407 omnilex-key=us-nc-regs-official--title-18--18 NCAC 06A .0407}

History

Status: repealed
Authority G.S. 78A-2(2); 78A-28(b); 78A-29(b)(2); 78A-49(a); 78A-50(c); 132-1.1
Eff. February 1, 1976
Repealed Eff. April 1, 1981.

18 NCAC 06A .0501 No-Action Letter {#sec-18-ncac-06a-.0501 omnilex-key=us-nc-regs-official--title-18--18 NCAC 06A .0501}

History

Status: repealed
Authority G.S. 78A-17(9); 78A-18(b); 78A-50(e)
Eff. February 1, 1976
Repealed Eff. April 1, 1981.

18 NCAC 06A .0502 Burden of Proof {#sec-18-ncac-06a-.0502 omnilex-key=us-nc-regs-official--title-18--18 NCAC 06A .0502}

History

Status: repealed
Authority G.S. 78A-17(9); 78A-18(b); 78A-50(e)
Eff. February 1, 1976
Repealed Eff. April 1, 1981.

18 NCAC 06A .0503 Review of Opinions {#sec-18-ncac-06a-.0503 omnilex-key=us-nc-regs-official--title-18--18 NCAC 06A .0503}

History

Status: repealed
Authority G.S. 78A-17(9); 78A-18(b); 78A-50(e)
Eff. February 1, 1976
Repealed Eff. April 1, 1981.

18 NCAC 06A .0504 Requirements for Exemption {#sec-18-ncac-06a-.0504 omnilex-key=us-nc-regs-official--title-18--18 NCAC 06A .0504}

History

Status: repealed
Authority G.S. 78A-17(9); 78A-18(b); 78A-50(e)
Eff. February 1, 1976
Repealed Eff. April 1, 1981.

18 NCAC 06A .0601 Eligibility for Sale in State of Incorporation {#sec-18-ncac-06a-.0601 omnilex-key=us-nc-regs-official--title-18--18 NCAC 06A .0601}

History

Status: repealed
Authority G.S. 78A-10(a); 78A-26(c); 78A-28(b); 78A-29(f); 78A-49(a)
Eff. February 1, 1976
Repealed Eff. April 1, 1981.

18 NCAC 06A .0602 Underwriters Commission {#sec-18-ncac-06a-.0602 omnilex-key=us-nc-regs-official--title-18--18 NCAC 06A .0602}

History

Status: repealed
Authority G.S. 78A-10(a); 78A-26(c); 78A-28(b); 78A-29(f); 78A-49(a)
Eff. February 1, 1976
Repealed Eff. April 1, 1981.

18 NCAC 06A .0603 Implications of Registration or Exemption {#sec-18-ncac-06a-.0603 omnilex-key=us-nc-regs-official--title-18--18 NCAC 06A .0603}

History

Status: repealed
Authority G.S. 78A-10(a); 78A-26(c); 78A-28(b); 78A-29(f); 78A-49(a)
Eff. February 1, 1976
Repealed Eff. April 1, 1981.

18 NCAC 06A .0604 Advertising {#sec-18-ncac-06a-.0604 omnilex-key=us-nc-regs-official--title-18--18 NCAC 06A .0604}

History

Status: repealed
Authority G.S. 78A-10(a); 78A-26(c); 78A-28(b); 78A-29(f); 78A-49(a)
Eff. February 1, 1976
Repealed Eff. April 1, 1981.

18 NCAC 06A .0605 Offering Price {#sec-18-ncac-06a-.0605 omnilex-key=us-nc-regs-official--title-18--18 NCAC 06A .0605}

History

Status: repealed
Authority G.S. 78A-10(a); 78A-26(c); 78A-28(b); 78A-29(f); 78A-49(a)
Eff. February 1, 1976
Repealed Eff. April 1, 1981.

18 NCAC 06A .0606 Shelf Registrations {#sec-18-ncac-06a-.0606 omnilex-key=us-nc-regs-official--title-18--18 NCAC 06A .0606}

History

Status: repealed
Authority G.S. 78A-10(a); 78A-26(c); 78A-28(b); 78A-29(f); 78A-49(a)
Eff. February 1, 1976
Repealed Eff. April 1, 1981.

18 NCAC 06A .0607 Fees and Limits {#sec-18-ncac-06a-.0607 omnilex-key=us-nc-regs-official--title-18--18 NCAC 06A .0607}

History

Status: repealed
Authority G.S. 78A-10(a); 78A-26(c); 78A-28(b); 78A-29(f); 78A-49(a)
Eff. February 1, 1976
Repealed Eff. April 1, 1981.

18 NCAC 06A .0701 Exemption of New Securities {#sec-18-ncac-06a-.0701 omnilex-key=us-nc-regs-official--title-18--18 NCAC 06A .0701}

History

Status: repealed
Authority G.S. 78A-16(5); 78A-49(a); 78A-49(b)
Eff. November 10, 1980
Repealed Eff. April 1, 1981.

18 NCAC 06A .0702 Exemption of Previously Issued Securities {#sec-18-ncac-06a-.0702 omnilex-key=us-nc-regs-official--title-18--18 NCAC 06A .0702}

History

Status: repealed
Authority G.S. 78A-16(5); 78A-49(a); 78A-49(b)
Eff. November 10, 1980
Repealed Eff. April 1, 1981.

18 NCAC 06A .0703 Suitability Standards and Investment Requirements {#sec-18-ncac-06a-.0703 omnilex-key=us-nc-regs-official--title-18--18 NCAC 06A .0703}

History

Status: repealed
Authority G.S. 78A-16(5); 78A-49(a); 78A-49(b)
Eff. November 10, 1980
Repealed Eff. April 1, 1981.

18 NCAC 06A .0704 Registration of Real Estate Securities {#sec-18-ncac-06a-.0704 omnilex-key=us-nc-regs-official--title-18--18 NCAC 06A .0704}

History

Status: repealed
Authority G.S. 78A-16(5); 78A-49(a); 78A-49(b)
Eff. November 10, 1980
Repealed Eff. April 1, 1981.

18 NCAC 06A .0801 Requirements {#sec-18-ncac-06a-.0801 omnilex-key=us-nc-regs-official--title-18--18 NCAC 06A .0801}

History

Status: repealed
Authority G.S. 78A-28(9)
Eff. February 1, 1976
Repealed Eff. April 1, 1981.

18 NCAC 06A .0802 Escrow Agent {#sec-18-ncac-06a-.0802 omnilex-key=us-nc-regs-official--title-18--18 NCAC 06A .0802}

History

Status: repealed
Authority G.S. 78A-28(9)
Eff. February 1, 1976
Repealed Eff. April 1, 1981.

18 NCAC 06A .0803 Securities Issued for Intangible Assets {#sec-18-ncac-06a-.0803 omnilex-key=us-nc-regs-official--title-18--18 NCAC 06A .0803}

History

Status: repealed
Authority G.S. 78A-28(9)
Eff. February 1, 1976
Repealed Eff. April 1, 1981.

18 NCAC 06A .0901 Requirements for Registration {#sec-18-ncac-06a-.0901 omnilex-key=us-nc-regs-official--title-18--18 NCAC 06A .0901}

History

Status: repealed
Authority G.S. 78A-29(a)(2)(f); 78A-28(b); 78A-49(a)
Eff. February 1, 1976
Repealed Eff. April 1, 1981.

18 NCAC 06A .0902 Additional Requirements {#sec-18-ncac-06a-.0902 omnilex-key=us-nc-regs-official--title-18--18 NCAC 06A .0902}

History

Status: repealed
Authority G.S. 78A-29(a)(2)(f); 78A-28(b); 78A-49(a)
Eff. February 1, 1976
Repealed Eff. April 1, 1981.

18 NCAC 06A .1001 Form {#sec-18-ncac-06a-.1001 omnilex-key=us-nc-regs-official--title-18--18 NCAC 06A .1001}

History

Status: repealed
Authority G.S. 78A-30
Eff. September 1, 1979
Repealed Eff. April 1, 1981.

18 NCAC 06A .1002 Contents of Application {#sec-18-ncac-06a-.1002 omnilex-key=us-nc-regs-official--title-18--18 NCAC 06A .1002}

History

Status: repealed
Authority G.S. 78A-30
Eff. September 1, 1979
Repealed Eff. April 1, 1981.

18 NCAC 06A .1003 Accompanying Documents {#sec-18-ncac-06a-.1003 omnilex-key=us-nc-regs-official--title-18--18 NCAC 06A .1003}

History

Status: repealed
Authority G.S. 78A-30
Eff. September 1, 1979
Repealed Eff. April 1, 1981.

18 NCAC 06A .1004 Procedure Following Application {#sec-18-ncac-06a-.1004 omnilex-key=us-nc-regs-official--title-18--18 NCAC 06A .1004}

History

Status: repealed
Authority G.S. 78A-30
Eff. September 1, 1979
Repealed Eff. April 1, 1981.

18 NCAC 06A .1101 Location and Hours {#sec-18-ncac-06a-.1101 omnilex-key=us-nc-regs-official--title-18--18 NCAC 06A .1101}

The Securities Division of the Department of the Secretary of State is located at the Old Revenue Complex, 2 S. Salisbury Street, Raleigh, North Carolina 27601. All REGULAR MAIL shall be sent to: North Carolina Securities Division, Department of the Secretary of State, P.O. Box 29622, Raleigh, North Carolina 27626-0622. All OVERNIGHT MAIL shall be sent to: North Carolina Securities Division, Department of the Secretary of State, Old Revenue Complex, 2 S. Salisbury Street, Raleigh, North Carolina 27601. Office hours for the public are 8:00 a.m. to 5:00 p.m. Monday through Friday, except state holidays.

History

Authority G.S. 78A-49(a); 147-36
Eff. April 1, 1981
Amended Eff. April 1, 2003; October 1, 2000; October 1, 1988; November 1, 1982
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. December 6, 2016.

18 NCAC 06A .1102 Purpose {#sec-18-ncac-06a-.1102 omnilex-key=us-nc-regs-official--title-18--18 NCAC 06A .1102}

The purpose of the North Carolina Securities Act is the regulation of the sale of securities for the protection of the investing public. This is accomplished by securities being registered or exempt, dealers and salesmen being registered and other activities including investigating complaints, conducting hearings and any other action required by the Act.

History

Authority G.S. 78A-1; 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.

18 NCAC 06A .1103 Administration (repealed) {#sec-18-ncac-06a-.1103 omnilex-key=us-nc-regs-official--title-18--18 NCAC 06A .1103}

History

Status: repealed
Authority G.S. 78A-45(a)
Eff. April 1, 1981
Amended Eff. January 1, 1984
Repealed Eff. April 1, 2009.

18 NCAC 06A .1104 Definitions {#sec-18-ncac-06a-.1104 omnilex-key=us-nc-regs-official--title-18--18 NCAC 06A .1104}

As used in this Chapter, the following terms mean:

(1) "Act" shall mean the North Carolina Securities Act, Chapter 78A of the North Carolina General Statutes, as same has been or may be from time to time amended.

(2) "Commercial Paper," as referred to in G.S. 78A-16(10), shall mean any note, draft, bill of exchange or bankers acceptance which arises out of a current transaction or the proceeds of which have been or are to be used for current transactions, and which has a maturity at the time of issuance not exceeding nine months, exclusive of days of grace, or any renewal thereof, the maturity of which is likewise limited or any guarantee of such paper or of any such renewal. Commercial paper shall also exemplify the following characteristics:

(a) prime quality negotiable paper of a type not ordinarily purchased by the general public;

(b) issued to facilitate well recognized types of current operational business requirements; and

The Division hereby incorporates by reference the concepts of "commercial paper" found in SEC Release No. 33-4412, September 20, 1961, (1961 WL 61632).

(3) "Direct Participation Program" shall mean a program which provides for flow-through tax consequences regardless of the structure of the legal entity or vehicle for distribution including, but not limited to, oil and gas programs, real estate programs, agricultural programs, cattle programs, condominium securities, and all other programs of a similar nature, regardless of the industry represented by the program, or any combination thereof. A program may be composed of one or more legal entities or programs but when used in these Rules the term shall include each of the separate entities or programs making up the overall program and the overall program itself. Excluded from this definition are viatical settlement contracts as defined in G.S. 78A-2(13), Subchapter S corporate offerings, real estate investment trusts, tax qualified pension and profit sharing plans pursuant to Sections 401 and 403 (a) of the Internal Revenue Code and individual retirement plans under Section 408 of that Code, and any company registered pursuant to the Investment Company Act of 1940.

(4) "SEC" shall mean the Securities and Exchange Commission.

(5) "NASD" shall mean the National Association of Securities Dealers, Inc.

(6) "NASAA" shall mean the North American Securities Administrators Association, Inc.

(7) "CRD" shall mean the Central Registration Depository.

(8) "Investment Contract" as used in G.S. 78A-2(11) includes:

(a) Any investment in a common enterprise with the expectation of profit to be derived through the essential managerial efforts of someone other than the investor. In this Subparagraph a "common enterprise" means an enterprise in which the fortunes of the investor are interwoven with and dependent upon the efforts and success of those seeking the investment or of a third party; and

(b) Any investment by which an offeree furnishes initial value to an offeror, and a portion of this initial value is subjected to the risks of the enterprise, and the furnishing of this initial value is induced by the offeror's promises or representations which give rise to a reasonable understanding that a valuable benefit of some kind over and above the initial value will accrue to the offeree as a result of the operation of the enterprise, and the offeree does not receive the right to exercise practical and actual control over the managerial decisions of the enterprise.

(9) "Recognized Securities Manual" shall mean a publication which contains the information required by G.S. 78A-17(2)a. and which has been designated, pursuant to G.S. 78A-49 and Rule .1202 of this Chapter, as a "recognized securities manual" by the administrator.

(10) "Form D" shall mean the document adopted by the Securities and Exchange Commission, in effect on September 1, 1996 and as may be amended by the SEC from time to time, entitled "FORM D; Notice of Sale of Securities pursuant to Regulation D, Section 4(6), and/or Uniform Limited Offering Exemption," including Part E and the Appendix.

History

Authority G.S. 78A-49(a)
Eff. April 1, 1981
Amended Eff. September 1, 1990; October 1, 1988; January 1, 1984
Temporary Amendment Eff. October 1, 1997
Amended Eff. August 1, 1998
Temporary Amendment Eff. April 1, 2002
Amended Eff. April 1, 2003
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. December 6, 2016.

18 NCAC 06A .1201 Designated Securities Exchanges (repealed) {#sec-18-ncac-06a-.1201 omnilex-key=us-nc-regs-official--title-18--18 NCAC 06A .1201}

History

Status: repealed
Authority G.S. 78A-16(8)
Eff. April 1, 1981
Amended Eff. May 1, 1995
Repealed Eff. September 1, 2008.

18 NCAC 06A .1202 Recognized Securities Manuals {#sec-18-ncac-06a-.1202 omnilex-key=us-nc-regs-official--title-18--18 NCAC 06A .1202}

(a) The publications recognized by the administrator as securities manuals for the purposes set forth in G.S. 78A-17(2)a. shall be:

(1) Standard and Poor's Corporation Records,

(2) Mergent's Industrial Manual,

(3) Mergent's Over-the-Counter Industrial Manual,

(4) Mergent's International Manual, and

(5) Periodic supplements to each recognized securities manual.

Other publications may be recognized by the administrator, on a case by case basis, upon a showing that the information required by G.S. 78A-17(2)a. is actually contained in the publication.

(b) None of the publications in Paragraph (a) shall be recognized as relating to the securities of a particular issuer unless all of the information required by G.S. 78A-17(2)a. is contained in the publication, and:

(1) such information has been continuously published in that securities manual for at least fifteen months preceding the commencement of a distribution in reliance on G.S. 78A-17(2)a.; or

(2) during the twelve months preceding the commencement of a distribution in reliance on G.S. 78A-17(2)a., the issuer's common stock or equivalent security has traded at the price of five dollars ($5.00) or more per share for a period of at least thirty consecutive days as quoted in the Wall Street Journal or similar national publication; or

(3) as of the end of its most recent fiscal year, the issuer had:

(A) a tangible net worth (i.e., net worth computed by excluding intangible assets) of at least one million dollars ($1,000,000), and

(B) net income, after taxes, or at least one hundred fifty thousand dollars ($150,000); or

(4) during the twelve months preceding a distribution in reliance on G.S. 78A-17(2)a., the issuer completed a public offering of securities which raised at least five million dollars ($5,000,000).

History

Authority G.S. 78A-17(2)a.; 78A-49(a)
Eff. April 1, 1981
Amended Eff. October 1, 2000; February 1, 1991; September 1, 1990; October 1, 1988
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. December 6, 2016.

18 NCAC 06A .1203 Information Filed by Registered Dealer {#sec-18-ncac-06a-.1203 omnilex-key=us-nc-regs-official--title-18--18 NCAC 06A .1203}

The exemption for nonissuer distributions, other than by a controlling person of an outstanding security, under G.S. 78A-17(2)b. shall be applicable to the offer and sale of any security, the issuer of which is required to file reports under Section 13 or 15(d) of the Securities Exchange Act of 1934, has been so required for at least 15 months prior to such sale and has filed all such required reports during such 15 month period if, prior to such sale, the registered dealer files with the administrator a statement certifying that copies of the following documents, and amendments thereto, with respect to the issuer of such security are on file with the dealer:

(1) the most recent Annual Report of the issuer on Securities and Exchange Commission Form 10-K filed with the Securities and Exchange Commission;

(2) all quarterly and current reports of the issuer on Securities and Exchange Commission Form 10-Q and 8-K filed with the Securities and Exchange Commission subsequent to the end of the fiscal year for which the Annual Report referred to in Part (1) was filed and prior to the sale;

(3) all amendments to any of the reports referred to in Parts (1) and (2) filed with the Securities and Exchange Commission prior to such sale;

(4) all definitive proxy statements and information statements filed with the Securities and Exchange Commission under Section 14 of the Securities Exchange Act of 1934:

(a) within 12 months prior to the sale and

(b) with respect to meetings of shareholders of the issuer held within 12 months prior to such sale; and

(5) all registration statements and all post-effective amendments thereto filed by the issuer with the Securities and Exchange Commission under the Securities Act of 1933 within 12 months prior to the sale.

History

Authority G.S. 78A-17(2)b.; 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.

18 NCAC 06A .1204 LIMITED OFFERINGS (REPEAled) {#sec-18-ncac-06a-.1204 omnilex-key=us-nc-regs-official--title-18--18 NCAC 06A .1204}

History

Status: repealed
Filed as a Temporary Repeal Eff. October 1, 1983, for a Period of 120 Days to Expire
on January 29, 1984
Authority G.S. 78A-17(9)(a); 78A-18; 78A-49(a)
Eff. April 1, 1981
Repealed Eff. January 1, 1984.

18 NCAC 06A .1205 Limited Offerings Pursuant to G.s. 78a-17(9) {#sec-18-ncac-06a-.1205 omnilex-key=us-nc-regs-official--title-18--18 NCAC 06A .1205}

(a) Any issuer relying upon the exemption provided by G.S. 78A-17(9) in connection with an offering of a security made in reliance upon Rule 505 of Regulation D promulgated by the Securities and Exchange Commission under the Securities Act of 1933, as amended, 17 C.F.R. 230.505 (1982) (and as subsequently amended) shall comply with the provisions of Rules .1206, .1207 and .1208 of this Section; provided that such compliance shall not be required if the security is offered and sold only to persons who will be actively engaged, on a regular basis, in the management of the issuer's business; and provided further, that compliance with provisions of Paragraphs (a), (b), and (c) of Rule .1208 of this Section shall not be required, except in the case of the offer and sale of a viatical settlement contract, if the security is offered to not more than five individuals who reside in this State.

(b) Any issuer relying upon the exemption provided by G.S. 78A-17(9) in connection with an offering of a direct participation program security made solely in reliance upon an exemption from registration contained in Section 4(2) or Section 3(a)(11) of the Securities Act of 1933 as amended, or made solely in reliance upon Rule 504 of Regulation D promulgated by the Securities and Exchange Commission under the Securities Act of 1933, as amended, 17 C.F.R. 230.504 (1982), (and as subsequently amended), or any person relying upon the exemption provided by G.S. 78A-17(9) in connection with an offering of a viatical settlement contract, shall comply with the following conditions and limitations:

(1) No commission, discount, finder's fee or other similar remuneration or compensation shall be paid, directly or indirectly, to any person for soliciting any prospective purchaser of the security sold to a resident of this State unless such person is either registered pursuant to G.S. 78A-36 or exempt from registration thereunder or the issuer reasonably believes that such person is so registered or exempt therefrom.

(2) In all offers or sales of direct participation program securities, the provisions of Rule .1313 of this Chapter regarding registered offerings of direct participation program securities shall be applicable; provided that such compliance shall not be required with respect to offers or sales to individuals who will be actively engaged, on a regular basis, in the management of the issuer's business. In all sales of viatical settlement contracts, the provisions of Rule .1320 shall be applicable.

(3) Any prospectus or disclosure document used in offering the securities in this state shall disclose the legend(s) as required by the provisions of Rule .1316 of this Chapter.

(4) Not less than 10 business days prior to any sale of the securities to a resident of this State which shall include but not be limited to the receipt by the issuer, or any person acting on the issuer's behalf of a signed subscription agreement of, or the receipt of consideration from, a purchaser, the issuer shall file with the administrator, or cause to be so filed:

(A) A statement signed by the issuer and acknowledged before a notary public or other similar officer:

(i) identifying the issuer (including name, form of organization, address and telephone number);

(ii) identifying the person(s) who will be selling the securities in this State (and in the case of such persons other than the issuer and its officers, partners and employees, describing their relationship with the issuer in connection with the transaction and the basis of their compliance with or exemption from the requirements of G.S. 78A-36) and describing any commissions, discounts, fees or other remuneration or compensation to be paid to such persons;

(iii) containing a summary of the proposed offering including:

(I) a description of the securities to be sold;

(II) the name(s) of all general partners of an issuer which is a partnership and, with respect to a corporate issuer or any corporate general partner(s) of any issuer which is a partnership, the date and place of incorporation and the names of the directors and executive officers of such corporation(s);

(III) the anticipated aggregate dollar amount of the offering;

(IV) the anticipated required minimum investment, if any, by each purchaser of the securities to be offered;

(V) a brief description of the issuer's business and the anticipated use of the proceeds of the offering; and

(VI) a list of the states in which the securities are proposed to be sold;

(iv) containing an undertaking to furnish to the administrator, upon written request, evidence of compliance with Subparagraphs (1), (2), and (3) of this Paragraph (b);

(v) in the case of a direct participation program security, containing an undertaking to furnish to the administrator, upon written request, a copy of any written document or materials used or proposed to be used in connection with the offer and sale of the securities; and

(vi) in the case of a viatical settlement contract, the filing shall include a copy of all written documents or materials, including advertising, used or proposed to be used in connection with the offer and sale of the securities.

(B) A consent to service of process naming the North Carolina Secretary of State as service agent using the Uniform Consent to Service of Process (Form U-2) signed by the issuer and acknowledged before a notary public or other similar officer; and accompanied by a properly executed Corporate Resolution (Form U-2A), if applicable;

(5) In the case of offers of viatical settlement contracts, the persons offering the security shall deliver to the offeree written materials complying with G.S. 78A-13. Additionally, any materials used in the offering of the security shall comply with G.S. 78A-14 and shall provide each offeree written notice of his or her rights under G.S. 78A-56 and under Rule .1501 of this Chapter.

(6) Except in the case of the offer or sale of a viatical settlement contract, compliance with the provisions of Subparagraph (4) of this Paragraph (b) shall not be required if the security is offered to:

(A) not more than five individuals who reside in this State, excluding individuals described in Subparagraph (6)(B) of this Paragraph (b); and

(B) individuals who will be actively engaged, on a regular basis, in the management of the issuer's business.

(c) Neither the issuer nor any person acting on the issuer's behalf shall offer, offer to sell, offer for sale or sell the securities claimed to be exempt under G.S. 78A-17(9) by any means or any form of general solicitation or general advertising.

History

Authority G.S. 78A-13; 78A-17(9); 78A-49(a)
Eff. January 1, 1984
Temporary Rule Eff. October 1, 1983, for a period of 120 days to expire on January 29, 1984
Amended Eff. October 1, 1988
Temporary Amendment Eff. October 1, 1997
Amended Eff. August 1, 1998
Temporary Amendment Eff. November 1, 2002; April 1, 2002
Amended Eff. May 1, 2005; August 1, 2004; April 1, 2003
Pursuant to G.S. 150B21.3A, rule is necessary without substantive public interest Eff. December 6, 2016.

18 NCAC 06A .1206 Limited Offering Exemption Pursuant to G.s. 78a-17(17) {#sec-18-ncac-06a-.1206 omnilex-key=us-nc-regs-official--title-18--18 NCAC 06A .1206}

History

Status: expired
Authority G.S. 78A-17(17); 78A-49(a); 78A-56
Eff. January 1, 1984
Temporary Rule Eff. October 1, 1983, for a period of 120 days to expire on January 29, 1984
Amended Eff. September 1, 1990; October 1, 1988
Temporary Amendment Eff. October 1, 1997
Amended Eff. October 1, 2000; August 1, 1998
Temporary Amendment Eff. April 1, 2002
Amended Eff. April 1, 2003
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. December 6, 2016
Expired Eff. December 1, 2024 pursuant to G.S. 150B-21.3A.

18 NCAC 06A .1207 Disqualifications from Reliance Upon Certain Exemptions {#sec-18-ncac-06a-.1207 omnilex-key=us-nc-regs-official--title-18--18 NCAC 06A .1207}

(a) No exemption under G.S. 78A-17(17) or any rule promulgated thereunder, G.S. 78A-16(9), or any other exemption made by rule subject to the disqualifications of this Rule .1207 shall be available for the securities of any issuer if the issuer, any of its directors, executive officers, general partners or beneficial owners of ten percent or more of any class of its equity securities, any of its promoters currently connected with it in any capacity, any affiliates, or any person (other than a dealer or salesman currently registered under G.S. 78A-36) who has been or will be paid any commission, discount, finder's fee or similar remuneration or compensation directly or indirectly, for soliciting any prospective purchaser of any security of the issuer offered or sold to residents of this State:

(1) Has filed a registration statement which is the subject of a currently effective stop order entered pursuant to any state's law within five years prior to the filing of the statement required by Rule .1208 of this Section;

(2) Has been convicted within five years prior to the filing of the statement required by Rule .1208 of this Section of any felony or misdemeanor in connection with the offer, purchase or sale of any security or in connection with the making of any false filing with the United States Securities and Exchange Commission or any state securities administrator, or of any felony involving fraud or deceit, including but not limited to, forgery, embezzlement, obtaining money under false pretenses, larceny or conspiracy to defraud;

(3) Is currently subject to any state administrative enforcement order or judgment entered by that state's securities administrator within five years prior to the filing of the statement required by Rule .1208 of this Section or is subject to any state's administrative enforcement order or judgment in which fraud or deceit, including but not limited to making untrue statements of material facts and omitting to state material facts, was found and the order or judgment was entered within five years prior to the filing of the statement required by Rule .1208 of this Section;

(4) Is currently subject to any state administrative enforcement order or judgment which prohibits, denies or revokes the use of any exemption from registration in connection with the offer, purchase or sale of securities entered within five years prior to the filing of the statement required by Rule .1208 of this Section;

(5) Is currently subject to any order, judgement, or decree of any court of competent jurisdiction temporarily or preliminarily restraining or enjoining, or is subject to any order, judgment or decree of any court of competent jurisdiction, entered within five years prior to the filing of the statement required by Rule .1208 of this Section, permanently restraining or enjoining such person from engaging in or continuing any conduct or practice in connection with the offer, purchase or sale of any security or in connection with the making of any false filing with the United States Securities and Exchange Commission or any state securities administrator; or

(6) Is currently subject to a United States Postal Service false representation order entered within five years prior to the filing of the statement required by Rule .1208 of this Section;

(7) The prohibitions of Subparagraphs (1), (3) and (4) of this Rule shall not apply if the person subject to the disqualifying order is duly registered or licensed to conduct securities related business in the state in which the administrative order or judgment was entered against such person;

(8) Any disqualification caused by this Rule .1207 is automatically waived if the state which created the basis for disqualification determines upon a showing of good cause that it is not necessary under the circumstances that this exemption or a comparable exemption be denied with regard to the present offering.

(b) For purposes of this Rule .1207 only, the term issuer shall include the corporate general partner(s) or joint venturers or proposed corporate general partner(s) or joint venturers of any partnership or joint venture or proposed partnership or joint venture.

History

Authority G.S. 78A-17(17); 78A-49(a)
Temporary Rule Eff. October 1, 1983, for a Period of 120 Days to Expire on January 29, 1984
Eff. January 1, 1984
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. December 6, 2016.

18 NCAC 06A .1208 Transactions Exempt Under Rule .1206: Filing Requirements {#sec-18-ncac-06a-.1208 omnilex-key=us-nc-regs-official--title-18--18 NCAC 06A .1208}

History

Status: expired
Authority G.S. 78A-17(17); 78A-49(a)
Eff. January 1, 1984
Temporary Rule Eff. October 1, 1983, for a Period of 120 Days to Expire on January 29, 1984
Amended Eff. September 1, 1990; October 1, 1988
Temporary Amendment Eff. November 1, 2002; April 1, 2002
Amended Eff. August 1, 2004; April 1, 2003
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. December 6, 2016
Expired Eff. December 1, 2024 pursuant to G.S. 150B-21.3A.

18 NCAC 06A .1209 Nonprofit Securities {#sec-18-ncac-06a-.1209 omnilex-key=us-nc-regs-official--title-18--18 NCAC 06A .1209}

(a) The exemption provided by G.S. 78A-16(9) from the registration requirements of G.S. 78A-24 for securities offered, or to be offered, and sold by any person operated not for private profit but exclusively for religious, educational, benevolent, charitable, fraternal, social, athletic, or reformatory purposes, or as a chamber of commerce or trade or professional association shall not be available where:

(1) The issuer is disqualified by Rule .1207 of this Section. For the purposes of determining the availability of the exemption provided by G.S. 78A-16(9), the issuer also shall be disqualified under Rule .1207 of this Section where the trustee of a trust indenture under which the securities are to be issued is subject to the disqualifications of Subparagraphs (a)(1) through (6) of Rule .1207 of this Section.

(2) The issuer, or any affiliate or predecessor has had any material default within five years prior to commencement of the offering in the payment of:

(A) principal, interest, dividend or sinking fund installment on any security or indebtedness for borrowed money; or

(B) rentals under material leases with terms of three years or more.

(3) Any part of the net earnings of the nonprofit issuer inures to the benefit of any other person.

(4) The issuer fails to comply with the requirements of Paragraph (b) of this Rule and, if applicable or appropriate, Paragraphs (c) and (d) of this Rule.

Provided, however, that the administrator may modify or waive, upon the showing of good cause in writing, any disqualification that results from Subparagraphs (a), (1), (2) or (3) of this Rule.

(b) No commission, discount, finder's fee or other similar remuneration or compensation shall be paid, directly or indirectly, to any person for soliciting any prospective purchaser of any security sold to a resident of this State in reliance upon this exemption unless such person is either registered pursuant to G.S. 78A-36 or exempt from registration thereunder or the issuer reasonably believes that such person is so registered or exempt therefrom.

(c) The nonprofit issuer should provide each offeree a written document providing full disclosure of all material facts. A prospectus, pamphlet, circular or similar literature providing the following minimum disclosures, if applicable, normally will suffice for this purpose; provided, however that nothing in this Paragraph shall be construed as in any manner relieving any person from the full disclosure requirements of G.S. 78A-8(2):

(1) The Cover or First Page:

(A) The name of the issuer;

(B) Title of securities;

(C) In tabular form, the per unit and aggregate price to the public, underwriting or selling commissions and expenses, and net proceeds to the issuer;

(D) Name of dealer or financial adviser;

(E) Names of trustee and paying agent;

(F) If the offering is being made only to certain persons, a description of such offerees;

(G) The appropriate disclaimer and/or legend, pursuant to the provisions of Rule .1316 of this Chapter, shall appear in boldface type;

(H) If appropriate, the following statement shall appear in boldface: THIS OFFERING IS SUBJECT TO CERTAIN RISKS. (See "Risk Factors"); and

(I) The date of the disclosure document.

(2) A Table of Contents.

(3) The Issuer:

(A) The name, address, organization (state in which organized, date organized, statute under which organized, and form of organization) and purpose of the issuer;

(B) The history of the issuer;

(D) Accreditation and regulation of the issuer;

(E) The number of paid employees and a description of any employee benefit plans;

(F) Any affiliation between the issuer and the dealer, or any officers, directors or general partners or any person holding a similar position of either, with any building contractor or supplier who has an interest in or may receive any of the proceeds of the offering or with any trustee of a trust indenture under which the securities are to be issued.

(4) Risk Factors: Where appropriate, risk factors in connection with the offering must be disclosed. Reference to risk factors should note the page number of the disclosure document at which they may be found or further disclosure is made. Risk factors that should be considered include, but are not limited to, the following examples:

(A) There is no market for the securities, and there is no assurance that a market will develop. Consequently, investors may not be able to resell any securities purchased should they need to or wish to do so for emergency purposes or otherwise.

(B) The issuer is primarily dependent upon contributions of the membership to meet expenses for operation of the issuer and payments of principal and interest of the securities. The issuer may not receive sufficient funds to meet these obligations.

(C) During the past . . . fiscal years, the issuer has operated at a loss, and is currently not earning sufficient income to pay the principal and interest on the securities offered hereby. There is no assurance the issuer will be able to meet debt service requirements in the future.

(D) These securities will mature and become payable on . . . and it is anticipated the issuer will attempt to refinance them at that time. There is no assurance that refinancing funds will be available at that time or that such funds will be available at terms acceptable to the issuer.

(E) These securities are not secured by land, buildings or equipment of the issuer. In the event of default, the investor has the status of an unsecured creditor.

(F) The issuer has defaulted on a previous issue of securities. This issue is for the purpose of refinancing.

(G) The trust indenture permits the issuer further to encumber the property securing these securities through the future issuance of additional securities.

(5) Use of Proceeds:

(A) An itemized statement as to the application of the proceeds of the offering. If additional funds are needed to accomplish the stated purposes, this should be disclosed, together with a statement showing how such funds will be obtained.

(B) If there is to be an escrow of funds, a description of the escrow arrangements.

(6) Description of Property:

(A) In addition to describing physical properties, a valuation of mortgaged property should be included as follows: Total valuation of existing land, buildings, improvements and equipment before the offering: $.__; and total valuation of land, buildings, improvements and equipment after the offering and upon completion of construction: $.__.

(B) The person preparing any appraisals shall be identified, and his qualifications for serving as such shall be indicated.

(7) Management and Control:

(A) The name and principal occupation of each officer, trustee, director, general partners or other persons holding similar positions. In the case of religious organizations, a brief summary of the background of the minister(s) and any other important church officials should be included.

(B) A description of any material transactions or proposed transactions between the issuer and such persons or any affiliate of such persons.

(8) Material Litigation and Transactions. Any pending or threatened litigation which may materially affect the issuer's income. Any contracts with the issuer which, if terminated, would materially affect the issuer's income.

(9) Description of Securities:

(A) Description of the indenture under which the securities are to be issued should include information as to:

(i) interest and interest payment dates,

(ii) default,

(iii) redemption,

(iv) subordination,

(v) sinking fund,

(vi) subsequent issues,

(vii) modification of the indenture,

(viii) insurance coverage on properties of the issuer, and

(ix) any other material facts regarding the rights of holders.

(B) A pay-back or maturity schedule.

(C) If guarantees of payment are made by any other person, information describing the ability of that person to guarantee, including financial statements, shall be included. Note: - A guarantee in and of itself involves the offering of a separate security which may require registration.

(10) Plan of Distribution:

(A) The name and address of the dealer and fund raising adviser.

(B) The aggregate underwriting or selling commissions or similar compensation or remuneration.

(C) A brief description of any underwriting arrangements or distribution plan, including whether best efforts or firm commitment, and whether exclusive or nonexclusive.

(11) Financial Statement:

(A) Balance sheet, within four months prior to the date of the first offer in reliance upon this exemption, prepared in accordance with generally accepted accounting principles.

(B) Income and expense statements for each of the three fiscal years preceding the date of the balance sheet and for any period between the close of the last fiscal year and the date of the balance sheet or such shorter period as the issuer has been in existence prepared in accordance with generally accepted accounting principles.

(C) Any statements or information necessary to explain extraordinary or non-recurring fluctuations in the statements supplied.

(D) If applicable, the number of pledging units and the average annual contribution per pledging unit.

In lieu of the disclosure document as described in this Paragraph, the issuer may use a disclosure document prepared in accordance with the Church Bond Guidelines prepared by NASAA published at Par. 1001 of CCH NASAA Reports, as may be amended from time to time, where such guidelines are applicable.

(d) Not less than five business days prior to any sale of a security in reliance upon the exemption provided by G.S. 78A-16(9) which shall include but not be limited to the receipt by the issuer, or any person acting on the issuer's behalf of a signed subscription agreement of, or the receipt of consideration from, a purchaser, the issuer shall file with the administrator, or cause to be so filed, the following information unless the content or time of filing is modified or waived by the administrator; provided, however that the filing is not required, unless requested by the administrator, where the offering is to be made exclusively to members of the nonprofit issuer and occupants of such members' households:

(1) A statement, signed by the issuer and acknowledged before a notary public or other similar officer:

(A) Identifying the issuer, including the name, form of organization, date and state of organization, the nonprofit purpose for which the issuer is organized, address, telephone number and the appropriate representative to respond to questions;

(B) Identifying who will be selling the securities in this state and whether commissions, remuneration or compensation will be paid and the terms thereof;

(C) Describing the securities to be sold, including the type, aggregate offering amount to be offered in this state and the issue of which they are a part;

(D) Representing that the issuer is not disqualified by Paragraph (a) of this Rule from reliance upon this exemption;

(E) Representing that a disclosure document as may be required by Paragraph (c) of this Rule will be delivered to each purchaser prior to consummation of a sale or execution of a subscription agreement, or a statement as to the reasons the issuer believes that the disclosure document is unnecessary or inappropriate;

(F) Representing that in the event of any material change in the security or offering or if the disclosure document becomes incomplete in any material respect or contains any statement which is in the light of the circumstances under which it is made, false or misleading with respect to any material fact, the sale or offer for sale pursuant to this exemption will immediately cease, and will not be resumed until corrective disclosures are prepared and all prior purchasers are provided rescission offers pursuant to G.S. 78A-56(g).

(2) An opinion of counsel relating to the "not for private profit" status of the issuer, the formation and good standing of the issuer, legality of the securities to be issued, and the validity of the indenture under which the securities are to be issued, or a letter of determination of tax exempt status issued by the Internal Revenue Service.

(3) A consent to service of process (Form U-2) signed by the issuer and verified by a notary public or similar officer, naming the Secretary of State as service agent and accompanied by a corporate resolution of the board of directors, (Form U-2A), if applicable, authorizing the consent.

(e) Nothing in this Rule .1209 is intended to or should be construed as in any way relieving the issuer or any person acting on behalf of the issuer from providing disclosure to prospective investors adequate to satisfy the antifraud provisions of the Act.

(f) Should for any reason, an offer and sale of securities made in reliance upon the exemption provided by G.S. 78A-16(9) fail to comply with all of the conditions hereof, the issuer may claim the availability of any other applicable exemption.

(g) Any offer or sale shall be deemed to have been made in compliance with the exemption provided by G.S. 78A-16(9) if the issuer has substantially complied in all material respects with this Rule and G.S. 78A-16(9) would otherwise be available.

(h) In view of the objective of this Rule and the purpose and policies underlying the Act, the exemption provided by G.S. 78A-16(9) is not available to any issuer with respect to any transaction which although in technical compliance with the exemption provided by G.S. 78A-16(9) and this Rule, is part of a plan or scheme to evade registration or the conditions or limitations explicitly stated in this Rule.

History

Authority G.S. 78A-16(9); 78A-49(a)
Eff. January 1, 1984
Amended Eff. October 1, 1988
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. December 6, 2016.

18 NCAC 06A .1210 Securities Exchgs/Auto Quotation Sys Approved/Administrator {#sec-18-ncac-06a-.1210 omnilex-key=us-nc-regs-official--title-18--18 NCAC 06A .1210}

For purposes of G.S. 78A-16(15), the following securities exchanges and automated quotation systems are approved provided such exchanges or systems comply with the provisions of Paragraphs (1) through (4) of the Memorandum of Understanding regarding a Model Uniform Marketplace Exemption From State Securities Registration Requirements [SEC Release 33-6810 (December 16, 1988), CCH NASAA Reports, par. 2,351] or the Memorandum of Understanding between The North American Securities Administrators Association, Inc. and The Philadelphia Stock Exchange, Inc., incorporated herein by reference. The incorporated material may be obtained, free of charge, from the North Carolina Securities Division, Department of the Secretary of State, P.O. Box 29622, Raleigh, North Carolina 27626-0622:

(1) New York Stock Exchange;

(2) American Stock Exchange;

(3) Pacific Stock Exchange;

(4) Midwest Stock Exchange;

(5) NASDAQ National Market System;

(6) Chicago Board Options Exchange; and

(7) Philadelphia Stock Exchange.

History

Authority G.S. 78A-16(15); 150B-21.6; 78A-(49)
Eff. February 1, 1991
Temporary Adoption Eff. December 8, 1990 for a period of 180 days to expire on June 5, 1991
Temporary Adoption Eff. June 11, 1990 for a period of 180 days to expire on December 8, 1990
ARRC Objection Lodged June 21, 1990
ARRC Objection Removed August 20, 1990
ARRC Objection Lodged December 20, 1990
Amended Eff. April 1, 2003; October 1, 2000; May 1, 1995; August 1, 1991
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. December 6, 2016.

18 NCAC 06A .1211 Notice Filing Procedures for Rule 506 Offerings {#sec-18-ncac-06a-.1211 omnilex-key=us-nc-regs-official--title-18--18 NCAC 06A .1211}

An issuer offering a security that is a "covered security" under Section 18(b)(4)(D) of the Securities Act of 1933 shall file a notice on SEC Form D, a consent to service of process on a form prescribed by the Administrator, and pay a fee as established by G.S. 78A-31(b) no later than 15 days after the first sale in this State of such security covered under federal law. An issuer is not required to file any amendments to a Form D unless the amendment reflects a change in the offering in this State.

History

Authority G.S. 78A-31(b); 78A-49(a)
Temporary Adoption Eff. October 1, 1997
Eff. August 1, 1998
Temporary Amendment Eff. November 1, 2002
Amended Eff. August 1, 2004
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. December 6, 2016.

18 NCAC 06A .1212 Notice Filing Procedures for Offerings of Investment Company Securities {#sec-18-ncac-06a-.1212 omnilex-key=us-nc-regs-official--title-18--18 NCAC 06A .1212}

(a) In lieu of filing a copy of the federal registration statement, an investment company offering securities covered under Section 18(b)(2) of the Securities Act of 1933, as amended, may satisfy the notice filing requirement of G.S. 78A-31(a) by filing the fees required by that section, together with Form NF, Uniform Investment Company Notice Filing. This filing need not be made nor fees paid on any security issued by an investment company if such security is exempt pursuant to the provisions of G.S. 78A-16 or G.S. 78A-17.

(b) By filing Form NF, an investment company thereby agrees that, upon receipt of a request from the Securities Division, the investment company will promptly provide to the Division a copy of its current prospectus and statement of additional information, if any, as filed with the Securities and Exchange Commission.

(c) By executing the Form NF, the investment company thereby agrees, that for purposes of complying with the laws of this State, such execution shall be deemed to be the consent of the investment company to have the Administrator irrevocably appointed as its agent in this State upon whom may be served any notice, process or pleading in any action or proceeding against it arising out of, or in connection with, the sale of securities covered by such Form NF or arising out of the violation of the securities laws of this State; and that any action or proceeding against the investment company may be commenced in any court of competent jurisdiction and proper venue within this State by service of process upon the Administrator with the same effect as if the investment company was organized or created under the laws of this State and had been served lawfully with process in this State. In the event any notice, process or pleading is served on the investment company through the Administrator, the Administrator shall promptly provide a copy of such notice, process, or pleading to the person indicated in Item 5 of Form NF.

(d) Upon filing Form NF and paying fee required by G.S. 78A-31(a)(1), the securities of the investment company may be offered for sale and sold into, from, and within this State until the expiration of the notice filing period pursuant to G.S. 78A-31(a)(4). In order to offer or sell its securities after the expiration of its notice filing, the investment company must extend its notice filing as provided in Paragraph (e) of this Rule. In the event that the Securities Division requests that the investment company provide it with a copy of the investment company's prospectus or statement of additional information, such request shall not restrict the ability of the investment company to offer its securities for sale in this State provided that the Division has received the Form NF and fees as required by G.S. 78A-31(a).

(e) A notice filing may be renewed by the investment company by filing a current Form NF and paying such fees as are required by G.S. 78A-31(a) within two months after the expiration of the prior notice filing period. Each renewal of a notice filing shall expire on December 31.

(f) Amendments to increase the amount of shares to be offered may be made by filing a revised Form NF, together with the fees required by G.S. 78A-31(a)(5).

History

Authority G.S. 78A-31(a); 78A-49(a)
Temporary Adoption Eff. October 1, 1997
Eff. August 1, 1998
Temporary Amendment Eff. January 1, 1999
Codifier determined that agency findings did not meet criteria for temporary rule
Temporary Amendment Eff. September 29, 1999
Amended Eff. August 1, 2000
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. December 6, 2016.

18 NCAC 06A .1213 Transactional Exemption Pursuant to G.s. 78a-17(19) {#sec-18-ncac-06a-.1213 omnilex-key=us-nc-regs-official--title-18--18 NCAC 06A .1213}

Conditions of Eligibility for Exemption. For the purposes of eligibility for the exemption provided at G.S. 78A-17(19), an offer or sale of any viatical settlement contract or any fractionalized or pooled interest therein in a transaction must meet all of the following criteria:

(1) Suitability Standards. Sales of viatical settlement contracts may be made only to purchasers meeting the requirements of Rule .1320 of this Chapter.

(2) Purchase Not for Resale. Each purchaser must represent in writing that the purchaser is purchasing for investment and for the purchaser's own account or trust account, if the purchaser is a trustee, and not with a view to or for sale in connection with a distribution of the security.

(3) Required Disclosures. The information set forth in G.S. 78A-13 and in Rule .1319 shall be disclosed in accordance with that section.

(4) Rescission by Purchaser. Each purchaser shall be provided with written notice of his or her rights of rescission as set forth in G.S. 78A-56 and in Rule .1501 of this Chapter.

(5) Exemption Filing and Fee. A notice of the issuer's intent to sell securities in reliance on G.S. 78A-17(19), signed by the issuer or by an authorized officer of the issuer and notarized, together with a nonrefundable filing fee of five hundred dollars ($500.00), payable to the Secretary of State, shall be filed with the Administrator not later than ten business days before any offers or sales of securities are made pursuant to G.S. 78A-17(19). Such notice shall include:

(a) The issuer's name, the issuer's type of business organization, the state in which the issuer is organized, the date the issuer intends to begin selling securities within or from this state, and the issuer's principal business;

(b) A consent to service of process naming the Secretary of State as agent for service of process;

(d) the names and CRD numbers, if any, of all persons who will be offering the securities for sale in or from the State of North Carolina; and

(e) an undertaking to notify the Administrator in writing of any material change or material omission in the information filed with the Administrator pursuant to this Rule not later than five business days following the change or discovery of the omission.

(6) No Commissions to Unregistered Sellers. No commission or remuneration is paid directly or indirectly for soliciting any prospective purchaser, except to a registered salesman of a registered dealer.

(7) Filing of Advertising Materials. At least 10 days before use within this state, the issuer files with the Administrator all advertising and sales materials that will be published, exhibited, broadcast, or otherwise used, directly or indirectly, in the offer or sale of a viatical settlement contract in this state, including the written disclosures required by G.S. 78A-13 and by Rule .1319 of this Chapter.

(8) Legends Required. Any prospectus or disclosure document used in this state in connection with an offer and sale of securities made in reliance upon the exemption provided by this Rule shall disclose conspicuously the appropriate legends:

(a) 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;

(b) 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

(c) 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.

History

Authority G.S. 78A-13, 78A-14, 78A-17(19), 78A-49, 78A-56
Temporary Adoption Eff. April 1, 2002
Temporary Adoption Eff. July 1, 2002
Eff. April 1, 2003
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. December 6, 2016.

18 NCAC 06A .1301 Registration by Notification {#sec-18-ncac-06a-.1301 omnilex-key=us-nc-regs-official--title-18--18 NCAC 06A .1301}

Application for registration by notification shall be filed with the administrator using the Uniform Application to Register Securities (Form U-1). Supplemental information demonstrating eligibility for registration under this provision and the documents and information called for by G.S. 78A-25(b) shall be attached.

History

Authority G.S. 78A-25; 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.

18 NCAC 06A .1302 Registration by Coordination {#sec-18-ncac-06a-.1302 omnilex-key=us-nc-regs-official--title-18--18 NCAC 06A .1302}

Application for registration by coordination shall be filed with the administrator using the Uniform Application To Register Securities (Form U-1). Documents necessary to establish eligibility for registration by coordination shall be attached.

History

Authority G.S. 78A-26; 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.

18 NCAC 06A .1303 Registration by Qualification {#sec-18-ncac-06a-.1303 omnilex-key=us-nc-regs-official--title-18--18 NCAC 06A .1303}

(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.

(c) The prospectus requirement of Paragraph (b) of this Rule may be satisfied by the use of the NASAA Form U-7 (Small Corporate Offerings Registration Form) (as found at CCH NASAA Reports 5057) if the use of that form is allowed by the instructions to Form U-7 for the securities offering being registered.

History

Authority G.S. 78A-27(d); 78A-49(a)
Eff. April 1, 1981
Amended Eff. September 1, 1990; October 1, 1988; January 1, 1984
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. December 6, 2016.

18 NCAC 06A .1304 Securities Registration and Filing Fees {#sec-18-ncac-06a-.1304 omnilex-key=us-nc-regs-official--title-18--18 NCAC 06A .1304}

(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.

History

Authority G.S. 78A-28(b); 78A-28(j); 78A-31(a); 78A-49(a)
Eff. April 1, 1981
Amended Eff. September 1, 1990; October 1, 1988; January 1, 1984; July 1, 1982
Temporary Amendment Eff. October 1, 1997
Amended Eff. August 1, 1998
Temporary Amendment Eff. January 1, 1999
Codifier determined that agency findings did not meet criteria for temporary rule
Temporary Amendment Eff. September 29, 1999
Amended Eff. August 1, 2000
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. December 6, 2016.

18 NCAC 06A .1305 Sponsorship by Dealer {#sec-18-ncac-06a-.1305 omnilex-key=us-nc-regs-official--title-18--18 NCAC 06A .1305}

(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.

History

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.

18 NCAC 06A .1306 Confirmation of Registration {#sec-18-ncac-06a-.1306 omnilex-key=us-nc-regs-official--title-18--18 NCAC 06A .1306}

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.

History

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.

18 NCAC 06A .1307 Commissions and Expenses {#sec-18-ncac-06a-.1307 omnilex-key=us-nc-regs-official--title-18--18 NCAC 06A .1307}

(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).

(c) In an application to register securities where warrants, options or rights to purchase shares below the offering price are granted to underwriters, dealers and other persons with respect to the public offering of securities, there shall be included in the calculation pursuant to Paragraph (a) of this Rule an amount equal to the difference between the lowest price at which the warrants, options or rights may be exercised and the public offering price of the securities at the time of effectiveness of registration, less any amount paid for such warrants, options or rights. In cases where no market value for the warrants, options or rights exists, a presumed fair value of twenty percent of the public offering price of the shares to which the warrants, options or rights pertain shall be used for purposes of the calculation of payments pursuant to Paragraph (a) of this Rule, unless evidence indicates that a contrary valuation exists. For purposes of Paragraph (a) of this Rule, any future registration rights of underwriter's options, warrants, or shares at the issuer's expense shall be valued at one percent of the public offering, and any right of first refusal will be valued at one percent of the public offering. Payments as provided in Paragraph (a) of this Rule which are made or to be made in connection with the sale of securities by a person in which the issuer has an interest or which is controlled by or is under common control with the issuer shall be deemed to have been made by the issuer.

(d) Selling expenses as referred to in Paragraph (b) of this Rule may include, but are not limited to, the following:

(1) Solicitation, conversion, or exercise fees, which shall be valued at the lesser of actual cost or one percent if the fees are payable within one year of the offering;

(2) Consulting or financial advisory agreements or any other type of agreement or fees, however designated, which shall be valued at actual cost;

(3) Attorney's fees for services in connection with the issue and sale of the securities and their qualification for sale under applicable laws and regulations;

(4) Auditors' and accountants' fees;

(5) The cost of printing prospectuses, circulars and other documents required to comply with securities laws and regulations;

(6) Charges of transfer agents, registrars, indenture trustees, escrow holders, depositories, engineers, appraisers, and other experts;

(7) Cost of authorizing and preparing the securities, including issue taxes and stamps; and

(8) Other expenses incurred in connection with the public offering of securities as determined by the administrator.

(e) The issuer shall file with the administrator, within 120 days after the termination of the public offering, a written report setting forth the actual amounts of selling expenses incurred in the public offering. The selling expenses are to be broken down by the categories as in Paragraphs (a), (c), and (d) of this Rule.

(f) A public offering or sale of securities that includes offers or sales by selling security holders may be disallowed by the administrator unless the following conditions are met:

(1) Selling security holders shall pay a pro rata share of all additional selling expenses that are the result of the inclusion of their shares in the public offering;

(2) The prospectus or offering document shall disclose the amount of selling expenses which the selling securities holders shall pay; and

(3) With the exception of underwriter's or broker-dealer's compensation, the provisions of Paragraphs (f)(1) and (f)(2) of this Rule shall not apply:

(A) if the security holders have a written agreement with the issuer that was entered into one year or more prior to the filing of the public offering, whereby the issuer has agreed to pay all of the selling security holders' selling expenses, and if the selling securities holders have held their securities for at least one year prior to the filing of the public offering; or

(B) if the security holders have a written agreement with the issuer, whereby the issuer has agreed to pay all of the selling securities holders' selling expenses, and if the agreement was arrived at through arm's-length negotiations.

(g) In the event of noncompliance with Paragraph (a) of this Rule in reliance upon G.S. 78A-29(b)(1) the applicant shall provide the administrator the following:

(1) A copy of the rule or rules, promulgated by a national securities association registered with the Securities and Exchange Commission pursuant to Section 15A of the Securities Exchange Act of 1934, to which the offering or dealer is subject;

(2) A demonstration that the rule or rules were promulgated to provide safeguards against unreasonable profits or unreasonable rates or commissions or other charges;

(3) Evidence of the application of the rule or rules to the offering in question, including substantive guidelines, policy statements and interpretations utilized in determining compliance therewith; and

(4) Such other evidence of compliance with such rules as the administrator so requires.

History

Authority G.S. 78A-29(a)(2)f.; 78A-29(b)(2); 78A-49(a)
Eff. April 1, 1981
Amended Eff. October 1, 1990; October 1, 1988; January 1, 1984
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. December 6, 2016.

18 NCAC 06A .1308 Advertising {#sec-18-ncac-06a-.1308 omnilex-key=us-nc-regs-official--title-18--18 NCAC 06A .1308}

(a) For the purposes of this Rule, "Advertising" shall mean any of the following to be used or circulated with the sale and promotion of a public offering of securities: advertisement; display; pamphlet; brochure; letter; article or communication published in any newspaper, magazine or periodical; or script; or any recording; or any radio or television announcement, broadcast or commercial.

(b) Filing of Advertising Materials. At least 10 days before use within this state, the issuer shall file with the Administrator all advertising and sales material that will be published, exhibited, broadcast, or otherwise used, directly or indirectly, in the offer or sale of a security.

(c) Except where the conditions of G.S. 78A-2(2)d.3. or 78A-2(2)d.4. are met, all advertising circulated within this state for registered securities must carry the name of at least one North Carolina registered dealer which can legally make an offering of the securities in this state.

(d) The following devices or sales presentations, and the use thereof in any advertising shall be deceptive or misleading practices:

(1) Comparison charts or graphs showing a distorted, unfair or unrealistic relationship between the issuer's past performance, progress or success and that of another company, business, industry or investment media;

(2) Lay-out, format, size, kind and color of type used so as to attract attention to favorable or incomplete portions of the advertising matter, or to minimize less favorable, modified or modifying portions necessary to make the entire advertisement a fair and truthful representation;

(3) Statements or representations which predict future profit, success, appreciation, performance or otherwise relate to the merit or potential of the securities unless such statements or representations clearly indicate that they represent solely the opinion of the publisher thereof;

(4) Generalizations, generalized conclusions, opinions, representations and general statements based upon a particular set of facts and circumstances unless those facts and circumstances are stated and modified or explained by such additional facts or circumstances as are necessary to make the entire advertisement a full, fair, and truthful representation;

(5) Sales kits or film clips, displays or exposures, which, alone or by sequence and progressive compilation, tend to present an accumulative or composite picture or impression of certain, or exaggerated potential, profit, safety, return or assured or extraordinary investment opportunity or similar benefit to the prospective purchaser;

(6) Distribution of any non-factual or inaccurate data or material by words, pictures, charts, graphs, or otherwise, based on conjectural, unfounded, extravagant, or flamboyant claims, assertions, predictions or excessive optimism;

(7) Any package or bonus deal, prize, gift, gimmick or similar inducement, combined with or dependent upon the sale of some other product, contract or service, unless such unit or combination has been fully disclosed and specifically described and identified in the application as the security being offered; or

(8) Other devices or sales presentations that are fraudulent or would tend to work a fraud under G.S. 78A-8 or 78A-10.

(e) The disseminator of the advertising shall be responsible for its accuracy, reliability and conformance with the Act and this Rule.

(f) The terms "prospectus, pamphlet, circular, form letter, advertisement, advertising or other sales literature", as used in G.S. 78A-27(b)(12) and those same terms plus the term "advertising communication" used in G.S. 78A-49(d) shall not include a notice, circular, advertisement, letter or communication in respect of the security if it states from whom a written prospectus or offering circular may be obtained, and does no more than identify the security, the price thereof, and the name of one or more registered dealers through whom the security is available.

History

Authority G.S. 78A-8(2); 78A-49(a)
Eff. April 1, 1981
Amended Eff. October 1, 1988; January 1, 1984
Temporary Amendment Eff. April 1, 2002
Amended Eff. April 1, 2003
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. December 6, 2016.

18 NCAC 06A .1309 ADVERTISEMENTS NOT DEEMED PROSPECTUS: ETC. (repealed) {#sec-18-ncac-06a-.1309 omnilex-key=us-nc-regs-official--title-18--18 NCAC 06A .1309}

History

Status: repealed
Authority G.S. 78A-49(a)
Eff. April 1, 1981
Repealed Eff. January 1, 1984.

18 NCAC 06A .1310 Offering Price {#sec-18-ncac-06a-.1310 omnilex-key=us-nc-regs-official--title-18--18 NCAC 06A .1310}

(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.

History

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.

18 NCAC 06A .1311 SHELF REGISTRATIONS (repealed) {#sec-18-ncac-06a-.1311 omnilex-key=us-nc-regs-official--title-18--18 NCAC 06A .1311}

History

Status: repealed
Authority G.S. 78A-49(a)
Eff. April 1, 1981
Repealed Eff. January 1, 1984.

18 NCAC 06A .1312 REGISTRATION OF REAL ESTATE SECURITIES (repealed) {#sec-18-ncac-06a-.1312 omnilex-key=us-nc-regs-official--title-18--18 NCAC 06A .1312}

History

Status: repealed
Authority G.S. 78A-49(a)
Eff. April 1, 1981
Amended Eff. January 1, 1984
Repealed Eff. October 1, 1988.

18 NCAC 06A .1313 Registration of Direct Participation Program Securities {#sec-18-ncac-06a-.1313 omnilex-key=us-nc-regs-official--title-18--18 NCAC 06A .1313}

(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.

(b) The minimum investor suitability standards which shall be imposed for registered offerings of direct participation program securities are as follows:

(1) The investor shall either have a minimum net worth of two hundred twenty-five thousand dollars ($225,000) or a minimum net worth of sixty thousand dollars ($60,000) and had during the last tax year or estimates that the investor will have during the current tax year, taxable income of at least sixty thousand dollars ($60,000) without regard to the investment in the security.

(2) Net worth shall be determined exclusive of principal residence, mortgage thereon, home furnishings and automobiles. In the case of sales to fiduciary accounts, the investor suitability standards shall be met by the fiduciary or the fiduciary account or by the donor who directly or indirectly supplies the funds to purchase the securities.

(c) The administrator will permit the substitution of lower suitability standards if such lower standards are consistent with the standards outlined in the NASAA policy statement for that specific type of program. (See CCH NASAA Reports for such policy statements.)

(d) The administrator may modify or waive, upon the showing of good cause, the requirements of Paragraphs (a), (b) and (c) of this Rule, in whole or in part, with respect to a particular security, offering or transaction or the administrator may require higher investor suitability standards with respect to a particular security offering or transaction where necessary for the protection of investors. For purposes of this Rule, "good cause" means a substantial reason related to the investor protection goals intended to be served by the investor suitability requirements of Paragraphs (a), (b), or (c) of this Rule, determined with respect to the relative investment experience, financial sophistication, and financial substance of the offerees; the amounts of the proposed individual investments in the proposed offering; the business history and financial substance of the issuer of the securities; and the relative risk of loss presented by the particular business activity of the issuer.

History

Authority G.S. 78A-49(a)
Eff. April 1, 1981
Amended Eff. May 1, 2005; October 1, 1988; January 1, 1984
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. December 6, 2016.

18 NCAC 06A .1314 Escrow Agreements {#sec-18-ncac-06a-.1314 omnilex-key=us-nc-regs-official--title-18--18 NCAC 06A .1314}

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.

History

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.

18 NCAC 06A .1315 Notice of Completion of Offering/Final Sales Report {#sec-18-ncac-06a-.1315 omnilex-key=us-nc-regs-official--title-18--18 NCAC 06A .1315}

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.

History

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.

18 NCAC 06A .1316 Legends Required {#sec-18-ncac-06a-.1316 omnilex-key=us-nc-regs-official--title-18--18 NCAC 06A .1316}

(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.

(b) Any prospectus which depicts the United States Securities and Exchange Commission's comparable legend pursuant to a registration statement filed under the Securities Act of 1933 or a letter of notification under Regulation A or a schedule under Regulation B of the General Rules and Regulations of the Securities Act of 1933 will be considered in compliance with Paragraph (a).

History

Authority G.S. 78A-10(a); 78A-49(a); 78A-49(b)
Eff. January 1, 1984
Amended Eff. September 1, 1990; October 1, 1988
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. December 6, 2016.

18 NCAC 06A .1317 Amendment of Filings {#sec-18-ncac-06a-.1317 omnilex-key=us-nc-regs-official--title-18--18 NCAC 06A .1317}

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.

History

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.

18 NCAC 06A .1318 Automatic Withdrawal of Application for Registration {#sec-18-ncac-06a-.1318 omnilex-key=us-nc-regs-official--title-18--18 NCAC 06A .1318}

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.

History

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.

18 NCAC 06A .1319 required disclosures: viatical settlement contracts {#sec-18-ncac-06a-.1319 omnilex-key=us-nc-regs-official--title-18--18 NCAC 06A .1319}

(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.

(b) Disclosures Prior to Closing. At least five business days prior to the date the purchase agreement is signed, the purchaser shall receive the following written disclosures in addition to any disclosures set forth in G.S. 78A-13:

(1) No one can accurately predict the life expectancy of the insured. Many factors, including the nature of an insured's illness and improvements in medical treatments, can significantly affect the accuracy of a life expectancy prediction. Life expectancy predictions for persons who are elderly but not ill may be especially inaccurate;

(2) Because Internal Revenue Code Section 408(a)(3) requires that no part of the trust funds of an individual retirement account may be invested in life insurance contracts, the Internal Revenue Service may disallow viatical settlement contracts held as investments inside IRA's; and

(3) If an investment in a viatical settlement contract is made with qualified retirement plan funds, the investor may have difficulty taking the mandatory distributions beginning at age 70 1/2 because liquid funds may not be available from the plan's investments.

(c) Disclosure of the information listed in G.S. 78A-13 and in this Rule shall not be deemed to relieve any person of the duty to comply with the antifraud provisions of the North Carolina Securities Act.

History

Authority G.S. 78A-8; 78A-9; 78A-10; 78A-11; 78A-12; 78A-13; 78A-17(9); 78A-49
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.

18 NCAC 06A .1320 Viatical Settlement Contract Suitability Requirements {#sec-18-ncac-06a-.1320 omnilex-key=us-nc-regs-official--title-18--18 NCAC 06A .1320}

(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.

History

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.

18 NCAC 06A .1401 Application for Registration of Dealers {#sec-18-ncac-06a-.1401 omnilex-key=us-nc-regs-official--title-18--18 NCAC 06A .1401}

(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.

(b) The application for registration as a dealer shall be filed as follows:

(1) NASD member dealers shall file applications for initial registration in the State of North Carolina with the NASAA/NASD Central Registration Depository, P.O. Box 37441, Washington, D.C. 20013 and shall file a manually executed Form BD directly with the Securities Division. Applications for renewal of registration shall be filed only with the Central Registration Depository (see Rule .1406 of this Section);

(2) Non-NASD member dealers shall file all applications for registration in the State of North Carolina directly with the Securities Division.

(c) The dealer shall file with the administrator, as soon as practicable but in no event later than 30 days following such event, notice of any disciplinary action taken against the dealer by any exchange of which the dealer is a member; the Securities and Exchange Commission; the Commodity Futures Trading Commission; any national securities association registered with the Securities and Exchange Commission pursuant to Section 15A of the Securities Exchange Act of 1934 or any state securities commission and of any civil suit filed against the dealer alleging violation of any federal or state securities laws. If the information contained in any document filed with the administrator is or becomes inaccurate or incomplete in any material respect, the dealer shall file a correcting amendment as soon as practicable but in no event later than 30 days following the date on which such information becomes inaccurate or incomplete.

(d) Registration becomes effective at noon of the 30th day after a completed application is filed or such earlier time upon issuance of a license or written notice of effective registration, unless proceedings are instituted pursuant to G.S. 78A-39. The administrator may by order defer the effective date after the filing of any amendment but no later than noon of the 30th day after the filing of the amendment.

(e) Every dealer shall notify the administrator of any change of address, the opening or closing of any office (including the office of any salesman operating apart from the dealer's premises) or any material change thereto, in writing as soon as practicable or by filing concurrently upon filing with NASD an appropriate amendment or schedule to Form BD or any successor form.

History

Authority G.S. 78A-36(a); 78A-37(a); 78A-37(b); 78A-37(d); 78A-38(c); 78A-49(a)
Eff. April 1, 1981
Amended Eff. September 1, 1990; October 1, 1988; January 1, 1984; November 1, 1982
Temporary Amendment Eff. October 1, 1997
Amended Eff. August 1, 1998
Temporary Amendment Eff. November 1, 2002
Amended Eff. August 1, 2004
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. December 6, 2016.

18 NCAC 06A .1402 Application for Registration of Salesmen {#sec-18-ncac-06a-.1402 omnilex-key=us-nc-regs-official--title-18--18 NCAC 06A .1402}

(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.

(b) The application for registration as a salesman shall be filed as follows:

(1) NASD member dealers shall file all salesman applications for registration in the State of North Carolina with the NASAA/NASD Central Registration Depository, P.O. Box 9401, Gaithersburg, MD 28898-9401.

(2) Non-NASD member dealers shall file all salesman applications for registration in the State of North Carolina directly with the Securities Division.

(c) The salesman or the dealer for which the salesman is registered shall file with the administrator, as soon as practicable but in no event later than 30 days, notice of any disciplinary action taken against a salesman by any exchange of which the dealer is a member; the Securities and Exchange Commission; the Commodity Futures Trading Commission; any national securities association registered with the Securities and Exchange Commission pursuant to Section 15A of the Securities Exchange Act of 1934 or any state securities commission and of any civil suit, warrant, criminal warrant, or criminal indictment filed against the salesman alleging violation of any federal or state securities laws. If the information contained in any document filed with the administrator is or becomes inaccurate or incomplete in any material respect, the salesman or the dealer for which the salesman is registered shall file a correcting amendment as soon as practicable but in no event later than 30 days. Such filing shall be made by NASD member dealers and their salesmen to the NASAA/NASD Central Registration Depository and non-NASD member dealers and their salesmen shall make such filing directly with the Securities Division.

(d) Registration becomes effective at noon of the 30th day after a completed application is filed or such earlier time upon approval of the application by the administrator, unless proceedings are instituted pursuant to G.S. 78A-39. The administrator may by order defer the effective date after the filing of any amendment but no later than noon of the 30th day after the filing of the amendment.

(e) A salesman shall only be registered in this State with one dealer.

History

Authority G.S. 78A-37(a); 78A-37(b); 78A-38(c); 78A-39(b)(4); 78A-49(a)
Eff. April 1, 1981
Amended Eff. April 1, 2001; September 1, 1995; October 1, 1988; January 1, 1984; November 1, 1982
Temporary Amendment Eff. November 1, 2002
Amended Eff. August 1, 2004
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. December 6, 2016.

18 NCAC 06A .1403 Termination of Registration of Dealer {#sec-18-ncac-06a-.1403 omnilex-key=us-nc-regs-official--title-18--18 NCAC 06A .1403}

(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.

History

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.

18 NCAC 06A .1404 Change in Name of Dealer {#sec-18-ncac-06a-.1404 omnilex-key=us-nc-regs-official--title-18--18 NCAC 06A .1404}

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.

History

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.

18 NCAC 06A .1405 Dealer Merger/Consolidation/Acquisition/Succession {#sec-18-ncac-06a-.1405 omnilex-key=us-nc-regs-official--title-18--18 NCAC 06A .1405}

(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.

(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.

History

Authority G.S. 78A-37(b); 78A-37(c); 78A-40(a); 78A-49(a)
Eff. April 1, 1981
Amended Eff. September 1, 1995; January 1, 1984; November 1, 1982
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. December 6, 2016.

18 NCAC 06A .1406 Expiration and Renewal of Dealer Registration {#sec-18-ncac-06a-.1406 omnilex-key=us-nc-regs-official--title-18--18 NCAC 06A .1406}

(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.

History

Authority G.S. 78A-36(c); 78A-37(a); 78A-37(b); 78A-40(a); 78A-49(a)
Eff. April 1, 1981
Amended Eff. October 1, 1988; January 1, 1984; November 1, 1982; March 1, 1982
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. December 6, 2016.

18 NCAC 06A .1407 Expiration and Renewal of Salesman's Registration {#sec-18-ncac-06a-.1407 omnilex-key=us-nc-regs-official--title-18--18 NCAC 06A .1407}

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.

History

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.

18 NCAC 06A .1408 Termination of Salesman's Registration {#sec-18-ncac-06a-.1408 omnilex-key=us-nc-regs-official--title-18--18 NCAC 06A .1408}

(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.

(b) The Uniform Termination Notice For Securities Industry Registration (Form U-5) shall be filed as soon as practicable after termination of the salesman, but in no event later than ten business days after the salesman terminates.

History

Authority G.S. 78A-36(b); 78A-40(a); 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.

18 NCAC 06A .1409 Transfer of Salesman's Registration {#sec-18-ncac-06a-.1409 omnilex-key=us-nc-regs-official--title-18--18 NCAC 06A .1409}

History

Status: expired
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.

18 NCAC 06A .1410 Minimum Financial Requirements for Dealers {#sec-18-ncac-06a-.1410 omnilex-key=us-nc-regs-official--title-18--18 NCAC 06A .1410}

(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.

History

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.

18 NCAC 06A .1411 Record Keeping Requirements for Dealers {#sec-18-ncac-06a-.1411 omnilex-key=us-nc-regs-official--title-18--18 NCAC 06A .1411}

(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.

History

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.

18 NCAC 06A .1412 Financial Statements {#sec-18-ncac-06a-.1412 omnilex-key=us-nc-regs-official--title-18--18 NCAC 06A .1412}

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.

History

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.

18 NCAC 06A .1413 Salesman Examination Required {#sec-18-ncac-06a-.1413 omnilex-key=us-nc-regs-official--title-18--18 NCAC 06A .1413}

(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.

(b) The requirement of Paragraph (a) of this Rule shall not apply to any salesman who has been registered continuously since April 1, 1981; provided that a lapse in registration in this State of less than one year shall not require compliance with Paragraph (a) of this Rule. New registrants after April 1, 1981 who have not been registered previously in this State and previously registered salesmen in this State whose registration has lapsed for one year or more shall comply with Paragraph (a) of this Rule.

(c) The administrator may, upon a showing of good cause, waive the requirements of Paragraph (a) of this Rule. For purposes of this Rule, "good cause" for waiver for the examination requirement is shown by a demonstration that the applicant's understanding of the ethics and legal guidelines applicable to securities salesmen is comparable to that shown by evidence of a passing grade on the examination for which waiver is sought.

(d) Termination of the salesman's registration with the NASD for violation of NASD rules shall automatically terminate the salesman's registration with the State of North Carolina.

History

Authority G.S. 78A-39; 78A-39(b)(4); 78A-49(a)
Eff. April 1, 1981
Amended Eff. April 1, 2001; September 1, 1995; January 1, 1984
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. December 6, 2016.

18 NCAC 06A .1414 Dishonest/Unethical Practices of Dealers and Salesmen {#sec-18-ncac-06a-.1414 omnilex-key=us-nc-regs-official--title-18--18 NCAC 06A .1414}

(a) All dealers and salesmen shall observe high standards of commercial honor and just and equitable principles of trade in the conduct of their business and shall give particular attention to any conflicts of interest that may arise or exist. Acts and practices, including but not limited to those set forth in Paragraphs (b), (c), and (d) in this Rule, are considered contrary to such standards and may constitute grounds for denial, suspension or revocation of registration or censure of the registrant or such other action authorized by statute.

(b) Dishonest or unethical business practices in the securities business as used in G.S. 78A-39(a)(2)g. with regard to dealers include, but are not limited to, the following:

(1) Causing any unreasonable and unjustifiable delay or engaging in a pattern of unreasonable and unjustifiable delays, in the delivery of securities purchased by any of the customers, or in the payment upon request of free credit balances reflecting completed transactions of any of the customers;

(2) Inducing trading in a customer's account which is excessive in size or frequency in view of the financial resources and character of the account;

(3) Recommending to a customer the purchase, sale or exchange of any security without reasonable grounds to believe that such transaction or recommendation is suitable for the customer based upon reasonable inquiry concerning the customer's investment objectives, financial situation and needs, and any other relevant information known by the dealer;

(4) Executing a transaction on behalf of a customer without authorization to do so;

(5) Exercising any discretionary power in effecting a transaction for customer's account without first obtaining written discretionary authority from the customer, unless the discretionary power relates solely to the time and/or price for the execution of orders;

(6) Extending, arranging for or participating in arranging for credit to a customer in violation of the regulations of the Securities and Exchange Commission or the regulations of the Federal Reserve Board;

(7) Executing any transaction in a margin account without obtaining from the customer a written margin agreement prior to settlement date for the initial transaction in the account;

(8) Failing to segregate customers' free securities or securities in safekeeping;

(9) Hypothecating a customer's securities without having a lien thereon unless a properly executed written consent of the customer is first obtained, except as permitted by rules of the Securities and Exchange Commission;

(10) Charging unreasonable and inequitable fees for services performed, including miscellaneous services such as collection of monies due for principal, dividends or interest, exchange or transfer of securities, appraisals, safekeeping, or custody of securities and other services related to its securities business;

(11) Entering into a transaction for its own account with a customer with an unreasonable mark-up or mark-down, or with a customer other than a salesman registered with the dealer in which a commission is charged;

(12) Entering into a transaction with or for a customer at a price not reasonably related to the current market price of the security or receiving an unreasonable or indeterminate commission or profit;

(13) Executing orders for the purchase by a customer of securities not registered under the provisions of the Act, unless the securities or transaction are exempt from registration under the Act;

(14) Engaging in a course of conduct constituting an egregious violation of the rules of a national securities exchange or national securities association of which the dealer is a member with respect to any customer, transaction or business;

(15) Introducing customer transactions on a "fully disclosed" basis to another dealer or salesman that is not registered under G.S. 78A-37 unless the customer is a person described in G.S. 78A-17(8);

(16) Unreasonably or unjustifiably failing to furnish to a customer purchasing securities in an offering, no later than the date of confirmation of the transaction, either a final prospectus or a preliminary prospectus and an additional document, which together include all information set forth in the final prospectus;

(17) Offering to buy from or sell to any person any security at a stated price unless such dealer is prepared to purchase or sell, as the case may be, at such price and under such conditions as are stated at the time of such offer to buy or sell;

(18) Representing that a security is being offered to a customer "at the market" or a price relevant to the market price unless such dealer knows or has reasonable grounds to believe that a market for such security exists other than that made, created or controlled by such dealer, or by any person for whom he is acting or with whom he is associated in such distribution, or any person controlled by, controlling or under common control with such dealer;

(19) Effecting any transaction in, or inducing the purchase or sale of, any security by means of any manipulative, deceptive or fraudulent device, practice, plan, program, design or contrivance, which may include but not be limited to:

(A) Effecting any transaction in a security which involves no change in the beneficial ownership thereof;

(B) Entering an order or orders for the purchase or sale of any security with the knowledge that an order or orders of substantially the same size, at substantially the same time and substantially the same price, for sale of any such security, has been or will be entered by or for the same or different parties for the purpose of creating a false or misleading appearance of active trading in the security or a false or misleading appearance with respect to the market for the security; provided, however, nothing in this Part shall prohibit a dealer from entering bona fide agency cross transactions for its customers;

(C) Effecting, alone or with one or more other persons, a series of transactions in any security creating actual or apparent active trading in such security or raising or depressing the price of such security, for the purpose of inducing the purchase or sale of such security by others;

(20) Guaranteeing a customer against loss in any securities account of such customer carried by the dealer or in any securities transaction effected by the dealer with or for such customer;

(21) Publishing or circulating, or causing to be published or circulated, any notice, circular, advertisement, newspaper article, investment service, or communication of any kind which purports to report any transaction as a purchase or sale of any security unless such dealer believes that such transaction was a bona fide purchase or sale of such security; or which purports to quote the bid price or asked price for any security, unless such dealer believes that such quotation represents a bona fide bid for, or offer of, such security;

(22) Using any advertising or sales presentation in such a fashion as to be deceptive or misleading. An example of such practice would be distribution of any non-factual data, material or presentation based on conjecture, unfounded or unrealistic claims or assertions in any brochure, flyer, or display by works, pictures, graphs or otherwise designed to supplement, detract from, supersede or defeat the purpose or effect of any prospectus or disclosure;

(23) Failing to disclose to the customer that the dealer is controlled by, controlling, affiliated with or under common control with the issuer of any security before entering into any contract with or for such customer for the purchase or sale of such security, and if such disclosure is not made in writing, it shall be supplemented by the giving or sending of written disclosure at or before the completion of the transaction;

(24) Failing to make a bona fide public offering of all of the securities allotted to a dealer for distribution, whether acquired as an underwriter, a selling group member, or from a member participating in the distribution as an underwriter or selling group member;

(25) Failing or refusing to furnish a customer, upon reasonable request, information to which he is entitled, or to respond to a formal written request or complaint;

(26) Establishing, maintaining or operating an account under fictitious name or containing fictitious information;

(27) Sharing directly or indirectly in profits or losses in the account of any customer without the written authorization of the customer;

(28) Utilizing an agent or subagent in effecting or attempting to effect purchases or sales of securities where such agent or subagent is not registered as a salesman pursuant to G.S. 78A-37;

(29) Associating, affiliating or entering into any arrangement with any person not registered as a dealer pursuant to G.S. 78A-37, for the purpose of engaging in the business of effecting transactions in securities, where the employees of such person, assisting the dealer in effecting transactions in securities, are not either registered as salesmen of the dealer or the activities of these employees are not limited to duties that are exclusively clerical in nature for which the dealer has provided adequate supervision including instruction, training and safeguards against violation of the Act;

(30) Associating, affiliating or entering into any arrangement with any person not registered as a dealer pursuant to G.S. 78A-37 for the purpose of engaging in the business of effecting transactions in securities, where such person fails to conspicuously disclose to all customers, in any advertisement or literature published or distributed by such person:

(A) The identity of the registered dealer;

(B) That such person is not subject to regulation by the securities administrator of the State of North Carolina;

(31) Representing the availability of financial or investment planning, consultation, or advisement when the representation does not accurately describe the nature of the services offered, the qualifications of the person offering the services, and the method of compensation for the services;

(32) Engaging in any act or a course of conduct which resulted in the issuance by a securities agency or administrator of any state of an order to cease and desist the violation of the provisions of any state's securities act or rules (or the equivalent of any such order); or

(33) Any other acts or practices that may be determined by the administrator to constitute dishonest or unethical practices in the securities business.

(c) Dishonest or unethical business practices in the securities business as used in G.S. 78A-39(a)(2)g. with regard to salesmen include, but are not limited to the following:

(1) Borrowing or engaging in the practice of borrowing money or securities from a customer (other than any institution or organization whose normal business activities include lending or monies), or lending or engaging in the practice of lending money or securities to a customer;

(2) Acting as a custodian for money, securities or an executed stock power of a customer;

(3) Effecting securities transactions with a customer not recorded on the regular books or records of a dealer which a salesman represents, unless the transactions are disclosed to and authorized in writing by the dealer prior to execution of the transactions;

(4) Establishing, maintaining or operating an account under a fictitious name, or containing fictitious information;

(5) Sharing directly or indirectly in profits or losses in the account of any customer without the written authorization of the customer and the dealer which the salesman represents;

(6) Dividing or otherwise splitting commissions, profits, or other compensation from the purchase or sale of securities in this State with any person not also registered as a salesman for the same dealer, or for a dealer under direct or indirect common control;

(7) Entering into a transaction for salesman's own account with a customer in which a commission is charged;

(8) Entering in a course of conduct constituting an egregious violation of the rules of a national securities exchange or national securities association of which the salesman is a member with respect to any customer, transaction or business;

(9) Holding oneself out as representing any person other than the dealer for whom the salesman is registered and, in the case of a salesman whose normal place of business is not on the premises of the dealer, failing to conspicuously disclose the name of the dealer for whom the salesman is registered, when representing the dealer in effecting or attempting to effect purchases or sales of securities;

(10) Engaging in conduct specified in Subparagraphs (b)(1), (2), (3), (4), (5), (6), (7), (8), (9), (10), (12), (13), (15), (16), (19), (20), (21), (22), (25), (26), (31) or (32) of this Rule; or

(11) Any other acts or practices that may be determined by the administrator to constitute dishonest or unethical practices in the securities business.

(d) The conduct set forth in Paragraph (b) and (c) of this Rule is not exhaustive. Engaging in other conduct such as forgery, embezzlement, non-disclosure, incomplete disclosure or misstatement of material facts, or manipulative, deceptive or fraudulent practices shall also be grounds for denial, suspension, or revocation of registration or censure of the registrant.

History

Authority G.S. 78A-39(a)(2)g; 78A-49(a)
Eff. January 1, 1984
Amended Eff. October 1, 1988
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. December 6, 2016.

18 NCAC 06A .1415 Registration of Partners/Executive Officers/Directors {#sec-18-ncac-06a-.1415 omnilex-key=us-nc-regs-official--title-18--18 NCAC 06A .1415}

(a) Any partner, executive officer, director, or a person occupying a similar status or performing similar functions who represents a registered dealer in effecting or attempting to effect purchases or sales of securities shall be registered as a salesman pursuant to Paragraph (b) of this Rule.

(b) Automatic salesman registration for partners, executive officers or directors of a registered dealer or a person occupying a similar status or performing similar functions shall be obtained by filing an original or amended Form BD and any appropriate schedule thereto, providing the required disclosures regarding the registrant, and a written notice to the Securities Division identifying the registrant and that the registrant will engage in the activities as described in Paragraph (a) of this Rule; provided, however, if such information is currently on file with the administrator then the written notice only is required to be filed. Automatic registration shall lapse where a material change in the information reported on Form BD or any schedule thereto regarding the registrant has occurred and has not been reported to the Securities Division by filing an original or amended Form BD or the appropriate schedule thereto with current information within 10 business days of the material change. The dealer shall timely inform the Securities Division in writing when any registrant under this Paragraph ceases to engage in the activities described in Paragraph (a) of this Rule for the purposes of termination of the automatic salesman registration. Annual renewal is automatic upon renewal of the dealer registration.

(c) Failure to maintain a current automatic registration pursuant to Paragraph (b) of this Rule for those persons described in Paragraph (a) of this Rule may result in violation of G.S. 78A-36.

(d) Automatic registration may be denied, revoked, suspended, restricted or limited or the registrant censured as provided by G.S. 78A-39. Nothing in this Rule shall limit the administrator's authority to institute administrative proceedings against a dealer, or an applicant for dealer registration due to the qualifications of or disclosures regarding a person described in Paragraph (a) of this Rule.

(e) A salesman shall not be registered with more than one dealer regardless of whether registration is accomplished or contemplated under this Rule or Rule .1402 of this Section.

(f) For the purposes of this Rule "Executive Officer" shall mean the chief executive officer, the president, the principal financial officer, each vice president with responsibility involving policy making functions for a significant aspect of the dealer's business, the secretary, the treasurer, or any other person performing similar functions with respect to any organization whether incorporated or unincorporated.

History

Authority G.S. 78A-2(9); 78A-36(a); 78A-36(b); 78A-37(a); 78A-49(a)
Eff. January 1, 1984
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. December 6, 2016.

18 NCAC 06A .1416 Reporting Requirements of Dealers and Salesmen {#sec-18-ncac-06a-.1416 omnilex-key=us-nc-regs-official--title-18--18 NCAC 06A .1416}

(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.

History

Authority G.S. 78A-38(a); 78A-38(c); 78A-38(d); 78A-49(a)
Eff. September 1, 1995
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. December 6, 2016.

18 NCAC 06A .1417 Application for Limited Registration of Canadian Securities Dealers and Salesmen {#sec-18-ncac-06a-.1417 omnilex-key=us-nc-regs-official--title-18--18 NCAC 06A .1417}

(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).

(b) An applicant for limited registration as a salesman (the "Salesman") intending to effect securities transactions in this state on behalf of a Canadian dealer registered under this section shall file the following with the Administrator:

(1) a completed application for registration as a securities salesman in the form required by the jurisdiction in which the dealer has its head office;

(2) an originally executed copy of a Form U-2 or similar consent to service of process whereby the Salesman names the North Carolina Secretary of State as an agent duly authorized to accept service of process on behalf of the Salesman;

(3) a certification by the securities regulatory agency of the jurisdiction in Canada from which the Salesman will be effecting transactions into this state stating that the Salesman is both registered and in good standing as a securities salesman in that jurisdiction; and

(4) a filing fee as required by G.S. 78A-36.1(i) and G.S. 78A-37(b).

(c) If any information contained in any document filed with the Administrator by any dealer or salesman who has registered pursuant to G.S. 78A-36.1 is or becomes inaccurate or incomplete in any material respect, the dealer or salesman shall file a correcting amendment as soon as practicable, but in no event later than 30 days following the date on which such information becomes inaccurate or incomplete.

History

Authority G.S. 78A-36.1; 78A-37(b); 78A-49
Temporary Adoption Eff. November 1, 2002; January 15, 2002
Eff. April 1, 2003
Amended Eff. August 1, 2004
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. December 6, 2016.

18 NCAC 06A .1501 Rescission Offers {#sec-18-ncac-06a-.1501 omnilex-key=us-nc-regs-official--title-18--18 NCAC 06A .1501}

(a) All rescission offers under G.S. 78A-56(g) shall be typed or printed and shall be captioned in bold print or type "Rescission Offer." Offers must set forth in bold type the name of the security with respect to which the offer is made and the date of the transaction involved. Offers must be signed by the offeror or its authorized officer.

(b) Every rescission offer to a purchaser under G.S. 78A-56(g)(1) shall set forth with particularity the facts out of which liability under G.S. 78A-56 may have arisen and, in the event of a violation of G.S. 78A-56(a)(2), the correct, true, or omitted facts. It shall advise the purchaser of his potential rights under G.S. 78A-56 if a violation of that section were found and state the effect on those rights of the purchaser's failure to accept the offer within 30 days from its receipt. The offer shall include a form for the purchaser's written acceptance of the offer addressed to the offeror or the depository to which it is to be sent. The offer must expire by its own terms at midnight of the 30th day following its receipt by the purchaser and must provide, by its terms, that acceptance is effective if the purchaser either delivers his written acceptance to the address specified in the offer or mails that acceptance, postage prepaid, with a postmark not later than midnight of the thirtieth day following his receipt of the offer. The offer shall not require that the purchaser return the security with his acceptance; the offer may, however, require that the purchaser deliver any security he still holds and/or a verified statement of the transactions in which he disposed of any security to the offeror or to a depository specified in the offer within a period of not less than 45 days from the receipt of the offer in order to receive payment thereunder. The offer may provide that any offeree who delivers a timely written acceptance but fails to deliver any security held by him and/or the statement of the transactions in which he disposed of any security within the time specified in the offer shall be deemed to have failed to accept such an offer in writing within a specified period 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 of which liability under G.S. 78A-56 may have arisen and, in the event of a violation of G.S. 78A-56(a)(2), the correct, true, or omitted 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 effect on those rights of the seller's failure to accept the offer within 30 days from the receipt. The offer shall include a form for the seller's written acceptance of the offer addressed to the offeror or the depository to which it is to be sent. The offer must expire by its own terms at midnight of the 30th day following its receipt by the seller and must provide, by its terms, that acceptance is effective if the seller either delivers his written acceptance to the address specified in the offer or mails that acceptance, postage prepaid, with a postmark not later than midnight of the thirtieth day following his receipt of the offer. The offeror is not required to return the security with the offer:

(1) If the offeror has not disposed of the security, the offer may require that the seller deliver the sum necessary to rescind to the offeror or to a depository specified in the offer within a period of not less than 45 days from the receipt of the offer in order to receive the security. The offer may provide that any offeree who delivers a timely written acceptance but fails to deliver the sum necessary to rescind the transaction within the time specified in the offer shall be deemed to have failed to accept such an offer in writing within a specified period as required by G.S. 78A-56(g)(2).

(2) If the offeror has disposed of the security, the offer shall specify the period of time by which the offeror shall submit any damages as required by G.S. 78A-56(g)(2) to the seller, if the seller accepts and delivers a timely written acceptance.

(d) The person making the rescission offer shall file a copy of the rescission offer with the Administrator at least 10 days before delivering the offer to the offeree. The copy filed with the Administrator shall be addressed to: Rescission Offers, North Carolina Securities Division, P.O. Box 29622, Raleigh, North Carolina 27626-0622.

(e) A seller who makes a rescission offer pursuant to G.S. 78A-56(l) shall include in that rescission offer an undertaking by the seller to refund all the purchaser's money, without deductions, within seven business days after the date of receipt by the seller of the purchaser's notice of rescission or cancellation. The rescission offer shall be transmitted by the seller to the purchaser by certified mail, return receipt requested.

History

Authority G.S. 78A-49; 78A-56
Eff. April 1, 1981.
Temporary Amendment Eff. April 1, 2002; January 14, 2002
Amended Eff. May 1, 2003; April 1, 2003
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. December 6, 2016.

18 NCAC 06A .1502 Application to Exchange Securities {#sec-18-ncac-06a-.1502 omnilex-key=us-nc-regs-official--title-18--18 NCAC 06A .1502}

(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.

(1) any written agreement governing the proposed transaction.

(2) a copy of the notice of the hearing which the applicant will mail to all persons to whom the applicant proposes to issue securities or to deliver other consideration in the proposed transaction.

(3) an audited balance sheet, prepared in accordance with generally accepted accounting principles, as of the close of the most recent fiscal year of any corporation whose securities will be issued or exchanged in the proposed transaction.

(4) an audited income statement, prepared in accordance with generally accepted accounting principles, for the most recent fiscal year of any corporation whose securities will be issued or exchanged in the proposed transaction.

(5) any other documents which the applicant desires the administrator to consider. The administrator may require the applicant to submit other documents in addition to the documents required by this Rule. The administrator may also waive or modify the requirements of this Rule by allowing the applicant to submit fewer documents other than those which this Rule would otherwise require.

(6) a written undertaking to pay, upon receipt of an invoice from the administrator, the fee required by G.S. 78A-30(g) and Subparagraph (d)(4) of this Rule.

(d) The procedure following application shall be as follows:

(1) The administrator shall inform the applicant of any deficiencies in the application or of any additional information or documents required and may require the applicant to amend or resubmit the application to comply with the provisions of G.S. 78A-30 or the rules adopted pursuant thereto prior to setting a date for the hearing.

(2) Upon the filing of an application complying with the provisions of G.S. 78A-30 and the rules adopted pursuant thereto, the administrator shall inform the applicant of the date, hour and place of the hearing which shall be within 30 days after the filing of the application.

(3) The applicant shall mail by United States Mail, Postage Prepaid, notice of such hearing to all persons to whom it is proposed to issue securities or to deliver such other consideration in such exchange, not less than 10 days prior to such hearing. The applicant shall provide to the administrator, on or before the date of the hearing, a certification that the notice of hearing has been so mailed.

(4) Following the conclusion of the hearing, the Administrator shall transmit to the applicant an invoice for the fees required by G.S. 78A-30(g). These fees shall be calculated based upon the hours involved in the examination of the application, the conduct of the hearing, and the preparation of any written response, as follows:

(A) For the Hearing Officer, the amount of two hundred dollars ($200.00) per hour.

(B) For each Assistant to the Hearing Officer, the amount of one hundred dollars ($100.00) per hour.

But in any event the fee shall be not less than five hundred dollars ($500.00) nor more than five thousand ($5000) per fairness hearing.

History

Authority G.S. 78A-30; 78A-49
Eff. April 1, 1981
Temporary Amendment Eff. January 1, 1999
Codifier determined that agency findings did not meet criteria for temporary rule
Temporary Amendment Eff. September 29, 1999
Amended Eff. August 1, 2000
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. December 6, 2016.

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.

History

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.

18 NCAC 06A .1504 Request for Interpretative Opinions: No-Action Letters {#sec-18-ncac-06a-.1504 omnilex-key=us-nc-regs-official--title-18--18 NCAC 06A .1504}

(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).

(b) An interpretative opinion or "no-action" letter shall not be considered an absolute exemption or exception from a definition. The burden of proving an exemption or exception from a definition shall remain upon the person claiming it should the necessity of proof arise.

History

Authority G.S. 78A-18(b); 78A-49(a); 78A-50(e)
Eff. April 1, 1981
Amended Eff. October 1, 1988; January 1, 1984
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. December 6, 2016.

18 NCAC 06A .1505 LEGENDS REQUIRED (repealed) {#sec-18-ncac-06a-.1505 omnilex-key=us-nc-regs-official--title-18--18 NCAC 06A .1505}

History

Status: repealed
Authority G.S. 78A-10(a); 78A-17(9)(a); 78A-49(b)
Eff. April 1, 1981
Repealed Eff. January 1, 1984.

18 NCAC 06A .1506 PUBLIC INFORMATION (repealed) {#sec-18-ncac-06a-.1506 omnilex-key=us-nc-regs-official--title-18--18 NCAC 06A .1506}

History

Status: repealed
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.

18 NCAC 06A .1507 Implications of Registration or Exemption {#sec-18-ncac-06a-.1507 omnilex-key=us-nc-regs-official--title-18--18 NCAC 06A .1507}

The filing of an application for registration, the fact an application has been filed, or the fact a security is effectively registered does not constitute a finding that any document filed under this Chapter is true, complete and not misleading. The fact an exemption is available for a security does not mean the administrator has passed upon the merits of the claim, or recommended or given approval to any person, security or transaction.

History

Authority G.S. 78A-10(a); 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.

18 NCAC 06A .1508 Failure to Furnish Information {#sec-18-ncac-06a-.1508 omnilex-key=us-nc-regs-official--title-18--18 NCAC 06A .1508}

Failure to furnish requested information or evidence of compliance and/or the failure of any issuer, dealer, salesman, or interested person to comply with any rule or order:

(1) May result in an application for registration being denied; or

(2) If a registration has been approved, an order of revocation may lie requiring a rescission offer to be made to all purchasers.

History

Authority G.S. 78A-29(b)(2); 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.

18 NCAC 06A .1509 FORMS (repealed) {#sec-18-ncac-06a-.1509 omnilex-key=us-nc-regs-official--title-18--18 NCAC 06A .1509}

History

Status: repealed
Authority G.S. 78A-49
Eff. April 1, 1981
Amended Eff. September 1, 1990; October 1, 1988; January 1, 1984
Temporary Amendment Eff. October 1, 1997
Repealed Eff. August 1, 1998.

18 NCAC 06A .1510 Limited Liability Company Membership Interests as Securities {#sec-18-ncac-06a-.1510 omnilex-key=us-nc-regs-official--title-18--18 NCAC 06A .1510}

(a) Membership interests, as defined in G.S. 57C-1-03(15), in a limited liability company shall be presumed to be securities within the meaning of G.S. 78A-2(11) in either of the following circumstances:

(1) where the articles of organization of the limited liability company provide that all members of the limited liability company are not necessarily managers by virtue of their status as members; or

(2) where all members by virtue of their status as members are managers of the limited liability company and the number of members is greater than 15.

(b) Among the factors that will be considered by the Securities Division as evidence offered to rebut or support the presumption in Paragraph (a) of this Rule are:

(1) whether investors retain, under the limited liability company's operating agreement, the right to exercise practical and actual control over the managerial decisions of the enterprise;

(2) whether the number of members of the limited liability company is so great as to render the managerial powers afforded them by the operating agreement insignificant and meaningless;

(3) whether the promoter has some particular or special skill which is necessary for the successful operation and management of the limited liability company and, without which, the enterprise will likely be unsuccessful; and

(4) whether special circumstances render meaningless the managerial powers given by the operating agreement to the members.

History

Authority G.S. 78A-2(11); 78A-49(a)
Temporary Adoption Eff. May 31, 1994, For a Period of 180 Days or Until the Permanent Rule Becomes Effective, Whichever is Sooner
Eff. December 1, 1994
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. December 6, 2016.

18 NCAC 06A .1601 Purpose {#sec-18-ncac-06a-.1601 omnilex-key=us-nc-regs-official--title-18--18 NCAC 06A .1601}

History

Status: expired
Authority G.S. 105-163.013
Temporary Rule Eff. January 1, 1988 For a Period of 180 Days to Expire on June 29, 1988
Eff. March 1, 1988
Amended Eff. April 1, 2003; March 1, 1996; September 1, 1990
Expired Eff. January 1, 2017 pursuant to G.S. 150B-21.3A.

18 NCAC 06A .1602 Procedure for Application for Registration {#sec-18-ncac-06a-.1602 omnilex-key=us-nc-regs-official--title-18--18 NCAC 06A .1602}

History

Status: expired
Authority G.S. 105-163.013
Temporary Rule Eff. January 1, 1988 For a Period of 180 Days to Expire on June 29, 1988
Eff. March 1, 1988
Amended Eff. April 1, 2003; March 1, 1996; September 1, 1990
Expired Eff. January 1, 2017 pursuant to G.S. 150B-21.3A.

18 NCAC 06A .1603 Amendment of Application {#sec-18-ncac-06a-.1603 omnilex-key=us-nc-regs-official--title-18--18 NCAC 06A .1603}

History

Status: expired
Authority G.S. 105-163.013
Temporary Rule Eff. January 1, 1988 For a Period of 180 Days to Expire on June 29, 1988
Eff. March 1, 1988
Amended Eff. April 1, 2003; March 1, 1996; September 1, 1990
Expired Eff. January 1, 2017 pursuant to G.S. 150B-21.3A.

18 NCAC 06A .1604 Obtaining Certificates of Registration {#sec-18-ncac-06a-.1604 omnilex-key=us-nc-regs-official--title-18--18 NCAC 06A .1604}

History

Status: expired
Authority G.S. 105-163.013
Temporary Rule Eff. January 1, 1988 For a Period of 180 Days to Expire on June 29, 1988
Eff. March 1, 1988
Amended Eff. April 1, 2003; March 1, 1996; September 1, 1990
Expired Eff. January 1, 2017 pursuant to G.S. 150B-21.3A.

18 NCAC 06A .1605 REPORTING REQUIREMENT/TERMINATION/QUALIFIED INVEST (repealed) {#sec-18-ncac-06a-.1605 omnilex-key=us-nc-regs-official--title-18--18 NCAC 06A .1605}

History

Status: repealed
Filed as a Temporary Rule Eff. January 1, 1988 For a Period of 180 Days to Expire on June 29, 1988
Authority G.S. 105-163.013(a)
Eff. March 1, 1988
Repealed Eff. March 1, 1996.

18 NCAC 06A .1606 REPORTING REQUIREMENT/TERMINATION/QUALIFIED INVEST (repealed) {#sec-18-ncac-06a-.1606 omnilex-key=us-nc-regs-official--title-18--18 NCAC 06A .1606}

History

Status: expired
Filed as a Temporary Rule Eff. January 1, 1988 for a Period of 180 Days to Expire on June 29, 1988
Authority G.S. 105-163.013
Expired Eff. March 1, 1988.

18 NCAC 06A .1607 Forms {#sec-18-ncac-06a-.1607 omnilex-key=us-nc-regs-official--title-18--18 NCAC 06A .1607}

History

Status: expired
Authority G.S. 105-163.013(d)
Eff. September 1, 1990
Amended Eff. March 1, 1996
Expired Eff. January 1, 2017 pursuant to G.S. 150B-21.3A.

18 NCAC 06A .1701 Definitions {#sec-18-ncac-06a-.1701 omnilex-key=us-nc-regs-official--title-18--18 NCAC 06A .1701}

For purposes of Chapter 78C of the North Carolina General Statutes and Sections .1700 and .1800 of these Rules, the following definitions shall apply:

(1) "Accountant" shall mean a person who holds himself out to be an "accountant" or a "certified public accountant" as those terms are defined at Section 93-1(a) of the North Carolina General Statutes.

(2) "Act" shall mean the North Carolina Investment Advisers Act, Chapter 78C of the North Carolina General Statutes, as may be amended from time to time.

(3) "Dealer" shall have the same meaning as that set forth in Section 78A-2(2) of the North Carolina General Statutes.

(4) "Salesman" shall have the same meaning as that set forth in Section 78A-2(9) of the North Carolina General Statutes.

(5) "Financial Planner" [as used in G.S. 78C-2(1)] includes a person who provides or offers to provide advisory services to clients or to prospective clients regarding the management of their financial resources based on an analysis of individual client needs. The Division hereby incorporates by reference the concepts of "financial planning" found in Section I of SEC Release No. IA-1092, October 8, 1987, 52 F.R. 38400 (CCH Federal Securities Law Reporter 56,156E).

(6) "Holds [oneself] out" [as used in G.S. 78C-2(1)] means advertises, announces, represents, communicates, publishes, discloses, or makes known, by any means or manner, that one will provide or is willing to provide the services referred to in G.S. 78C-2(1) to other persons.

(7) The performance of investment advisory services is "solely incidental" [within the meaning of G.S. 78C-2(1)(c) and (d)] to the practice of a profession or to the conduct of a business when the person performing such services neither makes any charge nor receives any compensation, either direct or indirect, that is properly allocable to his rendering of such services. The Division hereby incorporates by reference the concepts found in Sections II (A)(3) and II (B) of SEC Release IA-1092, October 8, 1987, 52 F.R. 38400 (CCH Federal Securities Law Reporter 56,156E).

History

Authority G.S. 78C-30(a)
Temporary Rule Eff. January 2, 1989, for a Period of 180 Days to Expire on June 30, 1989
Eff. February 1, 1989
Amended Eff. September 1, 1990
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. December 6, 2016.

18 NCAC 06A .1702 Application for Investment Adviser Registration/Notice Filing for Investment Adviser Covered Under Federal Law {#sec-18-ncac-06a-.1702 omnilex-key=us-nc-regs-official--title-18--18 NCAC 06A .1702}

(a) The application for initial registration as an investment adviser pursuant to Section 78C-17(a) of the Act shall be made by completing Form ADV (Uniform Application for Investment Adviser Registration) (17 C.F.R. 279.1) in accordance with the form instructions and by filing the form with IARD (the Investment Adviser Registration Depository). The initial application shall also include the following:

(1) Proof of compliance by the investment adviser with the examination requirements of Rule .1709;

(2) Such financial statements as set forth in Rule .1708, including at the time of application, a copy of the balance sheet for the last fiscal year, and if such balance sheet is as of a date more than 45 days from the date of filing of the application, an unaudited balance sheet prepared as set forth in Rule .1708 as of a date within 45 days of the date of filing;

(3) Evidence of compliance with the minimum financial requirements of Rule .1704;

(4) A copy of the surety bond required by Section 78C-17(e), if applicable upon request of the Administrator;

(5) The fee required by Section 78C-17(b) of the Act; and

(6) Any other information the administrator may from time to time require which is relevant to the applicant's qualifications to engage in the business of acting as an investment adviser.

(b) The application for annual renewal of registration as an investment adviser shall be filed with IARD and shall include the following:

(1) A copy of the surety bond required by Rule .1705, if applicable upon request of the Administrator; and

(2) The fee required by Section 78C-17(b) of the Act.

(1) An investment adviser must file with IARD, in accordance with the instructions in the Form ADV, any amendments to the investment adviser's form ADV;

(2) An amendment shall be considered to be filed promptly if the amendment is filed within 30 days of the event that requires the filing of the amendment; and

(3) Within 90 days of the end of the investment adviser's fiscal year, an investment adviser must file with IARD an updated Form ADV.

(d) Registration becomes effective at noon of the 30th day after a completed application is filed or such earlier time upon issuance of a license or written notice of effective registration, unless proceedings are instituted pursuant to G.S. 78C-19. The administrator may by order defer the effective date after the filing of any amendment but no later than noon of the 30th day after the filing of the amendment.

(e) An application for initial or renewal registration is not considered filed for purposes of G.S. 78C-17 until the required fee and all required submissions have been received by the Administrator.

(f) The registration of an investment adviser shall expire on December 31 of each year unless timely renewed.

(g) The notice filing for an investment adviser covered under federal law pursuant to G.S. 78C-17(a1) shall be filed with IARD on an executed Form ADV. A notice filing of an investment adviser covered under federal law shall be deemed filed when the fee required by G.S. 78C-17(c) and the Form ADV are filed with and accepted by IARD on behalf of the State.

(h) Notice filings for investment advisers covered under federal law shall expire on December 31 each year unless renewed prior to expiration. The renewal of the notice filing for an investment adviser covered under federal law pursuant to G.S. 78C-17(a1) shall be made by completing Form ADV in accordance with the form instructions and by filing the form with IARD. The renewal of the notice filing for an investment adviser covered under federal law shall be deemed filed when the fee required by G.S. 78C-17(b)(1) is filed with and accepted by IARD on behalf of the State.

(i) Until IARD provides for the filing of Part 2 of Form ADV, the Administrator shall deem filed Part 2 of Form ADV if an investment adviser covered under federal law provides, within five days of a request, Part 2 of Form ADV to the Administrator. Because the Administrator deems Part 2 of the Form ADV to be filed, an investment adviser covered under federal law is not required to submit Part 2 of Form ADV to the Administrator unless requested.

History

Authority G.S. 78C-16(b); 78C-16(d); 78C-17(a); 78C-17(a1); 78C-17(b); 78C-17(b1); 78C-17(e); 78C-18(d); 78C-19(a); 78c-20; 78C-30(a); 78C-30(b); 78C-30(c); 78C-30(d); 78C-46(b)
Temporary Rule Eff. January 2, 1989, for a period of 180 days to expire on June 30, 1989
Eff. February 1, 1989
Temporary Amendment Eff. October 1, 1997
Amended Eff. August 1, 1998
Temporary Amendment Eff. January 14, 2002
Amended Eff. April 1, 2003
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. December 6, 2016.

18 NCAC 06A .1703 Application/Investment Adviser Representative Registration {#sec-18-ncac-06a-.1703 omnilex-key=us-nc-regs-official--title-18--18 NCAC 06A .1703}

(a) The application for initial registration as an investment adviser representative pursuant to Section 78C-17(a) of the Act shall be made by completing Form U-4 (Uniform Application for Securities Industry Registration or Transfer) in accordance with the form instructions and by filing the Form U-4 with IARD. The initial application shall include the following:

(1) Proof of compliance by the investment adviser representative with the examination requirements of Rule .1709; and

(2) The fee required by Section 78C-17(b) of the Act.

(b) The application for annual renewal of registration as an investment adviser representative shall be filed with IARD. The application for annual renewal or registration shall include the fee required by G.S. 78C-17(b).

(1) The investment adviser representative is under a continuing obligation to update information required by Form U-4 as changes occur;

(2) An investment adviser representative and the investment adviser must file promptly with IARD any amendments to the representative's Form U-4; and

(3) An amendment will be considered to be filed promptly if the amendment is filed within 30 days of the event that requires the filing of the amendment.

(d) An application for initial or renewal registration is not considered filed for purposes of G.S. 78C-17 until the required fee and all required submissions have been received by the Administrator.

History

Authority G.S. 78C-16(b); 78C-17(a); 78C-17(b); 78C-18(d); 78C-19(a); 78C-20; 78C-30(a); 78C-30(b); 78C-46(b)
Temporary Rule Eff. January 2, 1989 for a period of 180 days to expire on June 30, 1989
Eff. February 1, 1989
Temporary Amendment Eff. October 1, 1997
Amended Eff. August 1, 1998
Temporary Amendment Eff. January 14, 2002
Amended Eff. April 1, 2003
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. December 6, 2016.

18 NCAC 06A .1704 Minimum Financial Requirements for Investment Advisers {#sec-18-ncac-06a-.1704 omnilex-key=us-nc-regs-official--title-18--18 NCAC 06A .1704}

(a) Unless an investment adviser posts a bond pursuant to Rule .1705, an investment adviser registered or required to be registered under the Act who has custody of client funds or securities shall maintain at all times a minimum net worth of thirty-five thousand dollars ($35,000.00), and every investment adviser registered or required to be registered under the Act who has discretionary authority over client funds or securities but does not have custody of client funds or securities shall maintain at all times a minimum net worth of ten thousand dollars ($10,000.00).

(b) Unless otherwise exempted, as a condition of the right to continue to transact business in this state, every investment adviser registered or required to be registered under the Act shall by the close of business on the next business day notify the administrator if such investment adviser's total net worth is less than the minimum required. After transmitting such notice, each investment adviser shall file by the close of business on the next business day a written report with the administrator of its financial condition, including the following:

(1) a trial balance of all ledger accounts;

(2) a statement of all client funds or securities which are not segregated;

(3) a computation of the aggregate amount of client ledger debit balances; and

(4) a statement as to the number of client accounts.

(c) For purposes of this Rule, the term "net worth" shall mean an excess of assets over liabilities, as determined by generally accepted accounting principles, but shall not include as assets: prepaid expenses (except as to items properly classified as current assets under generally accepted accounting principles), deferred charges, subordinated loans, goodwill, franchise rights, organizational expenses, patents, copyrights, marketing rights, unamortized debt discount and expense, all other assets of intangible nature; home, home furnishings, automobile(s), and any other personal items not readily marketable in the case of an individual; advances or loans to stockholders and officers in the case of a corporation; and advances or loans to partners in the case of a partnership.

(d) The administrator may require that a current appraisal be submitted in order to establish the worth of any asset.

(e) Every investment adviser that has its principal place of business in a state other than this state shall maintain such capital as required by the state in which the investment adviser maintains its principal place of business, provided the investment adviser is licensed in such state and is in compliance with such state=s minimum capital requirements, if any.

History

Authority G.S. 78C-17(d); 78C-18(c)(d); 78C-30(a)
Temporary Rule Eff. January 2, 1989, for a period of 180 days to expire on June 30, 1989
Eff. February 1, 1989
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.

18 NCAC 06A .1705 Bonding Requirements for Certain Investment Advisers {#sec-18-ncac-06a-.1705 omnilex-key=us-nc-regs-official--title-18--18 NCAC 06A .1705}

(a) Every investment adviser having custody of or discretionary authority over client funds or securities shall be bonded in an amount of not less than thirty-five thousand dollars ($35,000.00) by a bonding company qualified to do business in this state or in lieu thereof may provide evidence of a deposit of cash or securities in such amount. The requirements of this Rule shall not apply to those applicants or registrants who comply with the requirements of Rule .1704.

(b) Should an investment adviser's bond be terminated by the surety resulting in the investment adviser's failure to meet the requirements of Paragraph (a) of this Rule and the bond was not terminated due to fault of the investment adviser, then the investment adviser shall be provided a reasonable time period up to six months, without the necessity of ceasing to do business as an investment adviser, to obtain another bond in order to meet the requirements of Paragraph (a) of this Rule provided that the investment adviser notifies the administrator in writing within two business days of the termination of the bond and files such further information as the administrator may require regarding the financial status of the investment adviser until evidence of compliance with Paragraph (a) of this Rule is provided.

(c) The surety bond shall be filed with the administrator on Form NCIAB (North Carolina Securities Division Investment Adviser's Bond) or on a form whose terms are substantially equivalent to the terms of Form CDCS-1A and which is approved as the substantial equivalent by the Administrator. Evidence of a deposit of cash or securities shall be filed with the administrator on Form CDCS-IA (Certification of Deposit of Cash or Securities -- Investment Advisers) or on a form whose terms are substantially equivalent to the terms of Form CDCS-1A and which is approved as the substantial equivalent by the Administrator.

(d) An investment adviser that has its principal place of business in a state other than this state shall be exempt from the requirements of Paragraph (a) of this Rule, provided that the investment adviser is registered as an investment adviser in the state where it has its principal place of business and is in compliance with such state's requirements relating to bonding, if any.

History

Authority G.S. 78C-17(d); 78C-18(b); 78C-18(c); 78C-30(a)
Temporary Rule Eff. January 2, 1989, for a period of 180 days to expire on June 30, 1989
Eff. February 1, 1989
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.

18 NCAC 06A .1706 Record-Keeping Requirements for Investment Advisers {#sec-18-ncac-06a-.1706 omnilex-key=us-nc-regs-official--title-18--18 NCAC 06A .1706}

(a) Except as otherwise provided in Paragraph (j) of this Rule, every investment adviser registered or required to be registered under the Act shall make and keep true, accurate and current the following books, ledgers and records:

(1) A journal or journals, including cash receipts and disbursements records, and any other records of original entry forming the basis of entries in any ledger;

(2) General and auxiliary ledgers (or other comparable records) reflecting asset, liability, reserve, capital, income and expense accounts;

(3) A memorandum of each order given by the investment adviser for the purchase or sale of any security, of any instruction received by the investment adviser from the client concerning the purchase, sale, receipt or delivery of a particular security, and of any modification or cancellation of any such order or instruction. Such memoranda shall show the terms and conditions of the order, instruction, modification or cancellation; shall identify the person connected with the investment adviser who recommended the transaction to the client and the person who placed such order; and shall show the account for which entered, the date of entry, and the bank or dealer by or through whom executed where appropriate. Orders entered pursuant to the exercise of discretionary power shall be so designated;

(4) All check books, bank statements, canceled checks and cash reconciliations of the investment adviser;

(5) All bills or statements (or copies thereof), paid or unpaid, relating to the business of the investment adviser as such;

(6) All trial balances, financial statements, and internal audit working papers relating to the business of such investment adviser;

(7) Originals of all written communications received and copies of all written communications sent by such investment adviser relating to:

(A) Any recommendation made or proposed to be made and any advice given or proposed to be given,

(B) Any receipt, disbursement or delivery of funds or securities, or

(i) that the investment adviser shall not be required to keep any unsolicited market letters and other similar communications of general public distribution not prepared by or for the investment adviser, and

(ii) that if the investment adviser sends any notice, circular or other advertisement offering any report, analysis, publication or other investment advisory service to more than ten persons, the investment adviser shall not be required to keep a record of the names and addresses of the persons to whom it was sent; except that if such notice, circular or advertisement is distributed to persons named on any list, the investment adviser shall retain with the copy of such notice, circular or advertisement a memorandum describing the list and the source thereof;

(8) A list or other record of all accounts in which the investment adviser is vested with any discretionary power with respect to the funds, securities or transactions of any client;

(9) All powers of attorney and other evidences of the granting of any discretionary authority by any client to the investment adviser, or copies thereof;

(10) All written agreements (or copies thereof) entered into by the investment adviser with any client or otherwise relating to the business of such investment adviser as such;

(11) A copy of each notice, circular, advertisement, newspaper article, investment letter, bulletin or other communication recommending the purchase or sale of a specific security, which the investment adviser circulates or distributes, directly or indirectly, to ten or more persons (other than clients receiving investment supervisory services or persons connected with such investment adviser), and if such notice, circular, advertisement, newspaper article, investment letter, bulletin or other communication does not state the reasons for such recommendation, a memorandum of the investment adviser indicating the reasons thereof;

(12) The following records:

(A) A record of every transaction in a security in which the investment adviser or any advisory representative of such investment adviser has, or by reason of such transaction acquires, any direct or indirect beneficial ownership, except:

(i) Transactions effected in any account over which neither the investment adviser nor any advisory representative of the investment adviser has any direct or indirect influence or control; and

(ii) Transactions in securities which are direct obligations of the United States

Such record may also contain a statement declaring that the reporting or recording of any such transaction shall not be construed as an admission that the investment adviser or advisory representative has any direct or indirect beneficial ownership in the security. A transaction shall be recorded not later than 10 days after the end of the calendar quarter in which the transaction was effected.

(B) For purposes of this Subparagraph (a)(12), the term "advisory representative" shall mean any partner, officer or director of the investment adviser; any employee who makes any recommendation, who participates in the determination of which recommendation shall be made, or whose functions or duties relate to the determination of which recommendation shall be made; any employee who, in connection with his duties (other than clerical, ministerial or administrative duties), obtains any information concerning which securities are being recommended prior to the effective dissemination of such recommendations or of the information concerning such recommendations; and any of the following persons who obtain information concerning securities recommendations being made by such investment adviser prior to the effective dissemination of such recommendations or of the information concerning such recommendations:

(i) any person in a control relationship to the investment adviser,

(ii) any affiliated person of such controlling person, and

(iii) any affiliated person of such affiliated person.

"Control" shall have the same meaning as that set forth in Section 2(a)(9) of the Investment Company Act of 1940, as amended.

(C) An investment adviser shall not be deemed to have violated the provisions of this Subparagraph (a)(12) because of his failure to record securities transactions of any advisory representative if he establishes that he instituted adequate procedures and used reasonable diligence to obtain promptly reports of all transactions required to be recorded;

(13) Records required of investment advisers primarily engaged in other businesses:

(A) Notwithstanding the provisions of Subparagraph (a)(12) in this Rule, where the investment adviser is primarily engaged in a business or businesses other than advising registered investment companies or other advisory clients, a record must be maintained of every transaction in a security in which the investment adviser or any advisory representative of such investment adviser has, or by reason of such transaction acquires, any direct or indirect beneficial ownership, except:

(i) Transactions effected in any account over which neither the investment adviser nor any advisory representative of the investment adviser has any direct or indirect influence or control; and

(ii) Transactions in securities which are direct obligations of the United States

Such record shall state the title and amount of the security involved; the date and nature of the transaction (i.e., purchase, sale or other acquisition or disposition); the price at which it was effected; and the name of the dealer or bank with or through whom the transaction was effected. Such record may also contain a statement declaring that the reporting or recording of any such transaction shall not be construed as an admission that the investment adviser or advisory representative has any direct or indirect beneficial ownership in the security. A transaction shall be recorded not later than 10 days after the end of the calendar quarter in which the transaction was effected.

(B) An investment adviser is "primarily engaged in a business or businesses other than advising registered investment companies or other advisory clients" when, for each of its three most recent fiscal years or for the period of time since organization, whichever is lesser, the investment adviser derived, on an unconsolidated basis, more than 50 percent of:

(i) its total sales and revenues; and

(ii) its income (or loss) before income taxes and extraordinary items;

from such other business or businesses.

(C) For purposes of this Subparagraph (13), the term "advisory representative", when used in connection with a company primarily engaged in a business or businesses other than advising registered investment companies or other advisory clients, shall mean any partner, officer, director or employee of the investment adviser who makes any recommendation, who participates in the determination of which recommendation shall be made, or whose functions or duties relate to the determination of which recommendation shall be made, or who, in connection with his duties (other than clerical, ministerial or administrative duties), obtains any information concerning which securities are being recommended prior to the effective dissemination of such recommendations or of the information concerning such recommendations; and any of the following persons who obtain information concerning securities recommendations being made by such investment adviser prior to the effective dissemination of such recommendations or of the information concerning such recommendations:

(i) any person in a control relationship to the investment adviser,

(ii) any affiliated person of such controlling person, and

(iii) any affiliated person of such affiliated person.

"Control" shall have the same meaning as that set forth in Section 2(a)(9) of the Investment Company Act of 1940, as amended (see G.S. 78A-2(10)).

(D) An investment adviser shall not be deemed to have violated the provisions of this Subparagraph (13) because of his failure to record securities transactions of any advisory representative if he establishes that he instituted adequate procedures and used reasonable diligence to obtain promptly reports of all transactions required to be recorded;

(14) A copy of the following:

(A) A copy of each written statement and each amendment or revision thereof, given or sent to any client or prospective client of such investment adviser in accordance with the provisions of Rule .1707;

(B) any summary of material changes that is required by Part 2 of Form ADV but is not contained in the written statement; and

(C) a record of the dates that each written statement, and each amendment or revision thereof, was given, or offered to be given, to any client or prospective client who subsequently becomes a client.

(15) A memorandum describing any legal or disciplinary event listed in Schedule D of Form ADV or in any Form U-4 relating to any of the investment adviser’s investment adviser representatives and presumed to be material, if the event involved the investment adviser or any of its investment adviser representatives or supervised persons and is not disclosed in the written statements described in Paragraph (a)(14)(A) of this Section. The memorandum must explain the investment adviser's determination that the presumption of materiality is overcome, and must discuss the factors described in those items.

(16) For each client that was obtained by the adviser by means of a solicitor to whom a cash fee was paid by the adviser:

(A) evidence of a written agreement to which the adviser is a party related to the payment of such fee;

(B) a signed and dated acknowledgement of receipt from the client evidencing the client’s receipt of the investment adviser’s disclosure statement and a written disclosure statement of the solicitor; and

The written agreement, acknowledgment and solicitor disclosure statement will be considered to be in compliance with Rule .1717. For purposes of this Rule, the term "solicitor" shall mean any person or entity who, for compensation, acts as an agent of an investment adviser in referring potential clients.

(17) Copies, with original signatures of the investment adviser's appropriate signatory and the investment adviser representative, of each initial Form U-4 and each amendment to Disclosure Reporting Pages (DRPs U-4) must be retained by the investment adviser (filing on behalf of the investment adviser representative) and must be made available for inspection upon regulatory request.

(b) If an investment adviser subject to Paragraph (a) of this Rule has custody or possession of securities or funds of any client, the records required to be made and kept under Paragraph (a) of this Rule shall also include:

(1) A journal or other record showing all purchases, sales, receipts and deliveries of securities (including certificate numbers) for such accounts and all other debits and credits to such accounts;

(2) A separate ledger account for each such client showing all purchases, sales, receipts and deliveries of securities, the date and price of each such purchase and sale, and all debits and credits;

(3) Copies of confirmations of all transactions effected by or for the account of any such client; and

(4) A record for each security in which any such client has a position, which record shall show the name of each such client having any interest in each security, the amount or interest of each such client, and the locations of each such security.

(c) Every investment adviser subject to Paragraph (a) of this Rule who renders any investment supervisory or management service to any client shall, with respect to the portfolio being supervised or managed and to the extent that the information is reasonably available to or obtainable by the investment adviser, make and keep true, accurate and current:

(1) Records showing separately for each such client the securities purchased and sold, and the date, amount and price of each such purchase and sale; and

(2) For each security in which any such client has a current position, information from which the investment adviser can promptly furnish the name of each such client, and the current amount or interest of such client.

(d) Any books or records required by this Rule may be maintained by the investment adviser in such manner that the identity of any client to whom such investment adviser renders investment supervisory services is indicated by numerical or alphabetical code or some similar designation.

(e) Duration requirement for maintenance of records:

(1) All books and records required to be made under the provisions of Paragraphs (a) to (c)(1), inclusive, of this Rule shall be maintained and preserved in an easily accessible place for a period of not less than five years from the end of the fiscal year during which the last entry was made on such record, the first two years in the principal office of the investment adviser.

(2) Partnership articles and any amendments thereto, articles of incorporation, charters, minute books, and stock certificate books of the investment adviser and of any predecessor, shall be maintained in the principal office of the investment adviser and preserved until at least three years after termination of the enterprise.

(f) An investment adviser subject to Paragraph (a) of this Rule, before ceasing to conduct or discontinuing business as an investment adviser, shall arrange for and be responsible for the preservation of the books and records required to be maintained and preserved under this Rule for the remainder of the period specified in this Rule, and shall notify the administrator in writing of the full address where such books and records will be maintained during such period.

(g) Preservation and maintenance of records:

(1) The records required to be maintained and preserved pursuant to this Rule may be immediately produced or reproduced by photograph on film or, as provided in Subparagraph (g)(2) of this Rule, on magnetic disk, tape or other computer storage medium, and be maintained and preserved for the required time in that form. If records are produced or reproduced by photographic film or computer storage medium, the investment adviser shall:

(A) arrange the records and index the films or computer storage medium so as to permit the immediate location of any particular record;

(B) be ready at all times to provide, and promptly provide, any facsimile enlargement of film or computer printout or copy of the computer storage medium which the administrator by its examiners or other representatives may request;

(D) with respect to records stored on a computer storage medium, maintain procedures for maintenance and preservation of, and access to, records from loss, alteration, or destruction; and

(E) with respect to records stored on photographic film, at all times have available for the administrator's examination of its records pursuant to Section 78C-18(e) of the Act, facilities for immediate, legible projection of the film and for producing legible facsimile enlargements.

(2) Pursuant to Subparagraph (g)(1) of this Rule an adviser may maintain and preserve on computer tape or disk or other computer storage medium records which, in the ordinary course of the adviser's business, are created by the adviser on electronic media or are received by the adviser solely on electronic media or by electronic data transmission.

(h) For purposes of this Rule, "investment supervisory services" means the giving of continuous advice as to the investment of funds on the basis of the individual needs of each client.

(i) Every registered investment adviser 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 investment adviser to maintain any of the records required by this Rule in some place other than the State of North Carolina. In determining whether or not the provisions of this Rule shall be waived, the administrator may consider, among other things, whether the main office of the investment adviser is in a place outside the State of North Carolina or whether the investment adviser uses all or some of the bookkeeping facilities of some other investment adviser whose main office is outside the State of North Carolina.

(j) Every investment adviser that has its principal place of business in a state other than this state shall be exempt from the requirements of this section, provided the investment adviser is licensed in such state and is in compliance with such state's record keeping requirements, if any.

History

Authority G.S. 78C-18(a); 78C-18(b); 78C-18(e); 78C-30(a)
Temporary Rule Eff. January 2, 1989, for a Period of 180 days to expire on June 30, 1989
Eff. February 1, 1989
Temporary Amendment Eff. October 1, 1997
Amended Eff. August 1, 1998
Temporary Amendment Eff. January 14, 2002
Amended Eff. April 1, 2003
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. December 6, 2016.

18 NCAC 06A .1707 Investment Adviser Brochure Rule {#sec-18-ncac-06a-.1707 omnilex-key=us-nc-regs-official--title-18--18 NCAC 06A .1707}

(a) General Requirements. Unless otherwise provided in this Rule, an investment adviser, registered or required to be registered pursuant to Section 78C-16 of the Act, shall offer and deliver to each advisory client and prospective advisory client a firm brochure and one or more supplement(s) as required by this Section. The brochure and supplement(s) must contain all information required by Part 2 of Form ADV [CFR279.1], and such other information as the Administrator may require by this Section.

(b) Offer and Delivery Requirements.

(1) An investment adviser shall deliver:

(A) The current brochure required by this Section to a client or prospective client, and

(B) The current brochure supplement(s) for each investment adviser representative who will provide advisory services to the client. For purposes of this Section, an investment adviser representative will provide advisory services to a client if the investment adviser representative will:

(i) Regularly communicate investment advice to that client; or

(ii) Formulate investment advice for assets of that client; or

(iii) Make discretionary investment decisions for assets of that client; or

(iv) Solicit, offer or negotiate for the sale of or sell investment advisory services.

(2) The documents required in Subparagraph (1) of this Paragraph shall be delivered:

(A) Not less than 48 hours prior to entering into any investment advisory contract with such client or prospective client; or

(B) At the time of entering into any such contract, if the client has a right to terminate the contract without penalty within five business days after entering into the contract.

(3) An investment adviser shall, at least once a year, without charge, deliver or offer in writing to deliver to each of its clients the current brochure and any current brochure supplement(s) required by Paragraph (b)(1) of this Section. If a client accepts the written offer, the investment adviser must send to that client the current brochure and supplements within seven days after the investment adviser is notified of the acceptance.

(c) Delivery to Limited Partners. If the adviser is the general partner of a limited partnership, the manager of a limited liability company, or the trustee of a trust, then for purposes of this Section the investment adviser must treat each of the partnership's limited partners, the company's members, or the trust's beneficial owners as a client. For purposes of this Section, a limited liability partnership or limited liability limited partnership is a "limited partnership."

(d) Wrap Fee Program Brochures.

(1) If the investment adviser is a sponsor of a wrap fee program, then the brochure, required to be delivered by Paragraph (b)(1) of this Section to a client or prospective client of the wrap fee program, must be a wrap fee brochure containing all information required by Form ADV. Any additional information in a wrap fee brochure must be limited to information applicable to wrap fee programs that the investment adviser sponsors.

(2) The investment adviser does not have to offer or deliver a wrap fee brochure if another sponsor of the wrap fee program offers or delivers to the client or prospective client of the wrap fee program a wrap fee program brochure containing all the information the investment adviser's wrap fee program brochure must contain.

(3) A wrap fee brochure does not take the place of any brochure supplement(s) that the investment adviser is required to deliver under Paragraph (b)(1)(B) of this Section.

(e) Delivery of Updates and Amendments. The investment adviser must amend its brochure and any brochure supplement(s) and deliver the amendments to clients promptly when information contained in the brochure or brochure supplement(s) becomes materially inaccurate. The instructions to Part 2 of Form ADV contain updating and delivery instructions that the investment adviser must follow. An amendment will be considered to be delivered promptly if the amendment is delivered within 30 days of the event that requires the filing of the amendment.

(f) Multiple Brochures. If an investment adviser renders substantially different types of investment advisory services to different clients, the investment adviser may provide them with different brochures, provided that each client receives all applicable information about services and fees. The brochure delivered to a client may omit any information required by Part 2A of Form ADV if such information is applicable only to a type of investment advisory service or fee that is not rendered or charged, or proposed to be rendered or charged, to that client or prospective client.

(g) Other Disclosure Obligations. Nothing in this Rule shall relieve any investment adviser from any obligation pursuant to any provision of the Act or the rules and regulations thereunder or other federal or state law to disclose any information to its clients or prospective clients not specifically required by this Rule.

(h) Conversion Rule. All investment advisers registered or required to be registered under the Act must deliver to each of their clients their current brochure and all required brochure supplements within 30 days from the date of making its initial filing with IARD.

(i) Definitions. For the purposes of this Rule:

(1) "Current brochure" and "current brochure supplement" mean the most recent revision of the brochure or brochure supplement, including all subsequent amendments (i.e., stickers).

(2) "Entering into," in reference to an investment advisory contract, does not include an extension or renewal without material change of any such contract which is in effect immediately prior to such extension or renewal.

(3) "Sponsor" of a wrap fee program means an investment adviser that is compensated under a wrap fee program for sponsoring, organizing, or administering the program, or for selecting, or providing advice to clients regarding the selection of other investment advisers in the program.

(4) "Wrap fee program" means an advisory program under which a specified fee or fees, not based directly upon transactions in a client's account, is charged for investment advisory services (which may include portfolio management or advice concerning the selection of other investment advisers) and the execution of client transactions.

History

Authority G.S. 78C-18(b); 78C-30(a); 78C-30(b)
Temporary Rule Eff. January 2, 1989, for a Period of 180 Days to Expire on June 30, 1989
Eff. February 1, 1989
Temporary Amendment Eff. January 14, 2002
Amended Eff. April 1, 2003
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. December 6, 2016.

18 NCAC 06A .1708 Financial Reporting Requirements for Investment Advisers {#sec-18-ncac-06a-.1708 omnilex-key=us-nc-regs-official--title-18--18 NCAC 06A .1708}

(a) Every registered investment adviser who has custody of client funds or securities or who requires payment of advisory fees six months or more in advance and in excess of five hundred dollars ($500.00) per client shall file with the administrator an audited balance sheet as of the end of the investment adviser's fiscal year.

(1) Each balance sheet filed pursuant to this Rule must be:

(A) examined in accordance with generally accepted auditing standards and prepared in conformity with generally accepted accounting principles;

(B) audited by an independent public accountant or an independent certified public accountant; and

(C) accompanied by an opinion of the accountant as to the report of financial position, and by a note stating the principles used to prepare it, the basis of included securities, and any other explanations required for clarity.

(b) Every registered investment adviser who has discretionary authority over client funds or securities, but not custody, shall file with the administrator a balance sheet, which need not be audited, but which must be prepared in accordance with generally accepted accounting principles and represented by the investment adviser or the person who prepared the statement as true and accurate, as of the end of the investment adviser's fiscal year.

(c) The financial statements required by this Rule shall be filed with the administrator within 90 days following the end of the investment adviser's fiscal year.

History

Authority G.S. 78C-18(c); 78C-30(a); 78C-30(c)
Temporary Rule Eff. January 2, 1989, for a Period of 180 Days to Expire on June 30, 1989
Eff. February 1, 1989
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. December 6, 2016.

18 NCAC 06A .1709 Exam Require/Investment Advisers: Representatives {#sec-18-ncac-06a-.1709 omnilex-key=us-nc-regs-official--title-18--18 NCAC 06A .1709}

(a) Examination Requirements. A person applying to be registered as an investment adviser or investment adviser representative under the Investment Advisers Act shall provide the Administrator with proof that he or she has obtained a passing score on either:

(1) the Uniform Investment Adviser Law Examination (Series 65 Exam); or

(2) the General Securities Representative Examination (Series 7 Exam) and the Uniform Combined State Law Examination (Series 66 Exam).

In the event the applicant for registration as an investment adviser is an entity, rather than an individual, the examination shall be taken on behalf of the applicant by one of its officers, a general partner, a manager, or other managing executive of comparable status and position.

(b) Grandfathering. An individual who has not been registered in any jurisdiction for a period of two years shall be required to comply with the examination requirements of Paragraph (a) of this Rule.

(c) Waivers. The examination requirement shall not apply to an individual who currently holds one of the following professional designations:

(1) Certified Financial Planner (CFP) awarded by the Certified Financial Planner Board of Standards, Inc.;

(2) Chartered Financial Consultant (ChFC) awarded by the American College, Bryn Mawr, Pennsylvania;

(3) Personal Financial Specialist (PFS) awarded by the American Institute of Certified Public Accountants;

(4) Chartered Financial Analyst (CFA) awarded by the Institute of Chartered Financial Analysts;

(5) Chartered Investment Counselor (CIC) awarded by the Investment Counsel Association of America, Inc.; or

(6) such other professional designation as the Administrator may by order recognize.

History

Authority G.S. 78C-19(b)(5); 78C-30(a); 78C-30(b)
Temporary Rule Effective January 2, 1989, for a Period of 180 Days to Expire on June 30, 1989
Eff. February 1, 1989
Amended Eff. April 1, 2001
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. December 6, 2016.

18 NCAC 06A .1710 Termination/Withdrawal/Investment Adviser Registrations {#sec-18-ncac-06a-.1710 omnilex-key=us-nc-regs-official--title-18--18 NCAC 06A .1710}

(a) Investment advisers. The application for withdrawal of registration as an investment adviser pursuant to Section 78C-19(e) of the Act shall be completed by following the instructions on Form ADV-W (Notice of Withdrawal from Registration as Investment Adviser) (17 C.F.R. 279.2) and filed upon Form ADV-W with IARD.

(b) Investment adviser representatives. The application for withdrawal of registration as an investment adviser representative pursuant to Section 78C-19(e) of the Act shall be completed by following the instructions on Form U-5 (Uniform Termination Notice for Securities Industry Registration) and filed upon Form U-5 with IARD.

History

Authority G.S. 78C-16(b); 78C-19(e); 78C-20; 78C-30(a); 78C-30(b)
Temporary Rule Eff. January 2, 1989 for a Period of 180 Days to Expire on June 30, 1989
Eff. February 1, 1989
Temporary Amendment Eff. January 14, 2002
Amended Eff. April 1, 2003
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. December 6, 2016.

18 NCAC 06A .1711 Transfer/Investment Adviser Representative's Registration {#sec-18-ncac-06a-.1711 omnilex-key=us-nc-regs-official--title-18--18 NCAC 06A .1711}

History

Status: expired
Authority G.S. 78C-16(a); 78C-16(b); 78C-17(a); 78C-17(b); 78C-20: 78C-30(a); 78C-30(b)
Temporary Rule Eff. January 2, 1989 for a Period of 180 Days to Expire on June 30, 1989
Eff. February 1, 1989
Temporary Amendment Eff. January 14, 2002
Amended Eff. April 1, 2003
Expired Eff. January 1, 2017 pursuant to G.S. 150B-21.3A.

18 NCAC 06A .1712 CHANGE OF NAME OF INVESTMENT ADVISER (repealed) {#sec-18-ncac-06a-.1712 omnilex-key=us-nc-regs-official--title-18--18 NCAC 06A .1712}

History

Status: repealed
Authority G.S. 78C-17(c); 78C-18(d); 78C-30(a)(b)
Temporary Rule Eff. January 2, 1989 for a period of 180 days to expire on June 30, 1989
Eff. February 1, 1989
Temporary Amendment Eff. October 1, 1997
Amended Eff. August 1, 1998
Temporary Repeal Eff. January 14, 2002
Repealed Eff. April 1, 2003.

18 NCAC 06A .1713 Invest Adviser Merger/Consolidation/Acquisition/Succession {#sec-18-ncac-06a-.1713 omnilex-key=us-nc-regs-official--title-18--18 NCAC 06A .1713}

(a) When there is a merger, consolidation, acquisition, succession, or other similar fundamental change in the ownership of a registered investment adviser, the acquiring or successor entity shall file an initial or amended Form ADV, if the acquiring or successor entity intends to engage in business as an investment adviser in this state. Regardless of whether it intends to engage in business as an investment adviser in this state, the acquiring or successor entity shall file the following with the Administrator not later than 30 days after the fundamental change:

(1) if the corporate existence of the acquired registered investment adviser is extinguished upon the effective date of the acquisition, a Form ADV-W, filed by the acquiring or successor entity in the name of the acquired entity, for the purpose of terminating the registration of the acquired entity;

(2) a copy of the corporate or transactional document by which the merger, acquisition, or other fundamental change was effected; and

(3) if the acquisition was effected by means of a transaction in which the corporate structure of the acquired entity was affected, a copy of a certificate of merger or certificate of dissolution or similar certificate, issued by the custodian of corporate records of the state pursuant to whose laws the transaction was effected.

In addition, if the corporate structure of the acquired entity was not extinguished in the course of the acquisition, the acquired entity shall file an amended Form ADV not later than 30 days following the effective date of the acquisition.

(b) Investment advisers shall effect mass transfers of investment adviser representatives by filing with the IARD a Form U-4 for each investment adviser representative to be transferred from the acquired entity to the acquiring or successor entity and a Form U-5 for each investment adviser representative not to be transferred.

(c) When there is a merger, consolidation, acquisition, succession, or other similar fundamental change in the ownership of an investment adviser covered under federal law, and the acquiring or successor entity will be an investment adviser covered under federal law, the entities involved shall file appropriate notice filings with the IARD.

(d) When there is a merger, consolidation, acquisition, succession, or other similar fundamental change in the ownership of an investment adviser covered under federal law, and the acquiring or successor entity will be an investment adviser that is registered or required to be registered under the Act, such merger, consolidation, acquisition, succession, or other similar fundamental change shall be governed by the provisions of Paragraphs (a)-(b) of this Rule.

History

Authority G.S. 78C-16(b); 78C-17(a)(c); 78C-18(b)(c)(d); 78C-20; 78C-30(a)(b)
Eff. February 1, 1989
Temporary Rule Eff. January 2, 1989, for a period of 180 days to expire on June 30, 1989
Amended Eff. September 1, 1995
Temporary Amendment Eff. October 1, 1997
Amended Eff. August 1, 1998
Temporary Amendment Eff. January 14, 2002
Amended Eff. April 1, 2003
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. December 6, 2016.

18 NCAC 06A .1714 REGISTRATION OF PARTNERS/EXECUTIVE OFFICERS/DIRECTORS (repealed) {#sec-18-ncac-06a-.1714 omnilex-key=us-nc-regs-official--title-18--18 NCAC 06A .1714}

History

Status: repealed
Authority G.S. 78C-16(a)(b); 78C-17(a); 78C-18(b)(d); 78C-19(a); 78C-30(a)(b)
Temporary Rule Eff. January 2, 1989, for a period of 180 days to expire on June 30, 1989
Eff. February 1, 1989
Temporary Amendment Eff. October 1, 1997
Amended Eff. August 1, 1998
Temporary Repeal Eff. January 14, 2002
Repealed Eff. April 1, 2003.

18 NCAC 06A .1715 Investment Adviser Registration Depository {#sec-18-ncac-06a-.1715 omnilex-key=us-nc-regs-official--title-18--18 NCAC 06A .1715}

(a) Use of IARD. Unless otherwise provided, all investment adviser and investment adviser representative applications, amendments, reports, notices, related filings and fees required to be filed with the Administrator pursuant to the rules promulgated under this Act, shall be filed electronically with and transmitted to the Investment Adviser Registration Depository (“IARD”) operated by the National Association of Securities Dealers. If in its administration of the IARD, the NASD determines to utilize the Central Registration Depository ("CRD") for applications, amendments, reports, notices, and related filing and fees required of investment adviser representatives, the term "IARD" as used in this Section shall encompass such use of the CRD. The following additional conditions relate to such electronic filings:

(1) Electronic Signature. When a signature or signatures are required by the particular instructions of any filing to be made through IARD, a duly authorized officer of the applicant or the applicant him or herself, as required, shall affix his or her electronic signature to the filing by typing his or her name in the appropriate fields and submitting the filing to IARD.

(2) When filed. Solely for purposes of a filing made through IARD, a document is considered filed with the Administrator when all fees are received and the filing is accepted by IARD on behalf of the State.

(b) Electronic Filing. Notwithstanding Paragraph (a) of this Rule, the electronic filing of any particular document and the collection of related processing fees shall not be required until such time as IARD provides for receipt of such filings and fees. Any documents or fees required to be filed with the Administrator that are not permitted to be filed with or cannot be accepted by IARD shall be filed directly with the Administrator.

(c) Hardship Exemptions. This Rule provides two "hardship exemptions" from the requirements to make electronic filings as required by the rules.

(1) Temporary Hardship Exemption.

(A) Investment advisers registered or required to be registered under the Act who experience unanticipated technical difficulties that prevent submission of an electronic filing to IARD may request a temporary hardship exemption from the requirements to file electronically.

(B) To request a temporary hardship exemption, the investment adviser must:

(i) File Form ADV-H [17- CFR 279.3] in paper format with the Securities Division (P.O. Box 29622, Raleigh, NC 27626-0525) no later than one business day after the filing (that is the subject of the Form ADV-H) was due; and

(ii) Submit the filing that is the subject of the Form ADV-H in electronic format to IARD no later than seven business days after the filing was due.

(C) Effective Date -- Upon Filing. The temporary hardship exemption shall be deemed effective upon receipt by the Administrator of the complete Form ADV-H.

(2) Continuing Hardship Exemption.

(A) Criteria for Exemption. A continuing hardship exemption shall be granted only if the investment adviser is able to demonstrate that it cannot comply with the electronic filing requirements of this Rule because neither the necessary hardware or software nor alternative means of compliance (e.g. public library internet access or a service provider) are available.

(B) To apply for a continuing hardship exemption, the investment adviser must:

(i) File Form ADV-H [17- CFR 279.3] in paper format with the Administrator at least 20 business days before a filing is due; and

(ii) If a filing is due to more than one administrator, the Form ADV-H must be filed with the administrator where the investment adviser's principal place of business is located. The administrator who receives the application shall grant or deny the application within 10 business days after the filing of Form ADV-H.

(C) Effective Date -- Upon Approval. The exemption is effective upon approval by the Administrator. The time period of the exemption shall be no longer than one year after the date on which the Form ADV-H is filed. If the Administrator approves the application, the investment adviser must, no later than five business days after the exemption approval date, submit filings to IARD in paper format (along with the appropriate processing fees) for the period of time for which the exemption is granted.

(3) Recognition of Exemption. The decision to grant or deny a request for a hardship exemption shall be made by the administrator where the investment adviser's principal place of business is located, which decision shall be followed by the administrator in the other state(s) where the investment adviser is registered.

History

Authority G.S. 78C-20; 78C-30
Temporary Adoption Eff. January 14, 2002
Eff. April 1, 2003
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. December 6, 2016.

18 NCAC 06A .1716 Transition Schedule for Conversion to Iard {#sec-18-ncac-06a-.1716 omnilex-key=us-nc-regs-official--title-18--18 NCAC 06A .1716}

History

Status: expired
Authority G.S. 78C-20; 78C-30
Temporary Adoption Eff. January 14, 2002
Eff. April 1, 2003
Expired Eff. January 1, 2017 pursuant to G.S. 150B-21.3A.

18 NCAC 06A .1717 Cash Payments for Client Solicitations {#sec-18-ncac-06a-.1717 omnilex-key=us-nc-regs-official--title-18--18 NCAC 06A .1717}

(a) It shall be unlawful for any investment adviser required to be registered pursuant to G.S. 78C-16 to pay a cash fee, directly or indirectly, to a solicitor with respect to solicitation activities unless:

(1) The investment adviser is registered under the North Carolina Investment Advisers Act;

(2) The solicitor is not a person:

(A) subject to a Securities and Exchange Commission ("the Commission") order issued under Section 203(f) of the Investment Advisers Act of 1940 ("the 1940 Act"), or subject to an order of the Administrator issued under G.S. 78C-19 or G.S. 78A-39; or

(B) convicted within the previous 10 years of any felony or misdemeanor involving conduct described in Section 203(e)(2)(A)-(D) of the 1940 Act or described in G.S. 78C-19(a)(2)c.; or

(C) who has been found by the Commission to have engaged, or has been convicted of engaging, in any of the conduct specified in Paragraphs (1), (5) or (6) of Section 203(e) of the 1940 Act, or who has been found by the North Carolina Securities Division (the "Division") to have engaged in or acted as accessory after the fact to, or has been convicted of engaging in or acting as accessory after the fact to, a violation of any provision of the North Carolina Investment Advisers Act, the North Carolina Securities Act, or the Commodities Act (Chapters 78A, 78C, and 78D of the North Carolina General Statutes); or

(D) who is subject to an order, judgment or decree described in Section 203(e)(4) of the 1940 Act or in G.S. 78C-19(a)(2)d.;

(3) Such cash fee is paid pursuant to a written agreement to which the adviser is a party; and

(4) Such cash fee is paid to a solicitor:

(A) With respect to solicitation activities for the provision of impersonal advisory services only; or

(B) Who is:

(i) a partner, officer, director or employee of such investment adviser, or

(ii) a partner, officer, director or employee of a person which controls, is controlled by, or is under common control with such investment adviser; provided that the status of such solicitor as a partner, officer, director or employee of such investment adviser or other person, and any affiliation between the investment adviser and such other person, is disclosed to the client at the time of the solicitation or referral; or

(i) The written agreement required by Paragraph (c) of this Rule;

(I) describes the solicitation activities to be engaged in by the solicitor on behalf of the investment adviser and the compensation to be received therefore;

(II) contains an undertaking by the solicitor to perform his duties under the agreement in a manner consistent with the instructions of the investment adviser and the provisions of the Act and the rules thereunder; and

(III) requires that the solicitor, at the time of any solicitation activities for which compensation is paid or to be paid by the investment adviser, provide the client with a current copy of the investment adviser's written disclosure statement required by Rule .1707 of this Section ("Investment Adviser Brochure Rule") and a separate written disclosure document described in Paragraph (b) of this Rule;

(ii) The investment adviser receives from the client, prior to, or at the time of, entering into any written investment advisory contract with such client, a signed and dated acknowledgment of receipt of the investment adviser's written disclosure statement and the solicitor's written disclosure document. The investment adviser shall retain a copy of each such acknowledgment and solicitor disclosure document as part of the records required to be kept under Subparagraph (a)(15) of Rule .1706 of this Section; and

(iii) The investment adviser makes a bona fide effort to ascertain whether the solicitor has complied with the agreement, and has a reasonable basis for believing that the solicitor has so complied.

(b) The separate written disclosure document required to be furnished by the solicitor to the client pursuant to this Section shall contain the following information:

(1) The name of the solicitor;

(2) The name of the investment adviser;

(3) The nature of the relationship, including any affiliation, between the solicitor and the investment adviser;

(4) A statement that the solicitor will be compensated for his solicitation services by the investment adviser;

(5) The terms of such compensation arrangement, including a description of the compensation paid or to be paid to the solicitor; and

(6) The amount, if any, for the cost of obtaining his account the client will be charged in addition to the advisory fee, and the differential, if any, among clients with respect to the amount or level of advisory fees charged by the investment adviser, if such differential is attributable to the existence of any arrangement pursuant to which the investment adviser has agreed to compensate the solicitor for soliciting clients for, or referring clients to, the investment adviser.

(c) The investment adviser shall retain a copy of each written agreement required by this Rule as part of the records required to be kept under Subparagraph (a)(10) of Rule .1706 of this Section.

(d) Nothing in this Rule shall be deemed to relieve any person of any fiduciary or other obligation to which such person may be subject under any law.

(e) For purposes of this Rule:

(1) "Solicitor" means any person who, directly or indirectly, solicits any client for, or refers any client to, an investment adviser.

(2) "Client" includes any prospective client.

(3) "Impersonal advisory services" means investment advisory services provided solely by means of:

(A) written materials or oral statements which do not purport to meet the objectives or needs of the specific client;

(B) statistical information containing no expressions of opinions as to the investment merits of particular securities; or

History

Authority G.S. 78C-16(b)(2); 78C-30
Temporary Adoption Eff. January 14, 2002
Eff. April 1, 2003
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. December 6, 2016.

18 NCAC 06A .1801 Dishonest or Unethical Practices {#sec-18-ncac-06a-.1801 omnilex-key=us-nc-regs-official--title-18--18 NCAC 06A .1801}

(a) An investment adviser or an investment adviser covered under federal law is a fiduciary and has a duty to act primarily for the benefit of its clients. The provisions of this Section apply to investment advisers covered under federal law only to the extent that the conduct alleged is fraudulent or deceptive, or as otherwise permitted by the National Securities Markets Improvement Act of 1996 (Pub. L. No. 104-290). While the extent and nature of his duty varies according to the nature of the relationship between an investment adviser and its clients and the circumstances of each case, an investment adviser or an investment adviser covered under federal law shall not engage in unethical business practices, including the following:

(1) Recommending to a client to whom investment supervisory, management or consulting services are provided the purchase, sale or exchange of any security without reasonable grounds to believe that the recommendation is suitable for the client on the basis of information furnished by the client after reasonable inquiry concerning the client's investment objectives, financial situation and needs, and any other information known or acquired by the investment adviser after reasonable examination of such of the client's financial records as may be provided to the investment adviser;

(2) Placing an order to purchase or sell a security for the account of a client without authority to do so;

(3) Placing an order to purchase or sell a security for the account of a client upon instruction of a third party without first having obtained a written third-party trading authorization from the client;

(4) Exercising any discretionary authority in placing an order for the purchase or sale of securities for a client without obtaining written discretionary authority from the client within 10 business days after the date of the first transaction placed pursuant to oral discretionary authority. Discretionary power does not include a power relating solely to the price at which, or the time when, an order involving a definite amount of a specified security shall be executed, or both;

(5) Inducing trading in a client's account that is excessive in size or frequency in view of the financial resources, investment objectives and character of the account;

(6) Borrowing money or securities from a client unless the client is a dealer, an affiliate of the investment adviser, or a financial institution engaged in the business of lending funds or securities;

(7) Lending money to a client unless the investment adviser is a financial institution engaged in the business of lending funds or a dealer, or unless the client is an affiliate of the investment adviser;

(8) Misrepresenting to any advisory client, or prospective advisory client, the qualifications of the investment adviser or any employee of the investment adviser, or misrepresenting the nature of the advisory services being offered or fees to be charged for such service, or omitting to state a material fact necessary to make the statements made regarding qualifications, services or fees, in light of the circumstances under which they are made, not misleading;

(9) Providing a report or recommendation to any advisory client prepared by someone other than the adviser without disclosing that fact. (This prohibition does not apply to a situation in which the adviser uses published research reports or statistical analyses to render advice or where an adviser orders such a report in the normal course of providing service.);

(10) Charging a client an advisory fee that is unreasonable in the light of the type of services to be provided, the experience and expertise of the adviser, the sophistication and bargaining power of the client, and whether the adviser has disclosed that lower fees for comparable services may be available from other sources;

(11) Failing to disclose to a client in writing before entering into or renewing an advisory agreement with that client any material conflict of interest relating to the adviser or any of its employees which could reasonably be expected to impair the rendering of unbiased and objective advice including:

(A) Compensation arrangements connected with advisory services to clients which are in addition to compensation from such clients for such services; and

(B) Charging a client an advisory fee for rendering advice when a commission for executing securities transactions pursuant to such advice will be received by the adviser or its employees;

(12) Guaranteeing a client that a specific result will be achieved (gain or no loss) as a result of the advice which will be rendered;

(13) Publishing, circulating or distributing any advertisement which does not comply with Rule 206(4)-1 under the Investment Advisers Act of 1940;

(14) Disclosing the identity, affairs or investments of any client to any third party unless required by law to do so, or unless consented to by the client;

(15) Taking any action, directly or indirectly, with respect to those securities or funds in which any client has any beneficial interest, where the investment adviser has custody or possession of such securities or funds when the adviser's action is subject to and does not comply with the safekeeping requirements of Rule 206(4)-2 under the Investment Advisers Act of 1940, unless the investment adviser is exempt from such requirements by virtue of Rule 206(4)-2(b);

(16) Entering into, extending or renewing any investment advisory contract, other than a contract for impersonal advisory services, unless such contract is in writing and discloses, in substance: the services to be provided; the term of the contract; the advisory fee or the formula for computing the fee; the amount or the manner of calculation of the amount of the prepaid fee to be returned in the event of contract termination or non-performance; whether the contract grants discretionary authority to the adviser; and that no assignment of such contract shall be made by the investment adviser without the consent of the other party to the contract;

(17) Failing to disclose to any client or prospective client all material facts with respect to:

(A) A financial condition of the adviser that is reasonably likely to impair the ability of the adviser to meet contractual commitments to clients, if the adviser has discretionary authority (express or implied) or custody over such client's funds or securities, or requires prepayment of advisory fees of more than five hundred dollars ($500.00) from such client, six months or more in advance; or

(B) A legal or disciplinary event that is material to an evaluation of the adviser's integrity or ability to meet contractual commitments to clients; and

(18) Utilizing an agent or subagent who satisfies the definition of an investment adviser representative as set forth in G.S. 78C-2(3), where such agent or subagent is not registered as an investment adviser representative pursuant to G.S. 78C-16;

(19) Failing to establish, maintain, and enforce written policies and procedures reasonably designed to prevent the misuse of material nonpublic information contrary to the provisions of Section 204A of the Investment Advisers Act of 1940;

(20) Entering into, extending, or renewing any advisory contract contrary to the provisions of Section 205 of the Investment Advisers Act of 1940;

(21) Indicating in an advisory contract, any condition, stipulation, or provisions binding any person to waive compliance with any provision of this Act or of the Investment Advisers Act of 1940, or any other practice that would violate Section 215 of the Investment Advisers Act of 1940;

(22) Engaging in any act, practice, or course of business which is fraudulent, deceptive, or manipulative in contravention of Section 206(4) of the Investment Advisers Act of 1940;

(23) Engaging in conduct or any act, indirectly or through or by any other person, which would be unlawful for such person to do directly under the provisions of this Act or any rule or regulation thereunder.

The conduct set forth in Rule .1801(a) is not exclusive. It also includes employing any device, scheme, or artifice to defraud or engaging in any act, practice or course of business which operates or would operate as a fraud or deceit. The federal statutory and regulatory provisions referenced herein shall apply both to investment advisers and to investment advisers covered under federal law, to the extent permitted by the National Securities Markets Improvement Act of 1996 (Pub. L. No. 104-290).

(b) There shall be a rebuttable presumption that the following legal or disciplinary events involving the adviser or a management person of the adviser (any of the foregoing being referred to hereafter as "person") that were not resolved in the person's favor or subsequently reversed, suspended, or vacated are material within the meaning of Subparagraph (a)(17)(B) of this Rule for a period of 10 years from the time of the event:

(1) A criminal or civil action in a court of competent jurisdiction in which the person:

(A) was convicted, pleaded guilty or nolo contendere ("no contest") to a felony or misdemeanor, or is the named subject of a pending criminal proceeding (any of the foregoing referred to hereafter as "action"), and such action involved: an investment-related business, fraud, false statements, or omissions; wrongful taking of property; or bribery, forgery, counterfeiting, or extortion;

(B) was found to have been involved in a violation of an investment-related statute or regulation; or

(C) was the subject of any order, judgment, or decree permanently or temporarily enjoining the person from, or otherwise limiting the person from, engaging in any investment-related activity;

(2) Administrative proceedings before the Administrator, Securities and Exchange Commission, any other federal regulatory agency or any other state agency (any of the foregoing being referred to hereafter as "agency") in which the person:

(A) was found to have caused an investment-related business to lose its authorization to do business;

(B) was found to have been involved in a violation of an investment-related statute or regulation and was the subject of an order by the agency denying, suspending, or revoking the authorization of the person to act in, or barring or suspending the person's association with, an investment-related business or otherwise significantly limiting the person's investment-related activities; or

(C) was found to have engaged in an act or a course of conduct which resulted in the issuance by the agency of an order to cease and desist the violation of the provisions of any investment-related statute or rule; or

(3) Self-Regulatory Organization (SRO) proceedings in which the person:

(A) was found to have caused an investment-related business to lose its authorization to do business; or

(B) was found to have been involved in a violation of the SRO's rules and was the subject of an order by the SRO barring or suspending the person from membership or from association with other members, or expelling the person from membership; fining the person more than two thousand five hundred dollars ($2,500.00); or otherwise significantly limiting the person's investment-related activities.

(c) The information required to be disclosed by Subparagraph (a)(17) shall be disclosed to clients promptly, and to prospective clients not less than 48 hours prior to entering into any written or oral investment advisory contract, or no later than the time of entering into such contract if the client has the right to terminate the contract without penalty within five business days after entering into the contract.

(d) For purposes of this Rule:

(1) "Management person" means a person with power to exercise, directly or indirectly, a controlling influence over the management or policies of an investment adviser which is not a natural person or to determine the general investment advice given to clients;

(2) "Found" means determined or ascertained by adjudication or consent in a final SRO proceeding, administrative proceeding, or court action;

(3) "Investment-related" means pertaining to securities, commodities, banking, insurance, or real estate [including, but not limited to, acting as or being associated with a dealer, investment company, investment adviser, government securities broker or dealer, municipal securities dealer, bank, savings and loan association, entity or person required to be registered under the Commodity Exchange Act (7 U.S.C. 1 et seq.), or fiduciary];

(4) "Involved" means acting or aiding, abetting, causing, counseling, commanding, inducing, conspiring with or failing reasonably to supervise another in doing an act; and

(5) "Self-Regulatory Organization" or "SRO" means any national securities or commodities exchange, registered association, or registered clearing agency.

(e) For purposes of calculating the ten-year period during which events are presumed to be material under Paragraph (b), the date of a reportable event shall be the date on which the final order, judgment, or decree was entered, or the date on which any rights of appeal from preliminary orders, judgments, or decrees lapsed.

(f) Compliance with this Rule shall not relieve any investment adviser from the obligations of any other disclosure requirement under the Act, the rules thereunder, or under any other federal or state law.

History

Authority G.S. 78C-18(b); 78C-30(a)
Temporary Rule Eff. January 2, 1989, for a period of 180 days to expire on June 30, 1989
Eff. February 1, 1989
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.

18 NCAC 06A .1802 Custody/Client Funds or Securities by Investment Advisers {#sec-18-ncac-06a-.1802 omnilex-key=us-nc-regs-official--title-18--18 NCAC 06A .1802}

(a) It shall be unlawful for any investment adviser to take or have custody of any securities or funds of any client unless:

(1) the investment adviser notifies the administrator in writing that the investment adviser has or may have custody. Such notification may be given on Form ADV;

(2) the securities of each client are segregated;

(3) the following conditions are satisfied:

(A) all client funds are deposited in one or more bank accounts containing only clients' funds,

(B) such account or accounts are maintained in the name of the investment adviser as agent or trustee for such clients, and

(C) the investment adviser maintains a separate record for each such account showing the name and address of the bank where the account is maintained, the dates and amounts of deposits in and withdrawals from the account, and the exact amount of each client's beneficial interest in the account;

(4) immediately after accepting custody or possession of funds or securities from any client, the investment adviser notifies the client in writing of the place where and the manner in which the funds and securities will be maintained and subsequently, if and when there is a change in the place where or the manner in which the funds or securities are maintained, the investment adviser gives written notice thereof to the client;

(5) at least once every three months, the investment adviser sends each such client an itemized statement showing the funds and securities in the investment adviser's custody at the end of such period and all debits, credits and transactions in the client's account during such period; and

(6) at least once every calendar year, an independent certified public accountant verifies all client funds and securities by actual examination at a time chosen by the accountant without prior notice to the investment adviser. A report stating that such accountant has made an examination of such funds and securities, and describing the nature and extent of the examination, shall be filed with the administrator within 30 days after each such examination.

(b) This Rule shall not apply to an investment adviser also registered as a broker-dealer under Section 15 of the Securities Exchange Act of 1934 if the broker-dealer is:

(1) Subject to and in compliance with SEC Rule 15c3-1 (Net Capital Requirements for Brokers or Dealers), 17 C.F.R. 240.15c3-1 under the Securities Exchange Act of 1934, or

(2) A member of an exchange whose members are exempt from SEC Rule 15c3-1, 17 C.F.R. 240.15c3-1 under the provisions of Paragraph (b)(2) thereof, and the broker-dealer is in compliance with all rules and settled practices of the exchange imposing requirements with respect to financial responsibility and the segregation of funds or securities carried for the accounts of customers.

History

Authority G.S. 78C-18(a); 78C-18(b); 78C-30(a)
Temporary Rule Eff. January 2, 1989, for a Period of 180 Days to Expire on June 30, 1989
Eff. February 1, 1989
Temporary Amendment Eff. October 1, 1997
Temporary Amendment Expired June 28, 1998
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. December 6, 2016.

18 NCAC 06A .1803 Agency Cross Transactions {#sec-18-ncac-06a-.1803 omnilex-key=us-nc-regs-official--title-18--18 NCAC 06A .1803}

(a) For purposes of this Rule, "agency cross transaction for an advisory client" means a transaction in which a person acts as an investment adviser in relation to a transaction in which the investment adviser, or any person controlling, controlled by, or under common control with such investment adviser, including an investment adviser representative, acts as a broker for both the advisory client and another person on the other side of the transaction. When acting in such capacity such person is required to be registered as a dealer in this state unless excluded from the definition of "dealer" in N.C. Gen. Stat. Section 78A-2(2).

(b) An investment adviser effecting an agency cross transaction for an advisory client shall be in compliance with Section 78C-8(a)(3) of the Act if the following conditions are met:

(1) The advisory client executes a written consent prospectively authorizing the investment adviser to effect agency cross transactions for such client;

(2) Before obtaining such written consent from the client, the investment adviser makes full written disclosure to the client that, with respect to agency cross transactions, the investment adviser will act as broker for, receive commissions from and have a potentially conflicting division of loyalties and responsibilities regarding both parties to the transactions;

(3) At or before the completion of each agency cross transaction, the investment adviser or any other person relying on this Rule sends the client a written confirmation. The written confirmation shall include:

(A) a statement of the nature of the transaction,

(B) the date the transaction took place,

(D) the source and amount of any other remuneration the investment adviser received or will receive in connection with the transaction.

In the case of a purchase, if the investment adviser was not participating in a distribution, or, in the case of a sale, if the investment adviser was not participating in a tender offer, the written confirmation may state whether the investment adviser has been receiving or will receive any other remuneration and that the investment adviser will furnish the source and amount of such remuneration to the client upon the client's written request;

(4) At least annually, and with or as part of any written statement or summary of the account from the investment adviser, the investment adviser or any other person relying on this Rule sends the client a written disclosure statement identifying:

(A) the total number of agency cross transactions during the period for the client since the date of the last such statement or summary; and

(B) the total amount of all commissions or other remuneration the investment adviser received or will receive in connection with agency cross transactions for the client during the period;

(5) Each written disclosure and confirmation required by this Rule must include a conspicuous statement that the client may revoke the written consent required under Subparagraph (b)(1) of this Rule at any time by providing written notice to the investment adviser; and

(6) No agency cross transaction may be effected in which the same investment adviser recommended the transaction to both any seller and any purchaser.

(c) Nothing is this Rule shall be construed to relieve an investment adviser or investment adviser representative from acting in the best interests of the client, including fulfilling his duty with respect to the best price and execution for the particular transaction for the client nor shall it relieve any investment adviser representative of any other disclosure obligations imposed by the Act.

History

Authority G.S. 78C-8(a); 78C-8(f); 78C-18(b); 78C-30(a)
Temporary Rule Eff. January 2, 1989, for a period of 180 days to expire on June 30, 1989
Eff. February 1, 1989
Temporary Amendment Eff. October 1, 1997
Temporary Amendment Expired June 28, 1998
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. December 6, 2016.

18 NCAC 06A .1804 Exemption/Section 78c-8(a)(3)/Certain Broker-Dealers {#sec-18-ncac-06a-.1804 omnilex-key=us-nc-regs-official--title-18--18 NCAC 06A .1804}

(a) For purposes of this Rule:

(1) "Publicly distributed written materials" means written materials which are distributed to 35 or more persons who pay for those materials;

(2) "Publicly made oral statements" means oral statements made simultaneously to 35 or more persons who pay for access to those statements; and

(3) "Investment adviser" shall include an investment adviser covered under federal law as defined in G.S. 78C-2(4).

(b) An investment adviser registered as a broker-dealer pursuant to Section 15 of the Securities Exchange Act of 1934 shall be exempt from Section 78C-8(a)(3) of the Act in connection with any transaction in relation to which that broker-dealer acts as an investment adviser:

(1) solely by means of publicly distributed written materials or publicly made oral statements;

(2) solely by means of written materials or oral statements not purporting to meet the objectives or needs of specific individuals or accounts;

(3) solely through the issuance of statistical information containing no expressions of opinion as to the investment merits of a particular security; or

(4) any combination of the foregoing services.

This exemption shall apply only if the materials and oral statements disclose that, if the purchaser of the advisory communication uses the investment adviser's services in connection with the sale or purchase of a security which is a subject of the communication, the investment adviser may act as principal for its own account or as agent for another person. Compliance by the investment adviser with the foregoing disclosure requirement shall not relieve it of any other disclosure obligations under the Act.

History

Authority G.S. 78C-8(f); 78C-30(a)
Temporary Rule Eff. January 2, 1989, for a period of 180 days to expire on June 30, 1989
Eff. February 1, 1989
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.

18 NCAC 06A .1805 Performance-Based Compensation Exemption {#sec-18-ncac-06a-.1805 omnilex-key=us-nc-regs-official--title-18--18 NCAC 06A .1805}

(a) For purposes of this Rule:

(1) "Affiliate" shall have the same definition as in Section 2(a)(3) of the federal Investment Company Act of 1940;

(2) "Client's independent agent" means any person who agrees to act as an investment advisory client's agent in connection with an advisory contract, but does not include:

(A) The investment adviser relying on this Rule;

(B) An affiliated person of the investment adviser or an affiliated person of an affiliated person of the investment adviser including an investment adviser representative;

(D) A person who receives, directly or indirectly, any compensation in connection with the advisory contract from the investment adviser, an affiliated person of the investment adviser, an affiliated person of an affiliated person of the investment adviser or an interested person of the investment adviser; or

(E) A person with any material relationship between himself (or an affiliated person of that person) and the investment adviser (or an affiliated person of the investment adviser) that exists, or has existed at any time during the past two years;

(3) "Company" means a corporation, partnership, association, joint stock company, trust, or any organized group of persons, whether incorporated or not; or any receiver, trustee in a case under Title 11 of the United States Code, or similar official or any liquidating agent for any of the foregoing, in his capacity as such. "Company" shall not include:

(A) A company required to be registered under the federal Investment Company Act of 1940 but which is not so registered;

(B) A private investment company (for purposes of this Subparagraph (B), a private investment company is a company which would be defined as an investment company under Section 3(a) of the federal Investment Company Act of 1940 but for the exception from that definition provided by Section 3(c)(1) of that act);

(D) A business development company as defined in Section 202(a)(22) of the federal Investment Company Advisers Act of 1940, unless each of the equity owners of any such company, other than the investment adviser entering into the contract, is a natural person or company within the meaning of Subparagraph (a)(3) of this Rule;

(4) "Interested person" means:

(A) Any parent, spouse, child, or brother or sister of any natural person who is an affiliated person of the investment adviser;

(B) Any person who knowingly has any direct or indirect beneficial interest in, or who is designated as trustee, executor, or guardian of any legal interest in, any security issued by the investment adviser or by a controlling person of the investment adviser if that beneficial or legal interest exceeds:

(i) one tenth of one percent of any class of outstanding securities of the investment adviser or a controlling person of the investment adviser; or

(ii) five percent of the total assets of the person seeking to act as the client's independent agent; or

(C) Any person or partner or employee of any person who, at any time since the beginning of the last two years, has acted as legal counsel for the investment adviser.

(b) Notwithstanding Section 78C-8(c)(1) of the Act, an investment adviser may enter into, extend or renew an investment advisory contract which provides for compensation to the investment adviser on the basis of a share of capital gains upon or capital appreciation of the funds, or any portion of the funds, of the client if the conditions in Subparagraphs (c) through (h) of this Rule are met.

(1) A natural person or a company who, immediately after entering into the advisory contract has at least five hundred thousand dollars ($500,000.00) under the management of the investment adviser; or

(2) A person who the investment adviser and its investment adviser representatives reasonably believe, immediately before entering into the contract, is a natural person or a company whose net worth, at the time the contract is entered into, exceeds one million dollars ($1,000,000.00).

For purposes of this Rule, the term "net worth" shall have the same meaning as that provided by Rule .1313(b)(2). The net worth of a natural person may include assets held jointly with that person's spouse.

(d) The compensation paid to the investment adviser with respect to the performance of any securities over a given period must be based on a formula with the following characteristics:

(1) In the case of securities for which market quotations are readily available within the meaning of Rule 2a-4(a)(1) under the Investment Company Act of 1940, (Definition of "Current Net Asset Value" for Use in Computing Periodically the Current Price of Redeemable Security), 17 C.F.R. 270.2a-4(a)(1), the formula must include the realized capital losses and unrealized capital depreciation of the securities over the period;

(2) In the case of securities for which market quotations are not readily available within the meaning of Rule 2a-4(a)(1) under the Investment Company Act of 1940, 17 C.F.R. 270.2a-4(a)(1), the formula must include:

(A) the realized capital losses of securities over the period; and

(B) if the unrealized capital appreciation of the securities over the period is included, the unrealized capital depreciation of the securities over the period; and

(3) The formula must provide that any compensation paid to the investment adviser under this Rule is based on the gains less the losses (computed in accordance with Subparagraphs (1) and (2) of this Paragraph) in the client's account for a period of not less than one year.

(e) Before entering into the advisory contract and in addition to the requirements of Form ADV, the investment adviser must disclose in writing to the client or the client's independent agent all material information concerning the proposed advisory arrangement, including the following:

(1) That the fee arrangement may create an incentive for the investment adviser to make investments that are riskier or more speculative than would be the case in the absence of a performance fee;

(2) Where relevant, that the investment adviser may receive increased compensation with regard to unrealized appreciation as well as realized gains in the client's account;

(3) The periods which will be used to measure investment performance throughout the contract and their significance in the computation of the fee;

(4) The nature of any index which will be used as a comparative measure of investment performance, the significance of the index, and the reason the investment adviser believes that the index is appropriate; and

(5) Where the investment adviser's compensation is based in part on the unrealized appreciation of securities for which market quotations are not readily available within the meaning of Rule 2a-4(a)(1) under the Investment Company Act of 1940, 17 C.F.R. 270.2a-4(a)(1), how the securities will be valued and the extent to which the valuation will be independently determined.

(f) The investment adviser (and any investment adviser representative) who enters into the contract must reasonably believe, immediately before entering into the contract, that the contract represents an arm's length arrangement between the parties and that the client (or in the case of a client which is a company as defined in Subparagraph (a)(3) of this Rule, the person representing the company), alone or together with the client's independent agent, understands the proposed method of compensation and its risks. The representative of a company may be a partner, director, officer or an employee of the company or the trustee, where the company is a trust, or any other person designated by the company or trustee, but must satisfy the definition of client's independent agent set forth in Subparagraph (a)(2) of this Rule.

(g) Any person entering into or performing an investment advisory contract under this Rule is not relieved of any obligations under Section 78C-8(a) or any other applicable provision of the Act or any rule or order thereunder.

(h) Nothing in this Rule shall relieve a client's independent agent from any obligation to the client under applicable law.

History

Authority G.S. 78C-8(b); 78C-8(c)(i); 78C-8(f); 78C-30(a)
Temporary Rule Eff. January 2, 1989, for a period of 180 days to expire on June 30, 1989
Eff. February 1, 1989
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.

18 NCAC 06A .1806 Transactions Deemed Not to Be Assignments {#sec-18-ncac-06a-.1806 omnilex-key=us-nc-regs-official--title-18--18 NCAC 06A .1806}

For purposes of Section 78C-8(c)(2) of the Act, a transaction which does not result in a change of actual control or management of an investment adviser or investment adviser covered under federal law is not an assignment.

History

Authority G.S. 78C-8(c)(2); 78C-8(f); 78C-30(a)
Temporary Rule Eff. January 2, 1989, for a period of 180 days to expire on June 30, 1989
Eff. February 1, 1989
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.

18 NCAC 06A .1807 Request for Interpretative Opinions {#sec-18-ncac-06a-.1807 omnilex-key=us-nc-regs-official--title-18--18 NCAC 06A .1807}

(a) Requests for interpretative opinions 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).

(b) An interpretative opinion shall not be considered an absolute exemption or exception from a definition. The burden of proving an exemption or exception from a definition shall remain upon the person claiming it should the necessity of proof arise.

History

Authority G.S. 78C-30(a); 78C-31(e)
Temporary Rule Eff. January 2, 1989, for a period of 180 days to expire on June 30, 1989
Eff. February 1, 1989
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. December 6, 2016.

18 NCAC 06A .1808 Supervision of Investment Adviser Representatives {#sec-18-ncac-06a-.1808 omnilex-key=us-nc-regs-official--title-18--18 NCAC 06A .1808}

(a) An investment adviser shall be responsible for the acts, practices, and conduct of its investment adviser representatives in connection with advisory services until such time as the investment adviser representatives have been properly terminated as provided by Rule .1710.

(b) Every investment adviser shall exercise diligent supervision over the advisory activities of all of its investment adviser representatives.

(c) Every investment adviser representative employed by an investment adviser shall be subject to the supervision of a supervisor designated by such investment adviser. The supervisor may be the investment adviser in the case of a sole proprietor, or a partner, officer, office manager or any qualified investment adviser representative in the case of entities other than sole proprietorships.

(d) As part of its responsibility under this Rule, every investment adviser shall establish, maintain and enforce written procedures, a copy of which shall be kept in each business office, which shall set forth the procedures adopted by the investment adviser, which shall include but not be limited to the following duties imposed by this Rule:

(1) The review and written approval by a designated supervisor of the opening of each new client account;

(2) The frequent examination of all client accounts to detect and prevent irregularities or abuses;

(3) The prompt review and written approval by a designated supervisor of all advisory transactions by investment adviser representatives and of all correspondence pertaining to the solicitation or execution of all advisory transactions by investment adviser representatives;

(4) The prompt review and written approval of the handling of all client complaints.

(e) Every investment adviser who has designated more than one supervisor pursuant to Paragraph (c) of this Rule shall designate from among its partners, officers, or other qualified investment adviser representatives, a person or group of persons who shall:

(1) Supervise and periodically review the activities of the supervisors designated pursuant to Paragraph (c) of this Rule; and

(2) Periodically inspect each business office under his/her supervision to insure that the written procedures are being enforced.

(f) The provisions of Paragraph (a) of this Rule shall be applicable to an investment adviser who is also a dealer within the meaning of N.C. Gen. Stat. Section 78A-2(2) with respect to the acts, practices, and conduct of its salesmen [as that term is defined by N.C. Gen. Stat. Section 78A-2(9)] until such time as such salesmen are terminated pursuant to the provisions of N.C. Gen. Stat. Section 78A-36(b) and 18 NCAC 6 .1408. Every such investment adviser shall exercise diligent supervision over the activities of its salesmen within the scope of their employment.

History

Authority G.S. 78C-19(a)(j); 78C-30(a)
Temporary Rule Eff. January 2, 1989, for a period of 180 days to expire on June 30, 1989
Eff. February 1, 1989
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. December 6, 2016.

18 NCAC 06A .1809 PUBLIC INFORMATION (repealed) {#sec-18-ncac-06a-.1809 omnilex-key=us-nc-regs-official--title-18--18 NCAC 06A .1809}

History

Status: repealed
Filed as a Temporary Rule Eff. January 2, 1989, for a period of 180 days to expire on June 30, 1989
Authority G.S. 78C-27(a); 78C-30(a); 78C-30(g); 78C-31(c); 132-1; 132-1.1
Eff. February 1, 1989
Repealed Eff. August 1, 1998.

History

Authority G.S. 78C-30(a); 78C-30(b); 78C-46(b)
Temporary Rule Eff. January 2, 1989, for a period of 180 days to expire on June 30, 1989
Eff. February 1, 1989
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. December 6, 2016.

18 NCAC 06A .1811 FORMS (repealed) {#sec-18-ncac-06a-.1811 omnilex-key=us-nc-regs-official--title-18--18 NCAC 06A .1811}

History

Status: repealed
Filed as a Temporary Rule Eff. January 2, 1989, for a period of 180 days to expire on June 30, 1989
Authority G.S. 78C-30(a); 78C-30(b)
Eff. February 1, 1989
Amended Eff. September 1, 1990
Temporary Amendment Eff. October 1, 1997
Repealed Eff. August 1, 1998.

18 NCAC 06A .1901 Application for Registration of Athlete Agents {#sec-18-ncac-06a-.1901 omnilex-key=us-nc-regs-official--title-18--18 NCAC 06A .1901}

History

Status: repealed
Authority G.S. 78C-46(b); 78C-72; 78C-81
Eff. March 1, 1991
Amended Eff. September 1, 1995
Repealed Eff. September 1, 2008.

18 NCAC 06A .1902 Expiration of Registration {#sec-18-ncac-06a-.1902 omnilex-key=us-nc-regs-official--title-18--18 NCAC 06A .1902}

History

Status: repealed
Authority G.S. 78C-46(b); 78C-72; 78C-81
Eff. March 1, 1991
Amended Eff. September 1, 1995
Repealed Eff. September 1, 2008.

18 NCAC 06A .1903 Renewal of Registration {#sec-18-ncac-06a-.1903 omnilex-key=us-nc-regs-official--title-18--18 NCAC 06A .1903}

History

Status: repealed
Authority G.S. 78C-46(b); 78C-72; 78C-81
Eff. March 1, 1991
Amended Eff. September 1, 1995
Repealed Eff. September 1, 2008.

18 NCAC 06A .1904 Approval of Agent Contracts {#sec-18-ncac-06a-.1904 omnilex-key=us-nc-regs-official--title-18--18 NCAC 06A .1904}

History

Status: repealed
Authority G.S. 78C-46(b); 78C-72; 78C-81
Eff. March 1, 1991
Amended Eff. September 1, 1995
Repealed Eff. September 1, 2008.

18 NCAC 06A .1905 Notice to Client {#sec-18-ncac-06a-.1905 omnilex-key=us-nc-regs-official--title-18--18 NCAC 06A .1905}

History

Status: repealed
Authority G.S. 78C-46(b); 78C-72; 78C-81
Eff. March 1, 1991
Amended Eff. September 1, 1995
Repealed Eff. September 1, 2008.

18 NCAC 06A .1906 Forms {#sec-18-ncac-06a-.1906 omnilex-key=us-nc-regs-official--title-18--18 NCAC 06A .1906}

History

Status: repealed
Authority G.S. 78C-46(b); 78C-72; 78C-81
Eff. March 1, 1991
Amended Eff. September 1, 1995
Repealed Eff. September 1, 2008.

18 NCAC 06A .2001 Purpose {#sec-18-ncac-06a-.2001 omnilex-key=us-nc-regs-official--title-18--18 NCAC 06A .2001}

The purpose of the rules in this Section is to promote the overall economic health of North Carolina by:

(1) facilitating responsible and competitive intrastate capital formation by North Carolina companies through increased availability of financial resources to businesses that might not otherwise have access to capital;

(2) facilitating opportunities for residents of North Carolina to invest in local businesses;

(3) facilitating small intrastate capital securities offerings that use the Internet; and

(4) protecting the investing public.

History

Authority G.S. 78A-17.1(a)(5); 78A-17.1(f); 78A-49(a); 78A-49(d); 78A-64; S.L. 2016-103, s.4.(a)
Eff. April 1, 2017.

18 NCAC 06A .2002 Scope {#sec-18-ncac-06a-.2002 omnilex-key=us-nc-regs-official--title-18--18 NCAC 06A .2002}

(a) The Secretary of State establishes and enforces the rules in this Section pursuant to the authority delegated by:

(1) the North Carolina PACES Act, S.L. 2016-103, the Invest NC Exemption under G.S. 78A; and

(2) G.S. 78A-45(a).

(b) The rules in this Section shall not be construed to relieve any person from the provisions of G.S. 78A-8.

History

Authority G.S. 78A-17.1(a)(5); 78A-17.1(f); 78A-49(a); 78A-49(d); 78A-64; S.L. 2016-103, s.4.(a)
Eff. April 1, 2017.

18 NCAC 06A .2003 Definitions {#sec-18-ncac-06a-.2003 omnilex-key=us-nc-regs-official--title-18--18 NCAC 06A .2003}

Except as otherwise provided, the following definitions apply to G.S. 78A-17.1 and this Section:

(1) The definitions in:

(a) G.S. 78A-2;

(b) Rule .1104 of this Subchapter; and

(2) "Bank" means:

(a) a banking institution organized under the laws of the United States;

(b) a member bank of the Federal Reserve System;

(i) doing business under laws of a state or of the United States, a substantial portion of the business of which consists of receiving deposits or exercising fiduciary powers similar to those permitted to national banks under the authority of the Comptroller of the Currency pursuant to the first section of Public Law 87-722 (12 U.S.C. 92a);

(ii) which is supervised and examined by a state or federal agency having supervision over banks; and

(iii) which is not operated for the purpose of evading the North Carolina Securities Act.

(3) "Blank check company" means a development stage company that has no specific business plan or that has indicated that its business plan is to engage in a merger or acquisition with an unidentified company or companies.

(4) "Blind pool" means a company that sells securities without specifying how invested money will be spent.

(5) "Commodity pool" means an investment trust, syndicate, or similar form of enterprise operated for the purpose of trading commodity futures, option contracts, or other securities.

(6) "Dealer", "Registered dealer" or "registered dealer or salesman" means a dealer or salesman registered in North Carolina pursuant to G.S. 78A-36.

(7) "Depository institution" means a bank, savings institution, trust company or credit union that is:

(a) organized or chartered under the laws of a State or of the United States;

(b) authorized to receive deposits; and

(c) supervised and examined by an official or agency of a State or the United States if its deposits or share accounts are insured by the Federal Deposit Insurance Corporation (FDIC), the National Credit Union Share Insurance Fund (NCUSIF) or a successor authorized by federal law.

(8) "Document" or "documents" means originals, copies, and attachments to, correspondence, memoranda, notes, drafts, records, agreements, meeting agendas, reports, legal or financial instruments, e-mail, instant messages, records of social media postings, and any mode of representing words, letters, and numbers. It includes all forms and formats, including writing, print, typing, drawing, audio, and other recording, electronically, magnetically or mechanically stored, tape-recording, computerized, photographed, digital, or stored as voice mail, website, archived information, and backups of information.

(9) "Escrow account" means an account that holds investor funds pursuant to an escrow agreement.

(10) "Escrow agent" means a person that administers an escrow account by means of an escrow agreement in connection with the Exemption. The following persons may act as an escrow agent:

(a) a bank or depository institution;

(b) a registered dealer; or

(11) The "Exemption" means the exemption allowed by G.S. 78A-17(20) in connection with an offering of a security made by an issuer in reliance on a federal intrastate offering exemption in compliance with the Securities Act of 1933.

(12) "Holding company" means an entity whose principal purpose is owning stock in, or supervising the management of, other companies.

(13) "Internet Web site" means a North Carolina Intrastate Funding Portal except as used in G.S. 78A-17.1(c).

(14) "Lawyer" means a licensed lawyer who is an active member of the North Carolina State Bar in good standing and who has at least one law office physically located in North Carolina.

(15) "Legal identity" means:

(a) the legal name of an entity on file with the business registry in its state of formation;

(b) a name assumed by a foreign entity pursuant to G.S. 55-15-03(a)(1), G.S. 55A-15-03(a)(1), or G.S. 57D-7-03(a)(1); and

(16) "Minimum offering amount" means an amount of funds equal to or below the target offering amount that is set by the issuer and that shall not be less than 20 percent of the target offering amount.

(17) "North Carolina Intrastate Funding Portal" or "funding portal" means any person that:

(a) is not a registered dealer or salesman pursuant to G.S. 78A-36; and

(b) is in the business of acting as an intermediary in transactions involving the offer or sale of securities for or on behalf of an issuer pursuant to the Exemption.

(18) "Platform" means a program or application accessible via the Internet or other similar electronic communication medium where information is provided and where prospective investors, investors, and issuers publicly communicate with each other online.

(19) "Registered with the Secretary of State" means:

(a) a domestic entity that is formed under North Carolina law and is in "current/active status" with the Department; or

(b) a foreign entity that:

(i) has obtained a Certificate of Authority to transact business in North Carolina from the Department; and

(ii) is "current/active" with the Department and in good standing in its state of formation.

(20) "Target date" means the date set by the issuer by which it expects to reach the minimum offering amount. The target date shall not exceed 12 months from the date of the Administrator's notice of compliance required by Rule .2015 of this Section.

(21) "Target offering amount" is the total amount of funds that the issuer intends to raise by offering the securities to investors. The target offering amount for a single offering shall not exceed two million dollars ($2,000,000).

History

Authority G.S. 78A-17.1(a)(5); 78A-17.1(f); 78A-49(a); 78A-49(d); 78A-64; S.L. 2016-103, s.4.(a)
Eff. April 1, 2017.

18 NCAC 06A .2004 Exemption Limitations {#sec-18-ncac-06a-.2004 omnilex-key=us-nc-regs-official--title-18--18 NCAC 06A .2004}

(a) An issuer shall set a target offering amount, a target date, and a minimum offering amount for the securities offering.

(b) An issuer conducting a securities offering shall:

(1) set a target offering amount of no more than two million dollars ($2,000,000) in any 12 consecutive months if its disclosure document includes audited or reviewed financial statements for its most recently completed full fiscal year or the immediately preceding 12 months;

(2) set a target offering amount of no more than one million dollars ($1,000,000) in any 12 consecutive months if its disclosure document does not include audited or reviewed financial statements;

(3) set a minimum offering amount that shall be no less than 20 percent of the target offering amount set by the issuer and disclosed in the disclosure document; and

(4) set a target date for the securities offering that shall be no later than 12 months from the date of the Administrator's notice of compliance pursuant to Rule .2015(1) of this Section.

(c) An issuer shall not accept more than five thousand dollars ($5,000) in any 12-month period from any single investor who is not accredited. An accredited investor is defined by 17 CFR 230.501, which is incorporated by reference. Copies of 17 CFR 230.501 are available at no cost by sending an email request to secdiv@sosnc.gov or online at http://www.sosnc.gov/sec/statutes.aspx.

(d) The securities offering shall expire 12 months from the date of the Administrator's notice of compliance pursuant to Rule .2015(1) of this Section.

(e) The securities offering shall not be exempt under G.S. 78A-17.1 unless the issuer has received the Administrator's notice of compliance pursuant to Rule .2015(1) of this Section.

(f) The offering or sale of a security that may be qualified for the Exemption but has not received the Administrator's notice of compliance pursuant to Rule .2015(1) of this Section shall be presumed to violate the Securities Act.

(g) An issuer shall not offer a security relying on the Exemption until it receives the Administrator's notice of compliance pursuant to Rule .2015(1) of this Section.

(h) An issuer shall not be eligible to rely on the Exemption if it is a holding company, blind pool, commodity pool, a blank check company, peer-to-peer, or similar online marketplace lender, real estate investment trust (REIT), a company issuing viatical settlement contracts, or a company issuing asset-backed securities as defined in 17 CFR 229.1101(c), which is incorporated by reference including subsequent amendments and editions. Copies of 17 CFR 229.1101(c) are available at no cost by sending an email request to secdiv@sosnc.gov or online at http://www.sosnc.gov/sec/statutes.aspx.

History

Authority G.S. 78A-17.1(a)(5); 78A-17.1(f); 78A-49(a); 78A-49(d); 78A-64; S.L. 2016-103, s.4.(a)
Eff. April 1, 2017.

18 NCAC 06A .2005 Counting Sales {#sec-18-ncac-06a-.2005 omnilex-key=us-nc-regs-official--title-18--18 NCAC 06A .2005}

Sales by the issuer to its controlling persons, its funding portal, or its registered dealer shall not be included in the calculations of the minimum offering amount or the target offering amount. For purposes of this Rule and Rule .2061, "controlling persons" shall have the meaning set out in G.S. 78A-17.1(d).

History

Authority G.S. 78A-17.1(a)(5); 78A-17.1(f); 78A-49(a); 78A-49(d); 78A-64; S.L. 2016-103, s.4.(a)
Eff. April 1, 2017.

18 NCAC 06A .2006 Reserved for Future Codification {#sec-18-ncac-06a-.2006 omnilex-key=us-nc-regs-official--title-18--18 NCAC 06A .2006}

18 NCAC 06A .2007 Issuer Filing Requirements {#sec-18-ncac-06a-.2007 omnilex-key=us-nc-regs-official--title-18--18 NCAC 06A .2007}

(a) An issuer shall file the following with the Administrator at least 10 business days before it intends to offer securities pursuant to the Exemption:

(1) a Notice of Intrastate Claim of Exemption Form ("Form NCE") that complies with Rules .2008 and .2009 of this Section;

(2) a disclosure document pursuant to the requirements of Rules .2010 through .2012 of this Section;

(3) the escrow agreement that the issuer proposes to use in connection with the Exemption consistent with the rules in this Section, and any contracts with the escrow agent relating to its administration of the escrow account; and

(4) the nonrefundable fee required by G.S. 78A-17.1(g).

(b) If any information on the Form NCE becomes inaccurate or misleading, an issuer shall amend its Form NCE by filing with the Administrator within 10 business days an amended Form NCE.

History

Authority G.S. 78A-17.1(a)(5); 78A-17.1(f); 78A-49(a); 78A-49(d); 78A-64; S.L. 2016-103, s.4.(a)
Eff. April 1, 2017.

18 NCAC 06A .2008 Notice of Intrastate Claim of Exemption Form Requirements {#sec-18-ncac-06a-.2008 omnilex-key=us-nc-regs-official--title-18--18 NCAC 06A .2008}

An issuer shall file with the Administrator an original, legible Form NCE and required attachments. The Form NCE shall include the following:

(1) the issuer's attestation:

(a) to the issuer's name or legal identity, and contact information;

(b) to the issuer's registration with the Secretary of State;

(d) as to the minimum offering amount, the target offering amount, and target date in accordance with Rule .2004 of this Section;

(e) as to the issuer's commitment that it shall not accept more than five thousand dollars ($5,000) from any single investor in any 12-month period, unless the issuer reasonably believes that the purchaser is an accredited investor;

(f) that the issuer does not fit within the exclusions in G.S. 78A-17.1(a)(6);

(g) that the issuer is not a company listed or described in Rule .2004(h) of this Section;

(h) as to the absence of disqualification pursuant to G.S. 78A-17.1(e) for the issuer or any person affiliated with the issuer or the securities offering;

(i) that the issuer shall comply with Rules .2013 and .2063 of this Section regarding misrepresentations and omissions of material facts in its disclosures to prospective investors and investors; and

(j) that the issuer consents to personal jurisdiction of the Administrator over the issuer and consents to service of process as authorized by G.S. 78A-63;

(2) a copy of any agreement entered into between the issuer and its funding portal or registered dealer or salesman;

(3) the names and titles of persons engaged in the offer or sale of the issuer's securities; and

(4) the names and titles of persons who will serve as the investor contact person(s) for the issuer.

History

Authority G.S. 78A-17.1(a)(5); 78A-17.1(f); 78A-49(a); 78A-49(d); 78A-64; S.L. 2016-103, s.4.(a)
Eff. April 1, 2017.

18 NCAC 06A .2009 Signing Form Nce {#sec-18-ncac-06a-.2009 omnilex-key=us-nc-regs-official--title-18--18 NCAC 06A .2009}

The issuer shall sign the Form NCE. The Form NCE shall be legibly signed:

(1) by a person authorized to sign pursuant to G.S. 55-1-20 for a domestic or foreign corporation;

(2) by a person authorized to sign pursuant to G.S. 55A-1-20 for a domestic or foreign nonprofit corporation;

(3) by all the issuer's managers for a limited liability company; or

(4) by all persons managing the affairs of, or performing similar functions for, an issuer that is not a corporation or a limited liability company.

History

Authority G.S. 78A-17.1(a)(5); 78A-17.1(f); 78A-49(a); 78A-49(d); 78A-64; S.L. 2016-103, s.4.(a)
Eff. April 1, 2017.

18 NCAC 06A .2010 Content of Disclosure Document {#sec-18-ncac-06a-.2010 omnilex-key=us-nc-regs-official--title-18--18 NCAC 06A .2010}

An issuer shall prepare and sign a disclosure document with all facts material to a reasonable investor's decision as to whether to invest in the issuer's securities offering. In addition, the disclosure document shall include:

(1) information required by G.S. 78A-17.1(a)(5)b. and G.S. 78A-17.1(a)(13);

(2) the name, the street address of the issuer's business, and the mailing address, if different, of the issuer's business;

(3) the type of the issuer's business entity, as recognized under North Carolina law. Note: Examples of types of business entities are limited partnerships, corporations, and limited liability companies (LLCs);

(4) a description of the issuer's business;

(5) a description of the history of the issuer's business that includes its three most recent years;

(6) a description of the financial condition of the issuer:

(a) for an issuer with an operating history, the description shall include: liquidity, capital resources, historical results of operations, and whether historical results and cash flows are representative of what investors should expect in the future; or

(b) for an issuer with no operating history, the description shall include planned financial milestones, and operational, liquidity, and other challenges;

(7) a description of how the issuer plans to use the funds raised by the securities offering:

(a) if the minimum offering amount is reached;

(b) if the target offering amount is reached; and

(8) any information necessary to make the material facts disclosed not misleading;

(9) the statements required by Rule .2011 of this Section and, by 17 CFR 230.147(f)(3), or 230.147A(f)(3) which are incorporated by reference including subsequent amendments and editions;

(10) a statement that investors shall direct all payments to the escrow agent to be deposited into the escrow account until at least the minimum offering amount has been reached;

(11) a statement that an investor may cancel an investment for any reason before the minimum offering amount has been reached;

(12) a description of the cancellation procedure that the investors shall follow in order to cancel the investment;

(13) a description of how and when the funds raised by the securities offering will:

(a) be returned to an investor if the investor cancels the investment before the minimum offering amount is reached;

(b) be returned to the investors if the minimum offering amount is not reached by the target date; and

(c) be released to the issuer if the minimum offering amount is reached by the target date or if the issuer chooses to leave the funds in the escrow account for any period of time after the minimum offering amount is reached;

(14) a copy of the signed escrow agreement; and

(15) its financial statements, if the issuer has undergone an audit or review in the previous 12 months.

Copies of 17 CFR 230.147(f)(3) and 230.147A(f)(3) are available at no cost by sending an email request to secdiv@sosnc.gov or online at http://www.sosnc.gov/sec/statutes.aspx.

History

Authority G.S. 78A-17.1(a)(5); 78A-17.1(f); 78A-49(a); 78A-49(d); 78A-64; S.L. 2016-103, s.4.(a)
Eff. April 1, 2017.

18 NCAC 06A .2011 Required Statements to Include in Issuer Disclosure Document {#sec-18-ncac-06a-.2011 omnilex-key=us-nc-regs-official--title-18--18 NCAC 06A .2011}

(a) An issuer shall include the legend required by G.S. 78A-17.1(a)(7) in its disclosure document as specified by this Rule.

(b) The text of the legend shall be separated into these paragraphs:

(1) "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."

(2) "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."

The numbers on the paragraphs above do not have to be included when the text of the legend is presented.

(c) The issuer shall present the legend conspicuously and in a readable form. For purposes of this Rule, "conspicuously and in a readable form" means:

(1) in a bold font that is at least 10 point in size; and

(2) uses at least one additional method of the issuer's choice to set the legend apart and emphasize it in comparison to other cover page information. NOTE: Examples of other ways of setting the legend apart include a different color font, white space around the legend, increased line spacing, or bordering the legend.

History

Authority G.S. 78A-17.1(a)(5); 78A-17.1(f); 78A-49(a); 78A-49(d); 78A-64; S.L. 2016-103, s.4.(a)
Eff. April 1, 2017.

18 NCAC 06A .2012 Circumstances When Additional Disclosure Document Content Required {#sec-18-ncac-06a-.2012 omnilex-key=us-nc-regs-official--title-18--18 NCAC 06A .2012}

(a) If the issuer has chosen a target offering amount that exceeds one million dollars ($1,000,000) and is no more than two million dollars ($2,000,000), the issuer shall include in its disclosure document a copy of its financial statements for its most recently completed full fiscal year (or the immediately preceding 12 months).

(b) The financial statements shall:

(1) have been audited or reviewed and prepared in accordance with generally accepted accounting principles ("GAAP"); and

(2) include:

(A) balance sheets;

(B) comprehensive statement of consolidated income;

(D) statements of changes in stockholders' equity; and

(E) notes to the financial statements.

(c) If the financial statements required by Paragraph (a) of this Rule are more than four months old, then the issuer shall also provide interim financial statements for the preceding four or more months. The interim financial statements are not subject to Paragraph (b)(1) of this Rule.

History

Authority G.S. 78A-17.1(a)(5); 78A-17.1(f); 78A-49(a); 78A-49(d); 78A-64; S.L. 2016-103, s.4.(a)
Eff. April 1, 2017.

18 NCAC 06A .2013 Issuer to Cease Offering and Amend the Disclosure Document {#sec-18-ncac-06a-.2013 omnilex-key=us-nc-regs-official--title-18--18 NCAC 06A .2013}

(a) The issuer shall immediately cease the offer or sale of the securities and amend the disclosure document if:

(1) there is any material change in the securities or securities offering;

(2) the disclosure document becomes incomplete in any material respect; or

(3) the disclosure document contains any statement that is, in the light of the circumstances under which it is made, false or misleading with respect to any material fact.

(b) The issuer shall not resume the sale or offer for sale until the issuer has:

(1) prepared and provided the amended disclosure document to the Administrator and the investors; and

(2) received the Administrator's notice of compliance pursuant to Rule .2015 of this Section; and

(3) provided all investors with:

(A) the opportunity to cancel their investments if the minimum offering amount has not been reached; or

(B) rescission offers that may be consistent with G.S. 78A-56(g).

History

Authority G.S. 78A-17.1(a)(5); 78A-17.1(f); 78A-49(a); 78A-49(d); 78A-64; S.L. 2016-103, s.4.(a)
Eff. April 1, 2017.

18 NCAC 06A .2014 FACTORS CONSIDERED WHEN reviewING THE CLAIM OF EXEMPTION {#sec-18-ncac-06a-.2014 omnilex-key=us-nc-regs-official--title-18--18 NCAC 06A .2014}

(a) When determining whether the securities offering complies with the conditions of the Exemption, the Administrator may consider the following factors and any reported material changes:

(1) whether all filings required by Rule .2007 of this Section have been made;

(2) the contents of the Form NCE;

(3) the contents of the disclosure document;

(4) the contents of the escrow agreement and whether the Administrator has approved it pursuant to Rules .2020 and .2021 of this Section;

(5) the contents of any contracts related to the execution of the securities offering transactions;

(6) the funding portal, if any, selected by the issuer;

(7) whether the proposed securities offering complies with other requirements of G.S.78A-17.1 and this Section;

(8) whether the securities offering would tend to work a fraud on the investing public;

(9) whether regulatory agencies oversee the activities of the entities that are parties to the transactions related to the securities offering;

(10) whether the issuer is a prohibited business pursuant to G.S. 78A-17.1 and the rules in this Chapter; and

(11) any other factors the Administrator deems relevant.

(b) The Administrator may consider information not included in the Form NCE and other documents pursuant to Rule .2007 of this Section, and may ask the issuer for additional relevant information.

History

Authority G.S. 78A-17.1(a)(5); 78A-17.1(f); 78A-49(a); 78A-49(d); 78A-64; S.L. 2016-103, s.4.(a)
Eff. April 1, 2017.

18 NCAC 06A .2015 Administrator's Notice of Compliance {#sec-18-ncac-06a-.2015 omnilex-key=us-nc-regs-official--title-18--18 NCAC 06A .2015}

After review of the relevant information, the Administrator may issue a notice of compliance:

(1) with the filing requirements of Rule .2007 of this Section; or

(2) with Rule .2013(b)(1) of this Section with regard to any material changes.

History

Authority G.S. 78A-17.1(a)(5); 78A-17.1(f); 78A-49(a); 78A-49(d); 78A-64; S.L. 2016-103, s.4.(a)
Eff. April 1, 2017.

18 NCAC 06A .2016 Denial or Revocation of the Exemption {#sec-18-ncac-06a-.2016 omnilex-key=us-nc-regs-official--title-18--18 NCAC 06A .2016}

The Administrator may by order, deny or revoke the Exemption pursuant to G.S. 78A-18(a) if:

(1) the issuer fails to comply with the Exemption requirements after receiving a notice of deficiency;

(2) the issuer fails to furnish requested information or evidence of compliance to the Administrator;

(3) the issuer fails to keep or produce records pursuant to Rule .2060(d) of this Section;

(4) the securities offering does not comply with the conditions set by G.S. 78A-17.1 and the rules of this Chapter;

(5) the securities offering is part of a plan or scheme to avoid registration;

(6) the structure of the securities offering is so complex as to be misleading to the investing public; or

(7) the issuer has engaged or is about to engage in any act or practice that is a violation of the Securities Act or rules of this Chapter.

History

Authority G.S. 78A-17.1(a)(5); 78A-17.1(f); 78A-49(a); 78A-49(d); 78A-64; S.L. 2016-103, s.4.(a)
Eff. April 1, 2017.

18 NCAC 06A .2017 Escrow Account {#sec-18-ncac-06a-.2017 omnilex-key=us-nc-regs-official--title-18--18 NCAC 06A .2017}

(a) An issuer shall be responsible for the establishment and maintenance of an escrow account for investor fund deposits.

(b) The escrow account shall:

(1) be administered by an escrow agent;

(2) be a segregated account for each securities offering; and

(3) be FDIC or NCUSIF insured.

(1) be a fiduciary account maintained at a bank in North Carolina and operated according to the North Carolina Rules of Professional Conduct, 27 NCAC 02 Rule 1.15, which is incorporated by reference, including subsequent amendments and editions; and

(2) be designated as an IOLTA account, as defined in 27 NCAC 01D .1316, which is incorporated by reference, including subsequent amendments and editions.

Copies of the rules incorporated by reference in Paragraph (c) of this Rule are available at no cost by sending an email request to secdiv@sosnc.gov or online at http://reports.oah.state.nc.us/ncac.asp.

History

Authority G.S. 78A-17.1(a)(5); 78A-17.1(f); 78A-49(a); 78A-49(d); 78A-64; S.L. 2016-103, s.4.(a)
Eff. April 1, 2017.

18 NCAC 06A .2018 Issuer to Provide Information to the Escrow Agent {#sec-18-ncac-06a-.2018 omnilex-key=us-nc-regs-official--title-18--18 NCAC 06A .2018}

An issuer shall provide accurate and timely information to the escrow agent in order to establish and maintain the escrow account and escrow agreement, including the minimum offering amount and the target date set by the issuer in accordance with G.S. 78A-17.1(a)(5)c.

History

Authority G.S. 78A-17.1(a)(5); 78A-17.1(f); 78A-49(a); 78A-49(d); 78A-64; S.L. 2016-103, s.4.(a)
Eff. April 1, 2017.

18 NCAC 06A .2019 Terms of Escrow Agreement {#sec-18-ncac-06a-.2019 omnilex-key=us-nc-regs-official--title-18--18 NCAC 06A .2019}

The escrow agreement shall include:

(1) the identity of the escrow agent including the name, address where notices may be directed, telephone number, website of the agent, and the name of the person responsible for responding to inquiries about the escrow account;

(2) the identity of the bank or depository institution where the escrow account will be maintained, including its name, address, telephone number, website, and the name of the person responsible for responding to inquiries about the escrow account;

(3) the account number of the escrow account;

(4) a statement confirming that the escrow account is FDIC or NCUSIF insured;

(5) a description of the services to be provided by the escrow agent;

(6) the fees charged for the services provided by the escrow agent;

(7) a requirement that the escrow agent shall authorize the release of the securities offering proceeds to the issuer only if:

(a) the aggregate funds deposited into the escrow account from all investors is equal to or greater than the minimum offering amount; and

(b) the minimum offering amount has been deposited into the escrow account by the target date stated in the disclosure document;

(8) a requirement that the escrow agent authorize the return of funds to investors as required by G.S. 78A-17.1 and Rules .2054 and .2055 of this Section;

(9) a description of how the issuer shall notify the escrow agent of the investor's cancellation of the investment in order to request that the invested funds be returned to the investor;

(10) a requirement that the escrow agent shall administer the escrow account in compliance with G.S. 78A-17.1 and Rules .2023 through .2028 of this Section;

(11) a description of how any interest accrued in the escrow account will be administered;

(12) a description of how an escrow agent will address a dispute between the issuer and the investor;

(13) a description disclosing how any lawyer acting as an escrow agent will handle a conflict of interest, if applicable;

(14) a requirement that the escrow agent be responsible for prudent processing, safeguarding, and accounting for the funds and information entrusted to it by investors and the issuer; and

(15) how the funds will be safeguarded if the escrow agent, funding portal, or any other party to the agreement ceases doing business in North Carolina.

History

Authority G.S. 78A-17.1(a)(5); 78A-17.1(f); 78A-49(a); 78A-49(d); 78A-64; S.L. 2016-103, s.4.(a)
Eff. April 1, 2017.

18 NCAC 06A .2020 review of the Escrow Agreement {#sec-18-ncac-06a-.2020 omnilex-key=us-nc-regs-official--title-18--18 NCAC 06A .2020}

(a) The Administrator may consider the following factors when reviewing an issuer's escrow agreement to determine whether to approve it:

(1) the contents of the escrow agreement;

(2) the contents of any contracts with the escrow agent or escrow administering parties relating to the administration of the escrow account;

(3) the escrow agent's:

(A) physical location;

(B) experience as an escrow agent, in the administration of escrow accounts, or provision of escrow services;

(D) disciplinary history; and

(E) technology to be utilized;

(4) other parties to the escrow agreement and their:

(A) physical locations;

(B) financial stability;

(D) technology to be utilized;

(5) regulatory agencies, if any, that oversee the activities of the entities that are parties to the escrow agreement; and

(6) any other factors that the Administrator deems relevant.

(b) When reviewing the agreement, the Administrator may consider information not included in the escrow agreement and may ask the escrow agent for additional relevant information.

History

Authority G.S. 78A-17.1(a)(5); 78A-17.1(f); 78A-49(a); 78A-49(d); 78A-64; S.L. 2016-103, s.4.(a)
Eff. April 1, 2017.

18 NCAC 06A .2021 Administrator's Rejection of Escrow Agreement {#sec-18-ncac-06a-.2021 omnilex-key=us-nc-regs-official--title-18--18 NCAC 06A .2021}

The Administrator may reject the issuer's escrow agreement if the Administrator determines that:

(1) the escrow agreement does not comply with the rules of this Section;

(2) one or more of the factors listed in Rule .2020 of this Section make the escrow agreement unnecessarily risky for the issuer or the investor;

(3) the escrow agent is unsuitable to manage the escrow account; or

(4) the escrow agreement includes terms that could cause the issuer to lose its exemption.

History

Authority G.S. 78A-17.1(a)(5); 78A-17.1(f); 78A-49(a); 78A-49(d); 78A-64; S.L. 2016-103, s.4.(a)
Eff. April 1, 2017.

18 NCAC 06A .2022 Administrator Notice of Approval or Rejection of Escrow Agreement {#sec-18-ncac-06a-.2022 omnilex-key=us-nc-regs-official--title-18--18 NCAC 06A .2022}

The Administrator shall not issue a notice of compliance pursuant to Rule .2015(1) of this Section unless the escrow agreement has been approved by the Administrator.

History

Authority G.S. 78A-17.1(a)(5); 78A-17.1(f); 78A-49(a); 78A-49(d); 78A-64; S.L. 2016-103, s.4.(a)
Eff. April 1, 2017.

18 NCAC 06A .2023 ESCROW AGENT Duties, Responsibilities, and STANDARDS OF CONDUCT {#sec-18-ncac-06a-.2023 omnilex-key=us-nc-regs-official--title-18--18 NCAC 06A .2023}

An escrow agent and all persons associated with it shall:

(1) observe high standards of commercial honor and just and equitable principles of trade in the conduct of its business;

(2) give particular attention to any conflicts of interest that may arise or exist;

(3) preserve and maintain all documents related to its status and service as an escrow agent for six years after the filing of the Form NCE and make such documents available to the Administrator upon request; and

(4) provide notice to the Administrator of any material changes to the escrow agreement.

History

Authority G.S. 78A-17.1(a)(5); 78A-17.1(f); 78A-49(a); 78A-49(d); 78A-64; S.L. 2016-103, s.4.(a)
Eff. April 1, 2017.

18 NCAC 06A .2024 NOTICE TO ADMINISTRATOR minimum OFFERING amount REACHED, FUNDS RELEASED FROM The ESCROW Account, AND TERMINATION OF ESCROW AGREEMENT {#sec-18-ncac-06a-.2024 omnilex-key=us-nc-regs-official--title-18--18 NCAC 06A .2024}

(a) An escrow agent shall file a written notice to the Administrator within 10 days:

(1) after reaching the minimum offering amount; and

(2) after the termination of the escrow agreement.

(b) An issuer shall file a written notice to the Administrator within 10 days:

(1) after reaching the minimum offering amount;

(2) after the initial release of funds from the escrow account; and

(3) after the termination of the escrow agreement.

History

Authority G.S. 78A-17.1(a)(5); 78A-17.1(f); 78A-49(a); 78A-49(d); 78A-64; S.L. 2016-103, s.4.(a)
Eff. April 1, 2017.

18 NCAC 06A .2025 Content of Notice of Release of Funds from Escrow Account {#sec-18-ncac-06a-.2025 omnilex-key=us-nc-regs-official--title-18--18 NCAC 06A .2025}

The notice provided pursuant to Rule .2024 of this Section shall include the following:

(1) the aggregate amount of securities sold during the offering, expressed as:

(a) numbers of units of securities sold; and

(b) dollars raised by the sale of securities;

(2) the identity and residence of each investor;

(3) the date on which the funds were released to the issuer or returned to investors; and

(4) the date of the termination of the escrow agreement, if already terminated.

History

Authority G.S. 78A-17.1(a)(5); 78A-17.1(f); 78A-49(a); 78A-49(d); 78A-64; S.L. 2016-103, s.4.(a)
Eff. April 1, 2017.

18 NCAC 06A .2026 REgistered Dealer ACTING AS AN ESCROW AGENT {#sec-18-ncac-06a-.2026 omnilex-key=us-nc-regs-official--title-18--18 NCAC 06A .2026}

A registered dealer that acts as an escrow agent for the issuer's securities offering shall:

(1) be registered with the SEC and the State of North Carolina to offer and sell the intrastate securities offering;

(2) deposit and hold the investor funds in an escrow account pursuant to an escrow agreement;

(3) comply with Rules .2024 and .2025 of this Section, 17 CFR 240.15c2-4, and 17 CFR 240.10b-9, which are incorporated by reference including subsequent amendments and editions.

Copies of the regulations incorporated by reference in Item (3) of this Rule may be obtained at no cost by sending an email to secdiv@sosnc.gov, or online at: http://www.sosnc.gov/sec/statutes.aspx.

History

Authority G.S. 78A-17.1(a)(5); 78A-17.1(f); 78A-49(a); 78A-49(d); 78A-64; S.L. 2016-103, s.4.(a)
Eff. April 1, 2017.

18 NCAC 06A .2027 Escrow Agent Requirements {#sec-18-ncac-06a-.2027 omnilex-key=us-nc-regs-official--title-18--18 NCAC 06A .2027}

Pursuant to the escrow agreement consistent with Rules .2017 through .2028 of this Section, an escrow agent for the issuer's securities offering, including a lawyer, shall:

(1) collect at least the following information from the issuer or investors:

(a) name of the investors;

(b) residence of the investors;

(i) numbers of units of securities sold; and

(ii) dollars raised by the sale of securities; and

(2) make such documents available to the Administrator upon request.

History

Authority G.S. 78A-17.1(a)(5); 78A-17.1(f); 78A-49(a); 78A-49(d); 78A-64; S.L. 2016-103, s.4.(a)
Eff. April 1, 2017.

18 NCAC 06A .2028 Treatment of Information {#sec-18-ncac-06a-.2028 omnilex-key=us-nc-regs-official--title-18--18 NCAC 06A .2028}

Information that is received or transmitted directly or indirectly from a bank or depository institution to the Administrator pursuant to G.S. 78A-17.1(a)(10) shall be designated as confidential and trade secrets while in the possession of the Administrator.

History

Authority G.S. 78A-17.1(a)(5); 78A-17.1(f); 78A-49(a); 78A-49(d); 78A-64; S.L. 2016-103, s.4.(a)
Eff. April 1, 2017.

18 NCAC 06A .2029 Reserved for Future Codification {#sec-18-ncac-06a-.2029 omnilex-key=us-nc-regs-official--title-18--18 NCAC 06A .2029}

18 NCAC 06A .2030 Funding Portal Registration {#sec-18-ncac-06a-.2030 omnilex-key=us-nc-regs-official--title-18--18 NCAC 06A .2030}

(a) A funding portal shall apply for registration as a North Carolina Intrastate Funding Portal by filing with the Administrator a Form North Carolina Intrastate Funding Portal (Form NCFP) at least 10 business days before it intends to post an offering on behalf of any issuer relying on the Exemption.

(b) A funding portal shall not post a securities offering before its registration has been declared effective by the Administrator.

(c) A funding portal's registration expires on December 31 of each year, unless renewed within 30 days of expiration by filing a newly executed Form NCFP.

(d) A funding portal that undergoes a merger, an acquisition, or any other ownership change shall file a Form NCFP on behalf of the surviving or new entity before the effective date of the change.

History

Authority G.S. 78A-17.1(a)(5); 78A-17.1(f); 78A-49(a); 78A-49(d); 78A-64; S.L. 2016-103, s.4.(a)
Eff. April 1, 2017.

18 NCAC 06A .2031 Contents of Form Ncfp {#sec-18-ncac-06a-.2031 omnilex-key=us-nc-regs-official--title-18--18 NCAC 06A .2031}

The Form NCFP shall include:

(1) all information that the funding portal is required to provide under G.S. 78A-17.1(a)(9)c, including:

(a) the funding portal's legal identity;

(b) the funding portal's physical location;

(d) the identity of the individual responsible for filing updates to the funding portal's Form NCFP;

(e) the identity of its officers, directors, or any persons occupying a similar status or performing a similar function; and

(f) the funding portal's website address (URL);

(2) the funding portal's attestations required under Rule .2032 of this Section;

(3) a description of how the funding portal will safeguard the investment funds in the escrow account if its registration expires or it no longer intends to do business in North Carolina;

(4) the identity of the escrow agent that the funding portal intends to use to hold investor funds;

(5) a sample escrow agreement that is compliant with Rule .2019 of this Section; and

(6) all contracts between the funding portal and its service providers, banks, or depository institutions governing the administration of investor funds.

History

Authority G.S. 78A-17.1(a)(5); 78A-17.1(f); 78A-49(a); 78A-49(d); 78A-64; S.L. 2016-103, s.4.(a)
Eff. April 1, 2017.

18 NCAC 06A .2032 Required Funding Portal Attestations {#sec-18-ncac-06a-.2032 omnilex-key=us-nc-regs-official--title-18--18 NCAC 06A .2032}

A funding portal shall attest in the Form NCFP that it:

(1) is registered with the Secretary of State and has North Carolina as its principal place of business;

(2) is being used to offer and sell securities under G.S. 78A-17.1;

(3) will not engage in the prohibited activities set out in G.S. 78A-17.1(a)(11);

(4) is not subject to disqualification pursuant to G.S. 78A-17.1(e);

(5) does not have any officers, directors, or any person occupying a similar status or performing a similar function that are subject to disqualification pursuant to G.S. 78A-17.1(e);

(6) will not buy or sell personally identifiable information of any prospective investor or investor;

(7) agrees to comply with Rules .2037, .2039, and .2061 of this Section;

(8) agrees to comply with Rule .2038 of this Section regarding denying access to those it reasonably believes are subject to disqualification or potential for fraud or investor harm;

(9) shall not handle or take custody of the funds of the issuer or investors;

(10) shall safeguard prospective investor and investor personal identifying information and immediately notify the Administrator in writing of any compromise of confidentiality; and

(11) consents to personal jurisdiction of the Administrator and consents to service of process by the Administrator.

History

Authority G.S. 78A-17.1(a)(5); 78A-17.1(f); 78A-49(a); 78A-49(d); 78A-64; S.L. 2016-103, s.4.(a)
Eff. April 1, 2017.

18 NCAC 06A .2033 review OF THE FUNDING PORTAL REGISTRATION {#sec-18-ncac-06a-.2033 omnilex-key=us-nc-regs-official--title-18--18 NCAC 06A .2033}

(a) When determining whether a registration is effective, the Administrator may consider:

(1) the contents of Form NCFP and any amendments;

(2) the contents of any contracts provided with the Form NCFP;

(3) the escrow agent that the funding portal intends to use;

(4) the funding portal's:

(A) physical location;

(B) experience as a funding portal;

(D) disciplinary history; and

(E) technology to be utilized;

(5) other parties to the contracts with the funding portal that facilitate its ability to act as a funding portal and their:

(A) physical locations;

(B) financial stability;

(D) technology to be utilized;

(6) regulatory agencies, if any, that oversee the activities of the entities that are involved with the funding portal; and

(7) any other factors the Administrator deems relevant.

(b) When reviewing an application for registration of the funding portal, the Administrator may consider information not included in the Form NCFP and may ask the funding portal for additional relevant information.

History

Authority G.S. 78A-17.1(a)(5); 78A-17.1(f); 78A-49(a); 78A-49(d); 78A-64; S.L. 2016-103, s.4.(a)
Eff. April 1, 2017.

18 NCAC 06A .2034 Administrator Denial or Revocation of Funding Portal Registration {#sec-18-ncac-06a-.2034 omnilex-key=us-nc-regs-official--title-18--18 NCAC 06A .2034}

The Administrator may deny or revoke registration of a funding portal if the Administrator determines that:

(1) the funding portal has not complied with the rules in this Section;

(2) the funding portal has not instituted procedures to ensure the necessary due diligence occurs;

(3) the funding portal has not instituted procedures to protect investors;

(4) the funding portal has prematurely posted an offering before receiving notice of effective registration from the Administrator;

(5) the factors in Rule .2033 of this Section individually or considered as a whole make the funding portal unnecessarily risky for the issuer or the investor; or

(6) one of the grounds for action in G.S.78A-39 applies to the funding portal.

History

Authority G.S. 78A-17.1(a)(5); 78A-17.1(f); 78A-49(a); 78A-49(d); 78A-64; S.L. 2016-103, s.4.(a)
Eff. April 1, 2017.

18 NCAC 06A .2035 ADMINISTRATOR NOTICE OF effective FUNDING PORTAL REGISTRATION {#sec-18-ncac-06a-.2035 omnilex-key=us-nc-regs-official--title-18--18 NCAC 06A .2035}

After the Administrator considers the Form NCFP and the factors in Rules .2033 and .2034, the Administrator shall either provide the funding portal with written notice of effectiveness or denial of the registration.

History

Authority G.S. 78A-17.1(a)(5); 78A-17.1(f); 78A-49(a); 78A-49(d); 78A-64; S.L. 2016-103, s.4.(a)
Eff. April 1, 2017.

18 NCAC 06A .2036 FUNDING PORTAL NOTICE TO ADMINISTRATOR OF changes {#sec-18-ncac-06a-.2036 omnilex-key=us-nc-regs-official--title-18--18 NCAC 06A .2036}

(a) Within 30 days of any changes to information on the Form NCFP, a funding portal shall file an amended Form NCFP with the Administrator. A funding portal shall comply with Rule .2030(d) if there is a change in its ownership.

(b) A funding portal shall provide notice to the Administrator within five business days of a change in the issuer(s) using the funding portal by one of the following:

(1) providing the identity of additional issuers on its Form NCFP;

(2) amending its Form NCFP to add or remove issuers; or

(3) providing a separate written statement identifying each issuer using the funding portal.

History

Authority G.S. 78A-17.1(a)(5); 78A-17.1(f); 78A-49(a); 78A-49(d); 78A-64; S.L. 2016-103, s.4.(a)
Eff. April 1, 2017.

18 NCAC 06A .2037 Funding Portal Financial Interest in Issuer {#sec-18-ncac-06a-.2037 omnilex-key=us-nc-regs-official--title-18--18 NCAC 06A .2037}

A funding portal shall not have a financial interest in an issuer that is offering or selling securities on its platform unless:

(1) the funding portal receives the financial interest as compensation for the services provided to or for the benefit of the issuer;

(2) the services are provided in connection with the issuer's offer or sale of securities in the intrastate offering;

(3) the financial interest consists of securities of the same class and having the same terms, conditions, and rights as the securities being offered or sold in the intrastate offering through the funding portal's platform;

(4) the issuer's disclosure document includes the funding portal's financial interest in the issuer; and

(5) the financial interest shall not be included in either the calculations of the minimum offering amount or the target offering amount.

History

Authority G.S. 78A-17.1(a)(5); 78A-17.1(f); 78A-49(a); 78A-49(d); 78A-64; S.L. 2016-103, s.4.(a)
Eff. April 1, 2017.

18 NCAC 06A .2038 Funding Portal Denial of Access {#sec-18-ncac-06a-.2038 omnilex-key=us-nc-regs-official--title-18--18 NCAC 06A .2038}

(a) A funding portal shall exercise due diligence in determining whether an issuer's securities offering presents the potential for fraud or other investor protection concerns.

(b) A funding portal shall deny access to its platform to an issuer or entity if it determines that there is a reasonable basis for believing that any of the following are subject to disqualification pursuant to G.S. 78A-17.1(e):

(1) the issuer;

(2) any of the issuer's officers, directors, or persons occupying a similar status or performing a similar function; or

(3) holders of 10 percent or more of the issuer's outstanding voting equity securities, calculated on the basis of voting power.

History

Authority G.S. 78A-17.1(a)(5); 78A-17.1(f); 78A-49(a); 78A-49(d); 78A-64; S.L. 2016-103, s.4.(a)
Eff. April 1, 2017.

18 NCAC 06A .2039 Funding Portal Standards of Conduct {#sec-18-ncac-06a-.2039 omnilex-key=us-nc-regs-official--title-18--18 NCAC 06A .2039}

(a) A funding portal and all persons associated with it shall:

(1) observe high standards of commercial honor and just and equitable principles of trade in the conduct of its business; and

(2) give particular attention to any conflicts of interest that may arise or exist.

(b) A funding portal and all persons associated with it who do not comply with the rules in this Section may be considered by the Administrator to be engaging in acts in violation of this Rule.

(c) Violations of this Rule may be grounds for denial, censure, suspension, or revocation of a funding portal's registration or other action authorized by G.S. 78A-39.

History

Authority G.S. 78A-17.1(a)(5); 78A-17.1(f); 78A-49(a); 78A-49(d); 78A-64; S.L. 2016-103, s.4.(a)
Eff. April 1, 2017.

18 NCAC 06A .2040 Reserved for Future Codification {#sec-18-ncac-06a-.2040 omnilex-key=us-nc-regs-official--title-18--18 NCAC 06A .2040}

18 NCAC 06A .2041 limitations on general solicitation and advertising {#sec-18-ncac-06a-.2041 omnilex-key=us-nc-regs-official--title-18--18 NCAC 06A .2041}

An issuer relying on the Exemption and persons acting on behalf of the issuer may not engage in general solicitation or advertising, except as permitted by Rules .2043 and .2044 of this Section.

History

Authority G.S. 78A-17.1(a)(5); 78A-17.1(f); 78A-49(a); 78A-49(d); 78A-64; S.L. 2016-103, s.4.(a)
Eff. April 1, 2017.

18 NCAC 06A .2042 Media Coverage of a Securities Offering Using the Exemption {#sec-18-ncac-06a-.2042 omnilex-key=us-nc-regs-official--title-18--18 NCAC 06A .2042}

Media coverage of a securities offering that has been prepared, authorized, approved, paid for, or provided other consideration for, by or on behalf of the issuer shall be deemed general solicitation or advertising.

History

Authority G.S. 78A-17.1(a)(5); 78A-17.1(f); 78A-49(a); 78A-49(d); 78A-64; S.L. 2016-103, s.4.(a)
Eff. April 1, 2017.

18 NCAC 06A .2043 Mandatory CONTENT requirement in permitted ADVERTISING NOTICE {#sec-18-ncac-06a-.2043 omnilex-key=us-nc-regs-official--title-18--18 NCAC 06A .2043}

An advertising notice may advertise the issuer's securities offering only if the notice:

(1) directs prospective investors to the platform (or website, if any) where the disclosure document is posted. NOTE: For example, an active hyperlink to the disclosure document would be a way of directing prospective investors to the platform (or website, if any);

(2) includes a disclaimer that sales under the Exemption are restricted to North Carolina residents. NOTE: For example, the words "NC residents only" is a way of wording the disclaimer; and

(3) includes no more information than that permitted by Rule .2044 of this Section.

History

Authority G.S. 78A-17.1(a)(5); 78A-17.1(f); 78A-49(a); 78A-49(d); 78A-64; S.L. 2016-103, s.4.(a)
Eff. April 1, 2017.

18 NCAC 06A .2044 Other Requirements for Permitted Advertising Notices {#sec-18-ncac-06a-.2044 omnilex-key=us-nc-regs-official--title-18--18 NCAC 06A .2044}

In addition to the content required by Rule .2043 of this Section, an advertising notice may include one or more of the following statements:

(1) a statement that the issuer is conducting the securities offering pursuant to the Exemption;

(2) the name of the escrow agent to which all investor funds shall be directed;

(3) the terms of the securities offering. For purposes of this Rule and Rules .2011 and .2045 of this Section, "terms of the offering" means:

(a) the amount of securities offered;

(b) the nature of the securities;

(d) the closing date of the offering period; and

(4) factual information about the issuer that is limited to:

(a) the legal identity and business location of the issuer;

(b) the name of the issuer;

(d) the email address of a representative of the issuer; and

(e) a brief description of the business of the issuer.

History

Authority G.S. 78A-17.1(a)(5); 78A-17.1(f); 78A-49(a); 78A-49(d); 78A-64; S.L. 2016-103, s.4.(a)
Eff. April 1, 2017.

18 NCAC 06A .2045 Establishing a Platform {#sec-18-ncac-06a-.2045 omnilex-key=us-nc-regs-official--title-18--18 NCAC 06A .2045}

(a) A single public platform shall be established for every securities offering that shall:

(1) provide a communication channel that facilitates the public sharing of information related to terms of the offering through a communication channel, leveraging the "wisdom of the crowd";

(2) identify the issuer of the securities under discussion on each communication channel;

(3) comply with Rules .2043 and .2044 of this Section when advertising the securities offering; and

(4) provide the prospective investor or the investor with the issuer's disclosure document(s).

(b) A platform may include the issuer's quarterly reports.

(c) The platform shall include a progress indicator for each issuer's securities offering at a location visible to the prospective investors and investors. NOTE: Examples of progress indicators are pie charts and words indicating milestones achieved or percentage of target amount reached.

History

Authority G.S. 78A-17.1(a)(5); 78A-17.1(f); 78A-49(a); 78A-49(d); 78A-64; S.L. 2016-103, s.4.(a)
Eff. April 1, 2017.

18 NCAC 06A .2046 Individuals Not Subject to Dealer Registration {#sec-18-ncac-06a-.2046 omnilex-key=us-nc-regs-official--title-18--18 NCAC 06A .2046}

Officers, employees, associated independent contractors, and other persons of an issuer involved in the sale of the issuer's securities shall not be subject to registration as a dealer or salesman if they comply with the safe harbor requirements set out in 17 CFR 240.3a4-1, which is incorporated by reference, including subsequent amendments and editions. A copy of 17 CFR 240.3a4-1 is available on request at no cost by sending an email request to secdiv@sosnc.gov or online at http://www.sosnc.gov/sec/statutes.aspx.

History

Authority G.S. 78A-17.1(a)(5); 78A-17.1(f); 78A-49(a); 78A-49(d); 78A-64; S.L. 2016-103, s.4.(a)
Eff. April 1, 2017.

18 NCAC 06A .2047 Retention of Platform Communications {#sec-18-ncac-06a-.2047 omnilex-key=us-nc-regs-official--title-18--18 NCAC 06A .2047}

All communications through a communication channel on a platform shall be preserved for a period of six years after the filing of the Form NCE.

History

Authority G.S. 78A-17.1(a)(5); 78A-17.1(f); 78A-49(a); 78A-49(d); 78A-64; S.L. 2016-103, s.4.(a)
Eff. April 1, 2017.

18 NCAC 06A .2048 Administration of Platform Communication Channels {#sec-18-ncac-06a-.2048 omnilex-key=us-nc-regs-official--title-18--18 NCAC 06A .2048}

(a) An issuer, funding portal or registered dealer administering a platform shall:

(1) establish and enforce guidelines for communication using the communication channels; and

(2) remove abusive or potentially fraudulent communications.

(b) A funding portal shall only participate in the communication channels on its platform consistent with Rule .2049 of this Section.

History

Authority G.S. 78A-17.1(a)(5); 78A-17.1(f); 78A-49(a); 78A-49(d); 78A-64; S.L. 2016-103, s.4.(a)
Eff. April 1, 2017.

18 NCAC 06A .2049 additional communication channel requirements {#sec-18-ncac-06a-.2049 omnilex-key=us-nc-regs-official--title-18--18 NCAC 06A .2049}

An issuer and persons acting on behalf of the issuer may communicate with prospective investors and investors about the terms of the securities offering if:

(1) effected through communication channels provided by the issuer, funding portal, or registered dealer on their platforms;

(2) the issuer identifies itself as the issuer in all communications; and

(3) persons acting on behalf of the issuer identify their names, titles, and affiliation with the issuer in all communications.

History

Authority G.S. 78A-17.1(a)(5); 78A-17.1(f); 78A-49(a); 78A-49(d); 78A-64; S.L. 2016-103, s.4.(a)
Eff. April 1, 2017.

18 NCAC 06A .2050 Reserved for Future Codification {#sec-18-ncac-06a-.2050 omnilex-key=us-nc-regs-official--title-18--18 NCAC 06A .2050}

18 NCAC 06A .2051 PROVIDING Documents TO PROSPECTIVE INVESTORS AND INVESTORS {#sec-18-ncac-06a-.2051 omnilex-key=us-nc-regs-official--title-18--18 NCAC 06A .2051}

The issuer shall provide a prospective investor or investor with the disclosure document that it filed with the Administrator at the time it makes an offer or sale of a security.

History

Authority G.S. 78A-17.1(a)(5); 78A-17.1(f); 78A-49(a); 78A-49(d); 78A-64; S.L. 2016-103, s.4.(a)
Eff. April 1, 2017.

18 NCAC 06A .2052 Manner of Providing Disclosure and Other Documents to a Prospective Investor or an Investor {#sec-18-ncac-06a-.2052 omnilex-key=us-nc-regs-official--title-18--18 NCAC 06A .2052}

(a) An individual or entity providing a disclosure document, notice, or other information to a prospective investor or investor pursuant to G.S. 78A-17.1 or this Section may provide it in paper or electronic format, unless otherwise provided in this Subchapter.

(b) Any information or communication affecting a prospective investor's or investor's rights, except a rescission offer, may only be provided in electronic format if the prospective investor or investor is:

(1) informed in advance that notices will be provided electronically; and

(2) provided the opportunity and means to opt out of receipt of electronic notices.

History

Authority G.S. 78A-17.1(a)(5); 78A-17.1(f); 78A-49(a); 78A-49(d); 78A-64; S.L. 2016-103, s.4.(a)
Eff. April 1, 2017.

18 NCAC 06A .2053 Issuer Shall Require Investor Actions {#sec-18-ncac-06a-.2053 omnilex-key=us-nc-regs-official--title-18--18 NCAC 06A .2053}

(a) Before selling a security to an investor, an issuer relying on the Exemption shall require the investor to provide the issuer with:

(1) a signed, dated document identifying the investor and containing the certifications required by G.S. 78A-17.1(a)(8);

(2) a written, signed, and dated certification of:

(A) the investor's North Carolina residency; and

(B) if applicable, accredited investor status.

If the investor is an entity, its residence shall be the principal place of business where the officers, partners, or managers of the entity primarily direct, control, and coordinate the business activities; and

(3) evidence supporting the certification(s) made pursuant to Part (a)(2)(A) of this Rule.

(b) The certifications required by this Rule may be combined in a single document.

History

Authority G.S. 78A-17.1(a)(5); 78A-17.1(f); 78A-49(a); 78A-49(d); 78A-64; S.L. 2016-103, s.4.(a)
Eff. April 1, 2017.

18 NCAC 06A .2054 Investor Cancellation of Investment Commitment {#sec-18-ncac-06a-.2054 omnilex-key=us-nc-regs-official--title-18--18 NCAC 06A .2054}

(a) Before an issuer has raised the minimum offering amount an investor may:

(1) cancel the commitment to invest in the securities offering; and

(2) request that the investor's funds be returned to the investor.

(b) Within three business days of receipt of notice from an investor, the issuer shall notify the escrow agent to ensure that the funds are returned to the investor.

(c) The escrow agent shall release the funds from the escrow account to the investor no later than 10 days from the escrow agent's receipt of the notice.

(d) The issuer, investor, and escrow agent shall follow the procedures set out in the disclosure document and escrow agreement when complying with this Rule.

History

Authority G.S. 78A-17.1(a)(5); 78A-17.1(f); 78A-49(a); 78A-49(d); 78A-64; S.L. 2016-103, s.4.(a)
Eff. April 1, 2017.

18 NCAC 06A .2055 Release of Funds in Escrow Account {#sec-18-ncac-06a-.2055 omnilex-key=us-nc-regs-official--title-18--18 NCAC 06A .2055}

(a) An escrow agent shall only release funds in the escrow account:

(1) to the issuer if the minimum offering amount has been reached by the target date and the funds have been deposited in the escrow account; or

(2) to an investor if:

(A) the minimum offering amount has not been reached by the target date;

(B) the issuer notifies the escrow agent pursuant to Rule .2054 of this Section with respect to an investor's cancellation of the investment; or

(C) the issuer terminates the offering for any reason prior to the minimum offering amount being reached by the target date.

(b) An escrow agent shall return investor funds in full and shall not reduce the funds returned by the amount of any fees, commissions, or expenses.

History

Authority G.S. 78A-17.1(a)(5); 78A-17.1(f); 78A-49(a); 78A-49(d); 78A-64; S.L. 2016-103, s.4.(a)
Eff. April 1, 2017.

18 NCAC 06A .2056 Issuer Notice to Investors Minimum Offering Amount Reached {#sec-18-ncac-06a-.2056 omnilex-key=us-nc-regs-official--title-18--18 NCAC 06A .2056}

The issuer shall provide a written notification to all investors of the date when the minimum offering amount has been reached. The notification shall be provided within 10 days of the date when the minimum offering amount has been reached.

History

Authority G.S. 78A-17.1(a)(5); 78A-17.1(f); 78A-49(a); 78A-49(d); 78A-64; S.L. 2016-103, s.4.(a)
Eff. April 1, 2017.

18 NCAC 06A .2057 Quarterly Reports {#sec-18-ncac-06a-.2057 omnilex-key=us-nc-regs-official--title-18--18 NCAC 06A .2057}

(a) The issuer shall provide quarterly reports to the investors and file the reports with the Administrator until no securities issued in the securities offering are outstanding.

(b) The issuer's first quarterly report shall be due 45 days after the end of the fiscal quarter in which the minimum offering amount is reached.

(c) In addition to the information required by G.S. 78A-17.1(c), a quarterly report shall include the status of the securities offering, indicating the progress of the securities offering toward the target offering amount.

History

Authority G.S. 78A-17.1(a)(5); 78A-17.1(f); 78A-49(a); 78A-49(d); 78A-64; S.L. 2016-103, s.4.(a)
Eff. April 1, 2017.

18 NCAC 06A .2058 CONCLUSION OF the offering {#sec-18-ncac-06a-.2058 omnilex-key=us-nc-regs-official--title-18--18 NCAC 06A .2058}

The issuer shall file a report with the Administrator within 10 days of the conclusion of the securities offering. The report shall include:

(1) the number of investors;

(2) the aggregate amount of securities sold during the offering, expressed as:

(a) number of units of securities sold; and

(b) dollars raised by the sale of securities;

(3) the date on which the funds were released to the issuer or returned to the investors; and

(4) the date on which the securities offering was concluded.

History

Authority G.S. 78A-17.1(a)(5); 78A-17.1(f); 78A-49(a); 78A-49(d); 78A-64; S.L. 2016-103, s.4.(a)
Eff. April 1, 2017.

18 NCAC 06A .2059 Reserved for Future Codification {#sec-18-ncac-06a-.2059 omnilex-key=us-nc-regs-official--title-18--18 NCAC 06A .2059}

18 NCAC 06A .2060 Issuer Recordkeeping Requirements {#sec-18-ncac-06a-.2060 omnilex-key=us-nc-regs-official--title-18--18 NCAC 06A .2060}

(a) With regard to documents related to the Exemption, an issuer shall retain:

(1) copies of documents that it makes;

(2) copies of documents that it receives; and

(3) documents of any persons acting on its behalf. The issuer shall not be required, pursuant to this Rule, to obtain and retain documents from escrow agents, funding portals, and registered dealers other than those documents it receives in the ordinary course of business related to the securities offering pursuant to the Exemption.

(b) An issuer shall make and preserve copies of all communications in any medium used, published, or distributed that are related to the securities offering. For purposes of this Rule, "communications" include social media posts and other electronic distributions relating to the securities offering.

(c) The documents referred to in Paragraphs (a) and (b) of this Rule shall be retained by the issuer for a period of at least six years after the date of initial filing of the Form NCE with the Administrator.

(d) An issuer shall produce documents to the Administrator upon request or demand. An issuer shall keep the documents in a location and manner that will permit access, inspection, and review in North Carolina by the Administrator.

(e) Failure to keep or produce documents pursuant to Paragraph (d) of this Rule may form the basis for an order denying or revoking the Exemption pursuant to G.S. 78A-18.

History

Authority G.S. 78A-17.1(a)(5); 78A-17.1(f); 78A-49(a); 78A-49(d); 78A-64; S.L. 2016-103, s.4.(a)
Eff. April 1, 2017.

18 NCAC 06A .2061 Funding Portal Recordkeeping Requirements {#sec-18-ncac-06a-.2061 omnilex-key=us-nc-regs-official--title-18--18 NCAC 06A .2061}

(a) The funding portal shall make and preserve the following:

(1) all documents related to an investor who purchases or attempts to purchase securities through the funding portal;

(2) all documents related to:

(A) issuers who offer and sell or attempt to offer and sell securities through the funding portal; and

(B) the controlling persons of such issuers related to the securities offering;

(3) documents of all communications that occur on or through its platform;

(4) all documents related to persons that use communication channels provided by a funding portal to promote an issuer's securities or communicate with prospective investors;

(5) all documents to demonstrate compliance with the requirements set out in the Rules in this Section;

(6) all notices provided by such funding portal to issuers and investors generally through the funding portal's platform or otherwise;

(7) all written agreements entered into relating to its business in connection with offerings listed on the funding portal or offerings by issuers rejected by the portal;

(8) all daily, monthly, and quarterly summaries of transactions effected through the funding portal;

(9) a log reflecting the progress toward meeting the target offering amount of each issuer who offers or sells securities through the funding portal; and

(10) a copy of all documents relating to the escrow account or any account maintained on behalf of an issuer.

(b) The funding portal shall keep the documents required by Paragraph (a) of this Rule for a period of six years from the date of creation of the document.

(c) The funding portal shall keep the documents in a location and manner that will permit access, inspection, and review in North Carolina by the Administrator. The documents shall be subject to inspection by representatives of the Administrator upon reasonable examination from time to time, as the Administrator deems necessary or appropriate in the public interest or for the protection of investors.

(d) Failure to make, keep, or produce documents upon request may subject the funding portal to administrative action pursuant to G.S. 78A-39.

History

Authority G.S. 78A-17.1(a)(5); 78A-17.1(f); 78A-49(a); 78A-49(d); 78A-64; S.L. 2016-103, s.4.(a)
Eff. April 1, 2017.

18 NCAC 06A .2062 Requirement for Retention of Original or Equivalent {#sec-18-ncac-06a-.2062 omnilex-key=us-nc-regs-official--title-18--18 NCAC 06A .2062}

With the exception of a registered dealer, a person subject to G.S. 78A-17.1 and the rules in this Section shall:

(1) ensure that filed electronic documents include all meta-data or other information related to the properties or history of the document; and

(2) retain the information:

(a) in the original form in which the information was created; or

(b) in any other format that accurately captures and retains the original information.

History

Authority G.S. 78A-17.1(a)(5); 78A-17.1(f); 78A-49(a); 78A-49(d); 78A-64; S.L. 2016-103, s.4.(a)
Eff. April 1, 2017.

18 NCAC 06A .2063 Protection of Investors Against Fraud and Other Misconduct {#sec-18-ncac-06a-.2063 omnilex-key=us-nc-regs-official--title-18--18 NCAC 06A .2063}

An issuer relying on the Exemption shall not directly or indirectly engage in any activity that violates G.S. 78A-8 with regard to the issuer's offer or sale of securities.

History

Authority G.S. 78A-17.1(a)(5); 78A-17.1(f); 78A-49(a); 78A-49(d); 78A-64; S.L. 2016-103, s.4.(a)
Eff. April 1, 2017.

18 NCAC 06A .2064 Integration {#sec-18-ncac-06a-.2064 omnilex-key=us-nc-regs-official--title-18--18 NCAC 06A .2064}

(a) An issuer shall not use more than one exemption under G.S. 78A and this Section at the same time.

(b) The Administrator shall coordinate the interpretation of other securities integration issues in a manner consistent with current principles in federal securities laws.

History

Authority G.S. 78A-17.1(a)(5); 78A-17.1(f); 78A-49(a); 78A-49(d); 78A-64; S.L. 2016-103, s.4.(a)
Eff. April 1, 2017.

18 NCAC 06A .2065 Request for Waiver {#sec-18-ncac-06a-.2065 omnilex-key=us-nc-regs-official--title-18--18 NCAC 06A .2065}

(a) The Administrator may waive any rule in this Section other than Rule .2004(h) upon evaluation of a written request for a waiver and the factors set out in Rule .2066 of this Section.

(b) A written request for a waiver shall include:

(1) the identity of the person or entity filing the request ("the requestor");

(2) contact information for the requestor;

(3) the specific rule(s) for which a waiver is requested;

(4) the reason(s) a waiver is being requested;

(5) the applicability of the factors set out in Rule .2066 of this Section;

(6) any other information the requestor thinks would help the Administrator make a decision on the waiver request; and

(7) any other information addressing the factors the Administrator may consider in evaluating the waiver request pursuant to Rule .1504 of this Subchapter and Rule .2066 of this Section.

(c) The Administrator may consider a request for waiver as a request for an interpretative opinion or no action letter, which would require a fee pursuant to G.S. 78A-50(e) and Rule .1504 of this Subchapter.

History

Authority G.S. 78A-17.1(a)(5); 78A-17.1(f); 78A-49(a); 78A-49(d); 78A-64; S.L. 2016-103, s.4.(a)
Eff. April 1, 2017.

18 NCAC 06A .2066 Factors Administrator May Consider with Regard to Waiver Requests {#sec-18-ncac-06a-.2066 omnilex-key=us-nc-regs-official--title-18--18 NCAC 06A .2066}

The Administrator may consider the following factors when considering whether to grant a waiver request:

(1) the benefits to the particular investors and to the general investing public of compliance with the rule for which waiver is requested;

(2) the nature and severity of the actual or potential harm to the public, prospective investors, investors, the funding platform (if the requestor is the issuer), or other members of the regulated community;

(3) the necessity for a waiver as explained in the waiver request;

(4) the harm if the waiver is not granted;

(5) the business history, qualifications, and disciplinary history of the person or persons effecting the securities transactions;

(6) history of prior sanctions imposed on the requester by the Department, the SEC, or FINRA;

(7) the requester's record for timeliness, completeness, and accuracy of filings with the Department;

(8) previous requests from the requester for waivers by the Administrator;

(9) evidence in mitigation and aggravation, including the requestor's expertise in securities law and practice;

(10) the need for full and adequate disclosure of information relevant to investment decisions;

(11) impact of the granting of the waiver on consistency of enforcement by the Administrator; and

(12) any other factors that are relevant to the protection of the investing public.

History

Authority G.S. 78A-17.1(a)(5); 78A-17.1(f); 78A-49(a); 78A-49(d); 78A-64; S.L. 2016-103, s.4.(a)
Eff. April 1, 2017.

18 NCAC 06A .2067 Administrator Notice of Approval or Denial of a Waiver {#sec-18-ncac-06a-.2067 omnilex-key=us-nc-regs-official--title-18--18 NCAC 06A .2067}

The Administrator shall notify the requestor in writing of:

(1) its decision to consider the request for a waiver; or

(2) of its approval or denial of the request for waiver.

The Administrator shall send the notice to the address stated in the waiver request.

History

Authority G.S. 78A-17.1(a)(5); 78A-17.1(f); 78A-49(a); 78A-49(d); 78A-64; S.L. 2016-103, s.4.(a)
Eff. April 1, 2017.

18 NCAC 06A .2068 Signatures {#sec-18-ncac-06a-.2068 omnilex-key=us-nc-regs-official--title-18--18 NCAC 06A .2068}

Unless otherwise specified in G.S. 78A-17.1 or this Section, a form or document filed with the Administrator shall be signed by an officer of the entity authorized to sign for the entity. The officer's title or indication of the officer's authority to sign the document shall be entered in the designated space for that information.

History

Authority G.S. 78A-17.1(a)(5); 78A-17.1(f); 78A-49(a); 78A-49(d); 78A-64; S.L. 2016-103, s.4.(a)
Eff. April 1, 2017.

18 NCAC 06A .2069 Electronic Signature {#sec-18-ncac-06a-.2069 omnilex-key=us-nc-regs-official--title-18--18 NCAC 06A .2069}

(a) Signers of documents electronically submitted to the Administrator in connection with a filing may use any form of electronic signature permissible according to G.S. 66-312(9) except that it shall not be a sound.

(b) By electronically submitting a document or form to the Administrator in connection with a filing, the person who signs the document or form submitted affirms the authenticity of the signature on that document or form.

History

Authority G.S. 78A-17.1(a)(5); 78A-17.1(f); 78A-49(a); 78A-49(d); 78A-64; S.L. 2016-103, s.4.(a)
Eff. April 1, 2017.

18 NCAC 06A .2070 Signature Verifies Information Is True {#sec-18-ncac-06a-.2070 omnilex-key=us-nc-regs-official--title-18--18 NCAC 06A .2070}

A signature on a document submitted to the Administrator in connection with a filing shall be the signer's verification that the signer:

(1) has read the form or document; and

(2) knows that all information entered on the form or document is true.

History

Authority G.S. 78A-17.1(a)(5); 78A-17.1(f); 78A-49(a); 78A-49(d); 78A-64; S.L. 2016-103, s.4.(a)
Eff. April 1, 2017.

18 NCAC 06A .2071 Filing with the Administrator {#sec-18-ncac-06a-.2071 omnilex-key=us-nc-regs-official--title-18--18 NCAC 06A .2071}

(a) A document may be filed with the Administrator:

(1) electronically;

(2) by hand delivery or by courier to the Secretary of State; or

(3) by mail delivered to the Secretary of State.

(b) A document that is filed electronically and received after 5 p.m. Eastern Standard Time shall be deemed received on the next business day.

History

Authority G.S. 78A-17.1(a)(5); 78A-17.1(f); 78A-49(a); 78A-49(d); 78A-64; S.L. 2016-103, s.4.(a)
Eff. April 1, 2017.

18 NCAC 06A .2072 Reserved for Future Codification {#sec-18-ncac-06a-.2072 omnilex-key=us-nc-regs-official--title-18--18 NCAC 06A .2072}

18 NCAC 06A .2073 Filing Electronically {#sec-18-ncac-06a-.2073 omnilex-key=us-nc-regs-official--title-18--18 NCAC 06A .2073}

(a) A form or document may be submitted electronically in connection with a filing by:

(1) completing a fillable form on the Department's website at http://sosnc.gov/Sec/, when such a form becomes available on the website, and making any required payment of fees accepted through the website;

(2) uploading a completed form or document to the Department's website at http://sosnc.gov/Sec/, and making any required payment of fees accepted through the website; or

(3) sending an email with a copy of the form or document to secdiv@sosnc.gov unless payment of a fee is required.

(b) An electronically submitted form or document shall not be deemed received by the Administrator unless the filer receives an electronic confirmation of receipt of the submission from the Administrator.

History

Authority G.S. 78A-17.1(a)(5); 78A-17.1(f); 78A-49(a); 78A-49(d); 78A-64; S.L. 2016-103, s.4.(a)
Eff. April 1, 2017.

18 NCAC 06A .2074 Amending a Document Filed with the Administrator {#sec-18-ncac-06a-.2074 omnilex-key=us-nc-regs-official--title-18--18 NCAC 06A .2074}

A filing or other document may be amended by submitting to the Administrator:

(1) a copy of the amended document with the amendments marked to show changes; and

(2) a copy of an amended document without the changes marked.

History

Authority G.S. 78A-17.1(a)(5); 78A-17.1(f); 78A-49(a); 78A-49(d); 78A-64; S.L. 2016-103, s.4.(a)
Eff. April 1, 2017.

18 NCAC 06A .2075 Abandonment or Withdrawal of Filing {#sec-18-ncac-06a-.2075 omnilex-key=us-nc-regs-official--title-18--18 NCAC 06A .2075}

(a) An issuer, escrow agent, funding portal, or registered dealer shall be deemed to have abandoned the filing if it fails to respond to a request for additional information from the Administrator more than 30 days after the date specified by the Administrator.

(b) An issuer, escrow agent, funding portal, or registered dealer may withdraw a filing by submitting to the Administrator a signed, dated, written request to withdraw the filing.

History

Authority G.S. 78A-17.1(a)(5); 78A-17.1(f); 78A-49(a); 78A-49(d); 78A-64; S.L. 2016-103, s.4.(a)
Eff. April 1, 2017.

18 NCAC 06A .2076 Calculation of Time {#sec-18-ncac-06a-.2076 omnilex-key=us-nc-regs-official--title-18--18 NCAC 06A .2076}

Unless a different time period is stated in this Section, time periods shall be calculated according to the provisions of G.S. 1A-1, Rule 6.

History

Authority G.S. 78A-17.1(a)(5); 78A-17.1(f); 78A-49(a); 78A-49(d); 78A-64; S.L. 2016-103, s.4.(a)
Eff. April 1, 2017.

18 NCAC 06A .2101 Purpose {#sec-18-ncac-06a-.2101 omnilex-key=us-nc-regs-official--title-18--18 NCAC 06A .2101}

History

Status: expired
Authority G.S. 78A-17.1(a)(5); 78A-17.1(f); 78A-49(a); 78A-49(d); 78A-64; S.L. 2016-103, s.4.(a)
Eff. April 1, 2017 to expire on April 1, 2026
Expired Eff. April 1, 2026.

18 NCAC 06A .2102 Scope {#sec-18-ncac-06a-.2102 omnilex-key=us-nc-regs-official--title-18--18 NCAC 06A .2102}

History

Status: expired
Authority G.S. 78A-17.1(a)(5); 78A-17.1(f); 78A-49(a); 78A-49(d); 78A-64; S.L. 2016-103, s.4.(a)
Eff. April 1, 2017 to expire on April 1, 2026
Expired Eff. April 1, 2026.

18 NCAC 06A .2103 Definitions {#sec-18-ncac-06a-.2103 omnilex-key=us-nc-regs-official--title-18--18 NCAC 06A .2103}

History

Status: expired
Authority G.S. 78A-17.1(a)(5); 78A-17.1(f); 78A-49(a); 78A-49(d); 78A-64; S.L. 2016-103, s.4.(a)
Eff. April 1, 2017 to expire on April 1, 2026
Expired Eff. April 1, 2026.

18 NCAC 06A .2104 Lpo Limitations {#sec-18-ncac-06a-.2104 omnilex-key=us-nc-regs-official--title-18--18 NCAC 06A .2104}

History

Status: expired
Authority G.S. 78A-17.1(a)(5); 78A-17.1(f); 78A-49(a); 78A-49(d); 78A-64; S.L. 2016-103, s.4.(a)
Eff. April 1, 2017 to expire on April 1, 2026
Expired Eff. April 1, 2026.

18 NCAC 06A .2105 Mandatory Conference {#sec-18-ncac-06a-.2105 omnilex-key=us-nc-regs-official--title-18--18 NCAC 06A .2105}

History

Status: expired
Authority G.S. 78A-17.1(a)(5); 78A-17.1(f); 78A-49(a); 78A-49(d); 78A-64; S.L. 2016-103, s.4.(a)
Eff. April 1, 2017 to expire on April 1, 2026
Expired Eff. April 1, 2026.

18 NCAC 06A .2106 FILING REQUIREMENTS FOR lpo {#sec-18-ncac-06a-.2106 omnilex-key=us-nc-regs-official--title-18--18 NCAC 06A .2106}

History

Status: expired
Authority G.S. 78A-17.1(a)(5); 78A-17.1(f); 78A-49(a); 78A-49(d); 78A-64; S.L. 2016-103, s.4.(a)
Eff. April 1, 2017 to expire on April 1, 2026
Expired Eff. April 1, 2026.

18 NCAC 06A .2107 Contents of Form Nce-Lpo {#sec-18-ncac-06a-.2107 omnilex-key=us-nc-regs-official--title-18--18 NCAC 06A .2107}

History

Status: expired
Authority G.S. 78A-17.1(a)(5); 78A-17.1(f); 78A-49(a); 78A-49(d); 78A-64; S.L. 2016-103, s.4.(a)
Eff. April 1, 2017 to expire on April 1, 2026
Expired Eff. April 1, 2026.

18 NCAC 06A .2108 Additional Legend Requirement for Disclosure Document {#sec-18-ncac-06a-.2108 omnilex-key=us-nc-regs-official--title-18--18 NCAC 06A .2108}

History

Status: expired
Authority G.S. 78A-17.1(a)(5); 78A-17.1(f); 78A-49(a); 78A-49(d); 78A-64; S.L. 2016-103, s.4.(a)
Eff. April 1, 2017 to expire on April 1, 2026
Expired Eff. April 1, 2026.

18 NCAC 06A .2109 Escrow Provisions {#sec-18-ncac-06a-.2109 omnilex-key=us-nc-regs-official--title-18--18 NCAC 06A .2109}

History

Status: expired
Authority G.S. 78A-17.1(a)(5); 78A-17.1(f); 78A-49(a); 78A-49(d); 78A-64; S.L. 2016-103, s.4.(a)
Eff. April 1, 2017 to expire on April 1, 2026
Expired Eff. April 1, 2026.

18 NCAC 06A .2110 Optional Use of Internet by an Issuer of an Lpo {#sec-18-ncac-06a-.2110 omnilex-key=us-nc-regs-official--title-18--18 NCAC 06A .2110}

History

Status: expired
Authority G.S. 78A-17.1(a)(5); 78A-17.1(f); 78A-49(a); 78A-49(d); 78A-64; S.L. 2016-103, s.4.(a)
Eff. April 1, 2017 to expire on April 1, 2026
Expired Eff. April 1, 2026.

18 NCAC 06A .2111 General Solicitation and Advertising Filing Requirements {#sec-18-ncac-06a-.2111 omnilex-key=us-nc-regs-official--title-18--18 NCAC 06A .2111}

History

Status: expired
Authority G.S. 78A-17.1(a)(5); 78A-17.1(f); 78A-49(a); 78A-49(d); 78A-64; S.L. 2016-103, s.4.(a)
Eff. April 1, 2017 to expire on April 1, 2026
Expired Eff. April 1, 2026.

18 NCAC 06A .2112 General Solicitation and Advertising for Which Filing Is Required {#sec-18-ncac-06a-.2112 omnilex-key=us-nc-regs-official--title-18--18 NCAC 06A .2112}

History

Status: expired
Authority G.S. 78A-17.1(a)(5); 78A-17.1(f); 78A-49(a); 78A-49(d); 78A-64; S.L. 2016-103, s.4.(a)
Eff. April 1, 2017 to expire on April 1, 2026
Expired Eff. April 1, 2026.

18 NCAC 06A .2113 General Solicitation and Advertising for Which Filing Is Not Required {#sec-18-ncac-06a-.2113 omnilex-key=us-nc-regs-official--title-18--18 NCAC 06A .2113}

History

Status: expired
Authority G.S. 78A-17.1(a)(5); 78A-17.1(f); 78A-49(a); 78A-49(d); 78A-64; S.L. 2016-103, s.4.(a)
Eff. April 1, 2017 to expire on April 1, 2026
Expired Eff. April 1, 2026.

18 NCAC 06A .2114 Unacceptable General Solicitation and Advertising {#sec-18-ncac-06a-.2114 omnilex-key=us-nc-regs-official--title-18--18 NCAC 06A .2114}

History

Status: expired
Authority G.S. 78A-17.1(a)(5); 78A-17.1(f); 78A-49(a); 78A-49(d); 78A-64; S.L. 2016-103, s.4.(a)
Eff. April 1, 2017 to expire on April 1, 2026
Expired Eff. April 1, 2026.

18 NCAC 06A .2115 Administrator Advisory Review of General Solicitation and Advertising Materials {#sec-18-ncac-06a-.2115 omnilex-key=us-nc-regs-official--title-18--18 NCAC 06A .2115}

History

Status: expired
Authority G.S. 78A-17.1(a)(5); 78A-17.1(f); 78A-49(a); 78A-49(d); 78A-64; S.L. 2016-103, s.4.(a)
Eff. April 1, 2017 to expire on April 1, 2026
Expired Eff. April 1, 2026.

18 NCAC 06A .2116 Recordkeeping Requirements {#sec-18-ncac-06a-.2116 omnilex-key=us-nc-regs-official--title-18--18 NCAC 06A .2116}

History

Status: expired
Authority G.S. 78A-17.1(a)(5); 78A-17.1(f); 78A-49(a); 78A-49(d); 78A-64; S.L. 2016-103, s.4.(a)
Eff. April 1, 2017 to expire on April 1, 2026
Expired Eff. April 1, 2026.

18 NCAC 06A .2117 Prohibited Lpo Issuer Businesses {#sec-18-ncac-06a-.2117 omnilex-key=us-nc-regs-official--title-18--18 NCAC 06A .2117}

History

Status: expired
Authority G.S. 78A-17.1(a)(5); 78A-17.1(f); 78A-49(a); 78A-49(d); 78A-64; S.L. 2016-103, s.4.(a)
Eff. April 1, 2017 to expire on April 1, 2026
Expired Eff. April 1, 2026.

18 NCAC 06A .2118 ADMINISTRATOR MAY Consider CERTAIN OTHER business structures {#sec-18-ncac-06a-.2118 omnilex-key=us-nc-regs-official--title-18--18 NCAC 06A .2118}

History

Status: expired
Authority G.S. 78A-17.1(a)(5); 78A-17.1(f); 78A-49(a); 78A-49(d); 78A-64; S.L. 2016-103, s.4.(a)
Eff. April 1, 2017 to expire on April 1, 2026
Expired Eff. April 1, 2026.

18 NCAC 06A .2119 Review OF THE ISSUER BUSINESS STrUCTURE {#sec-18-ncac-06a-.2119 omnilex-key=us-nc-regs-official--title-18--18 NCAC 06A .2119}

History

Status: expired
Authority G.S. 78A-17.1(a)(5); 78A-17.1(f); 78A-49(a); 78A-49(d); 78A-64; S.L. 2016-103, s.4.(a)
Eff. April 1, 2017 to expire on April 1, 2026
Expired Eff. April 1, 2026.

18 NCAC 06A .2120 Sunset Provision {#sec-18-ncac-06a-.2120 omnilex-key=us-nc-regs-official--title-18--18 NCAC 06A .2120}

History

Status: expired
Authority G.S. 78A-17.1(a)(5); 78A-17.1(f); 78A-49(a); 78A-49(d)
Eff. April 1, 2017
Temporary Amendment Eff. July 1, 2020
Amended Eff. February 1, 2021
Expired Eff. April 1, 2026.

Subchapter B

18 NCAC 06B .0101 Scope {#sec-18-ncac-06b-.0101 omnilex-key=us-nc-regs-official--title-18--18 NCAC 06B .0101}

(a) The rules in this Chapter execute the authority granted to the Secretary of State pursuant to the following Chapters of the North Carolina General Statutes ("the Secretary's authority"):

(1) Chapter 78A, the North Carolina Securities Act;

(2) Chapter 78C, the North Carolina Investment Advisers Act, including the Uniform Athlete Agents Act;

(3) Chapter 78D, the North Carolina Commodities Act; and

(4) Article 4, Part 5, of Chapter 105, Tax Credits for Qualified Business Investments.

(b) The Secretary's authority under these statutes is administered under the supervision of the Deputy Securities Administrator through the Securities Division of the North Carolina Department of the Secretary of State.

History

Authority G.S. 78A-45(a); 78A-49(a); 78C-26(a); 78C-30(a); 78C-105; 78D-25; 78D-27; 105-163.013
Eff. April 1, 2009
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. December 6, 2016.

18 NCAC 06B .0102 Administration {#sec-18-ncac-06b-.0102 omnilex-key=us-nc-regs-official--title-18--18 NCAC 06B .0102}

(a) "Administrator" as used in this Chapter means the Secretary of State.

(b) The Deputy Securities Administrator shall carry out the duties assigned by statute and rule to the Administrator in G.S. Chapters 78A, 78C, 78D, and Article 4, Part 5, of Chapter 105, Tax Credits for Qualified Business Investments.

(d) "Division" as used in this Chapter means the Securities Division of the Department of the Secretary of State.

History

Authority G.S. 78A-45(a); 78A-49(a); 78C-26(a); 78C-30(a); 78C-105; 78D-25; 78D-27; 105-163.013
Eff. April 1, 2009
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. December 6, 2016.

18 NCAC 06B .0201 Senior Designation as Dishonest or Unethical Practice {#sec-18-ncac-06b-.0201 omnilex-key=us-nc-regs-official--title-18--18 NCAC 06B .0201}

(a) This Rule applies to natural persons registered with the Division as securities dealers, securities salesmen, investment advisers or investment adviser representatives.

(b) The NASAA Model Rule On The Use of Senior-Specific Certifications and Professional Designation, as adopted March 20, 2008, including subsequent amendments and editions, is hereby incorporated by reference. Copies of the NASAA Model Rule On The Use of Senior-Specific Certifications and Professional Designation are available free of charge on the Division's web page at https://www.sosnc.gov or at the NASAA web site, www.nasaa.org, under "Adopted Model Rules."

History

Authority G.S. 78A-39; 78A-49; 78C-19; 78C-30; 150B-21.6
Eff. February 1, 2010
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. December 6, 2016
Amended Eff. October 1, 2019.

Subchapter C

18 NCAC 06C .0101 Letter of Inquiry {#sec-18-ncac-06c-.0101 omnilex-key=us-nc-regs-official--title-18--18 NCAC 06C .0101}

(a) The Division may issue a Letter of Inquiry to anyone engaging in activities which may subject them to the jurisdiction of the Administrator. The purpose of a Letter of Inquiry is to obtain information or documents necessary to the understanding of matters under investigation.

(b) Anyone who is subject to the jurisdiction of the Administrator and who receives a Letter of Inquiry shall respond to the Letter of Inquiry in writing with:

(1) such information as is within his or her personal knowledge;

(2) recorded information in any form, including business records, under the recipient's control; and

(3) the identity of any other person whom the recipient believes has information relevant to the subject of a Letter of Inquiry who is subject to the jurisdiction of the Administrator.

History

Authority G.S. 78A-18; 78A-29; 78A-30; 78A-39; 78A-46; 78A-47; 78A-49; 78C-19; 78C-27; 78C-28; 78C-30; 78C-90; 78C-91; 78D-4; 78D-21; 78D-22; 78D-25; 78D-26; 78D-27; 78D-30; 105-163.013; 150B-38(h); 150B-40
Eff. April 1, 2009
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. December 6, 2016.

18 NCAC 06C .0102 Investigative Subpoenas {#sec-18-ncac-06c-.0102 omnilex-key=us-nc-regs-official--title-18--18 NCAC 06C .0102}

(a) When the Administrator issues subpoenas for testimony, written statements or documents during the course of an investigation, the recipient of a subpoena may object to the subpoena. Objections to compliance with a subpoena, including but not limited to, claims of privilege, hardship, or inadequate time for compliance, shall be filed in writing with the Administrator. Objections shall be filed no later than the time for compliance set in the subpoena. Written objections to a subpoena shall state the legal and factual basis for the objections.

(b) The recipient of a subpoena who files written objections to the subpoena shall comply with any portions of the subpoena which are not expressly included in the written objections.

(c) Upon receipt of written objections to an investigative subpoena, the Division may attempt to reach a written settlement of the objections with the recipient.

(d) This Rule does not restrict, or constitute a pre-condition to, the Administrator's right to seek enforcement of an investigative subpoena in court.

History

Authority G.S. 78A-46; 78A-49; 78C-27; 78C-30; 78C-87; 78D-21; 78D-25; 78D-26; 78D-27; 105-163.013; 150B-38(h); 150B-40
Eff. April 1, 2009
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. December 6, 2016.

18 NCAC 06C .0103 Administrative Hearings {#sec-18-ncac-06c-.0103 omnilex-key=us-nc-regs-official--title-18--18 NCAC 06C .0103}

(a) The Division shall bring proceedings pursuant to the statutes and rules it enforces in the name of the Division against one or more respondents.

(b) The Division shall commence proceedings before the Administrator in which a sanction or payment, other than a civil monetary penalty or reimbursement of investigation costs is sought, as provided in Chapters 78A, 78C, 78D, Article 4, Part 5, of Chapter 105 and Article 3A, Chapter 150B, of the General Statutes and the rules in this Chapter.

(c) Commencement of a proceeding under Article 3 of Chapter 150B of the General Statutes for a civil monetary penalty or reimbursement of investigation costs does not preclude commencement of a proceeding against the same respondent under Article 3A of Chapter 150B of the General Statutes for other sanctions.

History

Authority G.S. 78A-47; 78A-49; 78C-28; 78C-30; 78C-90; 78C-91; 78D-21; 78D-22; 78D-27; 78D-31; 105-163.013; 150B-38(h); 150B-40
Eff. April 1, 2009
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. December 6, 2016.

18 NCAC 06C .0104 Settlement {#sec-18-ncac-06c-.0104 omnilex-key=us-nc-regs-official--title-18--18 NCAC 06C .0104}

(a) The Division may negotiate settlements with a respondent or counsel for a respondent.

(b) The Division may negotiate and submit settlements for approval prior to the issuance of a Notice of Hearing or an Administrative Petition. Settlements shall be presented to the Administrator as soon as practicable before a scheduled hearing date. The Division shall prepare the final written settlement proposal in all cases.

(1) is signed by the respondent and counsel, if represented by counsel;

(2) includes the respondent's waiver of all further procedural and substantive rights, including hearings, issuance of notice of hearing, service, judicial review and collateral attacks or other proceedings contesting the terms of the settlement;

(3) contains the respondent's agreement that rejection of the final written settlement proposal shall not disqualify the Administrator from acting as the trier of fact or final agency decision maker; and

(4) is within the authority of the Administrator.

(d) The Administrator may, with the written consent of respondent or counsel for respondent, consider a final written settlement proposal ex parte.

(e) Parties are not bound by matters contained in a settlement rejected by the Administrator.

(f) Rejection of a proposed settlement alone does not constitute grounds for continuance of a previously scheduled hearing but may be considered in deciding whether the hearing should be continued.

(g) A settlement approved by the Administrator is the Final Order as to any respondent who has signed the settlement. The Division shall serve the Final Order upon the respondents and their counsel.

History

Authority G.S. 78A-18; 78A-29; 78A-30; 78A-39; 78A-46; 78A-47; 78A-49; 78C-19; 78C-27; 78C-28; 78C-30; 78C-90; 78C-91; 78D-4; 78D-21; 78D-22; 78D-25; 78D-26; 78D-27; 78D-30; 105-163.013; 150B-38(h); 150B-40
Eff. April 1, 2009
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. December 6, 2016.

18 NCAC 06C .0105 Article 3a Contested Case Procedures {#sec-18-ncac-06c-.0105 omnilex-key=us-nc-regs-official--title-18--18 NCAC 06C .0105}

(a) This Rule applies to proceedings under Article 3A of Chapter 150B of the General Statutes.

(b) The Administrator shall notify the respondents in a contested case proceeding under G.S. 150B, Article 3A, as to whether the hearing of the contested case will be:

(1) referred to the Office of Administrative Hearings;

(2) conducted by the Administrator; or

(3) conducted by a hearing officer appointed by the Administrator.

(1) is denominated as an Administrative Petition;

(2) is captioned as a proceeding by the Division acting as petitioner brought under the authority of the Administrator against the person(s) named as respondents;

(3) is signed by counsel for the Division;

(4) sets forth the factual and legal basis for any request that the Administrator take action permitted by law or rule against any person subject to the jurisdiction of the Administrator; and,

(5) is used in those proceedings in which the Administrator is not required first to issue a notice of hearing before taking an administrative action.

(d) Each named respondent shall be served with the Administrative Petition and a notice of rights and opportunity for a hearing. If the Administrator issues an Order in response to the Administrative Petition, the Order shall be served on each named respondent.

(e) The Division may commence a contested case by issuing a notice of hearing, a pleading filed with the Administrator, which:

(1) is denominated as a notice of hearing:

(2) is captioned as a proceeding by the Division acting as petitioner brought under the authority of the Administrator against the person(s) named as respondents;

(3) is signed by counsel for the Division;

(4) sets forth the factual and legal basis for any request that the Administrator take action permitted by law or rule against any person subject to the jurisdiction of the Administrator;

(5) lists the sanctions that may be imposed as a result of the hearing; and

(6) gives the day, date, time, and place of the hearing, as set by the Administrator.

(f) The Division shall serve the notice of hearing upon the person(s) named as respondents.

(g) When a respondent served with an Administrative Petition and notice of rights and opportunity for a hearing requests a hearing:

(1) the Administrative Petition shall serve as the notice of hearing with respect to the factual and legal basis for the charges brought and sanctions sought against a respondent; and

(2) the Administrator, a hearing officer appointed by the Administrator, or an administrative law judge when the case is assigned to the OAH, shall issue a separate order, notifying respondent of the date, time and place of the hearing.

(h) There are no specific forms required for answers, motions or other pleadings in contested cases before the Administrator. Respondents and their counsel may caption such documents in the style and manner shown on the notice of hearing in their case. All pleadings, other than oral motions during a hearing, shall:

(1) be made on 8 ½ by 11 inch paper with legible writing or printing;

(2) contain the caption or case number of the matter in which the pleading is made;

(3) apprise the Administrator of the matters alleged or to which the pleading relates; and

(4) if a motion, state the relief sought and the legal basis for the motion.

History

Authority G.S. 78A-46; 78A-47; 78A-49; 78C-27; 78C-28; 78C-30; 78C-90; 78C-91; 78D-22; 78D-25; 78D-26; 78D-27; 78D-30; 105-163.013; 150B-38(h); 150B-40
Eff. April 1, 2009
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. December 6, 2016.

18 NCAC 06C .0106 Temporary Orders {#sec-18-ncac-06c-.0106 omnilex-key=us-nc-regs-official--title-18--18 NCAC 06C .0106}

(a) The Division may seek a temporary or summary order at any time as follows:

(1) If the Division seeks a temporary or summary order prior to the issuance of a notice of hearing, the Division shall file an ex parte Administrative Petition supported as required by this Rule.

(2) If the Division seeks a temporary or summary order during a contested case proceeding, it shall file and serve an appropriate pleading in that proceeding, supported as required by this Rule.

(b) When seeking a temporary or summary order, the Division shall support the request with evidence including at least one sworn affidavit or its equivalent to support the order.

(c) The Administrator (or an appointed hearing officer, or an assigned administrative law judge), upon findings and conclusions that the evidentiary showing by the Division supports the request, may issue a temporary cease and desist order or summary order suspending, denying, postponing or taking any other action as permitted by applicable law against any license, registration or exemption.

(d) Any temporary or summary order issued under this Rule shall:

(1) be in writing and signed by the person who issues it;

(2) make findings of fact supporting the factual basis for the temporary or summary action;

(3) make conclusions of law supporting the temporary or summary action;

(4) state the conduct prohibited or identify the registration, filing, license or other privilege suspended, denied, revoked, postponed or against which other action has been taken; and

(5) be served upon the persons subject to the order together with any other documents that may be required by applicable statutes and rules.

(e) A temporary or summary order shall remain in effect until rescinded, modified or vacated by the Administrator, or until a final order is issued. Orders issued under this Rule are not final agency decisions. The Division's procedures for issuing final orders are found in 18 NCAC 06C .0108.

History

Authority G.S. 78A-46; 78A-49; 78C-27; 78C-30; 78C-87; 78D-22; 78D-25; 78D-26; 78D-27; 78D-30; 105-160.013; 150B-38(h); 150B-40
Eff. April 1, 2009
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. December 6, 2016.

18 NCAC 06C .0107 Conduct of Hearing {#sec-18-ncac-06c-.0107 omnilex-key=us-nc-regs-official--title-18--18 NCAC 06C .0107}

(a) Scope. This Rule applies to all hearings under G.S. 150B, Article 3A, conducted by the Administrator or a hearing officer designated by the Administrator. Hearings referred to the Office of Administrative Hearings ("OAH") are governed by the rules adopted by OAH. This Rule also applies to all other hearings which the Administrator is required to conduct and which are not by law required to be heard by OAH.

(b) Discovery. All discovery shall be conducted pursuant to G.S. 150B-39.

(1) made in writing;

(2) filed with the Administrator at least 10 business days prior to the scheduled hearing; and

(3) served upon the opposing party or counsel.

(d) Evidence. Evidence introduced at a hearing conducted under these rules shall conform to G.S. 150B-41. The Administrator or the hearing officer designated by the Administrator shall rule upon the objections of any party to the admission of evidence.

(e) Subpoenas.

(1) If a party to a contested case seeks to have witnesses or documents subpoenaed to the hearing, the party or counsel shall submit a written request for the issuance of subpoenas to the Administrator or designated hearing officer in sufficient time in advance of the hearing for preparation and issuance of the subpoenas by the Administrator or designated hearing officer.

(2) Service of a subpoena issued shall be the responsibility of the party requesting the subpoena. Service and return of service shall be made in the manner provided for in G.S. 1A-1, Rule 4.

(3) The Administrator or designated hearing officer shall issue a subpoena that complies with G.S. 1A-1, Rule 45.

(4) Any party or person served with a subpoena issued under this subsection who objects to the subpoena shall make and file the written objection required by G.S. 1A-1, Rule 45, with the Administrator or hearing officer assigned to the case.

(f) The conduct of the hearing shall conform to G.S. 150B-40.

History

Authority G.S. 78A-18; 78A-29; 78A-30; 78A-39; 78A-46; 78A-47; 78A-49; 78C-19; 78C-27; 78C-28; 78C-30; 78C-90; 78C-91; 78D-4; 78D-21; 78D-22; 78D-25; 78D-26; 78D-27; 78D-30; 105-163.013; 150B-38; 150B-40
Eff. April 1, 2009
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. December 6, 2016.

18 NCAC 06C .0108 Final Order {#sec-18-ncac-06c-.0108 omnilex-key=us-nc-regs-official--title-18--18 NCAC 06C .0108}

(a) Proceedings based on temporary orders – when a final order may issue. The Administrator may issue a final order when no hearing has been requested by a respondent within 30 business days after receipt of a Temporary Order in any proceeding:

(1) initiated by serving a respondent with a temporary or summary order; and

(2) in which the statute under which the proceeding was commenced provides that the temporary or summary order shall become permanent if the respondent fails to request a hearing.

(b) Proceedings based on temporary orders – requirements for final order. The Administrator shall issue a final order making the temporary cease and desist or summary order permanent:

(1) based solely upon the evidence in the record;

(2) including findings that the proceeding:

(A) was commenced;

(B) an order was issued;

(D) the respondent failed to request a hearing within the time prescribed by law, file a responsive pleading or make any other submission.

(c) Article 3A proceedings before the Administrator or a designated hearing officer. After a hearing by the Administrator or hearing officer designated by the Administrator, the decision of the Administrator or hearing officer shall be made in the form of a final order containing:

(1) findings of fact;

(2) conclusions of law; and

(3) a decree as to the action of the agency in the matters addressed in the hearing.

(d) Article 3A proceedings referred to OAH. When a contested case hearing subject to G.S. 150B, Article 3A, has been referred to and heard by the Office of Administrative Hearings ("OAH"), and the proposed agency decision has been filed with the Administrator by the OAH:

(1) the Division shall serve the proposed agency decision upon the respondent with a notice of rights provided by G.S. 150B-40(e) including notice of the day, time and place where the parties may appear and make oral argument concerning the proposed final agency decision;

(2) written exceptions, proposed findings of fact and written arguments shall be filed with the Administrator and served upon any opposing party or counsel at least 10 business days before the scheduled oral argument; and

(3) after reviewing any written submissions and hearing the oral argument of the parties, the Administrator shall issue a final order containing findings of fact, conclusions of law, and a decree as to the agency action in the matters addressed in the hearing.

(e) Article 3 proceedings heard by OAH. When a contested case has been heard by OAH under G.S. 150B, Article 3, and the proposed final decision has been returned to the Administrator by OAH, the Administrator shall by letter notify any respondent or counsel for any respondent of the date, not less than 30 days from the date of the letter, by which written exceptions or written arguments regarding the proposed final decision must be submitted to the Administrator.

(f) Service. The Division shall serve the final order served upon the respondents or their counsel.

History

Authority G.S. 78A-18; 78A-29; 78A-30; 78A-39; 78A-46; 78A-47; 78A-49; 78C-19; 78C-27; 78C-28; 78C-30; 78C-90; 78C-91; 78D-4; 78D-21; 78D-22; 78D-25; 78D-26; 78D-27; 78D-30; 150B-38(h); 150B-40
Eff. April 1, 2009
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. December 6, 2016.

Chapter 07 Notary Public Division

Subchapter A

18 NCAC 07A .0101 Location and Hours {#sec-18-ncac-07a-.0101 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07A .0101}

History

Status: repealed
Authority G.S. 143A-23
Eff. February 1, 1976
Amended Eff. August 1, 2000; January 1, 1995; September 1, 1986
Repealed Eff. April 1, 2007.

18 NCAC 07 .0102 General Purpose {#sec-18-ncac-07-.0102 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07 .0102}

History

Status: repealed
Authority G.S. 10A-4; 10A-6; 10A-9(f); 10A-13
Eff. February 1, 1976
Amended Eff. January 1, 1995
Repealed Eff. September 1, 2000.

18 NCAC 07 .0103 Notaries Public Deputy {#sec-18-ncac-07-.0103 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07 .0103}

History

Status: repealed
Authority G.S. 10-1
Eff. February 1, 1976
Amended Eff. September 1, 1986
Repealed Eff. January 1, 1995.

18 NCAC 07 .0201 Requirements for Initial Appointment {#sec-18-ncac-07-.0201 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07 .0201}

History

Status: repealed
Authority G.S. 10-1
Eff. February 1, 1976
Amended Eff. September 1, 1986; January 1, 1983
Repealed Eff. January 1, 1995.

18 NCAC 07A .0202 Investigations {#sec-18-ncac-07a-.0202 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07A .0202}

History

Status: repealed
Authority G.S. 10A-4(c); 10A-13(d)
Eff. February 1, 1976
Amended Eff. January 1, 1995
Repealed Eff. April 1, 2007.

18 NCAC 07 .0203 Disqualification {#sec-18-ncac-07-.0203 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07 .0203}

History

Status: repealed
Authority N. C. Const. Art. VI, Sec. 8
Eff. February 1, 1976
Repealed Eff. September 1, 1986.

18 NCAC 07A .0204 Disposition of Commissions {#sec-18-ncac-07a-.0204 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07A .0204}

History

Status: repealed
Authority G.S. 10A-6; 10A-7; 10A-8; 10A-9(f); 10A-13(d); 147-37; 150B-19(5)
Eff. February 1, 1976
Amended Eff. August 1, 2000; January 1, 1995; September 1, 1976
Repealed Eff. April 1, 2007.

18 NCAC 07A .0205 Fee {#sec-18-ncac-07a-.0205 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07A .0205}

History

Status: repealed
Authority G.S. 10A-6; 10A-7; 10A-8; 10A-9(f); 10A-13(d); 147-37; 150B-19(5)
Eff. February 1, 1976
Amended Eff. August 1, 2000; January 1, 1995; September 1, 1976
Repealed Eff. April 1, 2007.

18 NCAC 07A .0206 Requirements for Reappointment {#sec-18-ncac-07a-.0206 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07A .0206}

History

Status: repealed
Authority G.S. 10A-6; 10A-7; 10A-8; 10A-9(f); 10A-13(d); 147-37; 150B-19(5)
Eff. February 1, 1976
Amended Eff. August 1, 2000; January 1, 1995; September 1, 1976
Repealed Eff. April 1, 2007.

18 NCAC 07A .0207 Revocation of Commissions {#sec-18-ncac-07a-.0207 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07A .0207}

History

Status: repealed
Authority G.S. 10A-6; 10A-7; 10A-8; 10A-9(f); 10A-13(d); 147-37; 150B-19(5)
Eff. February 1, 1976
Amended Eff. August 1, 2000; January 1, 1995; September 1, 1976
Repealed Eff. April 1, 2007.

18 NCAC 07A .0208 Certificates of Authority {#sec-18-ncac-07a-.0208 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07A .0208}

History

Status: repealed
Authority G.S. 10A-6; 10A-7; 10A-8; 10A-9(f); 10A-13(d); 147-37; 150B-19(5)
Eff. February 1, 1976
Amended Eff. August 1, 2000; January 1, 1995; September 1, 1976
Repealed Eff. April 1, 2007.

18 NCAC 07A .0301 Approved Course of Study {#sec-18-ncac-07a-.0301 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07A .0301}

History

Status: repealed
Authority G.S. 10A-4(b)(3); 10A-7
Eff. September 1, 1986
Amended Eff. August 1, 2000; March 1, 1996
Repealed Eff. April 1, 2007.

18 NCAC 07A .0302 Instructors {#sec-18-ncac-07a-.0302 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07A .0302}

History

Status: repealed
Authority G.S. 10A-4(b)(3); 10A-7
Eff. September 1, 1986
Amended Eff. August 1, 2000; March 1, 1996
Repealed Eff. April 1, 2007.

18 NCAC 07A .0303 Approved Manual {#sec-18-ncac-07a-.0303 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07A .0303}

History

Status: repealed
Authority G.S. 10A-4(b)(3); 10A-7
Eff. September 1, 1986
Amended Eff. August 1, 2000; March 1, 1996
Repealed Eff. April 1, 2007.

Subchapter B

18 NCAC 07B .0101 Scope {#sec-18-ncac-07b-.0101 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07B .0101}

The rules in this Subchapter implement Chapter 10B of the General Statutes. The rules govern:

(1) the qualification, commissioning, notarial acts, conduct, and discipline of notaries public as public officers of the State;

(2) the qualification, certification, and discipline of certified notary instructors;

(3) the qualification, approval or licensing, conduct, and discipline of technology providers; and

(4) the conduct and discipline of manufacturers and vendors of notary public seals.

History

Authority G.S. 10B-4; 10B-14(f); 10B-106; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. April 1, 2007
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. December 6, 2016
Amended Eff. July 1, 2025; July 1, 2024.

18 NCAC 07B .0102 Definitions {#sec-18-ncac-07b-.0102 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07B .0102}

For purposes of this Chapter:

(1) "Appoint" or "Appointment" means the naming of an individual to the office of notary public after determination that the individual has complied with Chapter 10B of the General Statutes and Subchapter 07C of this Chapter. For the purposes of the rules in this Chapter, the terms "appoint," "reappoint," "appointment," "reappointment," "commission," "recommission," "commissioning," and "recommissioning" all refer to the term "commission" as defined in G.S. 10B-3(4) or to the process of acquiring or maintaining the commission.

(2) "Appointee" means an individual who has been appointed or reappointed to the office of notary public but has not yet taken the oath of office to be commissioned.

(3) "Approved" means that an applicant has been authorized by the Department to provide services as a technology provider in compliance with Chapter 10B of the General Statutes and the rules in this Chapter. Technology providers licensed by the Department are deemed approved.

(4) "Armed Forces of the United States" means the persons described in 10 U.S.C. 101(a)(4) and G.S. 143B-1224(2), including their reserve components.

(5) "Authorization" means a notary commission, an electronic notary registration, an instructor certification, an approval, a manufacturer or vendor registration, or a license issued by the Department pursuant to Chapter 10B of the General Statutes.

(6) "Authorize" means the Department's action to issue an authorization.

(7) "Bank or financial institution" means a "depository institution" as defined in G.S. 53-208.42(7).

(8) "Certificate of appointment" means a document issued by the Department notifying a Register of Deeds that:

(a) the named appointee is authorized to take the oath of office; and

(b) the Register of Deeds or designee shall provide the commission certificate to the notary public after:

(i) administering the oath of office to the appointee; and

(ii) signing of the certificate by both the Register of Deeds or designee, and the notary.

(9) "Commission certificate" means the document confirming that an individual:

(a) has complied with all applicable requirements of Chapter 10B of the General Statutes and the rules in this Chapter; and

(b) is authorized to act as a notary public.

(10) "Commission date" means the beginning date of commissioning or recommissioning as entered on a commission certificate.

(11) "Commit" means the act of the electronic notary public to make complete and permanent:

(a) the affixing of the electronic notary's electronic signature and seal as required by 18 NCAC 07J .0702;

(b) the entry required by 18 NCAC 07D .0507;

(d) the communication technology recording.

(12) "Court" means a tribunal of a locality, state, the Armed Forces of the United States, a federally recognized tribe, or any nation.

(13) "Crime" means:

(a) an offense designated by law as a felony or misdemeanor;

(b) an attempt to commit an offense;

(d) aiding and abetting of an offense;

(e) conspiracy to commit an offense;

(f) solicitation to commit an offense; or

(g) threat to commit an offense.

An infraction as defined in G.S. 14-3.1 is not a crime.

(14) "Crime involving dishonesty" means a crime that involves untruthfulness, deceit, fraud, false dealing, cheating or stealing.

(15) "Criminal convictions" means the following dispositions of criminal charges:

(a) adjudications of guilt;

(b) pleas of nolo contendere;

(d) Alford pleas;

(e) conditional discharges;

(f) prayers for judgment continued; and

(g) dispositions denominated differently but equivalent to Sub-Items (a)-(f) in this Item.

(16) "Denial" with regard to public office means an individualized action:

(a) to disqualify an individual from:

(i) being a candidate for an elected public office; or

(ii) holding or filling a public office; and

(b) that is taken by:

(i) a governmental agency, board, or commission, a legislative body, or a member of the executive branch of any locality, state, federally recognized tribe, or nation; or

(ii) a court.

(17) "Disciplinary action" means an official action by a court, legislative body, governmental agency, board, or commission of any locality, state, federally recognized tribe, or nation resulting in:

(a) a disciplinary order;

(b) a censure;

(d) an admonition;

(e) a resignation in lieu of termination or revocation;

(f) a denial;

(g) a written warning; or

(h) a civil penalty or fine; or

(i) actions denominated differently but equivalent to Sub-Items (a)-(h) in this Item.

(18) "Disciplinary order" means a directive or its equivalent that:

(a) is directed to a holder of a professional license or a commissioned notary public;

(b) prohibits or conditions an individual from engaging in the practice of the profession or acting as a notary public for any amount of time;

(c) is issued by a court or government agency, board, or commission of any locality, state, federally recognized tribe, or nation with authority to discipline or sanction the individual or notary public; and

(d) is not stayed, rescinded, reversed, or expunged.

Note: Suspensions, restrictions, and revocations of commissions or licenses are examples of disciplinary orders.

(19) "Dishonored payment" or "payment that has been dishonored" means money tendered to the Department by any means that is refused, rejected, or failed to be paid to the Department.

(20) "Enter information" means to:

(a) handwrite, type, or input data;

(b) select or confirm applicable options from among offered options. Note: An example would be selecting "oath or affirmation" from a drop-down list of the types of notarial acts; or

(i) principals;

(ii) a designee of a principal; or

(iii) a credible witness.

(21) "Family member" means an individual related by blood, marriage, or adoption.

(22) "Federal business mileage rate" means the business mileage rate set by the U.S. Internal Revenue Service (IRS).

(23) "Federally recognized Indian tribe" means a tribe on the list published in the Federal Register by the U.S. Secretary of the Interior pursuant to 25 U.S.C. 5131.

(24) "File" means the date upon which a filing submitted to the Department is deemed complete by the Department. Note: "File" shall not mean that the Department has determined that the filer is qualified and will be appointed, registered, approved, or licensed.

(25) "Filer" means a person that submits a filing to the Department.

(26) "Filing" means a form or other document required or permitted to be filed with the Department pursuant to Chapter 10B of the General Statutes or the rules in this Chapter.

(27) "Finding" means a decision, conclusion, or opinion by a court, legislative body, or governmental agency, board, or commission of any locality, state, federally recognized tribe, or nation that is based upon a review of evidence in an investigation, a quasi-judicial proceeding, or a judicial proceeding resulting in a determination that:

(a) a fact has been proved according to the applicable legal standard; or

(b) a law applies to the specific facts in a matter.

(28) "Form" means a departmental data collection instrument that requires or requests information, without regard to the format.

(29) "Form preparer" means an individual who enters information on a form:

(a) at the direction of another; and

(b) without exercising independent judgment or discretion as to the content entered.

(30) "Harm" means:

(a) loss or damage to a person affecting:

(i) liberty;

(ii) child custody, parental rights, child support, or visitation;

(iii) reputation;

(iv) money;

(v) property;

(vi) time; or

(vii) a contract or transaction; or

(b) an act that undermines public confidence in the reliability of notarial acts or notarial instructor certification.

(31) "Information technology" or "IT" means that term as defined in G.S. 143B-1320(a)(11).

(32) "Information technology security" or "IT security" means the tools, techniques, and strategies used to protect the confidentiality, integrity, and availability of data, information systems, and digital assets from:

(a) internal and external threats; and

(b) unauthorized access, use, disclosure, disruption, modification, or destruction.

(33) "Initial appointment" means the first issuance by the Department of a commission certificate to a notary public.

(34) "Instructor," "certified notary public instructor," "certified instructor," "notary instructor," and "certified notary instructor" mean a notary public who has complied with:

(a) the requirements of G.S. 10B-14; and

(b) the rules in Subchapter 07E of this Chapter.

(35) "IPEN" means an in-person electronic notary solution, comprised of an electronic notary public seal, an electronic notary signature, and an electronic notary journal.

(36) "Issuance" with regard to public office means an action:

(a) to certify the results of an election signifying that an individual has been elected to the public office; or

(b) to appoint an individual to fill a public office; and

(i) a governmental agency, board, or commission, a legislative body, or a member of the executive branch of any locality, state, federally recognized tribe, or nation; or

(ii) a court.

(37) "Journal" means a collection of entries describing notarial acts that is created and maintained by a notary public.

(38) "Licensed member of the North Carolina State Bar" means an active member as defined in 27 NCAC 01A .0201(b).

(39) "Location" means a description establishing that a principal is present in a jurisdiction where the notarial act may take place. Note: A self-attestation pursuant to the rules in Subchapter 07H of this Chapter stating the principal is then located inside the U.S. embassy in Paris, France, would suffice to establish the principal's location.

(40) "Long-term" means a period of at least one year.

(41) "Name for use on a notary public commission" or "commission name" means the name chosen by a commission applicant as the applicant's commission name and consisting of:

(a) the full legal name of the commission applicant; or

(b) a combination of the applicant's surname and:

(i) full first or middle name; or

(ii) full first or middle name and one or more initials derived from the applicant's full legal name.

Note: Full legal names, full first names, and full middle names shall not include nicknames.

(42) "Notarial act" means, in addition to those acts listed in G.S. 10B-3(11), acts authorized to be performed by a notary public pursuant to:

(a) G.S. 163-231(a); and

(b) G.S. 53C-6-13(a).

(43) "Notarial transaction process" consists of:

(a) steps before the notarial act takes place;

(b) the notarial act; and

Note: The interactions establishing the date and location of a notarial act, obtaining advance consent to travel fees, and the steps required by G.S. 10B-134.9(a) are examples of steps before the notarial act.

(44) "Notary course" means a course taught by a certified notary instructor for purposes of:

(a) commissioning or recommissioning a notary public;

(b) registering or reregistering an electronic notary public; or

(c) educating a compliance contact of a platform or IPEN regarding Chapter 10B of the General Statutes and the rules in this Chapter.

(45) "Person" means the term as defined in G.S. 12-3(6).

(46) "Probation" with regard to criminal convictions means active supervision by a governmental agency or its legally authorized designee in lieu of jail or prison.

(47) "Professional license" means an issuance that involves a grant of authority by a governmental agency, board, or commission of any locality, state, federally recognized tribe, or nation, to an individual to act in a fiduciary capacity, or in a capacity that affects the public interest or public trust, and that regards an occupation requiring training and formal qualification. Professional licenses are:

(a) attorney;

(b) appraiser;

(d) boiler inspector;

(e) building, electrical, fire, mechanical, or plumbing inspector;

(f) certified nursing assistant;

(g) certified public accountant;

(h) code enforcement official;

(i) electrical contractor;

(j) engineer;

(k) general contractor;

(l) geologist;

(m) insurance agent;

(n) insurance company adjuster;

(o) interpreter or transliterator;

(p) investment advisor;

(q) locksmith;

(r) motor vehicle damage appraiser;

(s) on-site wastewater contractor inspector;

(t) pharmacist;

(u) physician;

(v) physician assistant;

(w) plumbing, heating, and fire sprinkler contractor;

(x) private investigator;

(y) professional bondsman;

(z) real estate broker;

(aa) registered nurse, licensed practical nurse, nurse practitioner;

(bb) securities broker, dealer, salesman;

(cc) self-employed insurance adjuster;

(dd) surety bondsman;

(ee) sworn law enforcement officer; and

(ff) teacher.

(48) "Public office" means a position:

(a) created by law to which an individual has been elected or appointed;

(b) involving a delegation to the individual of some of the functions of government to be exercised by the individual for the benefit of the public; and

(49) "Release from prison, probation or parole" means:

(a) completion of all terms of a sentence or judgment entered as part of a disposition of a criminal charge;

(b) a certificate or order related to a criminal charge evidencing the individual's unconditional discharge;

(d) an endorsement from the Governor after satisfaction of conditions of a conditional pardon pursuant to G.S. 13-4;

(e) an unconditional pardon pursuant to G.S. 13-3;

(f) an order that a conviction is vacated; and

(g) the individual's citizenship has been restored pursuant to G.S. 13-1;

(h) an action that is equivalent to Sub-Items (a)-(f) of this Item entered by a court, or an official or body of a state, federally recognized tribe, or nation with the authority to grant pardons.

(50) "Residence address" means a physical location with a street name, and a number designating the building in which an individual resides (no P.O. boxes), including an apartment or unit number if applicable, the city, state, zip code, and nation if not the United States.

(51) "Restriction" with regard to public office means an individualized action:

(a) to restrain an individual from serving in public office; and

(b) that is taken by:

(i) a governmental agency, board, or commission, a legislative body, or a member of the executive branch of any locality, state, federally recognized tribe, or nation; or

(ii) a court.

(52) "Revocation" with regard to an individual's capacity to serve in a public office means an individualized action:

(a) to void or cancel a certification of election to office; or

(b) to remove an individual from a public office; and

(i) a governmental agency, board, or commission, a legislative body, or a member of the executive branch of any locality, state, federally recognized tribe, or nation; or

(ii) a court.

(53) "State recognized tribe" means a group listed in G.S. 143B-407(a).

(54) "Successfully complete" and "successful completion" mean that an applicant has complied with Chapter 10B and the rules in this Chapter and has:

(a) presented satisfactory evidence of identity as defined in G.S. 10B-3(22) or is personally known as defined in G.S. 10B-3(17);

(b) attended a notarial course taught by a certified notary instructor; and

(55) "Suspension" with regard to a public office means an individualized action:

(a) to prohibit, for a finite period of time, an individual's authority to serve in a public office; and

(b) that is taken by:

(i) a governmental agency, board, or commission, legislative body, or a member of the executive branch of any locality, state, federally recognized tribe, or nation; or

(ii) a court.

(56) "Technological failure" means a deficiency in:

(a) any component of the electronic notary solution;

(b) any component of the computer systems of the notary or principals; or

For purposes of this Rule, "component of the electronic notary solution" means any combination of hardware, software, a notary public's electronic journal, and communications technology recordings.

(57) "Technology provider" means the person providing a solution for:

(a) IPEN;

(b) a platform;

(d) identity proofing; or

(e) custodial services.

(58) "Termination of employment" means the cessation of permanent or temporary work for another, whether compensated or not, for any reason, including voluntary and involuntary cessation of work.

(59) "Traditional notarization" means a notarial act in which:

(a) there is personal appearance as defined in G.S. 10B-3(16); and

(b) one of the following occurs:

(i) a document is executed and notarized with ink signatures signed by hand and affixed with the physical notary seal as defined in G.S. 10B-3(23);

(ii) an oath or affirmation is administered without the execution of a document; or

(iii) a certificate for a safe deposit box inventory is prepared as described in G.S. 53C-6-13(a).

(60) "Traditional notary public" means an individual commissioned to perform traditional notarizations and who has not been registered as an electronic notary public.

(61) "Type of notarial act" means an acknowledgement, an oath or affirmation, verification or proof, inventory of an abandoned safe deposit box, or notarization of an absentee ballot.

(62) "Under the exclusive control of the notary" means accessible by and attributable solely to the notary public to the exclusion of all other persons through being:

(a) in the case of a physical seal:

(i) in the direct physical custody of the notary; or

(ii) physically secured; or

(b) in the case of an electronic seal or electronic signature, secured with one or more methods of authentication in an approved electronic notary solution.

(63) "United States" or "U.S." means the term as defined in G.S. 12-3(11).

History

Authority G.S. 10B-4; 10B-14(f); 10B-36; 10B-106; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. April 1, 2007
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. December 6, 2016
Amended Eff. July 1, 2025; July 1, 2024.

18 NCAC 07B .0103 Operating Hours and General Contact Information {#sec-18-ncac-07b-.0103 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07B .0103}

(a) Hours. Departmental hours for the public are 8:00 a.m. to 5:00 p.m., Monday through Friday, with the exception of State holidays.

(b) The Department's website is: www.sosnc.gov.

(c) Email address: The Department may be contacted by email for notary-related issues at notary@sosnc.gov. Unless specifically permitted by a rule in this Chapter, email shall not be used for submitting applications.

(d) Telephone number: The telephone number for the Department's customer service unit is (919) 814-5400.

(e) Physical address. The Department is located at 2 South Salisbury Street, Raleigh, NC 27601.

(f) Mailing address. The Department's mailing address is P.O. Box 29626, Raleigh, NC 27626-0626.

History

Authority G.S. 10B-4
Eff. April 1, 2007
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. December 6, 2016
Amended Eff. July 1, 2024; February 1, 2021; October 1, 2019.

18 NCAC 07B .0104 ada accommodatIon {#sec-18-ncac-07b-.0104 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07B .0104}

An applicant to become a notary public, electronic notary public, or certified notary instructor who needs accommodation pursuant to the Americans with Disabilities Act shall:

(1) with regard to a notary course and exam accommodation request, direct the request to the institution offering the course and exam, in which instance the institution may consult with the Department about the accommodation requested; or

(2) with regard to the online recommissioning exam, certified notary instructor initial or recertification oral presentation or written exam, contact the Department and request an accommodation.

History

Authority G.S. 10B-4; 10B-14(f); 10B-107; 10B-134.21
Eff. July 1, 2024.

18 NCAC 07B .0105 Obtaining Requested Information {#sec-18-ncac-07b-.0105 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07B .0105}

A person responding to a departmental information request shall:

(1) use reasonable efforts to obtain information requested by the Department;

(2) deliver to the Department all requested information that is available to the person; and

(3) if unable to obtain requested information, describe to the Department the efforts taken to obtain the information.

History

Authority G.S. 10B-4; 10B-14(f); 10B-107; 10B-134.21
Eff. July 1, 2024
Amended Eff. July 1, 2025.

18 NCAC 07B .0106 Waiver {#sec-18-ncac-07b-.0106 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07B .0106}

The Department may waive any rule in this Chapter that is not statutorily required on request of a filer or on its own initiative based on the factors set forth in Rule .0108 of this Section.

History

Authority G.S. 10B-4
Eff. April 1, 2007
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. December 6, 2016
Amended Eff. July 1, 2024.

18 NCAC 07B .0107 Contents of Waiver Request {#sec-18-ncac-07b-.0107 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07B .0107}

A request for waiver of a rule in this Chapter shall be in writing and shall include:

(1) the requestor's:

(a) name;

(b) mailing address;

(d) preferred telephone number for contact;

(2) for a request filed on behalf of an entity:

(a) the name of the entity;

(b) the requestor's position with the entity and authority to file the request on behalf of the entity;

(d) the telephone number for the entity; and

(e) the email address for the entity;

(3) the specific rule and paragraph number for which waiver is requested;

(4) an explanation of the reason for the request, including facts supporting the request;

(5) any additional information related to the factors in Rule .0108 of this Section that the requestor wishes the Department to consider;

(6) supporting documentation, if any;

(7) a description of any previous waiver requests filed with the Department; and

(8) the signature of the requestor and the date signed.

History

Authority G.S. 10B-4
Eff. July 1, 2024.

18 NCAC 07B .0108 Factors Used in Considering Waiver Requests {#sec-18-ncac-07b-.0108 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07B .0108}

Factors to be considered when the Department considers a waiver request are:

(1) information about the requestor and the request, including the requestor's:

(a) explanation of the reasons for the request;

(b) control over the circumstances leading to the request;

(d) record of timeliness, completeness, and accuracy of filings with the Department;

(e) history of waiver requests, if any; and

(f) impact of granting or denying the request on the requestor; and

(2) impact on the public by granting or denying the request, including:

(a) harm or benefit to the public;

(b) consistency of implementation and enforcement of Chapter 10B of the General Statutes and the rules in this Chapter; and

History

Authority G.S. 10B-4
Eff. July 1, 2024.

18 NCAC 07B .0109 Computation of time periods {#sec-18-ncac-07b-.0109 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07B .0109}

The Department shall calculate time periods based on G.S. 1A-1, Rule 6, unless otherwise noted in the rules in this Chapter.

History

Authority G.S. 10B-4
Eff. July 1, 2024.

18 NCAC 07B .0110 Request to Department for Confidential Information {#sec-18-ncac-07b-.0110 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07B .0110}

A request to the Department for information about a notary public or a technology provider that is confidential pursuant to law, rule, or regulation or that is personally identifiable information shall:

(1) be in writing;

(2) include the name of the requestor and contact information for the requestor; and

(3) document the right and authority of the requestor to receive the confidential information.

Note: Confidentiality laws include: G.S. 10B-7, G.S. 10B-60, G.S. Chapter 66, Article 24, G.S. 132-1.2.

History

Authority G.S. 10B-4; 10B-106
Eff. April 1, 2007
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. December 6, 2016
Transferred from 18 NCAC 07B .1001 Eff. June 1, 2023
Amended Eff. July 1, 2025; July 1, 2024.

18 NCAC 07B .0111 Property of Notary Public {#sec-18-ncac-07b-.0111 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07B .0111}

A notary public's physical notary seal, electronic notary seal and signature, journals, communication technology recordings, session records, notarial records and any information in them are the personal property of the notary.

History

Authority G.S. 10B-4; 10B-106; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07B .0201 U.s. Currency {#sec-18-ncac-07b-.0201 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07B .0201}

Filers shall tender fees in U.S. dollars and cents.

History

Authority G.S. 10B-4
Eff. April 1, 2007
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. December 6, 2016
Transferred from 18 NCAC 07B .0105(a) Eff. June 1, 2023
Amended Eff. July 1, 2024.

18 NCAC 07B .0202 Online Fee Payment {#sec-18-ncac-07b-.0202 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07B .0202}

Filers who tender fees online shall pay by:

(1) an automated clearinghouse debit account (ACH);

(2) a credit card; or

(3) a debit card.

History

Authority G.S. 10B-4
Eff. April 1, 2007
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. December 6, 2016
Transferred from 18 NCAC 07B .0105(b) Eff. June 1, 2023
Amended Eff. July 1, 2024.

18 NCAC 07B .0203 Fees Paid in Person {#sec-18-ncac-07b-.0203 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07B .0203}

Filers who tender fees in person shall pay with:

(1) one of the following types of checks, made payable to the N.C. Department of the Secretary of State:

(a) a personal or business check; or

(b) a cashier's check;

(2) cash;

(3) money order; or

(4) a credit or debit card.

History

Authority G.S. 10B-4
Eff. July 1, 2024.

18 NCAC 07B .0204 Fees Paid by Usps or by Delivery Service {#sec-18-ncac-07b-.0204 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07B .0204}

Filers who tender fees through delivery by United States Postal Service (USPS) or by a designated delivery service authorized pursuant to 26 U.S.C. 7502(f)(2) shall pay using one of the following methods, made payable to the N.C. Department of the Secretary of State:

(1) a personal or business check;

(2) a money order; or

(3) a cashier's check.

History

Authority G.S. 10B-4
Eff. July 1, 2024.

18 NCAC 07B .0205 Fee FOR DISHONORED PAYMENT {#sec-18-ncac-07b-.0205 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07B .0205}

Pursuant to G.S. 25-3-506, the Department may charge a thirty-five dollar ($35.00) processing fee to a filer if a tendered payment is dishonored by a bank or financial institution.

History

Authority G.S. 10B-4; 25-3-506
Eff. April 1, 2007
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. December 6, 2016
Transferred from 18 NCAC 07B .0105(c) Eff. June 1, 2023
Amended Eff. July 1, 2024.

18 NCAC 07B .0206 Filing Not Processed If Payment Dishonored {#sec-18-ncac-07b-.0206 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07B .0206}

The Department shall not continue to process a filing for which processing has not been completed if the Department receives notice that a payment has been dishonored.

History

Authority G.S. 10B-4
Eff. July 1, 2024.

18 NCAC 07B .0207 department actions upon dishonored payment {#sec-18-ncac-07b-.0207 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07B .0207}

If the Department has received notice that a tendered payment has been dishonored, regardless of whether the Department has completed processing the filing:

(1) the filing shall be deemed incomplete;

(2) the filing shall be voided if payment is not made in full within 15 calendar days of the dishonor pursuant to Rule .0208 of this Section; and

(3) if any information has been posted on the Department's website indicating that commissioning, registration, licensure, or approval has occurred, the Department shall:

(a) remove the information from the website; or

(b) annotate the entry as incomplete or void.

History

Authority G.S. 10B-4
Eff. July 1, 2024.

18 NCAC 07B .0208 Notice to Filer of Dishonored Payment {#sec-18-ncac-07b-.0208 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07B .0208}

Upon receipt of notice of dishonor of a tendered payment, the Department shall notify a filer orally or in writing that:

(1) the payment the filer tendered has been dishonored; and

(2) the filing shall:

(a) not be processed or deemed completed until the filer has tendered in full the payment and the fee in Rule .0205 of this Section; and

(b) be voided if payment and fees are not tendered in full within 15 calendar days of the date the Department orally or in writing notifies the filer of the dishonor.

History

Authority G.S. 10B-4
Eff. July 1, 2024.

18 NCAC 07B .0301 Form Use Required {#sec-18-ncac-07b-.0301 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07B .0301}

In submitting a filing, a filer shall:

(1) use a form in Section .0400 of this Subchapter; or

(2) if there is not a form for the filer's purpose in Section .0400 of this Subchapter, provide in writing the information required by G.S. Chapter 10B or the rules in this Chapter.

History

Authority G.S. 10B-4; 10B-14(a),(f); 10B-106; 10B-125; 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2024.

18 NCAC 07B .0302 Mode of Filing {#sec-18-ncac-07b-.0302 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07B .0302}

Filers shall submit filings electronically by means established by the Department unless paper filing is permitted pursuant to:

(1) Chapter 10B of the General Statutes; or

(2) Rule .0303 of this Section.

History

Authority G.S. 10B-4; 10B-6; 10B-106; 10B-125; 10B-134.19; 10B-134.21
Eff. July 1, 2024.

18 NCAC 07B .0303 Paper Filings Permitted {#sec-18-ncac-07b-.0303 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07B .0303}

Paper filings shall be permitted:

(1) where the Department has not established electronic means for submittal of a filing; or

(2) in the case of a traditional notary public:

(a) initial applications;

(b) recommissioning applications; and

(c) affidavits, criminal records, and other documents required to be submitted with applications by notary, electronic notary, or notary instructor applicants pursuant to Chapter 10B of the General Statutes or the rules in this Chapter.

History

Authority G.S. 10B-4; 10B-5(e)
Eff. July 1, 2024.

18 NCAC 07B .0304 Inapplicable Questions {#sec-18-ncac-07b-.0304 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07B .0304}

If a question or item is not applicable to a filer, the filer shall not leave the question or item blank but shall respond "not applicable" or "N/A."

History

Authority G.S. 10B-4; 10B-5(e); 10B-6; 10B-106; 10B-125; 10B-134.19; 10B-134.21
Eff. July 1, 2024.

18 NCAC 07B .0305 Response to Questions and Requests for Information {#sec-18-ncac-07b-.0305 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07B .0305}

A person responding to a departmental information request shall respond to departmental requests for information within the time and in the manner specified based upon the Department's consideration of:

(1) the nature of the information requested;

(2) the urgency of the Department's need for the information; and

(3) the ease of production by the recipient of the request.

History

Authority G.S. 10B-4; 10B-126; 10B-134.17; 10B-134.19; 10B-134.21
Eff. July 1, 2024
Amended Eff. July 1, 2025.

18 NCAC 07B .0306 Attachments {#sec-18-ncac-07b-.0306 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07B .0306}

If a form does not include enough space to provide a complete and accurate response to a question or request for information from the Department, a filer shall include an attachment with the form.

History

Authority G.S. 10B-4; 10B-6; 10B-106; 10B-125; 10B-134.19; 10B-134.21
Eff. July 1, 2024.

18 NCAC 07B .0307 Notice of Attachment {#sec-18-ncac-07b-.0307 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07B .0307}

A filer shall:

(1) make a note at the location of a question or request for information that an attachment has been added in order to fully respond. Note: An example is "See Attachment 1"; and

(2) identify on the attachment to which question or request for information the additional information relates.

History

Authority G.S. 10B-4; 10B-6; 10B-106; 10B-125; 10B-134.19; 10B-134.21
Eff. July 1, 2024.

18 NCAC 07B .0308 Signature for Entity {#sec-18-ncac-07b-.0308 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07B .0308}

(a) If an individual is signing a form or other filing for a technology provider or other business entity:

(1) the signer shall be duly authorized by law or the entity to sign; and

(2) the signer shall state the signer's title, position, and authorization to sign.

(b) For purposes of this Rule, "duly authorized by law" means as required by G.S. 55D-10(b)(5) for an entity, by the owner for a sole proprietorship, or by a general partner for a general partnership.

History

Authority G.S. 10B-4; 10B-6; 10B-106; 10B-125; 10B-134.19; 10B-134.21
Eff. July 1, 2024
Amended Eff. July 1, 2025.

18 NCAC 07B .0309 Form Preparer Signature Required {#sec-18-ncac-07b-.0309 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07B .0309}

A form preparer signing for a technology provider or other business entity shall:

(1) sign in the space provided for a preparer's signature on a form; or

(2) document and note "form preparer" next to the signature in the space provided for a preparer's signature on a form.

History

Authority G.S. 10B-4; 10B-125; 10B-126; 10B-134.17; 10B-134.19; 10B-134.21
Eff. July 1, 2024.

18 NCAC 07B .0310 INComplete filings {#sec-18-ncac-07b-.0310 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07B .0310}

The Department shall consider a filing incomplete for:

(1) failure to provide information required pursuant to Chapter 10B of the General Statutes or the rules in this Chapter;

(2) failure to tender any fee required by Chapter 10B of the General Statutes or the rules in this Chapter;

(3) lack of a signature required by Chapter 10B of the General Statutes or the rules in this Chapter; or

(4) lack of a notarial act where required by Chapter 10B or the rules in this Chapter.

History

Authority G.S. 10B-4; 10B-125; 10B-126; 10B-134.17; 10B-134.19; 10B-134.21
Eff. July 1, 2024
Amended Eff. July 1, 2025.

18 NCAC 07B .0311 Rejection of Incomplete Filings {#sec-18-ncac-07b-.0311 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07B .0311}

The Department shall reject a filing if it is incomplete and not remedied by the filer within the time specified by the Department.

History

Authority G.S. 10B-4; 10B-134.19
Eff. July 1, 2024.

18 NCAC 07B .0312 Filing Date of Document {#sec-18-ncac-07b-.0312 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07B .0312}

A form or document is deemed filed on the day that it is deemed complete and shall not relate back to the date the filing was received.

History

Authority G.S. 10B-4
Eff. July 1, 2024.

18 NCAC 07B .0313 Extension Request to Department {#sec-18-ncac-07b-.0313 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07B .0313}

(a) A person responding to a departmental information request may submit a request for an extension of time to respond to a Department request pursuant to Rule .0305 of this Section.

(b) A request pursuant to Paragraph (a) of this Rule shall:

(1) be for an extension lasting no more than 30 days; and

(2) include the reason an extension is necessary.

History

Authority G.S. 10B-4; 10B-134.21
Eff. July 1, 2025.

18 NCAC 07B .0314 Department Response to Extension Request {#sec-18-ncac-07b-.0314 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07B .0314}

When deciding whether to grant an extension request, the Department shall consider the factors listed in Rule .0108 of this Subchapter.

History

Authority G.S. 10B-4; 10B-134.21
Eff. July 1, 2025.

18 NCAC 07B .0401 General {#sec-18-ncac-07b-.0401 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07B .0401}

All forms issued pursuant to Chapter 10B of the General Statutes may be found on the Department's website or, where not available through the website, may be obtained by contacting the Department using one of the means set out in Section .0100 of this Subchapter.

History

Authority G.S. 10B-4; 10B-5(e); 10B-6; 10B-106; 10B-125; 10B-134.17; 10B-134.21
Eff. April 1, 2007
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. December 6, 2016
Transferred from 18 NCAC 07B .0104 Eff. June 1, 2023
Amended Eff. July 1, 2024.

18 NCAC 07B .0402 Contact Information {#sec-18-ncac-07b-.0402 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07B .0402}

For purposes of the rules in this Section, unless otherwise indicated, "contact information" means:

(1) for a key individual who is identified pursuant to G.S. 10B-134.19(c)(2) by a platform, by an IPEN, or for key individuals operating a sole proprietorship or general partnership:

(a) the full name of the individual;

(b) the following addresses:

(i) residential address;

(ii) business address;

(iii) mailing address;

(d) business email addresses; and

(e) any other names by which the individual is known, including nicknames;

(2) for a business entity:

(a) the name of the entity on record with the Secretary of State, formation or filing office in its state, federally recognized tribe, or country of formation;

(b) the name of the state, federally recognized tribe, or country of formation;

(d) the street address, and the mailing address if different, of the entity's principal office;

(e) the street address, and the mailing address if different, of the entity's registered office;

(f) the principal office telephone number of the entity;

(g) the email address of the entity;

(h) the URL for the entity's website, if any;

(i) the name of an individual who is designated by the entity as the primary contact between the Department and the entity, and for that individual:

(i) title and position;

(ii) telephone number;

(iii) mailing address if different from the addresses provided in Sub-Items (2)(c) and (d) of this Item;

(iv) primary email address; and

(v) secondary email address, if applicable;

(j) the name of an individual designated as the secondary contact between the Department and the entity if the individual named in Sub-Item (2)(i) of this Item is not available; and

(k) the information in Sub-Item (2)(i) of this Item for the secondary contact individual named in Sub-Item (2)(j) of this Item; or

(3) for a technology provider's, or physical seal manufacturer's or vendor's registered agent listed on an application:

(a) the name of the registered agent;

(b) the registered office address for the registered agent and mailing address if different; and

History

Authority G.S. 10B-4; 10B-134.21
Eff. July 1, 2024
Amended Eff. July 1, 2025.

18 NCAC 07B .0403 Certificate of Appointment Form {#sec-18-ncac-07b-.0403 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07B .0403}

The certificate of appointment form includes:

(1) space for the entry by the Register of Deeds in the county of the commission to enter:

(a) the name of the individual administering the oath;

(b) the title of the individual administering the oath;

(d) the signature of the individual who administers the oath; and

(2) space for the signature of the notary public after the oath has been administered.

History

Authority G.S. 10B-4
Eff. July 1, 2024.

18 NCAC 07B .0404 Electronic notary public registration form {#sec-18-ncac-07b-.0404 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07B .0404}

An electronic notary public applicant registration form includes:

(1) the name on the applicant's commission;

(2) the applicant's commission number;

(3) whether the applicant has any changes to report under G.S. 10B-50, G.S. 10B-51, G.S. 10B-52, G.S. 10B-53, G.S. 10B-54, 18 NCAC 07F .0403, 18 NCAC 07F .1106, 18 NCAC 07F .1109, or 18 NCAC 07F .1110;

(4) for reapplications, a statement with regard to technology providers that:

(a) the notary will continue to use:

(i) the electronic notarization system of the technology provider for which the notary has previously provided notice; and

(ii) the custodian for the electronic journal for which the notary has previously provided notice;

(b) the names of the technology provider that the notary will now use; or

(5) the signature of the electronic notary applicant; and

(6) the date on which the applicant signs the form.

History

Authority G.S. 10B-4; 10B-106; 10B-134.21
Eff. March 1, 2025.

18 NCAC 07B .0405 Form Notifying Department of Selection of Technology Providers by Notary Public {#sec-18-ncac-07b-.0405 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07B .0405}

The form notifying the Department of the selection of technology providers by a notary public includes:

(1) the name on the notary's commission;

(2) the notary's commission number;

(3) the name of the technology providers selected by the notary to provide:

(a) electronic signatures and electronic seals; and

(b) electronic journals;

(4) the name of the custodian selected by the notary to provide custodial services for:

(a) electronic journals and their backups, if applicable;

(b) communication technology recordings and their backups, if applicable;

(5) if the notary named himself or herself in Sub-Item (4)(a) of this Rule as custodian of the notary's electronic journals and journal backups, the notary's certification that the notary shall:

(a) serve as a custodial notary; and

(b) comply with all custodial notary rules in 18 NCAC 07J .2200;

(6) for an electronic notary who plans to perform remote electronic notarial acts, the names of the technology providers selected by the notary to provide platform services;

(7) the anticipated dates on which the notary will begin using the technology providers;

(8) the signature of the notary; and

(9) the date on which the notary signs the form.

History

Authority G.S. 10B-4; 10B-106; 10B-125; 10B-126; 10B-127; 10B-134.15; 10B-134.21; 10B-134.23
Eff. March 1, 2025
Amended Eff. July 1, 2025.

18 NCAC 07B .0406 NOTICE to department OF CHANGE by electronic notary IN TECHNOLOGY PROVIDER {#sec-18-ncac-07b-.0406 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07B .0406}

The notice to the Department of change by an electronic notary in technology provider form includes:

(1) the name of the technology provider that the electronic notary previously notified the Department the notary would use;

(2) the type of service the technology provider previously provided to the notary;

(3) the date on which the notary stopped or will stop using the technology provider to perform electronic notarizations;

(4) the name of the technology provider that the notary will now use;

(5) the date on which the notary anticipates beginning to use the new technology provider;

(6) the signature of the notary; and

(7) the date on which the notary signs the form.

History

Authority G.S. 10B-4; 10B-106; 10B-125; 10B-126; 10B-134.21
Eff. March 1, 2025.

18 NCAC 07B .0407 initial application for notary commission form {#sec-18-ncac-07b-.0407 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07B .0407}

The initial application for notary commission form requires:

(1) the information required by G.S. 10B-5, 10B-6, and 10B-7;

(2) from the commission applicant:

(a) whether the applicant is a licensed member of the North Carolina State Bar;

(b) a residential phone number, which may be a cell phone number;

(c) the North Carolina notary commission number, if one was issued, and more than 12 months have elapsed since expiration;

(d) occupation;

(e) applicant's employer or status as:

(i) self-employed;

(ii) unemployed;

(iii) retired; or

(iv) a student;

(f) North Carolina county where employed;

(g) with regard to the notary course attended:

(i) the name of the eligible institution that offered the course;

(ii) the number of course hours;

(iii) the printed or typed name of the course instructor; and

(iv) the date the course was successfully completed;

(h) a description of included attachments, if any; and

(i) the declaration required by G.S. 10B-12; and

(3) from the notary course instructor:

(a) certification that:

(i) the date, eligible institution, and printed name of the instructor are correct; and

(ii) the applicant successfully completed the course and therefore qualifies for consideration for a notary commission; and

(b) the course instructor's signature as required by G.S. 10B-6 and the date of the signature.

History

Authority G.S. 10B-4
Eff. March 1, 2025.

18 NCAC 07B .0408 Affidavit of Moral Character {#sec-18-ncac-07b-.0408 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07B .0408}

The affidavit of moral character form requires:

(1) the applicant's name for use on a notary public commission, the full legal name of the key individual, or the full legal name of the individual about whom the affidavit is prepared, as applicable;

(2) information about the character witness:

(a) the affiant's name, contact information, and occupation;

(b) how the affiant knows the individual;

(d) how the affiant has had the opportunity to form an opinion of the individual's character; and

(e) whether the affiant is aware of criminal charges against, or criminal convictions of, the individual;

(3) the affiant's opinion whether the charges against, or convictions of, the individual will affect the ability of the individual to comply with Chapter 10B of the General Statutes;

(4) a declaration whether the affiant personally recommends the individual for an authorization requiring honesty, integrity, trustworthiness, and high standards of moral character;

(5) a declaration under penalty of perjury that the information provided is true and complete to the best of the affiant's knowledge and belief; and

(6) the signature of the affiant and the date signed.

History

Authority G.S. 10B-4; 10B-134.19
Eff. July 1, 2024
Amended Eff. July 1, 2025.

18 NCAC 07B .0409 Application for Recommissioning as Notary Public {#sec-18-ncac-07b-.0409 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07B .0409}

The form for application for recommissioning as a notary public before expiration of a commission or within 12 months of commission expiration requires:

(1) information regarding the applicant's current or, if expired, the most recent commission, including the commission number;

(2) an imprint or stamp from the applicant's current seal, or most recently expired seal, if the applicant currently possesses a seal;

(3) information required pursuant to G.S. 10B-11;

(4) the instructor's signature, if the applicant takes the notary course as part of the recommissioning process;

(5) information required pursuant to Rule .0407 of this Section that is not otherwise included in Items (1)-(3) of this Rule;

(6) for recommissioning for a traditional notary who is not also an electronic notary, a statement with regard to technology providers (Note: An example would be a traditional notary who administers oaths or affirmations in G.S. 10B-134.9(d) judicial actions or proceedings):

(a) the notary will continue to use:

(i) the name of the technology provider for which the notary has previously provided notice; and

(ii) the custodian for the electronic journal for which the notary has previously provided notice;

(b) the name of the technology provider that the notary will now use; or

(7) the declaration under penalty of perjury that is required by G.S. 10B-12.

History

Authority G.S. 10B-4
Eff. July 1, 2024
Amended Eff. July 1, 2025.

18 NCAC 07B .0410 NOTICE OF changes REQUIRED BY 18 ncac 07d .0301 {#sec-18-ncac-07b-.0410 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07B .0410}

The form for notice of change in the information required by 18 NCAC 07D .0301 shall include:

(1) the notary public's commission name and county of commission;

(2) the notary's commission number;

(3) contact information for the notary;

(4) last four digits of the notary's SSN;

(5) for each change:

(a) which item of information regarding the notary has changed;

(b) the information as it existed before the change; and

(6) the printed name and signature of the notary and the date signed.

History

Authority G.S. 10B-4
Eff. July 1, 2024.

18 NCAC 07B .0411 Notice of Changes Regarding Criminal History Record {#sec-18-ncac-07b-.0411 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07B .0411}

The form for notice of changes in criminal history record requires:

(1) the name of the individual;

(2) if a commissioned notary public, the notary's commission number;

(3) the last four digits of the individual's SSN;

(4) contact information for the individual;

(5) for a previously unreported criminal charge:

(a) the date of the charge;

(b) the court in which the charge is filed;

(d) the name of the charge;

(e) whether the charge has been set for a hearing or trial and, if yes, the scheduled date; and

(f) the case number;

(6) for notice of a disposition of a criminal charge:

(a) the date of the disposition;

(b) the name of the court and the case number;

(i) whether the conviction was for a felony or misdemeanor; and

(ii) the sentence imposed;

(d) a copy of the disposition document or judgment;

(e) a copy of any document restoring citizenship rights;

(7) a declaration under penalty of perjury that the information provided is true and complete to the best of the affiant's knowledge and belief; and

(8) the signature of the individual and the date signed.

History

Authority G.S. 10B-4
Eff. July 1, 2024
Amended Eff. July 1, 2025.

18 NCAC 07B .0412 Notice of Changes Regarding Professional Licenses, Notary Commissions, or Public Offices {#sec-18-ncac-07b-.0412 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07B .0412}

The form for notice of changes regarding professional licenses, notary commissions, or public offices requires:

(1) the name of the individual;

(2) if a commissioned notary public, the notary's commission number;

(3) the last four digits of the individual's SSN;

(4) contact information for the individual;

(5) for a change in any information required by G.S. 10B-7(10), the information required by Section .0700 of this Subchapter; and

(6) the printed name and signature of the individual and the date signed.

History

Authority G.S. 10B-4
Eff. March 1, 2025.

18 NCAC 07B .0413 Notice of Changes Regarding Findings or Admissions of Deceit, Official Misconduct, False or Misleading Advertising, or Unauthorized Practice of Law {#sec-18-ncac-07b-.0413 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07B .0413}

The form for notice of changes regarding findings or admissions of deceit, official misconduct, false or misleading advertising, or unauthorized practice of law requires:

(1) the notary public's commission name and county of commission;

(2) the notary's commission number;

(3) last four digits of the notary's SSN;

(4) contact information for the notary;

(5) the information required pursuant to:

(a) 18 NCAC 07C .0207 for a finding or admission of liability against the notary pursuant to G.S. 10B-5(d)(3);

(b) 18 NCAC 07C .0208 for a finding of official misconduct by the notary;

(d) 18 NCAC 07C .0210 for a finding or charge of false or misleading advertising by the notary; and

(6) the printed name and signature of the commission applicant or notary and the date signed.

History

Authority G.S. 10B-4
Eff. March 1, 2025.

18 NCAC 07B .0414 Application for Certification as Notary Instructor {#sec-18-ncac-07b-.0414 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07B .0414}

The application for certification as a notary instructor form requires:

(1) the information required by Rule .0407(1)–(2)(f) of this Section;

(2) whether the applicant is currently employed as:

(a) a register of deeds or clerk of court; or

(b) an employee of the Department and is authorized by the Secretary to serve as an instructor;

(3) the eligible institution for which the applicant will teach if certified as an instructor;

(4) the name, telephone number, and email address of a contact person at the eligible institution who is knowledgeable about the conditional hiring of the applicant to teach notary courses;

(5) whether the applicant has a personal copy of the most recent notary public manual approved by the Department and, if yes, the year and edition number;

(6) whether the applicant has active experience as a notary public;

(7) whether the applicant has notified the Department of changes as required by Chapter 10B of the General Statutes and the rules in this Chapter or is submitting a change form with the application;

(8) a declaration under penalty of perjury that:

(a) the information provided is true and complete to the best of the applicant's knowledge and belief;

(b) the applicant remains qualified to be commissioned as a notary public; and

(9) the printed name and signature of the applicant and the date signed.

History

Authority G.S. 10B-4; 10B-14; 10B-134.21
Eff. March 1, 2025
Amended Eff. July 1, 2025.

18 NCAC 07B .0415 Recommendation of Notary Instructor Applicant {#sec-18-ncac-07b-.0415 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07B .0415}

The recommendation of notary instructor applicant form requires:

(1) the instructor applicant's commission name;

(2) the name and contact information for the individual completing the form;

(3) the individual's basis for recommending the applicant, including:

(a) a declaration that the individual is not a family member of the applicant;

(b) how the individual knows the applicant; and

(4) whether, in the opinion of the individual, the applicant has the skills to be an effective teacher of notary applicants;

(5) a declaration that the individual personally recommends the applicant to be a notary instructor;

(6) the printed name and signature of the individual and the date signed; and

(7) a declaration under penalty of perjury that the information provided is true and complete to the best of the individual's knowledge and belief.

History

Authority G.S. 10B-4; 10B-14; 10B-134.21
Eff. July 1, 2024.

18 NCAC 07B .0416 Employer Affidavit Regarding Instructor Applicant Active Experience Form {#sec-18-ncac-07b-.0416 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07B .0416}

The form for the employer affidavit regarding active experience requires:

(1) the name of the person employing the applicant;

(2) information about the affiant, consisting of the following:

(a) the full printed name of the affiant;

(b) the affiant's title and position with the employer;

(d) the email address of the affiant;

(3) an explanation of the reasons the instructor applicant has performed notarial acts while employed by the employer;

(4) a statement specifying which of the preceding twelve months the instructor applicant performed notarial acts for the employer;

(5) a declaration that:

(a) the affiant has the authority to sign; and

(b) the affiant has knowledge of the matters described in the affidavit;

(6) the signature of the affiant and date on which the affiant signed; and

(7) a jurat certificate.

History

Authority G.S. 10B-4; 10B-14; 10B-134.21
Eff. March 1, 2025.

18 NCAC 07B .0417 Student Evaluation of Notary Instructor Form {#sec-18-ncac-07b-.0417 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07B .0417}

The student evaluation of notary instructor form requests the following information from a student:

(1) the name of the instructor;

(2) the date of the course;

(3) the name of the institution;

(4) rating of the instructor's:

(a) professionalism;

(b) subject matter knowledge;

(d) responsiveness to questions from students;

(5) rating of the course materials;

(6) other information or comments that the student wishes to add; and

(7) the student's name and contact information if the student is willing to be contacted by the Department with follow-up questions.

History

Authority G.S. 10B-4; 10B-14; 10B-134.21
Eff. July 1, 2024.

18 NCAC 07B .0418 Application for Recertification as Notary Instructor {#sec-18-ncac-07b-.0418 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07B .0418}

The notary instructor application for recertification form requires:

(1) the information specified in Rule .0414 of this Section;

(2) verification that the applicant has taught the notary instructor course at least twice a year during the current two-year certification period;

(3) the date of initial certification as an instructor;

(4) whether certification has been continuous;

(5) a declaration under penalty of perjury that:

(a) the information provided is true and complete;

(b) the applicant remains qualified to be commissioned as a notary public; and

(i) understands the official duties and responsibilities of a notary public and notary public instructor in North Carolina; and

(ii) will perform to the best of the applicant's ability all responsibilities of teaching the notary courses in accordance with the law.

History

Authority G.S. 10B-4; 10B-14; 10B-134.21
Eff. March 1, 2025.

18 NCAC 07B .0419 Reserved for Future Codification {#sec-18-ncac-07b-.0419 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07B .0419}

18 NCAC 07B .0420 Notary Form to Report Technology Dysfunctions {#sec-18-ncac-07b-.0420 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07B .0420}

The form notaries public and electronic notaries public use to report technology dysfunctions pursuant to 18 NCAC 07D .0309 requires:

(1) the notary's commission name;

(2) the name of the technology provider with which the notary is experiencing dysfunctions;

(3) a description of the dysfunction;

(4) the basis for concern if a dysfunction is suspected to involve credential verification or identity proofing:

(a) security;

(b) privacy; or

(5) the dates, times, and duration of the dysfunctions; and

(6) the efforts undertaken to resolve the dysfunctions by the notary or the technology provider.

History

Authority G.S. 10B-4; 10B-134.19
Eff. July 1, 2025.

18 NCAC 07B .0421 Stand-Alone Notarial Certificate {#sec-18-ncac-07b-.0421 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07B .0421}

If the notarial certificate selected by the principal is on a page separate from the document being notarized, then the notary public shall include on or near the notarial certificate the following descriptive language:

(1) the title or type of document;

(2) the number of pages of the document being notarized, exclusive of the certificate;

(3) the names of the principal signers; and

(4) the date the principals signed.

History

Authority G.S. 10B-2; 10B-4; 10B-134.19
Eff. July 1, 2025.

18 NCAC 07B .0422 Application for Technology Provider Authorization – General {#sec-18-ncac-07b-.0422 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07B .0422}

Technology provider application forms shall require:

(1) the type or types of authorization to which the application applies:

(a) IPEN;

(b) platform;

(d) identity proofing; or

(e) custodian;

(2) contact information:

(a) the information specified in Rule .0402(2) of this Section for the applicant;

(b) the information specified in Rule .0402(3) of this Section for the registered agent of a business entity that is an applicant;

(i) the applicant's key individuals; and

(ii) the applicant's compliance contact employee designated pursuant to Item (4)(b) of this Rule, except that the residential address shall not be required; and

(3) the following general information about the technology provider applicant and its business:

(a) the type of business entity;

(b) all states and nations in which the technology provider applicant has obtained a certificate of authority to do business, or its equivalent;

(c) all assumed business names, trade names, or "doing business as" names used by the applicant in North Carolina, other states, or nations;

(d) all fictitious or equivalent names registered with the Department or other states or nations because the business' legal name is not available. Note: An example would be a fictitious name registered with the Department pursuant to G.S. 55D-22(a)(6);

(e) for legal actions, the information required by 18 NCAC 07J .0416;

(f) for debarment involving the applicant or the applicant's key individuals, the information specified in 18 NCAC 07J .0414;

(g) for disciplinary actions, the information specified in 18 NCAC 07J .0418;

(h) for voluntary exclusion in lieu of debarment involving the applicant or the applicant's key individuals, the information specified in 18 NCAC 07J .0415;

(i) for bankruptcy, the information required by 18 NCAC 07J .0420;

(j) a summary of its most recent IT security audit as required by 18 NCAC 07J .0621;

(4) the following information related to the authorization that the applicant seeks:

(a) the name of the product and the version number for which authorization is sought;

(b) the full name of the compliance contact who meets the requirements of, and has the duties set forth in, 18 NCAC 07J .0406;

(5) the following information regarding the applicant's provision of the same or similar notarial services in jurisdictions other than North Carolina:

(a) the name of each state, tribe or nation; and

(b) for each named jurisdiction, the information required by 18 NCAC 07J .0405;

(6) a URL link to the information that the applicant is required to provide pursuant to 18 NCAC 07J .0607;

(7) information regarding whether the applicant's services as a technology provider have within the preceding five years been the subject of:

(a) a security breach; or

(b) a ransomware attack, as defined at G.S. 143B-1320(a)(14a);

(8) identification and information for third-party vendors, supporting vendors, and businesses pursuant to 18 NCAC 07J .0408-.0411;

(9) the applicant's certifications, compliance reports, or equivalents by independent third-party entities with:

(a) the information required by 18 NCAC 07J .0413; and

(b) if the certifications, compliance reports, or equivalents have levels, grades, or annotations, those applicable to the applicant;

Note: Examples of acceptable certifications are ISO 270001 and SOC2;

(10) the applicant's certification that it complies with the requirements to have and implement the plans required by 18 NCAC 07J Section .0600; and

(11) signature by a key individual employed by the technology provider applicant who has the authority to:

(a) bind the applicant;

(b) make certifications required by this Rule and the rules in 18 NCAC Subchapter 07J; and

(i) the information provided is true and complete to the best of the signer's knowledge and belief;

(ii) the application was prepared under the signer's authority and supervision;

(iii) the applicant agrees that representations, promises, and assurances of performance in the application are binding on it; and

(d) the date on which the application was signed.

History

Authority G.S. 10B-4; 10B-126(d); 10B-134.19; 10B-134.21; 10B-134.23(b)
Eff. July 1, 2025.

18 NCAC 07B .0423 Application for Ipen Authorization {#sec-18-ncac-07b-.0423 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07B .0423}

The form used to apply for authorization as an IPEN technology provider requires:

(1) the information required by Rule .0422 of this Section;

(2) for each of the technology provider's key individuals:

(a) the information required by 18 NCAC 07J .1304;

(b) a brief description of the individuals' duties; and

(3) the information required by 18 NCAC 07J .1301.

History

Authority G.S. 10B-4; 10B-126(d); 10B-134.21
Eff. July 1, 2025.

18 NCAC 07B .0424 Application for Platform License {#sec-18-ncac-07b-.0424 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07B .0424}

The form used to apply for authorization as a licensed platform requires:

(1) the information required by Rule .0422 of this Section;

(2) for each of the technology provider's key individuals:

(a) the information required by 18 NCAC 07J .1505;

(b) a brief description of the individuals' duties; and

(3) the information required by 18 NCAC 07J .1501.

History

Authority G.S. 10B-4; 10B-134.21
Eff. July 1, 2025.

18 NCAC 07B .0425 Application for Credential Analysis Authorization {#sec-18-ncac-07b-.0425 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07B .0425}

The form used to apply for authorization as an approved credential analysis provider requires:

(1) the information required by Rule .0422 of this Section; and

(2) the information required by 18 NCAC 07J .1701.

History

Authority G.S. 10B-4; 10B-134.21
Eff. July 1, 2025.

18 NCAC 07B .0426 Application for Identity Proofing Authorization {#sec-18-ncac-07b-.0426 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07B .0426}

The form used to apply for authorization as an approved identity proofing provider requires:

(1) the information required by Rule .0422 of this Section; and

(2) the information required by 18 NCAC 07J .1901.

History

Authority G.S. 10B-4; 10B-134.21
Eff. July 1, 2025.

18 NCAC 07B .0427 Application for Custodian Authorization {#sec-18-ncac-07b-.0427 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07B .0427}

The form used to apply for authorization as an approved custodian requires:

(1) the information required by Rule .0422 of this Section; and

(2) the information required by 18 NCAC 07J .2101.

History

Authority G.S. 10B-4; 10B-134.21
Eff. July 1, 2025.

18 NCAC 07B .0428 Custodial Notary Annual Report Form {#sec-18-ncac-07b-.0428 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07B .0428}

The form for annual reports by custodial notaries public requires:

(1) the commission name and number of the custodial notary;

(2) the calendar year covered by the annual report;

(3) the information required by 18 NCAC 07D .0300;

(4) certification that the custodial notary:

(a) intends to continue serving as a custodial notary and will continue to comply with the custodial notary rules in 18 NCAC 07H and 18 NCAC 07J;

(b) will cease serving within the next 12 months as a custodial notary, and, unless the retention period pursuant to 18 NCAC 07I .0212 will expire during that period, the name of the approved custodian to which the custodial notary will transfer the notary's records and the projected date of transfer;

(c) if the notary has already ceased serving as a custodial notary, the date on which the notary's records were transferred to an approved custodian and the name of the approved custodian, unless the retention period pursuant to 18 NCAC 07I .0212 has expired; or

(d) has ceased serving as a custodial notary because the period of retention for all records has expired;

(5) certification that the information provided in the form is true and complete; and

(6) the signature of the custodial notary and the date signed.

History

Authority G.S. 10B-4; 10B-125(b); 10B-126(a)
Eff. July 1, 2025.

18 NCAC 07B .0429 Technology Providers Other Than Platforms Verifying Continuing Compliance {#sec-18-ncac-07b-.0429 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07B .0429}

The form for technology providers other than platforms verifying their continuing compliance requires:

(1) the name of the technology provider;

(2) the electronic notary solution for which the provider has been approved;

(3) the information required by 18 NCAC 07J .0211;

(4) either a statement that the Department has been notified of changes as required in 18 NCAC 07J .0203 or inclusion of required notice of changes;

(5) the signature of the compliance officer and the date signed;

(6) certification that the information provided in the form is true and complete; and

(7) the signature of a key individual employed by the technology provider who has the authority to bind the technology provider and the date signed.

History

Authority G.S. 10B-4; 10B-126(d); 10B-134.21; 10B-134.23(b)
Eff. July 1, 2025.

18 NCAC 07B .0430 physical SEAL MANUFACTURER OR VENDOR REGISTRATION WITH DEPARTMENT FORM {#sec-18-ncac-07b-.0430 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07B .0430}

The form used by a manufacturer or vendor of physical notary seals to register with the Department requires:

(1) the information required by Rule .0402 of this Section, except that the residential address shall not be required for a key individual operating a sole proprietorship or a general partnership;

(2) certification that the manufacturer or vendor:

(a) manufactures or sells physical notary seals to North Carolina notaries public; and

(b) complies with, and will continue to comply with, the requirements of:

(i) G.S. 10B-36 and 10B-37; and

(ii) the applicable rules in 18 NCAC 07G; and

(d) the information provided on the form is true and complete;

(3) signature by an individual with the authority to bind the manufacturer or vendor with:

(a) printed name and title of the individual; and

(b) the date signed.

History

Authority G.S. 10B-4; 10B-36(e); 10B-125(b); 10B-134.21
Eff. July 1, 2025.

18 NCAC 07B .0431 Form for Notary Reportable Incidents {#sec-18-ncac-07b-.0431 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07B .0431}

The form for a notary public notifying the Department of reportable incidents pursuant to 18 NCAC 07D .0310 requires:

(1) the notary's commission name and commission number;

(2) how the notary discovered the reportable incident;

(3) the date of the last notarization performed by the notary before the reportable incident occurred or was discovered;

(4) the date on which the notary discovered the reportable incident regarding the notary's physical seal, electronic seal, signature, journal, notarial records, or communication technology recording;

(5) the date on which the reportable incident occurred, if different from the date of discovery;

(6) the date on which the notary reported to:

(a) the Register of Deeds, and the county of that Register of Deeds; and

(b) law enforcement, if applicable, including the name of the law enforcement agency and a copy of the law enforcement report if available;

(7) any other information that the notary believes may be useful to the Department in assessing the reportable incident; and

(8) the notary's signature and the date of the report to the Department.

History

Authority G.S. 10B-4; 10B-36; 10B-125(b); 10B-126(d); 10B-134.21
Eff. July 1, 2025.

18 NCAC 07B .0501 Crimes {#sec-18-ncac-07b-.0501 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07B .0501}

For purposes of applications and discipline under Chapter 10B of the General Statutes and the rules in this Chapter, each of the following offenses shall be classified as a crime involving "moral turpitude" as defined in G.S. 10B-3(9) or a "crime involving dishonesty" as defined in Rule .0102(14) of this Subchapter:

(1) arson;

(2) assault;

(3) battery;

(4) burglary;

(5) carrying a concealed weapon without a permit;

(6) child molestation;

(7) child pornography;

(8) discharge of a firearm in a public place or into a dwelling;

(9) domestic violence;

(10) driving while impaired;

(11) embezzlement;

(12) failure to comply with a court order;

(13) failure to pay child support;

(14) failure to return to confinement;

(15) false financial statement;

(16) forgery;

(17) fraud;

(18) hit and run;

(19) identity theft;

(20) impersonation of a law enforcement officer;

(21) kidnapping;

(22) practicing law without a license;

(23) prostitution;

(24) rape;

(25) receipt of stolen goods or property;

(26) resist, delay or obstruct a public officer in discharging or attempting to discharge an official duty;

(27) robbery;

(28) tax evasion;

(29) terrorist threat or act;

(30) unlawful possession or sale of drug; and

(31) worthless check.

History

Authority G.S. 10B-4
Eff. July 1, 2024
Amended Eff. July 1, 2025.

18 NCAC 07B .0502 Additional Requirements for an Individual Listing Convictions {#sec-18-ncac-07b-.0502 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07B .0502}

An individual required to provide a criminal history record pursuant to Chapter 10B of the General Statutes and the rules in this Chapter shall include:

(1) a complete listing of felony convictions of the individual and the name under which each conviction was entered;

(2) a complete listing of misdemeanor convictions of the individual and the name under which each conviction was entered;

(3) if the individual's criminal history record includes a conviction in North Carolina, a copy of the individual's criminal history record prepared by the North Carolina State Bureau of Investigation;

(4) if the individual has a criminal conviction in a jurisdiction other than North Carolina, a copy of the individual's criminal history record from a criminal history record registry or repository of record reflecting the conviction; and

(5) the signed explanation required by Rule .0503 of this Section.

Note: A "registry or repository of record" is the official governmental state, federal, national, or tribal archive or center for collection of criminal history information.

History

Authority G.S. 10B-4
Eff. July 1, 2024.

18 NCAC 07B .0503 Explanation of Convictions {#sec-18-ncac-07b-.0503 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07B .0503}

An individual who submits a criminal history record shall include an explanation for each criminal conviction with:

(1) the individual's signature and the date on which the individual signed the explanation;

(2) for each felony conviction:

(a) the date of the conviction and the court where the conviction was entered;

(b) the name of the court and the case number;

(d) a description of the circumstances surrounding the commission of the crime;

(e) the sentence imposed;

(f) a copy of the document showing the date of release from probation, parole, incarceration, or completion of the terms of the individual's sentence for each conviction; and

(g) a copy of any document restoring the individual's citizenship rights; and

(3) for each misdemeanor conviction the information required in Items (2)(a)-(f) of this Rule.

History

Authority G.S. 10B-4
Eff. July 1, 2024.

18 NCAC 07B .0504 Additional Documentation for Convictions {#sec-18-ncac-07b-.0504 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07B .0504}

For an individual listing a criminal conviction, an affidavit of moral character shall be:

(1) completed by three individuals, none of whom is a family member, using the form specified in Rule .0408 of this Subchapter; and

(2) submitted to the Department by the individual listing a criminal conviction or the individuals completing the affidavits.

History

Authority G.S. 10B-4
Eff. July 1, 2024.

18 NCAC 07B .0505 Requirements for Individual with Pending Criminal Charges {#sec-18-ncac-07b-.0505 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07B .0505}

An individual required to provide a criminal history record who has a pending criminal charge in a court shall, for each pending criminal charge:

(1) notify the Department:

(a) at the time of application to the Department; or

(b) within 45 days if a charge is brought after the application has been filed; and

(2) provide the information specified in the form in Rule .0411 of this Subchapter.

History

Authority G.S. 10B-4
Eff. July 1, 2024.

18 NCAC 07B .0506 Notice to Department of Disposition of Pending Charge {#sec-18-ncac-07b-.0506 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07B .0506}

An individual required to provide the Department with information regarding a pending charge pursuant to Rule .0505 of this Section shall:

(1) notify the Department within 45 calendar days of the final disposition of the charge;

(2) provide the information specified in the form in Rule .0411 of this Subchapter;

(3) provide a copy of the document reflecting the final disposition of the charge; and

(4) if convicted, comply with Rules .0503 and .0504 of this Section.

History

Authority G.S. 10B-4
Eff. July 1, 2024.

18 NCAC 07B .0601 factors for disciplinary actions {#sec-18-ncac-07b-.0601 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07B .0601}

When determining whether and what disciplinary action to take, the Department shall consider:

(1) the qualifications of the person;

(2) the nature, number, timing, and severity of any acts, offenses, official misconduct, or crimes under consideration;

(3) evidence pertaining to the honesty, credibility, truthfulness, and integrity of the person;

(4) actual or potential harm;

(5) the history of complaints against the person received by the Department;

(6) the record of prior disciplinary actions against the person;

(7) evidence in mitigation;

(8) evidence in aggravation;

(9) occupational, vocational, or professional license disciplinary record;

(10) evidence of rehabilitation;

(11) criminal history record;

(12) information and reports received from other law enforcement agencies;

(13) willfulness;

(14) negligence;

(15) the response of the person to any alleged violations;

(16) whether the person self-reported a matter affecting qualification or the performance of an activity pursuant to authorization; and

(17) the purposes of the Notary Act as set forth in G.S. 10B-2.

History

Authority G.S. 10B-4; 10B-14(f); 10B-60
Eff. April 1, 2007
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest
Eff. December 6, 2016
Transferred from 18 NCAC 07B .0901 Eff. June 1, 2023
Amended Eff. July 1, 2025; July 1, 2024.

18 NCAC 07B .0602 Denials {#sec-18-ncac-07b-.0602 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07B .0602}

(a) The Department shall deny an application in which an applicant willfully and knowingly provided false information about:

(1) a criminal history record; or

(2) a record of official findings of liability related to the applicant's deceit, dishonesty, or intentional disclosure of confidential information to a person not legally entitled to the information.

(b) The Department may deny an application that contains misleading information.

(1) the Department determines that the applicant is not qualified for the authorization issued pursuant to the Constitution of the State of North Carolina, Chapter 10B of the General Statutes, or the rules in this Chapter; or

(2) an applicant notarizes the applicant's own signature.

History

Authority G.S. 10B-4; 10B-14(f); 10B-60; 10B-126; 10B-134.19; 10B-134.21
Eff. April 1, 2007
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. December
6, 2016
Transferred from 18 NCAC 07B .0902 Eff. June 1, 2023
Amended Eff. July 1, 2024.

18 NCAC 07B .0603 Levels of Enforcement {#sec-18-ncac-07b-.0603 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07B .0603}

Upon consideration of the evidence before it, the purposes and requirements of Chapter 10B of the General Statutes, and the rules in this Chapter, the Department may:

(1) upon a finding of a violation of Chapter 10B of the General Statutes or the rules in this Chapter:

(a) issue a letter of caution to a person along with:

(i) a request for compliance; and

(ii) a statement that future noncompliance may lead to disciplinary action by the Department;

(b) issue a letter of warning to a person, with or without a corrective action plan. Note: A requirement for additional education is an example of a corrective action plan;

(c) suspend a person's authorization and bar the grant of an authorization for a specific period of time not to exceed 24 months, with or without a corrective action plan;

(d) issue a revocation of a person's authorization;

(e) issue a permanent revocation of a person's authorization;

(f) issue an administrative action restricting, for a specific period of time, an unauthorized person from submitting an application or from being becoming authorized; or

(g) issue an administrative action permanently restricting an unauthorized person from submitting an application or from becoming authorized; and

(h) issue a civil penalty pursuant to G.S. 10B-60(m) or 10B-134.23(c)(4); and

(2) use the factors in Rule .0601 of this Section to take action to withdraw, stay, rescind, or expunge a disciplinary action.

Note: An application submitted in violation of an administrative action pursuant to Paragraphs (f) and (g) of this Rule shall be denied by the Department immediately upon identification of the applicant as being subject to the administrative action during the period of time applicable to the action. The application fee shall not be refunded.

History

Authority G.S. 10B-4; 10B-14(f); 10B-60; 10B-126; 10B-134.19; 10B-134.21
Eff. April 1, 2007
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. December 6, 2016
Transferred from 18 NCAC 07B .0903 Eff. June 1, 2023
Amended Eff. July 1, 2025; July 1, 2024.

18 NCAC 07B .0604 Letter of Caution {#sec-18-ncac-07b-.0604 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07B .0604}

The Department may issue a letter of caution to a person for a violation of the requirements of Chapter 10B of the General Statutes or the rules in this Chapter in circumstances that do not merit disciplinary action.

History

Authority G.S. 10B-4; 10B-14(f); 10B-60; 10B-126; 10B-134.19; 10B-134.21
Eff. April 1, 2007
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. December 6, 2016
Transferred from 18 NCAC 07B .0904 Eff. June 1, 2023
Amended Eff. July 1, 2024.

18 NCAC 07B .0605 Warning {#sec-18-ncac-07b-.0605 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07B .0605}

The Department may issue a warning to a person for a violation of Chapter 10B of the General Statutes or the rules in this Chapter.

History

Authority G.S. 10B-4; 10B-14(f); 10B-60; 10B-126; 10B-134.19; 10B-134.21
Eff. April 1, 2007
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. December 6, 2016
Amended Eff. May 1, 2008
Transferred from 18 NCAC 07B .0905 Eff. June 1, 2023
Amended Eff. July 1, 2024.

18 NCAC 07B .0606 Suspension {#sec-18-ncac-07b-.0606 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07B .0606}

After consideration of the factors in Rule .0601 of this Section, the Department may issue a suspension to a person who:

(1) violates a requirement of Chapter 10B of the General Statutes or the rules in this Chapter; or

(2) has a criminal conviction.

History

Authority G.S. 10B-4; 10B-14(f); 10B-60; 10B-126; 10B-134.19; 10B-134.21
Eff. April 1, 2007
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. December 6, 2016
Transferred from 18 NCAC 07B .0906 Eff. June 1, 2023
Amended Eff. July 1, 2024.

18 NCAC 07B .0607 Restriction {#sec-18-ncac-07b-.0607 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07B .0607}

Upon a finding that the person has acted without being authorized by the Department, the Department may issue an administrative action to restrict that person from applying for authorization or from becoming authorized to:

(1) perform a notarial act;

(2) teach a notarial course;

(3) offer an electronic notary solution to an electronic notary public; or

(4) act as a depository or custodian.

History

Authority G.S. 10B-4; 10B-14(f); 10B-60; 10B-126; 10B-134.19; 10B-134.21
Eff. April 1, 2007
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. December 6, 2016
Amended Eff. February 1, 2021; October 1, 2019
Transferred from 18 NCAC 07B .0907 Eff. June 1, 2023
Amended Eff. July 1, 2025; July 1, 2024.

18 NCAC 07B .0608 Mandatory Revocation {#sec-18-ncac-07b-.0608 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07B .0608}

The Department shall revoke an authorization of:

(1) a person who is convicted of a crime related to performance of an act pursuant to, or in relation to, an authorization issued by the Department;

(2) a notary public who notarizes the notary's own signature;

(3) a notary who performs a notarial act and either:

(a) fails to require the personal appearance of the principal; or

(b) performs a remote electronic notarial act without requiring the appearance of a principal by an authorized communication technology; or

(4) a person who performs an act permitted by an authorization issued by the Department knowing that:

(a) the act, a document associated with the act, or information contained in a document associated with the act is false or fraudulent; or

(b) the intent of the act or document is to perpetrate a crime.

History

Authority G.S. 10B-4; 10B-14(f); 10B-60; 10B-126; 10B-134.19; 10B-134.21
Eff. July 1, 2024.

18 NCAC 07B .0609 Failure to Remit Fees {#sec-18-ncac-07b-.0609 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07B .0609}

(a) Failure of a platform provider to remit fees in accordance with G.S. 10B-134.19 and the rules in this Chapter shall be a basis for the Department to revoke a platform license.

(b) Revocation shall not preclude other disciplinary action or remedies available to the Department.

History

Authority G.S. 10B-4; 10B-134.19
Eff. July 1, 2025.

18 NCAC 07B .0610 Failure to Verify {#sec-18-ncac-07b-.0610 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07B .0610}

A technology provider, or physical seal manufacturer or vendor shall be deemed to have knowingly created, manufactured or distributed a notary seal in violation of G.S. 10B-60(n) if the provider, manufacturer, or vendor fails to comply with, as applicable:

(1) 18 NCAC 07J .1202 for IPEN account creation;

(2) 18 NCAC 07J .1410 for platform account creation for an electronic notary;

(3) 18 NCAC 07J .1411 for platform account creation for a traditional notary;

(4) 18 NCAC 07J .1202 for changes to notary commission or registration certificate presented to the IPEN solution;

(5) 18 NCAC 07J .1412 for changes to commission or registration certificate presented to the platform; and

(6) 18 NCAC 07G.

History

Authority G.S. 10B-4; 10B-106; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07B .0701 General {#sec-18-ncac-07b-.0701 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07B .0701}

An applicant for a notary commission shall include with the application a list of all professional licenses, public offices, and notary commissions as required by G.S. 10B-7(10), together with the information required by the rules in this Section.

History

Authority G.S. 10B-4; 10B-14(f); 10B-106; 10B-134.19; 10B-134.21
Eff. April 1, 2007
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. December 6, 2016
Transferred from 18 NCAC 07B .0201 Eff. June 1, 2023
Amended Eff. March 1, 2025.

18 NCAC 07B .0702 Requirements Regarding Professional Licenses and Notarial Commissions {#sec-18-ncac-07b-.0702 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07B .0702}

An individual required to provide information to the Department about professional licenses and notarial commissions that the individual presently holds, has held, or has applied for shall include the following, to the extent the information is available to the individual after reasonable efforts, for each license and notarial commission listed:

(1) the name under which each license or notarial commission was issued;

(2) the state, federally recognized tribe, or nation that issues or grants each listed license or commission;

(3) the name of the governmental agency, board, or commission that issued each license or granted each commission;

(4) the name of the professional license or notary commission;

(5) the license or commission number, if one is assigned by the issuing agency, board, or commission;

(6) the expiration dates for all licenses or commissions listed; and

(7) whether, to the knowledge of the individual, there is an open investigation by the issuing agency, board, or commission into use or misuse by the individual of a license or commission listed.

History

Authority G.S. 10B-4
Eff. March 1, 2025.

18 NCAC 07B .0703 Disciplinary Action Involving a Professional License or Notary Commission {#sec-18-ncac-07b-.0703 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07B .0703}

For each professional license or notary commission listed by the applicant pursuant to Rule .0701 of this Section, and for which the individual has been the subject of a disciplinary action by a court, legislative body, governmental agency, board, or commission, the individual shall include:

(1) the date of each disciplinary action;

(2) the disciplinary action taken;

(3) a copy of each disciplinary action;

(4) if not included in the copy of the disciplinary action provided:

(a) the reason given for the disciplinary action;

(b) an explanation of the circumstances that led to the disciplinary action; and

(5) whether the disciplinary action included any corrective action or conditions on the license or commission;

(6) whether the individual has complied with the corrective actions or conditions;

(7) the date on which compliance with the corrective actions or conditions was satisfied;

(8) whether the individual would be eligible for relicensure or recommissioning; and

(9) other information that the individual wishes to include in order to aid the Department in assessing the individual's professional license and notary commission history.

History

Authority G.S. 10B-4; 10B-134.21; 10B-134.23
Eff. March 1, 2025.

18 NCAC 07B .0704 Public Offices {#sec-18-ncac-07b-.0704 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07B .0704}

An individual shall include on the application for authorization:

(1) a list of each public office that the individual presently holds or has held;

(2) the name under which each public office is or was held;

(3) the locality, state, federally recognized tribe, or nation in which the public office is or was held;

(4) the title of the public office;

(5) the beginning and ending dates of the term of each public office; and

(6) whether, to the knowledge of the individual, there is an open investigation by a government or law enforcement agency into the use or misuse by the individual of the public office.

History

Authority G.S. 10B-4
Eff. March 1, 2025.

18 NCAC 07B .0705 Denials of Public Offices {#sec-18-ncac-07b-.0705 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07B .0705}

If an individual was denied a public office, the individual shall include with the application:

(1) the name of the public office that was denied;

(2) the locality, state, federally recognized tribe, or nation where the public office is or was located;

(3) the date of the denial;

(4) the name used when the denial occurred;

(5) the reason for the denial; and

(6) other information that the individual wishes to include in order to aid the Department in assessing the individual's qualification for authorization.

History

Authority G.S. 10B-4
Eff. March 1, 2025.

18 NCAC 07B .0706 Resignations from Public Offices {#sec-18-ncac-07b-.0706 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07B .0706}

If an individual resigned from a public office, the individual shall include:

(1) the name of the public office from which the individual resigned;

(2) the locality, state, federally recognized tribe, or nation where the public office is or was located;

(3) the date of the resignation;

(4) the name used when the resignation occurred;

(5) the reason for the resignation; and

(6) other information that the individual wishes to include in order to aid the Department in assessing the individual's qualification for authorization.

History

Authority G.S. 10B-4
Eff. March 1, 2025.

18 NCAC 07B .0707 Disciplinary Action Involving a Public Office {#sec-18-ncac-07b-.0707 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07B .0707}

For each public office listed pursuant to Rule .0701 of this Section and for which the individual has been the subject of a disciplinary action, the individual shall include:

(1) the date of each disciplinary action;

(2) the disciplinary action taken;

(3) a copy of each disciplinary action;

(4) if not otherwise set out in the copy of the disciplinary action provided:

(a) the reason given for the disciplinary action; and

(b) an explanation of the circumstances that led to the disciplinary action;

(5) whether the disciplinary action included any corrective actions or conditions;

(6) whether the individual complied with the corrective actions or conditions;

(7) the date on which compliance with the corrective actions or conditions was satisfied;

(8) whether the individual would be eligible to hold public office again; and

(9) other information that the individual wishes to include in order to aid the Department in assessing the individual's qualification for authorization.

History

Authority G.S. 10B-4
Eff. March 1, 2025.

18 NCAC 07B .0708 EVIDENCE OF MINIMUM EXPERIENCE (transferred to 18 NCAC 07E .0201 eff. june 1, 2023) {#sec-18-ncac-07b-.0708 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07B .0708}

18 NCAC 07B .0709 JOURNAL AS EVIDENCE OF EXPERIENCE (transferred to 18 NCAC 07E .0204 eff. june 1, 2023) {#sec-18-ncac-07b-.0709 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07B .0709}

18 NCAC 07B .0710 EMPLOYER AFFIDAVIT AS EVIDENCE OF EXPERIENCE (transferred to 18 ncac 07e .0209 eff. june 1, 2023) {#sec-18-ncac-07b-.0710 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07B .0710}

18 NCAC 07B .0711 ALTERNATIVE EVIDENCE OF EXPERIENCE (transferred to 18 NCAC 07E .0212 eff. june 1, 2023) {#sec-18-ncac-07b-.0711 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07B .0711}

18 NCAC 07B .0712 RECOMMENDATIONS (transferred to 18 ncac 07E .0112 eff. june 1, 2023) {#sec-18-ncac-07b-.0712 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07B .0712}

18 NCAC 07B .0713 ORAL PRESENTATION REQUIREMENT FOR APPLICANT (transferred to 18 NCAC 07E .0303 eff. june 1, 2023) {#sec-18-ncac-07b-.0713 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07B .0713}

18 NCAC 07B .0714 NOTARY PUBLIC INSTRUCTOR CERTIFICATION AND RECERTIFICATION EXAMINATIONS (transferred to 18 NCAC 07E .0302) {#sec-18-ncac-07b-.0714 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07B .0714}

18 NCAC 07B .0715 ADDITIONAL REQUIREMENTS (transferred to 18 NCAC 07E .0701 eff. june 1, 2023) {#sec-18-ncac-07b-.0715 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07B .0715}

18 NCAC 07B .0716 MINIMUM INSTRUCTiONAL DUTIES OF CERTIFIED NOTARY PUBLIC INSTRUCTORS (transferred to 18 NCAC 07E .0601 eff. june 1, 2023) {#sec-18-ncac-07b-.0716 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07B .0716}

18 NCAC 07B .0717 EVALUATIONS OF INSTRUCTION (transferred to 18 NCAC 07E .1001 eff. june 1, 2023) {#sec-18-ncac-07b-.0717 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07B .0717}

18 NCAC 07B .0718 ELIGIBILITY FOR RECERTIFICATION AS NOTARY PUBLIC INSTRUCTOR (transferred to 18 Ncac 07e .1101 eff. june 1, 2023) {#sec-18-ncac-07b-.0718 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07B .0718}

18 NCAC 07B .0719 NOTARY PUBLIC INSTRUCTOR RECERTIFICATION REQUIREMENTS (transferred to 18 NCAC 07E .1102 eff. june 1, 2023) {#sec-18-ncac-07b-.0719 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07B .0719}

18 NCAC 07B .0720 DENIAL OF NOTARY PUBLIC INSTRUCTOR CERTIFICATION OR RECERTIFICATION (transferred to 18 NCAC 07B .1103 eff. june 1, 2023) {#sec-18-ncac-07b-.0720 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07B .0720}

18 NCAC 07B .0801 Definitions {#sec-18-ncac-07b-.0801 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07B .0801}

For the purpose of this Chapter, the following definitions shall apply:

(1) "Accessibility", "accommodation", and "reasonable accommodation" mean actions facilitating participation in a remote electronic notarial act by a remotely located principal with a vision, hearing, or speech impairment.

(2) "Auxiliary aid" means a device or tool to enable an individual with vision, hearing, or speech impairments to communicate with a notary public and participate in the notarial transaction process but does not mean interpretation, transliteration, or CART captioning. Note: Examples are screen reader software, magnification software, optical readers for an individual with low vision or a portable device that either writes or produces speech for an individual with speech impairment.

(3) "CART" or "Communication Access Realtime Translation" means live translation of the spoken English language into English text by an individual certified as a captioner by the National Court Reporters Association and made available on screen with video to a remotely located principal with hearing loss.

(4) "Interpreter" means an individual:

(a) with a full North Carolina interpreter license as defined at 21 NCAC 25 .0101(b)(7);

(b) interpreting, as defined at G.S. 90D-3(5), to a remotely located principal with vision, hearing, or speech impairments; and

(5) "Transliterator" means an individual:

(a) with a full North Carolina transliterator license as defined at 21 NCAC 25 .0101(b)(7);

(b) transliterating, as defined at G.S. 90D-3(9), to a remotely located principal with vision, hearing, or speech impairments; and

History

Authority G.S. 10B-4; 10B-134.15; 10B-134.17; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07B .0802 Principal Seeking Accommodation {#sec-18-ncac-07b-.0802 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07B .0802}

(a) Before performing a notarial act, a notary public shall require a principal needing reasonable accommodation for vision, hearing, or speech impairments to disclose:

(1) any auxiliary aid that the principal has chosen for use in connection with the notarial act; and

(2) any interpreter, transliterator, or CART captioner that the principal has chosen for use in connection with the notarial act.

(b) If the notarial act is a remote notarial act, the notary shall comply with Paragraph (a) of this Rule before starting the communication technology recording.

(c) A notary public may rely on representations made by an interpreter, transliterator, or certified CART captioner pursuant to this Section.

History

Authority G.S. 10B-4; 10B-134.15; 10B-134.17; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07B .0803 principal use of certain accommodations permitted {#sec-18-ncac-07b-.0803 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07B .0803}

A notary public may perform a notarization for a principal with a vision, hearing, or speech impairment whose communications are accurately conveyed by:

(1) an auxiliary aid; or

(2) an interpreter, transliterator, or certified CART captioner.

History

Authority G.S. 10B-4; 10B-134.15; 10B-134.17; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07B .0804 Prohibition on Use of Accommodation as Intermediary Language {#sec-18-ncac-07b-.0804 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07B .0804}

An interpreter, transliterator, or CART captioner shall not act as a bridge or relay interpreter to facilitate communication between a notary public and a principal who do not share a common language. This rule does not prohibit interpretation by an interpreter between a principal who uses American Sign Language and a notary who speaks English.

Note: An example of a bridge or relay interpretation between a notary and principal who do not share a common language would be an interpreter who translates a principal's Chinese into English for a notary and the notary's English into Chinese sign language for the principal with hearing impairment.

History

Authority G.S. 10B-4; 10B-134.15; 10B-134.17; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07B .0805 Prohibition on Use of Auxiliary Aid for Intermediary Language {#sec-18-ncac-07b-.0805 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07B .0805}

A notary public shall not allow a principal to use an auxiliary aid to act as a bridge or to provide relay interpretation to facilitate communication between a notary and a principal who do not share a common language.

Note: An example of an auxiliary aid acting as a bridge or relay between a principal with speech impairment whose language of communication is German and a notary who speaks English, and the aid translates the German into spoken English for the notary and the English into German for the principal.

History

Authority G.S. 10B-4; 10B-134.15; 10B-134.17; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07B .0806 Interpreter or Transliterator Information {#sec-18-ncac-07b-.0806 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07B .0806}

(a) Before performing a notarial act, a notary public shall require any interpreter or transliterator used by a principal to state:

(1) the name of the interpreter or transliterator as it appears on the North Carolina license;

(2) the license number; and

(3) that the interpreter or transliterator has no financial interest in the notarial acts to be performed for the principal.

(b) If the notarial act is a remote notarial act, then the notary shall comply with Paragraph (a) of this Rule before starting the communication technology recording, if applicable.

History

Authority G.S. 10B-4; 10B-134.15; 10B-134.17; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07B .0807 Cart Captioner Information {#sec-18-ncac-07b-.0807 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07B .0807}

(a) Before performing a notarial act, a notary public shall require any CART captioner used by a remotely located principal to state:

(1) the CART captioner's name as it appears on the National Court Reporters Association certification;

(2) the National Court Reporters Association identification number;

(3) the CART captioner's status as a National Court Reporters Association-certified realtime captioner; and

(4) that the CART captioner has no financial interest in the notarial acts to be performed for the principal.

(b) If the notarial act is a remote notarial act, then the notary shall comply with Paragraph (a) of this Rule before starting the communication technology recording, if applicable.

History

Authority G.S. 10B-4; 10B-134.15; 10B-134.17; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07B .0808 Limits on Accommodations {#sec-18-ncac-07b-.0808 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07B .0808}

A notary public shall not perform a notarial act if an individual identified pursuant to Rules .0806 and .0807 of this Section:

(1) is not certified as a CART captioner;

(2) is not licensed as an interpreter or a transliterator; or

(3) indicates or is known to the notary to have a financial interest in the transactions that are subject to the notarial acts.

History

Authority G.S. 10B-4; 10B-134.15; 10B-134.17; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07B .0809 Journal Entry Required Regarding Accommodations {#sec-18-ncac-07b-.0809 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07B .0809}

A notary public shall document within each journal entry any accommodations used by a principal during the notarial transaction.

History

Authority G.S. 10B-4; 10B-134.15; 10B-134.17; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07B .0810 Contents of Journal Entry Regarding Accommodations {#sec-18-ncac-07b-.0810 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07B .0810}

A notary public's journal entry pursuant to Rule .0809 of this Section shall include:

(1) the type of auxiliary aid specified by the principal;

(2) the information regarding a transliterator or interpreter required by Rule .0806 of this Section; and

(3) the information regarding a CART captioner required by Rule .0807 of this Section.

History

Authority G.S. 10B-4; 10B-134.15; 10B-134.17; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07B .0901 FACTORS CONSIDERED IN DISCIPLINARY ACTIONS (transferred to 18 NCAC 07B .0601 eff. june 1, 2023) {#sec-18-ncac-07b-.0901 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07B .0901}

18 NCAC 07B .0902 GENERAL APPLICATION DENIAL (transferred to 18 NCAC 07B .0602 eff. june 1, 2023) {#sec-18-ncac-07b-.0902 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07B .0902}

18 NCAC 07B .0903 EXECUTED DOCUMENT VIOLATIONS (transferred to 18 NCAC 07B .0603 eff. june 1, 2023) {#sec-18-ncac-07b-.0903 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07B .0903}

18 NCAC 07B .0904 COMPLETE AND LAWFUL NOTARIAL ACT VIOLATIONS (transferred to 18 ncac 07b .0604 eff. june 1, 2023) {#sec-18-ncac-07b-.0904 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07B .0904}

18 NCAC 07B .0905 OTHER VIOLATIONS (transferred to 18 ncac 07B .0605 eff. june 1, 2023) {#sec-18-ncac-07b-.0905 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07B .0905}

18 NCAC 07B .0906 MINIMUM SANCTION (transferred to 18 ncac 07B .0606 eff. june 1, 2023) {#sec-18-ncac-07b-.0906 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07B .0906}

18 NCAC 07B .0907 APPEAL PROCEDURES (Transferred to 18 NCAC 07B .0607 eff. june 1, 2023) {#sec-18-ncac-07b-.0907 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07B .0907}

18 NCAC 07B .1001 PUBLIC INFORMATION (transferred to 18 ncac 07B .0110 eff. june 1, 2023) {#sec-18-ncac-07b-.1001 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07B .1001}

Subchapter C

18 NCAC 07C .0101 Scope {#sec-18-ncac-07c-.0101 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07C .0101}

This Subchapter sets requirements for the application, commissioning, and recommissioning process for traditional notaries public.

History

Authority G.S. 10B-4
Eff. July 1, 2024.

For purposes of this Subchapter:

(1) "Commission applicant" is an applicant for an initial commission or for recommissioning as a traditional notary public.

(2) "Exam" means a test prepared by the Department and administered by:

(a) a certified notary instructor; or

(b) the Department or its designee.

History

Authority G.S. 10B-4
Eff. July 1, 2024.

18 NCAC 07C .0201 Initial Application {#sec-18-ncac-07c-.0201 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07C .0201}

An applicant for initial appointment as a traditional notary public who is not a licensed member of the North Carolina State Bar shall:

(1) possess a current personal copy of the North Carolina notary public manual applicable to traditional notaries;

(2) successfully complete the notary course and exam; and

(3) submit the application form specified in 18 NCAC 07B .0407.

Note: The official North Carolina notary public manual is written by the Department. The Department's website includes information regarding where to purchase the manual.

History

Authority G.S. 10B-4
Eff. April 1, 2007
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. December 6, 2016
Transferred from 18 NCAC 07B .0301 Eff. June 1, 2023
Amended Eff. March 1, 2025.

18 NCAC 07C .0202 Timing {#sec-18-ncac-07c-.0202 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07C .0202}

An applicant for initial appointment as a traditional notary public shall:

(1) submit an application within three months after successfully completing the notary course and exam; or

(2) if a licensed member of the North Carolina State Bar, comply with the rules in Section .0700 of this Subchapter.

History

Authority G.S. 10B-4
Eff. April 1, 2007
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. December 6, 2016
Transferred from 18 NCAC 07B .0302(a) Eff. June 1, 2023
Amended Eff. July 1, 2024.

18 NCAC 07C .0203 Requirements for Applicants Residing Outside North Carolina {#sec-18-ncac-07c-.0203 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07C .0203}

A commission applicant who resides outside the State of North Carolina and has a regular place of work or business in North Carolina shall submit an affidavit from the applicant's employer that shall be on the employer's business letterhead, and include:

(1) the name, address, and telephone number of the employer's business;

(2) the name of the applicant;

(3) affirmation that:

(a) the applicant works for the employer;

(b) the applicant regularly spends all or part of the applicant's work time working for the employer in a physical location within the State of North Carolina; and

(4) the printed name and the signature of the individual signing the statement;

(5) the title of the individual signing the statement;

(6) a statement that the signer has the authority to sign on behalf of the employer;

(7) a telephone number and email address at which the signer can be contacted; and

(8) a jurat certificate.

History

Authority G.S. 10B-4
Eff. April 1, 2007
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. December 6, 2016
Transferred from 18 NCAC 07B .0502(b) Eff. June 1, 2023
Amended Eff. July 1, 2024.

18 NCAC 07C .0204 Additional Requirements for Applicants Listing Convictions {#sec-18-ncac-07c-.0204 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07C .0204}

A commission applicant who submits a criminal history record shall include with the application the information required by 18 NCAC 07B .0500.

History

Authority G.S. 10B-4
Eff. July 1, 2024.

18 NCAC 07C .0205 Requirements for Applicant with Pending Criminal Charges {#sec-18-ncac-07c-.0205 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07C .0205}

A commission applicant who has pending criminal charges in a court shall comply with 18 NCAC 07B .0505.

History

Authority G.S. 10B-4
Eff. July 1, 2024.

18 NCAC 07C .0206 Requirements for Applicants regarding professional licenses, notarial commissions, and public offices {#sec-18-ncac-07c-.0206 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07C .0206}

A commission applicant who has applied for, holds, or has held a professional license, a notarial commission, or a public office, shall comply with 18 NCAC 07B .0700.

History

Authority G.S. 10B-4
Eff. March 1, 2025.

18 NCAC 07C .0207 Findings or Admissions of Liability Based on Applicant's Deceit {#sec-18-ncac-07c-.0207 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07C .0207}

A commission applicant for whom, in a civil lawsuit, there has been a finding or admission of fault or liability based on the applicant's deceit shall include with the application:

(1) a list of each finding or admission;

(2) a copy of the document containing the finding or admission;

(3) a brief description of the circumstances surrounding the finding or admission;

(4) if not included in the document in Item (2) of this Rule:

(a) the date on which the finding or admission was made;

(b) the court in which the civil lawsuit was filed; and

(5) any additional information that the applicant wishes the Department to consider.

History

Authority G.S. 10B-4
Eff. March 1, 2025.

18 NCAC 07C .0208 findings that the applicant engaged in official misconduct {#sec-18-ncac-07c-.0208 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07C .0208}

A commission applicant who is, has previously been, or has acted in the capacity as a notary public of any locality, state, federally recognized tribe, or nation, and who has listed on the application findings of official misconduct, civil findings, or admissions of fault or liability regarding the applicant's activities as a notary, shall include with the application:

(1) the name of the court or governmental agency, board, or commission that made the finding;

(2) a copy of the document in which the official misconduct finding was made;

(3) if not included in the document in Item (2) of this Rule:

(a) the date on which the finding or admission was made;

(b) the court or governmental agency, board or commission that made the finding; and

(4) a description of the circumstances surrounding the finding; and

(5) any additional information that the applicant wishes the Department to consider.

History

Authority G.S. 10B-4
Eff. March 1, 2025.

18 NCAC 07C .0209 finding of unauthorized practice of law {#sec-18-ncac-07c-.0209 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07C .0209}

A commission applicant against whom a finding has been made that the applicant engaged in the unauthorized practice of law shall include with the application:

(1) the name of the court or governmental agency, board, or commission that made the finding;

(2) a copy of the finding;

(3) the date of the finding, if not included in the copy provided pursuant to Item (2) of this Rule;

(4) a description of the circumstances surrounding the finding; and

(5) any additional information that the applicant wishes the Department to consider.

History

Authority G.S. 10B-4
Eff. March 1, 2025.

18 NCAC 07C .0210 Finding of False or Misleading Advertising {#sec-18-ncac-07c-.0210 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07C .0210}

A commission applicant against whom a charge or finding has been made that as a notary public, the notary knowingly used false or misleading advertising that represents that the notary has powers, duties, rights, or privileges not conveyed by law, shall include with the application:

(1) the name of the court or governmental agency, board, or commission in which the charge or finding is made;

(2) a copy of the charge or finding;

(3) the date of the charge or finding, if not included in the copy provided pursuant to Item (2) of this Rule;

(4) a description of the circumstances surrounding the charge or finding; and

(5) any additional information that the applicant wishes the Department to consider.

History

Authority G.S. 10B-4
Eff. March 1, 2025.

18 NCAC 07C .0301 Courses Taught by Certified Notary Instructors {#sec-18-ncac-07c-.0301 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07C .0301}

An applicant for an initial notary commission shall successfully complete a notary course taught by a certified notary instructor before submitting an initial commission application to the Department.

History

Authority G.S. 10B-4
Eff. July 1, 2024.

18 NCAC 07C .0303 Presentation of Satisfactory Evidence of Identity in Connection with Notary Course {#sec-18-ncac-07c-.0303 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07C .0303}

A commission applicant who is not personally known to the certified notary instructor shall present satisfactory evidence of identity to the notary instructor:

(1) before the course begins;

(2) before the instructor signs the application; and

(3) upon request of the instructor at any other time during the course.

History

Authority G.S. 10B-4
Eff. July 1, 2024.

18 NCAC 07C .0304 Satisfactory Evidence Presented to Instructor {#sec-18-ncac-07c-.0304 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07C .0304}

The satisfactory evidence of identity presented to a certified notary instructor pursuant to Rule .0303 of this Section shall match the applicant's name for use on a notary public commission.

History

Authority G.S. 10B-4
Eff. July 1, 2024.

18 NCAC 07C .0305 Retesting {#sec-18-ncac-07c-.0305 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07C .0305}

A notary applicant who fails to achieve a passing grade on the notary course exam and who wishes to be commissioned as a notary public may retake the exam if:

(1) the institution at which the course is taught permits retesting; and

(2) the retest is taken within 30 days of the date of the exam failure.

History

Authority G.S. 10B-4
Eff. July 1, 2024.

18 NCAC 07C .0401 Appointment {#sec-18-ncac-07c-.0401 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07C .0401}

The Department shall appoint or reappoint an applicant to the office of notary public after reviewing the application submitted by the applicant and determining that:

(1) the application is accepted; and

(2) the applicant is qualified to be appointed pursuant to N.C. Const. Art. VI, Sec. 8, Chapter 10B of the General Statutes, and the rules in this Chapter.

History

Authority G.S. 10B-4
Eff. April 1, 2007
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. December 6, 2016
Transferred from 18 NCAC 07B .0501 Eff. June 1, 2023
Amended Eff. March 1, 2025.

18 NCAC 07C .0402 Issuance of certificates {#sec-18-ncac-07c-.0402 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07C .0402}

The Department shall provide:

(1) to the Register of Deeds in the county of the notary public's commissioning:

(a) a certificate of appointment that includes the appointee's full legal name and the commission name of the appointee; and

(b) a commission certificate in the commission name of the appointee to be used by the Register of Deeds to document that the notary oath has been administered to the appointee; and

(2) a duplicate commission certificate to a notary public, upon request to the Department.

History

Authority G.S. 10B-4
Eff. March 1, 2025.

18 NCAC 07C .0403 Notice to Appointee {#sec-18-ncac-07c-.0403 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07C .0403}

The Department shall send the appointee notice that:

(1) the certificate of appointment has been issued; and

(2) the appointee shall appear before the Register of Deeds in the county of commissioning and take the oath of office within 45 days of the certificate of appointment issuance date.

History

Authority G.S. 10B-4
Eff. March 1, 2025.

18 NCAC 07C .0404 Commission Certificate {#sec-18-ncac-07c-.0404 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07C .0404}

A commission certificate:

(1) shall not be valid until the oath of office has been taken; and

(2) shall include:

(a) the appointee's name for use on a notary public commission;

(b) the county of commissioning;

(d) the expiration date of the commission.

History

Authority G.S. 10B-4
Eff. April 1, 2007
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. December 6, 2016
Transferred from 18 NCAC 07B .0502(a) Eff. June 1, 2023
Amended Eff. March 1, 2025.

18 NCAC 07C .0405 Satisfactory Evidence of Identity {#sec-18-ncac-07c-.0405 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07C .0405}

Before taking the oath of office, an appointee shall:

(1) present satisfactory evidence matching the appointee's name on the certificate of appointment to the Register of Deeds, assistant Register of Deeds, or deputy Register of Deeds who will administer the oath of office; or

(2) be personally known to the Register of Deeds, assistant Register of Deeds, or deputy Register of Deeds who will administer the oath of office.

History

Authority G.S. 10B-4
Eff. April 1, 2007
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. December 6, 2016
Transferred from 18 NCAC 07B .0503 Eff. June 1, 2023
Amended Eff. July 1, 2024.

18 NCAC 07C .0406 register of deeds {#sec-18-ncac-07c-.0406 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07C .0406}

After administering the oath of office, the Register of Deeds, assistant Register of Deeds, or deputy Register of Deeds shall:

(1) require that the notary public sign the certificate of appointment;

(2) sign and date the certificate of appointment;

(3) record the certificate of appointment as required by G.S. 10B-10(c);

(4) deliver the commission certificate to the notary; and

(5) deliver notice to the Department as required by G.S. 10B-10(d).

History

Authority G.S. 10B-4
Eff. July 1, 2024.

18 NCAC 07C .0407 performing traditional notarial acts {#sec-18-ncac-07c-.0407 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07C .0407}

No individual may perform a notarial act unless the individual has a valid commission certificate.

History

Authority G.S. 10B-4
Eff. July 1, 2024.

18 NCAC 07C .0408 reserved for future codification {#sec-18-ncac-07c-.0408 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07C .0408}

18 NCAC 07C .0409 term of COMMISSION {#sec-18-ncac-07c-.0409 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07C .0409}

The term of a notary public's commission shall be calculated from the date that the commission application is filed pursuant to 18 NCAC 07B .0312 unless Rule .0410 of this Subchapter applies.

History

Authority G.S. 10B-4
Eff. April 1, 2007
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. December 6, 2016
Transferred from 18 NCAC 07B .0505 Eff. June 1, 2023
Amended Eff. July 1, 2024.

18 NCAC 07C .0410 Term of Reappointment Commission {#sec-18-ncac-07c-.0410 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07C .0410}

A recommissioning notary public's five year term shall begin on the day following the expiration of the existing commission if:

(1) the application for reappointment has been filed before the expiration of the existing commission; and

(2) the notary takes the oath of office for recommissioning within 45 days of the issuance date on the certificate of appointment.

History

Authority G.S. 10B-4
Eff. July 1, 2024.

18 NCAC 07C .0411 Notarial Acts Prohibited During Gaps Between Commission Terms {#sec-18-ncac-07c-.0411 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07C .0411}

A notary public shall not perform a notarial act after the expiration of the notary's commission until the notary has been reappointed and has taken the oath for a subsequent commission.

History

Authority G.S. 10B-4
Eff. July 1, 2024.

18 NCAC 07C .0501 reserved for future codification {#sec-18-ncac-07c-.0501 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07C .0501}

18 NCAC 07C .0502 late application {#sec-18-ncac-07c-.0502 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07C .0502}

A commission applicant for an initial appointment who submits an application more than three months after successfully completing the notary course shall comply again with the requirements for initial appointment in G.S. 10B-6 and the rules in this Subchapter.

History

Authority G.S. 10B-4
Eff. April 1, 2007
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. December 6, 2016
Transferred from 18 NCAC 07B .0302(b) Eff. June 1, 2023
Amended Eff. July 1, 2024.

18 NCAC 07C .0503 reserved for future codification {#sec-18-ncac-07c-.0503 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07C .0503}

18 NCAC 07C .0504 APPLICATION AFTER recommissioning DENIAL BASED ON FAILING EXAM {#sec-18-ncac-07c-.0504 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07C .0504}

An applicant for recommissioning whose application is denied due to failure to pass the recommissioning exam within the time frame established in Rule .0605 of this Subchapter may reapply by complying again with the requirements for recommissioning in G.S. 10B-11 and the rules in this Subchapter.

History

Authority G.S. 10B-4
Eff. April 1, 2007
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. December 6, 2016
Transferred from 18 NCAC 07B .0403 Eff. June 1, 2023
Amended Eff. July 1, 2024.

18 NCAC 07C .0505 application for recommissioning within 12 months of commission expiration OR PURSUANT TO g.s. 10b-53 {#sec-18-ncac-07c-.0505 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07C .0505}

A notary public may seek recommissioning by complying with G.S. 10B-11 and the rules in this Subchapter if:

(1) the notary's commission has expired and less than 12 months have elapsed since the expiration of the prior commission; or

(2) the notary seeks recommissioning pursuant to G.S. 10B-53.

History

Authority G.S. 10B-4
Eff. April 1, 2007
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. December 6, 2016
Transferred from 18 NCAC 07B .0504 Eff. June 1, 2023
Amended Eff. July 1, 2024.

18 NCAC 07C .0506 Recommissioning Educational Requirement {#sec-18-ncac-07c-.0506 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07C .0506}

A notary public seeking recommissioning pursuant to Rule .0505 of this Section need not attend a notary course but shall pass the online recommissioning exam, unless the exception in G.S. 10B-11(b)(3) applies to the notary.

History

Authority G.S. 10B-4
Eff. July 1, 2024.

18 NCAC 07C .0508 Cancellation of Commission {#sec-18-ncac-07c-.0508 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07C .0508}

If the Department has not received notice from the Register of Deeds that an appointee took the oath within 45 days of the certificate of appointment issuance date, the Department shall:

(1) cancel the commission; and

(2) notify the appointee of the cancellation.

History

Authority G.S. 10B-4
Eff. July 1, 2024.

18 NCAC 07C .0509 Rescind Cancellation of Certificate of Appointment {#sec-18-ncac-07c-.0509 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07C .0509}

If a notary public presents the Department with the notary's valid commission certificate, the Department shall rescind the cancellation of the notary's commission previously made pursuant to Rule .0508 of this Section.

History

Authority G.S. 10B-4
Eff. July 1, 2024.

18 NCAC 07C .0510 Confirmation of Notary Status {#sec-18-ncac-07c-.0510 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07C .0510}

The Department shall confirm a notary public's commission status upon written request.

History

Authority G.S. 10B-4
Eff. July 1, 2024.

18 NCAC 07C .0601 application steps for recommissioning {#sec-18-ncac-07c-.0601 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07C .0601}

A notary public seeking recommissioning within the time permitted by G.S. 10B-11 and the rules in this Subchapter shall submit the recommissioning application specified in 18 NCAC 07B .0409.

History

Authority G.S. 10B-4
Eff. April 1, 2007
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. December 6, 2016
Transferred from 18 NCAC 07B .0401(a) Eff. June 1, 2023
Amended Eff. July 1, 2024.

18 NCAC 07C .0602 Method of Taking Recommissioning Exam {#sec-18-ncac-07c-.0602 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07C .0602}

The recommissioning exam shall be taken on the Department's website.

History

Authority G.S. 10B-4
Eff. April 1, 2007
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. December 6, 2016
Transferred from 18 NCAC 07B .0401(b) Eff. June 1, 2023
Amended Eff. July 1, 2024.

18 NCAC 07C .0603 Course as Alternative to Recommissioning Exam {#sec-18-ncac-07c-.0603 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07C .0603}

An applicant for recommissioning may comply with the rules in Section .0300 of this Subchapter as though the applicant were applying for an initial notary commission in lieu of taking or retaking the recommissioning exam.

History

Authority G.S. 10B-4
Eff. April 1, 2007
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. December 6, 2016
Transferred from 18 NCAC 07B .0402 Eff. June 1, 2023
Amended Eff. July 1, 2024.

18 NCAC 07C .0604 Exam Length and Passing Score {#sec-18-ncac-07c-.0604 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07C .0604}

A notary public seeking recommissioning and taking the recommissioning exam shall:

(1) have 30 minutes to complete the recommissioning exam; and

(2) achieve a passing score of at least 80 percent on the exam.

History

Authority G.S. 10B-4
Eff. July 1, 2024.

18 NCAC 07C .0605 Retaking Recommissioning Exam After Failure {#sec-18-ncac-07c-.0605 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07C .0605}

If an applicant for recommissioning fails the recommissioning exam, the applicant may take the exam up to 2 additional times within 30 days of the date on which the exam is first taken.

History

Authority G.S. 10B-4
Eff. July 1, 2024.

18 NCAC 07C .0606 Failure to Pass Exam Within 30 Days {#sec-18-ncac-07c-.0606 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07C .0606}

If a notary public seeking recommissioning fails to pass the recommissioning or notary course exam within 30 days of the date on which the exam was first taken, the application shall be denied.

History

Authority G.S. 10B-4
Eff. July 1, 2024.

18 NCAC 07C .0607 Individual Who Fails to Seek Recommissioning Within One Year {#sec-18-ncac-07c-.0607 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07C .0607}

An individual who fails to seek recommissioning within one year of commission expiration may be commissioned as a notary public only upon completion of all requirements for an initial notary commission.

History

Authority G.S. 10B-4
Eff. July 1, 2024.

18 NCAC 07C .0701 Attorney Application for Initial Appointment {#sec-18-ncac-07c-.0701 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07C .0701}

Notary applicants for initial appointment who are licensed members of the North Carolina State Bar shall:

(1) maintain a personal copy of the most recent notary public manual approved by the Department; and

(2) either:

(a) submit a completed notarial commission application form described in 18 NCAC 07B .0407 without any of the following being required:

(i) attending the notary course;

(ii) passing the notary course exam; and

(iii) obtaining a signature from a notary instructor; or

(b) comply with the rules in this Subchapter for an individual who is not a licensed member of the State Bar.

History

Authority G.S. 10B-4
Eff. July 1, 2024.

18 NCAC 07C .0702 Recommissioning of Attorney Notaries {#sec-18-ncac-07c-.0702 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07C .0702}

Licensed members of the North Carolina State Bar who are commissioned notaries public may apply for recommissioning by complying with the rules in this Subchapter, except that licensed members of the State Bar shall not be required to take any course or exam prior to recommissioning.

History

Authority G.S. 10B-4
Eff. July 1, 2024.

18 NCAC 07C .0703 attorneys who fail to take notarial oath timely {#sec-18-ncac-07c-.0703 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07C .0703}

A licensed member of the North Carolina State Bar who fails to take the oath of office within 45 days of the issuance date on a certificate of appointment or reappointment shall submit a new application and fee in compliance with the rules in this Subchapter.

History

Authority G.S. 10B-4
Eff. July 1, 2024.

18 NCAC 07C .0704 ATTORNEYS SEEKING registration or reregistration AS ELECTRONIC NOTARIES {#sec-18-ncac-07c-.0704 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07C .0704}

A licensed member of the North Carolina State Bar who applies to be registered or reregistered as an electronic notary public shall:

(1) comply with the rules in Subchapter 07F of this Chapter;

(2) successfully complete the electronic notary course and exam;

(3) possess a current and personal copy of the North Carolina notary manual applicable to electronic notaries; and

(4) submit an electronic notary application and fee.

History

Authority G.S. 10B-4; 10B-126; 10B-134.21
Eff. July 1, 2024.

18 NCAC 07C .0801 Initial Seal {#sec-18-ncac-07c-.0801 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07C .0801}

An applicant or appointee for an initial commission as a notary public shall not order or purchase a seal until the applicant or appointee has complied with the requirements of Section .0400 of this Subchapter.

History

Authority G.S. 10B-4; 10B-36
Eff. July 1, 2025.

18 NCAC 07C .0802 Seal Image {#sec-18-ncac-07c-.0802 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07C .0802}

A notary public's seal shall be deemed by the Department to comply with G.S. 10B-37 if it contains the words "State of North Carolina" in lieu of the designations in G.S. 10B-37(b)(4).

History

Authority G.S. 10B-4; 10B-36
Eff. July 1, 2025.

18 NCAC 07C .0803 Seal Limitation {#sec-18-ncac-07c-.0803 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07C .0803}

A notary public's seal manufactured after the effective date of this Rule shall include no information or images other than those required or permitted by G.S. 10B-37 and Rule .0802 of this Section.

History

Authority G.S. 10B-4; 10B-36
Eff. July 1, 2025.

18 NCAC 07C .0804 Obtaining Seal {#sec-18-ncac-07c-.0804 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07C .0804}

A notary public who seeks to order or purchase a seal shall:

(1) select a seal manufacturer or vendor from among the registered seal manufacturers and vendors listed on the Department's website; and

(2) present the notary's commission certificate to the manufacturer or vendor.

History

Authority G.S. 10B-4; 10B-36
Eff. July 1, 2025.

18 NCAC 07C .0805 In-Person Seal Purchase {#sec-18-ncac-07c-.0805 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07C .0805}

If a notary public seeks to order or purchase a seal in person, the notary shall comply with Rule .0804 of this Section and:

(1) be personally known to the manufacturer or vendor; or

(2) present satisfactory evidence of identity to the manufacturer or vendor.

History

Authority G.S. 10B-4; 10B-36
Eff. July 1, 2025.

Subchapter D

18 NCAC 07D .0101 Scope {#sec-18-ncac-07d-.0101 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07D .0101}

The rules in this Subchapter set forth the continuing obligations of notaries public.

History

Authority G.S. 10B-4
Eff. July 1, 2024.

18 NCAC 07D .0102 Response to Department Requests {#sec-18-ncac-07d-.0102 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07D .0102}

A notary public shall respond to a request by the Department for information, records, or an interview relating to qualifications to be a notary or performance of notarial acts:

(1) in the manner and within the time period set by the Department; or

(2) as provided in an extension granted pursuant to Rule .0104 of this Section.

History

Authority G.S. 10B-4; 10B-126(f); 10B-134.17(c)
Eff. July 1, 2024.

18 NCAC 07D .0103 Extension Request to Department {#sec-18-ncac-07d-.0103 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07D .0103}

History

Status: repealed
Authority G.S. 10B-4; 10B-126(f); 10B-134.17(c)
Eff. July 1, 2024
Repealed Eff. July 1, 2025.

18 NCAC 07D .0104 Department Response to Extension Request {#sec-18-ncac-07d-.0104 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07D .0104}

History

Status: repealed
Authority G.S. 10B-4; 10B-126(f); 10B-134.17(c)
Eff. July 1, 2024
Repealed Eff. July 1, 2025.

18 NCAC 07D .0105 Notarization of Open Vehicle Title Prohibited {#sec-18-ncac-07d-.0105 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07D .0105}

A notary public shall not notarize an assignment and warranty of title on the reverse of the certificate of title form approved by the Division of Motor Vehicles unless the following fields have been completed by an individual other than the notary:

(1) the name and address of the buyer or transferee, except as provided in G.S. 20-72(b) for insurers and used motor vehicle dealers;

(2) the required odometer reading disclosures;

(3) the required disclosures about repairs, flood, and reconstruction or salvage;

(4) the date the vehicle was delivered to the buyer or transferred;

(5) the printed name of the seller; and

(6) the signature of the seller.

History

Authority G.S. 10B-2; 10B-4; 20-72(b)
Eff. July 1, 2025.

18 NCAC 07D .0106 No Use of Foreign Language Translators {#sec-18-ncac-07d-.0106 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07D .0106}

A notary public shall not allow a principal or remotely located principal to communicate with the notary by means of an individual converting one language to a different language, orally or in writing. An interpreter, transliterator, or CART captioner may facilitate communication between the notary and principal in compliance with 18 NCAC 07B .0800.

History

Authority G.S. 10B-2; 10B-4
Eff. July 1, 2025.

18 NCAC 07D .0201 Travel Fee Rate {#sec-18-ncac-07d-.0201 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07D .0201}

A notary public who charges travel fees shall refer to the IRS website for the current federal business mileage rate prior to charging the travel fee.

History

Authority G.S. 10B-4
Eff. January 1, 2024
Transferred from 18 NCAC 07K .0201 Eff. March 1, 2025

18 NCAC 07D .0202 Estimate of Charges {#sec-18-ncac-07d-.0202 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07D .0202}

In addition to the publication or provision of a notary public's schedule of fees pursuant to G.S. 10B-32, if a principal requests a fee estimate from a notary, the notary shall provide an estimate that includes:

(1) the estimated total fee; and

(2) the basis for the estimated charges.

History

Authority G.S. 10B-4
Eff. January 1, 2024
Transferred from 18 NCAC 07K .0202 Eff. March 1, 2025.

18 NCAC 07D .0203 Inclusion of fees in journal {#sec-18-ncac-07d-.0203 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07D .0203}

A notarial journal maintained pursuant to the rules in Subchapter I of this Chapter shall include, with regard to a specific notarial act for which fees were charged:

(1) how much the notary public charged for each notarial act performed; and

(2) if travel reimbursement was charged:

(a) the actual reimbursement charged; and

(b) the fee charged per mile.

History

Authority G.S. 10B-4; 10B-38; 10B-126; 10B-134.15
Eff. January 1, 2024
Transferred from 18 NCAC 07K .0203 Eff. March 1, 2025.

A notary public who charges travel fees pursuant to G.S. 10B-31(5) may obtain the advance consent of the principal in writing and delivered in any manner agreed upon by the notary and the principal.

History

Authority G.S. 10B-4; 10B-31
Eff. January 1, 2024
Transferred from 18 NCAC 07K 0204 Eff. March 1, 2025.

A notary public who charges travel fees shall obtain advance written consent of the principal that includes the following information:

(1) date of the consent;

(2) name of the principal;

(3) name of the notary;

(4) estimated mileage that the notary will charge;

(5) fee per mile that the notary will charge; and

(6) planned date of the notary's travel.

History

Authority G.S. 10B-4
Eff. January 1, 2024
Transferred from 18 NCAC 07K .0205 Eff. March 1, 2025.

A notary public who charges travel fees shall preserve the advance written consent as a notarial record:

(1) in the notary's journal; or

(2) if written consent is not included in a journal, then a record of the written consent including the contents required by Rule .0205 of this Section shall be maintained by the notary.

History

Authority G.S. 10B-4; 10B-31; 10B-126; 10B-134.15
Eff. January 1, 2024
Transferred from 18 NCAC 07K .0206 Eff. March 1, 2025.

18 NCAC 07D .0301 OBLIGATIONS to give notice of changes in primary information {#sec-18-ncac-07d-.0301 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07D .0301}

A notary applicant or notary public shall use the form specified in 18 NCAC 07B .0410 to notify the Department within 45 calendar days of changes in the applicant's or notary's:

(1) name;

(2) mailing or street address;

(3) county of commission;

(4) residential or mobile telephone number;

(5) personal or business email address;

(6) status as a resident of the United States;

(7) ability to speak, read and write in the English language; or

(8) employer regarding:

(a) change of employer;

(b) change in employer business name. Note: A business changing from ABC, Inc. to ABC, LLC is an example of a change in employer business name;

(d) change in employer telephone number.

History

Authority G.S. 10B-4
Eff. April 1, 2007
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. December 6, 2016
Transferred from 18 NCAC 07B .0107 Eff. June 1, 2023
Amended Eff. July 1, 2024.

18 NCAC 07D .0302 Notice to Department of Pending Criminal Charges {#sec-18-ncac-07d-.0302 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07D .0302}

A notary applicant or notary public shall notify the Department within 45 calendar days of a previously unreported pending criminal charge against the applicant or notary by complying with 18 NCAC 07B .0505.

History

Authority G.S. 10B-4
Eff. July 1, 2024.

18 NCAC 07D .0303 Notice to Department of Criminal Charge Disposition {#sec-18-ncac-07d-.0303 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07D .0303}

Within 45 calendar days of the date of the final disposition of a criminal charge against a notary applicant or a notary public, the applicant or notary shall notify the Department by complying with 18 NCAC 07B .0506.

History

Authority G.S. 10B-4
Eff. July 1, 2024.

18 NCAC 07D .0304 Notice to Department of Findings or Admissions of Deceit {#sec-18-ncac-07d-.0304 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07D .0304}

A notary applicant or a notary public shall use the form specified in 18 NCAC 07B .0413 to notify the Department within 45 calendar days of a finding or admission of fault or liability in a civil lawsuit based on the applicant's or notary's deceit.

History

Authority G.S. 10B-4
Eff. March 1, 2025.

18 NCAC 07D .0305 Notice to Department of Changes to Professional Licenses, Notary Commissions, or Public Offices {#sec-18-ncac-07d-.0305 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07D .0305}

A notary applicant or notary public shall use the form specified in 18 NCAC 07B .0412 to notify the Department within 45 calendar days of an issuance, a denial, a revocation, a suspension, a restriction, or a resignation of the applicant's or notary's professional license, notary commission, or public office.

History

Authority G.S. 10B-4
Eff. March 1, 2025.

18 NCAC 07D .0306 Notice to Department of Official Misconduct {#sec-18-ncac-07d-.0306 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07D .0306}

A notary applicant or notary public shall use the form specified in 18 NCAC 07B .0413 to notify the Department within 45 calendar days of a finding that the applicant or notary has engaged in official misconduct and shall provide the Department with the documents and information required by 18 NCAC 07C .0208.

History

Authority G.S. 10B-4
Eff. March 1, 2025.

18 NCAC 07D .0307 Notice to Department of False or Misleading Advertising {#sec-18-ncac-07d-.0307 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07D .0307}

A notary applicant or notary public shall use the form specified in 18 NCAC 07B .0413 to notify the Department within 45 calendar days of a finding or a charge that the applicant or notary has knowingly used false or misleading advertising that represents that the applicant or notary has powers, duties, rights, or privileges the applicant or notary does not possess by law.

History

Authority G.S. 10B-4
Eff. March 1, 2025.

18 NCAC 07D .0308 Notice to Department Regarding Unauthorized Practice of Law {#sec-18-ncac-07d-.0308 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07D .0308}

A notary applicant or notary public shall use the form specified in 18 NCAC 07B .0413 to notify the Department within 45 calendar days of a finding by a court or the attorney-licensing agency of any state, federally recognized tribe, or nation, that the applicant or notary has engaged in the unauthorized practice of law.

History

Authority G.S. 10B-4
Eff. March 1, 2025.

18 NCAC 07D .0309 Notification of Electronic Notary Solution Serious Service Performance Problems {#sec-18-ncac-07d-.0309 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07D .0309}

An electronic notary public shall use the form described in 18 NCAC 07B .0420 to notify the Department of any electronic notary solution dysfunction that the electronic notary considers:

(1) to be persistent and disruptive; or

(2) to indicate possible problems with security, privacy, or accuracy of credential verification or identity proofing.

Note: For purposes of this rule, persistent and disruptive dysfunctions include repeated abnormal system interruptions or stoppages, extremely slow system responses, and other unusual system interactions that delay or hinder the notarial act, as determined by the electronic notary.

History

Authority G.S. 10B-4; 10B-36
Eff. July 1, 2025.

18 NCAC 07D .0310 Notary Report of Loss, Theft and Similar Issues {#sec-18-ncac-07d-.0310 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07D .0310}

Within 10 days of discovery, a notary public shall report to the Department using the form specified in 18 NCAC 07B .0431:

(1) for a physical notary seal or journal, its unauthorized use, loss, theft, or vandalization;

(2) for an electronic notary seal or signature, its unauthorized use, loss of use, compromise of security, or having been rendered incapable of affixing a legible image; or

(3) for an electronic notary journal, a communication technology recording, a session record, or other notarial records:

(a) the permanent loss of data, use, or access;

(b) compromise of security or unauthorized use; or

History

Authority G.S. 10B-4; 10B-36; 10B-125(b); 10B-126(d); 10B-134.21
Eff. July 1, 2025.

18 NCAC 07D .0401 Electronic Notary Seal {#sec-18-ncac-07d-.0401 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07D .0401}

An electronic notary public shall:

(1) obtain an electronic notary seal only from an authorized IPEN solution or platform provider;

(2) present the electronic notary's registration certificate to the provider; and

(3) undergo credential analysis and identity proofing upon:

(a) account creation with the provider;

(b) presentation of:

(i) a commission certificate with a name, county, or expiration date change; or

(ii) a recommissioning certificate; and

History

Authority G.S. 10B-4; 10B-125(b)
Eff. July 1, 2025.

18 NCAC 07D .0402 LICENSED PLATFORM USE FOR REMOTE OATHS AND AFFIRMATIONS PURSUANT TO G.S. 10B-134.9(d) {#sec-18-ncac-07d-.0402 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07D .0402}

A notary public shall use a licensed platform for administration of oaths or affirmations pursuant to G.S. 10B-134.9(d) and comply with the rules in Section .0500 of this Subchapter.

History

Authority G.S. 10B-4; 10B-134.21
Eff. July 1, 2025.

18 NCAC 07D .0403 Traditional Notary Public Use of Approved Custodian for Journal {#sec-18-ncac-07d-.0403 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07D .0403}

Any custodial services used by a traditional notary public shall have been approved by the Department.

History

Authority G.S. 10B-4; 10B-134.19; 10B-134.21
Eff. July 1, 2025.

18 NCAC 07D .0404 Notary Use of Identity Proofing and Credential Analysis Independent of Platform {#sec-18-ncac-07d-.0404 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07D .0404}

A notary public shall use approved identity proofing or credential analysis solutions when performing an in-person notarial act if the notary:

(1) verifies the identity of the principal using personal knowledge or satisfactory evidence, as defined in G.S. 10B-3(22);

(2) uses the identity proofing or credential analysis only as a supplement to, and not a replacement for, the identification process described in Item (1) of this Rule; and

(3) complies with G.S. 10B-134.11(a)(2).

History

Authority G.S. 10B-4; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07D .0405 Approved or Licensed Technology to Be Used by an Electronic Notary Public {#sec-18-ncac-07d-.0405 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07D .0405}

An electronic notary public shall use only authorized technology providers when performing electronic notarial acts and remote electronic notarial acts.

History

Authority G.S. 10B-4; 10B-134.21
Eff. July 1, 2025.

18 NCAC 07D .0406 Notification to Technology Provider of Changes {#sec-18-ncac-07d-.0406 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07D .0406}

Prior to conducting any electronic notarial act, a notary public shall have provided the notary's technology providers with a copy of any new commission certificate reflecting changes to the notary's:

(1) commission name;

(2) commission county; or

(3) commission expiration date.

History

Authority G.S. 10B-4; 10B-134.21
Eff. July 1, 2025.

18 NCAC 07D .0501 NOTARY ADMINISTRATION OF REMOTE OATH OR AFFIRMATION PURSUANT TO G.S. 10B-134.9(d) {#sec-18-ncac-07d-.0501 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07D .0501}

A notary public administering a remote oath or affirmation pursuant to G.S. 10B-134.9(d) shall comply with:

(1) the rules in this Section; and

(2) the rules in 18 NCAC 07H, with the exception of Sections .0500 and .0600.

History

Authority G.S. 10B-4; 10B-134.21
Eff. July 1, 2025.

18 NCAC 07D .0502 Declaration of Judicial Official or Officer of the Court {#sec-18-ncac-07d-.0502 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07D .0502}

A notary public may administer a remote oath or affirmation pursuant to G.S. 10B-134.9(d) only if:

(1) the notarial act is requested by a judicial officer or an officer of the court; and

(2) the requesting officer declares to the notary prior to the administration of the remote oath or affirmation that:

(a) the oath or affirmation is one that will be performed in the course of a judicial action or proceeding; and

(b) the oath or affirmation will not involve the notarization of a document.

History

Authority G.S. 10B-4; 10B-134.21
Eff. July 1, 2025.

18 NCAC 07D .0503 Platform Confirmation of Notary Status {#sec-18-ncac-07d-.0503 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07D .0503}

Before completing the platform account registration process in order to administer an oath or affirmation pursuant to G.S. 10B-134.9(d), a notary public shall:

(1) undergo credential analysis and identity proofing by the platform upon initial account creation;

(2) present to the platform:

(a) for an electronic notary public, the electronic notary's registration certificate; and

(b) for a traditional notary, the notary's commission certificate; and

(3) if the notary will use the platform's journal, inform the platform and provide the platform with the name of the notary's approved custodian.

History

Authority G.S. 10B-4; 10B-134.21
Eff. July 1, 2025.

18 NCAC 07D .0504 TRAINING REQUIREMENT FOR NOTARY PUBLIC ADMINISTERING A G.S. 10B-134.9(d) OATH OR AFFIRMATION {#sec-18-ncac-07d-.0504 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07D .0504}

A notary public shall not administer a remote oath or affirmation pursuant to G.S. 10B-134.9(d) unless the notary has completed the Department's educational module specific to G.S. 10B-134.9(d).

Note: The educational module may be taken separately or as part of the electronic notary public course.

History

Authority G.S. 10B-4; 10B-134.21
Eff. July 1, 2025.

18 NCAC 07D .0505 DOCUMENTATION OF REMOTE OATH OR AFFIRMATION PURSUANT TO G.S. 10B-134.9(d) {#sec-18-ncac-07d-.0505 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07D .0505}

An entry shall be made in a notarial journal for each administration of a remote oath or affirmation pursuant to G.S. 10B-134.9(a) by any notary public who keeps a journal.

History

Authority G.S. 10B-4; 10B-134.15(b); 10B-134.21
Eff. July 1, 2025.

18 NCAC 07D .0506 Journal Entry {#sec-18-ncac-07d-.0506 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07D .0506}

An entry in a notarial journal pursuant to Rule .0505 of this Section shall include the name of the judicial official or officer of the court who made the declaration pursuant to Rule .0502 of this Section.

History

Authority G.S. 10B-4; 10B-134.15(b); 10B-134.21
Eff. July 1, 2025.

18 NCAC 07D .0507 Recording Count of Notarial Acts {#sec-18-ncac-07d-.0507 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07D .0507}

Before ending a session in which remote oaths or affirmations are administered pursuant to G.S. 10B-134.9(d), a notary public shall:

(1) count the number of oaths or affirmations administered that do not include a principal signature; and

(2) enter that number of notarial acts in the field designated by the platform for that purpose.

History

Authority G.S. 10B-4; 10B-134.21
Eff. July 1, 2025.

18 NCAC 07D .0601 Disclosure of Confidential Information {#sec-18-ncac-07d-.0601 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07D .0601}

A notary public may disclose confidential information or provide a copy of a journal, a journal entry, or notarial records only pursuant to:

(1) G.S. 10B-20(p)(1)-(5);

(2) a waiver of information confidentiality that complies with Rule .0602 of this Section;

(3) a request that complies with Rule .0603 of this Section; or

(4) a request for an electronic journal by an employer of the electronic notary public that is made pursuant to G.S. 10B-134.15(c) and Rules .0603 and .0604 of this Section.

History

Authority G.S. 10B-4; 10B-125(b); 10B-126(a); 10B-134.15(d); 10B-134.21
Eff. July 1, 2025.

18 NCAC 07D .0602 Release of Confidential Information on Request of Principals {#sec-18-ncac-07d-.0602 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07D .0602}

A notary public may release confidential information learned from the principals or records generated during a notarial transaction only if:

(1) all principals who participated in the notarial transaction agree;

(2) the request is provided to the notary in writing with a statement signed and dated by each principal with:

(a) the printed name of each principal who participated in the transaction;

(b) the date of the transaction;

(d) a description of the confidential information sought; and

(e) an instruction stating to whom the confidential information may be delivered; and

(3) the principal provides any other information that the notary may request for purposes of determining the information to be provided or to whom it is to be provided.

History

Authority G.S. 10B-4; 10B-125(b); 10B-126(a); 10B-134.15(d); 10B-134.21
Eff. July 1, 2025.

18 NCAC 07D .0603 Employer Request for Journal Entries {#sec-18-ncac-07d-.0603 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07D .0603}

An electronic notary may provide the electronic notary's former employer with a copy of work-related entries in the electronic notary's electronic journal upon:

(1) leaving employment with the employer; and

(2) request of the employer.

Note: For purposes of this rule, "work-related" means electronic notarial acts and remote electronic notarial acts performed for the electronic notary public's employer in the course of the electronic notary's employment.

History

Authority G.S. 10B-4; 10B-38; 10B-126(a); 10B-134.15(a)
Eff. July 1, 2025.

18 NCAC 07D .0604 Additional Electronic Notary Obligations Upon Employer Request {#sec-18-ncac-07d-.0604 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07D .0604}

An electronic notary public shall not provide the electronic notary's work-related electronic journal entries to the electronic notary's employer unless the notary retains a backup copy as required by G.S. 10B-134.15(c).

History

Authority G.S. 10B-4; 10B-38; 10B-126(a); 10B-134.15(a)
Eff. July 1, 2025.

18 NCAC 07D .0605 Supplemental Entries Re Access to Journals {#sec-18-ncac-07d-.0605 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07D .0605}

Upon releasing confidential information pursuant to this Section of this Subchapter and unless directed otherwise by court order or the Department, a notary public or electronic notary public shall make a supplemental entry in:

(1) the electronic notary's electronic journal; or

(2) the traditional notary's journal, if any.

History

Authority G.S. 10B-4; 10B-38; 10B-126(a); 10B-134.15(a)
Eff. July 1, 2025.

18 NCAC 07D .0606 Contents of Supplemental Entry Re Release of Confidential Information {#sec-18-ncac-07d-.0606 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07D .0606}

A notary public or an electronic notary public who makes a supplemental journal entry pursuant to Rule .0605 of this Section shall include the following in the entry:

(1) the name of the requestor;

(2) the dates of the request and the notary's response to the request;

(3) the information requested; and

(4) any other information that the notary determines necessary to include.

History

Authority G.S. 10B-4; 10B-38; 10B-126(a); 10B-134.15(a)
Eff. July 1, 2025.

Subchapter E

18 NCAC 07E .0101 Instructor Certification – Scope and Definitions {#sec-18-ncac-07e-.0101 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07E .0101}

(a) This Subchapter sets the requirements for certification and recertification as a notary instructor and for requesting that the Department offer certified notary instructor courses.

(b) For purposes of this Subchapter:

(1) "Active experience as a notary" means either:

(A) performance in North Carolina of at least 1 notarial act in each of the immediately preceding 12 months; or

(B) active experience as a certified notary instructor.

(2) "Active experience as a certified notary instructor" means teaching at least two notary courses for each of the two 12-month periods during which an instructor holds an instructor certification.

(3) "Affidavit of moral character form" means the form specified in 18 NCAC 07B .0408.

(4) "Eligible institution" or "institution" means:

(A) a community college established pursuant to G.S. 115D-4;

(B) a constituent institution of the University of North Carolina established pursuant to G.S. 116-4;

(D) a public school system authorized to conduct adult education programs pursuant to G.S. 115C-231.

(5) "Instructor applicant" means an applicant for initial certification or for recertification as a notary instructor.

(6) "Instructor application form" means the form specified in 18 NCAC 07B .0414.

(7) "Instructor course" means the initial notary public instructor certification course and the recertification course.

(8) "Instructor recertification application form" means the form specified in 18 NCAC 07B .0418.

(9) "Recommendation form" means the form specified in 18 NCAC 07B .0415.

(10) "Successfully complete" means, when used to describe an instructor applicant, that an instructor applicant has complied with Chapter 10B and the rules in this Subchapter and has:

(A) presented satisfactory evidence of identity;

(B) attended a notary instructor certification or recertification course; and

History

Authority G.S. 10B-4; 10B-14; 10B-134.21
Eff. January 1, 2008
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. December 6, 2016
Transferred from 18 NCAC 07B .0701 Eff. June 1, 2023
Amended Eff. July 1, 2024.

18 NCAC 07E .0102 Conditions for Becoming Notary Instructor {#sec-18-ncac-07e-.0102 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07E .0102}

A commissioned notary public may become a certified notary instructor upon meeting the following conditions:

(1) an eligible institution nominates the notary to the Department by written request pursuant to Rule .0103 of this Section; and

(2) the Department determines that the nominee meets the criteria in G.S. 10B-14 and the rules in this Subchapter.

History

Authority G.S. 10B-4; 10B-14; 10B-134.21
Eff. July 1, 2024.

18 NCAC 07E .0103 Nomination by Eligible Institution {#sec-18-ncac-07e-.0103 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07E .0103}

An eligible institution may nominate a notary public to be certified as a notary instructor by:

(1) submitting a written request to the Department addressed to the Director; and

(2) including in its request:

(a) the full name of the institution;

(b) a request that the nominated notary be enrolled in an instructor course;

(d) a statement that the nominated instructor has consented to be nominated and has been directed to contact the Department to request an application form;

(e) the name, title, signature, and contact information for the individual submitting the request;

(f) the name and contact information for the notary course administrator of the institution, if different from the individual submitting the request;

(g) the date of the request; and

(h) a statement that upon certification as a notary instructor, the nominee will be employed by the institution as a certified notary instructor.

History

Authority G.S. 10B-4; 10B-14; 10B-134.21
Eff. July 1, 2024.

18 NCAC 07E .0104 Fee - Exemption and Failure to Pay {#sec-18-ncac-07e-.0104 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07E .0104}

(a) An instructor applicant who asserts exemption from the fee pursuant to G.S. 10B-14(c) shall certify on the instructor certification or recertification application form that as of the date of application, the applicant is currently employed as:

(1) a register of deeds;

(2) a clerk of court; or

(3) an employee of the Department and is authorized by the Secretary to teach notary courses as set forth in G.S. 10B-14(c).

(b) The Department shall refuse to administer the notary public instructor certification exam to an applicant who has failed to pay the fee required for certification or recertification as a notary instructor before the exam date.

History

Authority G.S. 10B-4; 10B-14; 10B-134.21
Eff. January 1, 2008
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. December 6, 2016
Transferred from 18 NCAC 07B .0705 Eff. June 1, 2023
Amended Eff. July 1, 2024.

18 NCAC 07E .0105 General Requirements {#sec-18-ncac-07e-.0105 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07E .0105}

An applicant for initial notary instructor certification shall:

(1) be nominated by an eligible institution;

(2) complete and submit the Department's notary instructor application form specified in 18 NCAC 07B .0414;

(3) provide proof of active experience as a notary public using any combination of the methods set out in Section .0200 of this Subchapter;

(4) submit three recommendations supporting the applicant from nonfamily members in compliance with Rule .0112 of this Section;

(5) have read:

(a) Chapter 10B of the General Statutes;

(b) the rules in this Chapter; and

(6) successfully complete the notary instructor course.

History

Authority G.S. 10B-4; 10B-14; 10B-134.21
Eff. January 1, 2008
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. December 6, 2016
Transferred from 18 NCAC 07B .0702 Eff. June 1, 2023
Amended Eff. March 1, 2025.

18 NCAC 07E .0106 Mandatory Department Denial of Instructor Application {#sec-18-ncac-07e-.0106 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07E .0106}

The Department shall deny a notary instructor certification or recertification application if any of the following apply:

(1) the applicant has not held a notary commission for at least one calendar year;

(2) the applicant does not have active experience as a notary public;

(3) an investigation is pending into the applicant's performance of the duties as a notary, an electronic notary public, or a notary public instructor;

(4) the applicant has not completed the conditions of any disciplinary action issued by the Department; or

(5) any reason for which a notary commission may be denied pursuant to Chapter 10B of the General Statutes or the rules in this Chapter.

History

Authority G.S. 10B-4; 10B-14; 10B-134.21
Eff. January 1, 2008
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. December 6, 2016
Transferred from 18 NCAC 07B .0703 Eff. June 1, 2023
Amended Eff. July 1, 2024.

18 NCAC 07E .0107 Department Rejection of Applications {#sec-18-ncac-07e-.0107 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07E .0107}

History

Status: repealed
Authority G.S. 10B-8; 10B-14
Eff. January 1, 2008
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. December 6, 2016
Transferred from 18 NCAC 07B .0704 Eff. June 1, 2023
Repealed Eff. July 1, 2024.

18 NCAC 07E .0108 Verification That Instructor Applicant Continues to Meet Requirements for a Notary Commission {#sec-18-ncac-07e-.0108 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07E .0108}

An instructor applicant shall verify under penalty of perjury on the instructor application form specified in 18 NCAC 07B .0414 that:

(1) the information on the application is true and complete; and

(2) the applicant will perform the responsibilities of a certified notary instructor as set out in Chapter 10B of the General Statutes and the rules in this Chapter to the best of the applicant's ability.

History

Authority G.S. 10B-4; 10B-14; 10B-134.21
Eff. January 1, 2008
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. December 6, 2016
Transferred from 18 NCAC 07B .0706 Eff. June 1, 2023
Amended Eff. March 1, 2025.

18 NCAC 07E .0109 Change in Instructor's Eligible Institution {#sec-18-ncac-07e-.0109 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07E .0109}

(a) Within 45 days of a change in the eligible institution listed on the notary instructor application, an instructor applicant or certified notary instructor shall notify the Department in writing of:

(1) the change in eligible institution;

(2) the date that the change is effective; and

(3) the name and contact information for the notary course administrator at the eligible institution.

(b) For purposes of this Rule, "change in the eligible institution" means:

(1) that the applicant or certified notary instructor will not teach at the institution named in the application; or

(2) that the applicant or certified notary instructor will teach at another institution.

History

Authority G.S. 10B-4; 10B-14; 10B-134.21
Eff. July 1, 2024.

18 NCAC 07E .0110 reserved for future codification {#sec-18-ncac-07e-.0110 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07E .0110}

18 NCAC 07E .0111 Other Verifications {#sec-18-ncac-07e-.0111 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07E .0111}

History

Status: repealed
Authority G.S. 10B-8; 10B-14
Eff. January 1, 2008
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. December 6, 2016
Transferred from 18 NCAC 07B .0707 Eff. June 1, 2023
Repealed Eff. July 1, 2024.

18 NCAC 07E .0112 Recommendations {#sec-18-ncac-07e-.0112 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07E .0112}

An instructor applicant shall include three recommendations from individuals who are not family members of the applicant. The recommendations shall be submitted on the Department's recommendation form specified in 18 NCAC 07B .0415.

For purposes of this Rule, either the applicant or the individual making the recommendation may submit the recommendation form to the Department.

History

Authority G.S. 10B-4; 10B-14; 10B-134.21
Eff. January 1, 2008
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. December 6, 2016
Transferred from 18 NCAC 07B .0712 Eff. June 1, 2023
Amended Eff. July 1, 2024.

18 NCAC 07E .0113 Instructors as Registered Electronic Notaries {#sec-18-ncac-07e-.0113 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07E .0113}

An instructor applicant shall:

(1) be a registered electronic notary public at the time of application; or

(2) comply with all requirements for registration as an electronic notary within three months of successfully completing the instructor certification course.

History

Authority G.S. 10B-4; 10B-14; 10B-134.21
Eff. July 1, 2024.

18 NCAC 07E .0201 Evidence of Active Experience as a Notary {#sec-18-ncac-07e-.0201 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07E .0201}

Active experience as a notary public shall be established by the applicant pursuant to the rules in this Section by presenting any combination of the following evidence:

(1) journal entries;

(2) employer affidavits; or

(3) an alternative method as set out in the rules in this Section.

History

Authority G.S. 10B-4; 10B-14; 10B-134.21
Eff. January 1, 2008
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. December 6, 2016
Transferred from 18 NCAC 07B .0708 Eff. June 1, 2023
Amended Eff. July 1, 2024.

18 NCAC 07E .0202 Journal as Evidence of Active Experience {#sec-18-ncac-07e-.0202 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07E .0202}

An instructor applicant may present evidence of active experience as a notary public by submitting:

(1) a complete copy of a journal for the year immediately preceding the date on which the application is submitted; and

(2) an affidavit under oath that the entries in the journal submitted are accurate.

History

Authority G.S. 10B-4; 10B-14; 10B-134.21
Eff. July 1, 2024.

18 NCAC 07E .0203 reserved for future codification {#sec-18-ncac-07e-.0203 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07E .0203}

18 NCAC 07E .0204 Minimum Contents of Notary Journal Submitted as Evidence of Experience {#sec-18-ncac-07e-.0204 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07E .0204}

A journal of notarial acts submitted as evidence of active experience as a notary public shall comply with 18 NCAC 07I.

History

Authority G.S. 10B-4; 10B-14; 10B-134.21
Eff. January 1, 2008
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. December 6, 2016
Transferred from 18 NCAC 07B .0709 Eff. June 1, 2023
Amended Eff. July 1, 2024.

18 NCAC 07E .0205 Employer Affidavit as Evidence of Experience {#sec-18-ncac-07e-.0205 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07E .0205}

An employer affidavit submitted as evidence of active experience as a notary public shall be submitted on the form specified in 18 NCAC 07B .0416.

History

Authority G.S. 10B-4; 10B-14; 10B-134.21
Eff. March 1, 2025.

18 NCAC 07E .0206 Employer Affidavit Regarding Notarial Acts for Employer {#sec-18-ncac-07e-.0206 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07E .0206}

An employer affidavit submitted pursuant to Rule .0205 of this Section:

(1) shall refer to notarial acts performed for the employer; and

(2) may refer to other notarial acts of the instructor applicant of which the employer affiant is personally aware.

History

Authority G.S. 10B-4; 10B-14; 10B-134.21
Eff. March 1, 2025.

18 NCAC 07E .0207 Employer Affidavit May Include Recommendation {#sec-18-ncac-07e-.0207 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07E .0207}

An employer submitting an affidavit pursuant to Rule .0205 of this Section may include as an attachment a recommendation from the employer made pursuant to Rule .0112 of this Subchapter.

History

Authority G.S. 10B-4; 10B-14; 10B-134.21
Eff. March 1, 2025.

18 NCAC 07E .0208 reserved for future codification {#sec-18-ncac-07e-.0208 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07E .0208}

18 NCAC 07E .0209 Submittal of Employer Affidavit as Evidence of Experience {#sec-18-ncac-07e-.0209 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07E .0209}

An instructor applicant who relies upon an employer affidavit pursuant to Rule .0205 of this Section shall either submit it to the Department or have the employer affiant directly submit it to the Department.

History

Authority G.S. 10B-4; 10B-14; 10B-134.21
Eff. January 1, 2008
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. December 6, 2016
Transferred from 18 NCAC 07B .0710 Eff. June 1, 2023
Amended Eff. March 1, 2025.

18 NCAC 07E .0210 reserved for future codification {#sec-18-ncac-07e-.0210 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07E .0210}

18 NCAC 07E .0211 reserved for future codification {#sec-18-ncac-07e-.0211 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07E .0211}

18 NCAC 07E .0212 Alternative Affidavits as Evidence of Experience {#sec-18-ncac-07e-.0212 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07E .0212}

An instructor applicant may submit evidence of active experience as a notary public that is not a journal or employer affidavit if:

(1) the evidence consists of one or more affidavits from nonfamily members that comply with Rule .0213 of this Section and that together establish that the instructor applicant has active experience as a notary; and

(2) an affidavit from the instructor applicant that complies with Rule .0214 of this Section.

History

Authority G.S. 10B-4; 10B-14; 10B-134.21
Eff. January 1, 2008
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. December 6, 2016
Transferred from 18 NCAC 07B .0711 Eff. June 1, 2023
Amended Eff. July 1, 2024.

18 NCAC 07E .0213 Affidavit of Experience from Nonfamily Member {#sec-18-ncac-07e-.0213 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07E .0213}

An instructor applicant who submits alternative evidence of experience pursuant to Rule .0212 of this Section shall submit an affidavit from at least one individual who is not a family member that includes:

(1) the applicant's commission name;

(2) the affiant's printed name;

(3) the affiant's address, telephone number, and email address;

(4) a brief explanation describing how the affiant knows the applicant;

(5) each month and year in which the affiant knows that the applicant performed at least one notarial act;

(6) an explanation of how the affiant knows that at least one notarial act was performed during each of the months listed in response to Item (5) of this Rule;

(7) the signature of the affiant and the date on which the affiant signed; and

(8) a jurat certificate.

History

Authority G.S. 10B-4; 10B-14; 10B-134.21
Eff. July 1, 2024.

18 NCAC 07E .0214 Alternative Evidence Affidavit from Instructor Applicant {#sec-18-ncac-07e-.0214 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07E .0214}

An instructor applicant who presents alternative evidence of active experience as a notary public pursuant to Rule .0212 of this Section shall submit the applicant's own affidavit consisting of:

(1) the applicant's commission name;

(2) a declaration of the applicant's active experience as a notary public;

(3) an explanation for how the applicant knows that at least 1 notarial act was performed in each of the 12 months preceding the application;

(4) the signature of the applicant and the date on which the applicant signed; and

(5) a jurat certificate.

Note: To satisfy Item (3) of this Rule, the applicant might refer to a calendar with notes of notarial acts.

History

Authority G.S. 10B-4; 10B-14; 10B-134.21
Eff. July 1, 2024.

18 NCAC 07E .0301 INSTRUCTOR COURSE requirement {#sec-18-ncac-07e-.0301 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07E .0301}

An instructor applicant shall attend the entirety of, and successfully complete, a North Carolina notary instructor course approved by the Department.

History

Authority G.S. 10B-4; 10B-14; 10B-134.21
Eff. July 1, 2024.

18 NCAC 07E .0302 Notary Instructor Certification and Recertification Exam Passing Score {#sec-18-ncac-07e-.0302 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07E .0302}

A passing score shall be 90 percent or higher on each of the notary instructor certification and recertification written exams.

History

Authority G.S. 10B-4; 10B-14; 10B-134.21
Eff. January 1, 2008
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. December 6, 2016
Transferred from 18 NCAC 07B .0714 Eff. June 1, 2023
Amended Eff. July 1, 2024.

18 NCAC 07E .0303 Oral Presentation Requirement for Instructor Applicant {#sec-18-ncac-07e-.0303 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07E .0303}

As part of the notary instructor course exam, a notary instructor applicant shall make an oral presentation that complies with the rules in this Section by presenting on a notary public curriculum topic selected by the applicant from a list provided by the Department.

History

Authority G.S. 10B-4; 10B-14; 10B-134.21
Eff. January 1, 2008
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. December 6, 2016
Transferred from 18 NCAC 07B .0713 Eff. June 1, 2023
Amended Eff. July 1, 2024.

18 NCAC 07E .0304 Notary Instructor Oral Presentation Passing Score {#sec-18-ncac-07e-.0304 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07E .0304}

The Department or its designee shall evaluate the oral presentation portion of the instructor exam on a pass-fail basis using the factors in Rules .0306 through .0312 of this Section.

History

Authority G.S. 10B-4; 10B-14; 10B-134.21
Eff. July 1, 2024.

18 NCAC 07E .0306 Factors Relating to Voice {#sec-18-ncac-07e-.0306 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07E .0306}

An instructor applicant's oral presentation shall be evaluated on voice quality, consisting of projection, diction, pitch, and rate of speech.

History

Authority G.S. 10B-4; 10B-14; 10B-134.21
Eff. July 1, 2024.

18 NCAC 07E .0307 Factors Relating to Verbal Skill {#sec-18-ncac-07e-.0307 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07E .0307}

An instructor applicant's oral presentation shall be evaluated on verbal skill, consisting of fluency, clarity, and vocabulary appropriate for the audience.

History

Authority G.S. 10B-4; 10B-14; 10B-134.21
Eff. July 1, 2024.

18 NCAC 07E .0308 Factors Relating to Physical Appearance and Mannerisms {#sec-18-ncac-07e-.0308 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07E .0308}

An instructor applicant's oral presentation shall be evaluated on professional appearance and mannerisms. For purposes of this Rule, "professional appearance and mannerisms" means:

(1) attire appropriate to the adult education setting. Note: Professional and office casual attire are examples of appropriate attire; and

(2) posture, body language, eye contact, and movement that projects a professional demeanor that will engage the students.

History

Authority G.S. 10B-4; 10B-14; 10B-134.21
Eff. July 1, 2024.

18 NCAC 07E .0309 Factors Relating to Professional Qualities of the Instructor {#sec-18-ncac-07e-.0309 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07E .0309}

An instructor applicant's oral presentation shall be evaluated on the applicant's professional qualities. For purposes of this Rule, "professional qualities" means the applicant's demonstration of:

(1) knowledge of the notary course curriculum, the notary manual, Chapter 10B of the General Statutes, and the rules in this Chapter;

(2) projection of confidence in presenting the materials, admitting areas of uncertainty and willingness to get and provide answers;

(3) tact and sensitivity that respects individuals while also respecting the time of the other students when responding to questions or issues that arise in the class; and

(4) enthusiasm for the subject matter and for teaching, so that students are engaged.

History

Authority G.S. 10B-4; 10B-14; 10B-134.21
Eff. July 1, 2024.

18 NCAC 07E .0310 Factors Relating to Selection and Use of Training Aids {#sec-18-ncac-07e-.0310 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07E .0310}

An instructor applicant's oral presentation shall be evaluated on the applicant's selection and use of technology and training aids, such as the applicable notary manual and approved handouts and instructional videos.

History

Authority G.S. 10B-4; 10B-14; 10B-134.21
Eff. July 1, 2024.

18 NCAC 07E .0311 Factors Relating to Sequence {#sec-18-ncac-07e-.0311 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07E .0311}

An instructor applicant's oral presentation shall be evaluated on the applicant's presentation of information in a logical sequence. For purposes of this Rule, "presentation of information in logical sequence" means the applicant:

(1) follows in order the curriculum and lesson plan provided by the Department;

(2) transitions without effort between topics; and

(3) returns to the initial sequence after appropriately addressing the student's issue if a student raises an issue out of order.

History

Authority G.S. 10B-4; 10B-14; 10B-134.21
Eff. July 1, 2024.

18 NCAC 07E .0312 FACTORS RELATING TO EMPHASIS, examples, and summarization {#sec-18-ncac-07e-.0312 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07E .0312}

An instructor applicant's oral presentation shall be evaluated on the applicant's:

(1) emphasis on key points;

(2) use of examples relevant to the topic of the presentation; and

(3) summarization of topics.

History

Authority G.S. 10B-4; 10B-14; 10B-134.21
Eff. July 1, 2024.

18 NCAC 07E .0401 Retaking Written Certification or Recertification Exam {#sec-18-ncac-07e-.0401 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07E .0401}

An instructor applicant who fails the written certification or recertification exam may schedule one additional written exam within one month of the date of the failed exam by:

(1) making a written request to the Department addressed to the Director; and

(2) submitting the request within one week of the date of the failed written exam.

History

Authority G.S. 10B-4; 10B-14; 10B-134.21
Eff. July 1, 2024.

18 NCAC 07E .0402 Consequence of Failing to Pass Written Instructor Exam {#sec-18-ncac-07e-.0402 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07E .0402}

An instructor applicant who fails to pass the written instructor exam within one month of the date on which the written exam is first taken and wishes to become a certified instructor shall comply again with Rule .0105 of this Subchapter.

History

Authority G.S. 10B-4; 10B-14; 10B-134.21
Eff. March 1, 2025.

18 NCAC 07E .0403 Scheduling Additional Oral Presentation Upon Failure {#sec-18-ncac-07e-.0403 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07E .0403}

An instructor applicant who fails to pass the oral presentation may schedule one additional oral presentation by:

(1) making a written scheduling request to the Department addressed to the Director;

(2) submitting the request within one week of the date of the failed oral presentation; and

(3) making the second oral presentation within one month of the date on which the first oral presentation was made.

History

Authority G.S. 10B-4; 10B-14; 10B-134.21
Eff. July 1, 2024.

18 NCAC 07E .0404 Repeat Oral Presentation {#sec-18-ncac-07e-.0404 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07E .0404}

An instructor applicant who schedules an additional oral presentation pursuant to Rule .0403 of this Section shall make a presentation on a topic selected by the Department from the notary instructor curriculum.

History

Authority G.S. 10B-4; 10B-14; 10B-134.21
Eff. July 1, 2024.

18 NCAC 07E .0405 Evaluation of Repeat Oral Presentation {#sec-18-ncac-07e-.0405 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07E .0405}

An instructor applicant who makes an additional oral presentation pursuant to Rule .0404 of this Section shall be evaluated pursuant to the factors set out in Section .0300 of this Subchapter.

History

Authority G.S. 10B-4; 10B-14; 10B-134.21
Eff. July 1, 2024.

18 NCAC 07E .0406 Consequence of Failing to Pass Second Oral Presentation {#sec-18-ncac-07e-.0406 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07E .0406}

An instructor applicant who fails to pass the second oral presentation within the time set in Rule .0403 of this Section and who wishes to become a certified instructor shall comply again with Rule .0105 of this Subchapter.

History

Authority G.S. 10B-4; 10B-14; 10B-134.21
Eff. July 1, 2024.

18 NCAC 07E .0407 Consequences of Failing to Recertify {#sec-18-ncac-07e-.0407 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07E .0407}

An instructor applicant who does not comply with the requirements for instructor recertification before expiration of the existing certification shall:

(1) notify the institutions at which the instructor taught prior to the expiration; and

(2) not teach a notary course before becoming certified as a notary instructor again.

History

Authority G.S. 10B-4; 10B-14; 10B-134.21
Eff. July 1, 2024.

18 NCAC 07E .0601 Minimum Instructional Duties of Certified Notary Instructors {#sec-18-ncac-07e-.0601 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07E .0601}

(a) A certified notary instructor shall verify the identity of each student in a notary course during the first instructional period by:

(1) requiring satisfactory evidence of identity as defined in G.S. 10B-3(22)a; or

(2) having personal knowledge of the student as defined in G.S. 10B-3(17).

(b) A certified notary instructor shall verify the identity of each student in a traditional notary course again prior to signing the application of a traditional notary applicant.

(c) A certified instructor shall comply with the eligible institution's requirements regarding audits of courses, provided that the instructor shall not permit a student who is auditing to:

(1) see or take the notary course exam; or

(2) remain in the classroom during the notary course exam.

History

Authority G.S. 10B-4; 10B-14; 10B-134.21
Eff. January 1, 2008
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. December 6, 2016
Transferred from 18 NCAC 07B .0716 Eff. June 1, 2023
Amended Eff. July 1, 2024.

18 NCAC 07E .0602 Adherence to Curriculum {#sec-18-ncac-07e-.0602 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07E .0602}

A certified notary instructor shall follow the Department curriculum for notary courses unless the Department grants a written variance to the instructor pursuant to the rules in Section .0800 of this Subchapter.

History

Authority G.S. 10B-4; 10B-8; 10B-14; 10B-134.21
Eff. July 1, 2024.

18 NCAC 07E .0603 Proctoring Exam {#sec-18-ncac-07e-.0603 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07E .0603}

When administering the notary course exam, a certified notary instructor shall:

(1) comply with the requirements of the institution regarding proctoring exams;

(2) if the institution does not have requirements regarding exam proctoring, take steps to prevent cheating on the exam; and

(3) take other measures to prevent cheating that the instructor deems appropriate.

History

Authority G.S. 10B-4; 10B-14; 10B-134.21
Eff. July 1, 2024.

18 NCAC 07E .0604 Submission of Grades to Department {#sec-18-ncac-07e-.0604 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07E .0604}

Certified notary instructors shall:

(1) grade notary course exams administered on paper;

(2) review grades for notary course exams administered electronically on the Department's website; and

(3) electronically submit accurate student exam grades to the Department within two business days after the exams have been administered.

History

Authority G.S. 10B-4; 10B-14; 10B-134.21
Eff. July 1, 2024.

18 NCAC 07E .0605 Reporting Suspected Cheating {#sec-18-ncac-07e-.0605 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07E .0605}

A certified notary instructor shall:

(1) comply with the institution's reporting requirements regarding suspected cheating; and

(2) report to the Department within two business days if the instructor has reason to believe that there has been cheating by any student on a notary course exam, and include:

(a) the name and, if available, address and contact information, for any student suspected of cheating;

(b) a narrative description of the instructor's reasons for believing cheating may have occurred;

(d) any other information such as additional supporting evidence that the instructor believes may aid the Department in investigating the report.

Note: For purposes of this Rule, "additional supporting evidence" includes evidence such as videos, student admissions, and witness reports.

History

Authority G.S. 10B-4; 10B-14; 10B-134.21
Eff. July 1, 2024.

18 NCAC 07E .0701 Response to Complaints {#sec-18-ncac-07e-.0701 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07E .0701}

If the Department receives information or a complaint regarding a certified notary instructor's qualifications as an instructor or notary public, or performance as an instructor, the instructor shall, as directed by the Department, perform any combination of the following:

(1) submit to an interview;

(2) submit requested information; or

(3) submit audio and visual documentation such as a video of actual instruction to the extent available.

History

Authority G.S. 10B-4; 10B-14; 10B-134.21
Eff. January 1, 2008
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. December 6, 2016
Transferred from 18 NCAC 07B .0716 Eff. June 1, 2023
Amended Eff. July 1, 2024.

18 NCAC 07E .0702 Instructor Conduct {#sec-18-ncac-07e-.0702 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07E .0702}

During instruction and administration of the duties of a certified notary instructor, an instructor shall demonstrate a professional demeanor.

For purposes of this Rule, "professional demeanor" means exhibiting behaviors consistent with the factors on which an instructor applicant's oral presentation is evaluated pursuant to Rules .0306 through .0312 of this Subchapter.

History

Authority G.S. 10B-4; 10B-14; 10B-134.21
Eff. July 1, 2024.

18 NCAC 07E .0801 Request for Variance from Approved Instructional Aids {#sec-18-ncac-07e-.0801 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07E .0801}

Certified notary instructors may submit a written request addressed to the Director requesting that the Department approve a variance allowing use of instructional aids in addition to or differing from those established by the Department.

History

Authority G.S. 10B-4; 10B-8; 10B-14; 10B-134.21
Eff. July 1, 2024.

18 NCAC 07E .0802 Variance Request - Exemplar Required {#sec-18-ncac-07e-.0802 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07E .0802}

A certified notary instructor who submits a request for variance pursuant to this Section shall include a complete copy of the proposed instructional aid in its original size and colors.

History

Authority G.S. 10B-4; 10B-8; 10B-14; 10B-134.21
Eff. July 1, 2024.

18 NCAC 07E .0803 Variance Request - Explanation of Value {#sec-18-ncac-07e-.0803 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07E .0803}

A certified notary instructor who submits a variance request shall explain to the Department how the revised or new aid:

(1) will be used by the instructor; and

(2) will assist notary course students in understanding the role and responsibilities of a notary public or an electronic notary public.

History

Authority G.S. 10B-4; 10B-8; 10B-14; 10B-134.21
Eff. July 1, 2024.

18 NCAC 07E .0804 Variance Request – Approval Criteria {#sec-18-ncac-07e-.0804 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07E .0804}

The Department shall approve or deny a variance request using the following criteria:

(1) conformity with Chapter 10B of the General Statutes and the rules in this Chapter;

(2) the value added to the curriculum;

(3) the impact of the change on the length of the course; and

(4) the quality of visual or audio elements.

History

Authority G.S. 10B-4; 10B-8; 10B-14; 10B-134.21
Eff. July 1, 2024.

18 NCAC 07E .0901 Prerequisite for Instructor Application Signature {#sec-18-ncac-07e-.0901 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07E .0901}

A certified notary instructor shall sign a student's notary application only after the student has successfully completed the course.

History

Authority G.S. 10B-4; 10B-14; 10B-134.21
Eff. July 1, 2024.

18 NCAC 07E .0902 Instructor Verification of Student Name {#sec-18-ncac-07e-.0902 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07E .0902}

A certified notary instructor shall not sign a student's notary application if the name on the satisfactory evidence presented does not match the student's name for use on a notary commission.

History

Authority G.S. 10B-4; 10B-14; 10B-134.21
Eff. July 1, 2024.

18 NCAC 07E .0903 Retesting Students Who Fail Notary Course Exam {#sec-18-ncac-07e-.0903 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07E .0903}

The institution where a notary course is taught shall determine whether a certified notary instructor may administer a retest to a student who fails a notary course exam.

History

Authority G.S. 10B-4; 10B-14; 10B-134.21
Eff. July 1, 2024.

18 NCAC 07E .0904 Notice to Department of Retesting {#sec-18-ncac-07e-.0904 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07E .0904}

If a certified notary instructor retests a student who fails a notary course exam, the instructor shall:

(1) retest the student within 30 days of the date of the course and failed exam; and

(2) submit the results of the retest to the Department within two business days of the date on which the student retook the exam.

History

Authority G.S. 10B-4; 10B-14; 10B-134.21
Eff. July 1, 2024.

18 NCAC 07E .1001 Student Evaluations of Instructors {#sec-18-ncac-07e-.1001 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07E .1001}

A certified notary instructor shall:

(1) in each year of certification require that students in at least one of the instructor's notary courses complete the Department's student evaluation of notary instructor form specified in 18 NCAC 07B .0417, unless the instructor's employer institution obtains student evaluations during the same period; and

(2) submit to the Department copies of all student evaluation forms completed pursuant to Item (1) of this Rule within 45 days of receipt of the completed forms. Note: Where the employer institution obtains student evaluations more frequently than once per certification year, evaluations for a single class in the certification year satisfy the requirements of this Item.

History

Authority G.S. 10B-4; 10B-14; 10B-134.21
Eff. January 1, 2008
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. December
6, 2016
Transferred from 18 NCAC 07B .0717 Eff. June 1, 2023
Amended Eff. July 1, 2024.

18 NCAC 07E .1002 Departmental Use of Student Evaluations {#sec-18-ncac-07e-.1002 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07E .1002}

In order to determine whether a certified notary instructor shall receive coaching, counseling, or be subject to action pursuant to G.S. 10B-60, the Department shall review student evaluations of the instructor for consistency with the factors on which an instructor applicant's oral presentation is evaluated pursuant to Rules .0306 through .0312 of this Subchapter.

History

Authority G.S. 10B-4; 10B-14; 10B-134.21
Eff. July 1, 2024.

18 NCAC 07E .1101 Ineligibility for Recertification as Notary Instructor {#sec-18-ncac-07e-.1101 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07E .1101}

A certified notary instructor shall not be eligible for recertification as a notary instructor if the instructor:

(1) no longer qualifies for initial commissioning as a notary public;

(2) has not taught at least two notary courses in each of the two immediately preceding instructor certification years; or

(3) has failed to comply with other requirements imposed upon a notary or notary public instructor pursuant to G.S. 10B-14 or the rules in this Chapter.

History

Authority G.S. 10B-4; 10B-8; 10B-14; 10B-134.21
Eff. January 1, 2008
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. December 6, 2016
Transferred from 18 NCAC 07B .0718 Eff. June 1, 2023
Amended Eff. July 1, 2024.

18 NCAC 07E .1102 Notary Public Instructor Recertification Requirements {#sec-18-ncac-07e-.1102 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07E .1102}

An applicant for recertification as a notary instructor shall:

(1) complete the Department's notary instructor recertification form specified in 18 NCAC 07B .0418 and submit it to the Department prior to lapse of certification;

(2) successfully complete the notary instructor recertification course; and

(3) except as otherwise provided by G.S. 10B-14, pay the required fee.

History

Authority G.S. 10B-4; 10B-14; 10B-134.21
Eff. January 1, 2008
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. December 6, 2016
Transferred from 18 NCAC 07B .0719 Eff. June 1, 2023
Amended Eff. March 1, 2025.

18 NCAC 07E .1103 Notary Instructor Certification Equivalence {#sec-18-ncac-07e-.1103 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07E .1103}

(a) Successful completion of the notary instructor course shall satisfy the requirements for successful completion of the notary recommissioning exam and electronic notary course and exam.

(b) Paragraph (a) of this Rule shall apply only to a notary who:

(1) is a certified notary instructor when applying for recommissioning as a notary or reregistration as an electronic notary; and

(2) is a certified notary instructor at the time of taking the recommissioning oath.

History

Authority G.S. 10B-4; 10B-14; 10B-134.21
Eff. January 1, 2008
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. December 6, 2016
Transferred from 18 NCAC 07B .0719 Eff. June 1, 2023
Amended Eff. July 1, 2024.

18 NCAC 07E .1104 Notary Instructor Recertification Course Oral Presentation {#sec-18-ncac-07e-.1104 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07E .1104}

The notary instructor recertification course shall include an oral presentation in addition to the written exam for:

(1) a certified notary instructor's first recertification;

(2) an instructor who has taught no more than two notary courses in each of the two immediately preceding certification years;

(3) an instructor whose student grades have on average been less than 85 percent;

(4) an instructor whose student evaluations for a single course have had a majority of ratings of less than "Good" on:

(a) any one category of the evaluation form; or

(b) any combination of the evaluation form categories; or

(5) an instructor subject to Rule .1105 of this Section.

History

Authority G.S. 10B-4; 10B-14; 10B-134.21
Eff. July 1, 2024.

18 NCAC 07E .1105 Notary Instructor with Lapse in Certification {#sec-18-ncac-07e-.1105 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07E .1105}

(a) A certified notary instructor who has a lapse between certification terms shall comply with the requirements for initial certification as a notary instructor.

(b) Notwithstanding Paragraph (a) of this Rule, if the lapse is for less than six months and the instructor otherwise qualifies, the instructor:

(1) may take the recertification course instead of the initial certification course; and

(2) shall make an oral presentation during the course.

History

Authority G.S. 10B-4; 10B-14; 10B-134.21
Eff. July 1, 2024.

18 NCAC 07E .1201 Reserved for Future Codification {#sec-18-ncac-07e-.1201 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07E .1201}

18 NCAC 07E .1202 Application Denial – Failure to Notify Department of Changes {#sec-18-ncac-07e-.1202 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07E .1202}

The Department shall deny an application for notary instructor certification or recertification if the notary public or instructor has failed to notify the Department of changes as required by Chapter 10B of the General Statutes or the rules in this Chapter.

History

Authority G.S. 10B-4; 10B-14; 10B-134.21
Eff. July 1, 2024.

18 NCAC 07E .1203 Application Denial – Termination for Cause {#sec-18-ncac-07e-.1203 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07E .1203}

The Department shall deny an application for notary instructor recertification if the certified notary instructor has been terminated by an eligible institution for cause.

History

Authority G.S. 10B-4; 10B-14; 10B-134.21
Eff. July 1, 2024.

18 NCAC 07E .1204 Application Denial – Failure to Submit Exam Grades {#sec-18-ncac-07e-.1204 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07E .1204}

The Department shall deny the application for recertification of a certified notary instructor if the instructor applicant has failed to submit student exam grades in accordance with Rule .0604 of this Subchapter more than once in a certification year.

History

Authority G.S. 10B-4; 10B-14; 10B-134.21
Eff. July 1, 2024.

18 NCAC 07E .1205 Application Denial – Disciplinary Action {#sec-18-ncac-07e-.1205 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07E .1205}

The Department shall deny an application for instructor certification or recertification if the notary public has been the subject of a disciplinary action, other than a warning or denial, that is related to performance as a notary public, an electronic notary public, or a notary instructor.

History

Authority G.S. 10B-4; 10B-14; 10B-134.21
Eff. July 1, 2024.

Subchapter F

18 NCAC 07F .0101 Scope {#sec-18-ncac-07f-.0101 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07F .0101}

The rules in this Subchapter implement Chapter 10B, Article 2, of the General Statutes, the Electronic Notary Act.

History

Authority G.S. 10B-4; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.21
Eff. January 1, 2007
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. December 6, 2016
Transferred from 18 NCAC 07C .0101 Eff. June 1, 2023
Amended Eff. July 1, 2024.

18 NCAC 07F .0102 definitions {#sec-18-ncac-07f-.0102 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07F .0102}

For purposes of Article 2 of Chapter 10B of the General Statutes, this Subchapter, and Subchapters 07H and 07J of this Chapter:

(1) "Biometric authentication" means proving the identity of a user through technologies that require measurement and analysis of one or more human physiological or behavioral characteristics of the user in order to access and use an electronic notarization system. Note: Biometric authentication technologies include fingerprint scanning devices and retinal scanning devices.

(2) "Electronic notary applicant" means a commissioned North Carolina notary public who applies to be registered or reregistered as an electronic notary public.

(3) "Electronic notary's electronic signature" means:

(a) an electronic image of the handwritten signature of the electronic notary public in the name of the notary as it appears on the notary's commission; and

(b) the technology provider's security features attached to the signature in Sub-Item (3)(a) of this Rule.

(4) "Independently verifiable" means capable of government or third-party authentication of a notarial act, an electronic notary's identity and current status with the Department.

(5) "In the presence of the electronic notary at the time of notarization" means that an individual and an electronic notary public are in close physical proximity to one another without using technology to establish personal appearance.

History

Authority G.S. 10B-4; 10B-106; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.21
Eff. January 1, 2007
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest
Eff. December 6, 2016
Transferred from 18 NCAC 07C .0102 Eff. June 1, 2023
Amended Eff. July 1, 2025; July 1, 2024.

18 NCAC 07F .0103 Electronic Notaries Performing Remote Electronic Notarial Acts {#sec-18-ncac-07f-.0103 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07F .0103}

An electronic notary public shall not perform a remote electronic notarial act until the electronic notary has complied with the requirements of:

(1) this Subchapter; and

(2) 18 NCAC 07D .0400 and 18 NCAC 07H.

History

Authority G.S. 10B-4; 10B-106; 10B-125; 10B-126; 10B-134.15; 10B-134.17; 10B-134.21
Eff. July 1, 2024
Amended Eff. July 1, 2025.

18 NCAC 07F .0201 Valid Commission {#sec-18-ncac-07f-.0201 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07F .0201}

An electronic notary applicant shall hold a valid North Carolina notary commission and shall affirm that the applicant continues to meet the qualifications to hold the notary commission.

History

Authority G.S. 10B-4; 10B-106; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.21
Eff. January 1, 2007
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. December 6, 2016
Transferred from 18 NCAC 07C .0201(a) Eff. June 1, 2023
Amended Eff. July 1, 2024.

18 NCAC 07F .0202 Current Personal Copy of Manual {#sec-18-ncac-07f-.0202 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07F .0202}

An electronic notary applicant shall possess a current and personal copy of the North Carolina notary manual applicable to electronic notaries.

History

Authority G.S. 10B-4; 10B-134.21
Eff. July 1, 2025.

18 NCAC 07F .0301 Approved Course of Study for Electronic Notaries Public {#sec-18-ncac-07f-.0301 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07F .0301}

(a) The Department shall develop the training course and testing for applicants for electronic notary public registration.

(b) The Department shall train certified notary instructors to teach the training course and administer testing for electronic notary applicants.

History

Authority G.S. 10B-4; 10B-14; 10B-126; 10B-134.21
Eff. January 1, 2007
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. December 6, 2016
Transferred from 18 NCAC 07C .0301 Eff. June 1, 2023
Amended Eff. July 1, 2024.

18 NCAC 07F .0302 Courses to Be Taught by Certified Notary Instructors {#sec-18-ncac-07f-.0302 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07F .0302}

Before submitting an application for registration as an electronic notary public, an individual shall attend and successfully complete an electronic notary course taught by a certified notary instructor.

History

Authority G.S. 10B-4; 10B-14; 10B-125; 10B-126; 10B-134.21
Eff. July 1, 2024.

18 NCAC 07F .0303 Electronic Notary Course {#sec-18-ncac-07f-.0303 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07F .0303}

Before performing a remote electronic notarization, electronic notaries public registered prior to July 1, 2025, shall either:

(1) successfully complete a remote electronic notarization course module taught by a certified notary instructor or designee of the Department; or

(2) successfully complete an electronic notary course pursuant to Rule .0302 of this Section.

History

Authority G.S. 10B-4; 10B-14; 10B-125; 10B-126; 10B-134.21
Eff. March 1, 2025
Amended Eff. July 1, 2025.

18 NCAC 07F .0304 Student Identity {#sec-18-ncac-07f-.0304 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07F .0304}

Each electronic notary course student shall:

(1) be personally known to the certified notary instructor; or

(2) present satisfactory evidence of identity to the certified notary instructor.

History

Authority G.S. 10B-4; 10B-14; 10B-125; 10B-126; 10B-134.21
Eff. July 1, 2024.

18 NCAC 07F .0305 Passing Score on Examination {#sec-18-ncac-07f-.0305 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07F .0305}

A passing score on the electronic notary course examination shall be 80 percent or higher.

History

Authority G.S. 10B-4; 10B-134.21
Eff. July 1, 2024.

18 NCAC 07F .0401 Submisssion {#sec-18-ncac-07f-.0401 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07F .0401}

The electronic notary applicant shall electronically submit the electronic notary registration form, described at 18 NCAC 07B .0404.

History

Authority G.S. 10B-4; 10B-106
Eff. January 1, 2007
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. December 6, 2016
Transferred from 18 NCAC 07C .0201(b) Eff. June 1, 2023
Amended Eff. March 1, 2025.

18 NCAC 07F .0402 Timing of Application {#sec-18-ncac-07f-.0402 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07F .0402}

An electronic notary applicant shall submit an application to be registered as an electronic notary public within three months of successfully completing the electronic notary course.

Note: For the purposes of this Rule, "month" shall mean that term as defined in G.S. 12-3(3).

History

Authority G.S. 10B-4; 10B-106; 10B-134.21
Eff. July 1, 2024.

18 NCAC 07F .0403 Notice to Department of Changes {#sec-18-ncac-07f-.0403 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07F .0403}

An electronic notary applicant shall have provided all notices to the Department required by Chapter 10B of the General Statutes and the rules in this Chapter before submitting an application.

History

Authority G.S. 10B-4; 10B-50; 10B-51; 10B-52; 10B-53; 10B-106; 10B-126(d); 10B-127; 10B-134.15; 10B-134.21
Eff. July 1, 2024.

18 NCAC 07F .0404 Failure to Submit Application in Time {#sec-18-ncac-07f-.0404 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07F .0404}

The Department shall deny an application that does not comply with Rule .0402 of this Section. If the applicant reapplies, the electronic notary applicant shall comply with the following:

(1) successfully complete the electronic notary course again;

(2) submit a new application; and

(3) tender applicable fees.

History

Authority G.S. 10B-4; 10B-106; 10B-125; 10B-126; 10B-134.21
Eff. July 1, 2024.

18 NCAC 07F .0501 reserved for future codification {#sec-18-ncac-07f-.0501 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07F .0501}

18 NCAC 07F .0502 reserved for future codification {#sec-18-ncac-07f-.0502 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07F .0502}

18 NCAC 07F .0503 Notice of Department's Actions for Qualified Electronic Notary Applicants {#sec-18-ncac-07f-.0503 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07F .0503}

The Department shall notify the notary public that the notary is qualified by electronically issuing an electronic notary registration certificate to the electronic notary public.

History

Authority G.S. 10B-4; 10B-106; 10B-125; 10B-126; 10B-134.21
Eff. March 1, 2025.

18 NCAC 07F .0504 reserved for future codification {#sec-18-ncac-07f-.0504 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07F .0504}

18 NCAC 07F .0505 Oaths Timing {#sec-18-ncac-07f-.0505 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07F .0505}

History

Status: repealed
Authority G.S. 10B-125(b), 10B-126(d); 47-16.5; 47-16.7; 147-36; 15 USC 7002
Eff. January 1, 2007
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. December 6, 2016
Transferred from 18 NCAC 07C .0202(a),(b),(c),(d) Eff. June 1, 2023
Repealed Eff. March 1, 2025.

18 NCAC 07F .0506 Evidence of Identity {#sec-18-ncac-07f-.0506 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07F .0506}

History

Status: repealed
Authority G.S. 10B-125(b), 10B-126(d); 47-16.5; 47-16.7; 147-36; 15 USC 7002
Eff. January 1, 2007
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. December 6, 2016
Transferred from 18 NCAC 07C .0202(a),(b),(c),(d) Eff. June 1, 2023
Repealed Eff. March 1, 2025.

18 NCAC 07F .0507 certificate DELIVERY {#sec-18-ncac-07f-.0507 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07F .0507}

History

Status: repealed
Authority G.S. 10B-125(b), 10B-126(d); 47-16.5; 47-16.7; 147-36; 15 USC 7002
Eff. January 1, 2007
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. December 6, 2016
Transferred from 18 NCAC 07C .0202(a),(b),(c),(d) Eff. June 1, 2023
Repealed Eff. March 1, 2025.

18 NCAC 07F .0508 registration effective date {#sec-18-ncac-07f-.0508 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07F .0508}

History

Status: repealed
Authority G.S. 10B-125(b), 10B-126(d); 47-16.5; 47-16.7; 147-36; 15 USC 7002
Eff. January 1, 2007
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. December 6, 2016
Transferred from 18 NCAC 07C .0202(a),(b),(c),(d) Eff. June 1, 2023
Repealed Eff. March 1, 2025.

18 NCAC 07F .0509 Registration Effective Date {#sec-18-ncac-07f-.0509 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07F .0509}

The applicant's electronic notary public registration shall be effective as of the date stated on the registration certificate.

History

Authority G.S. 10B-4; 10B-106; 10B-134.21
Eff. March 1, 2025.

18 NCAC 07F .0510 reserved for future codification {#sec-18-ncac-07f-.0510 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07F .0510}

18 NCAC 07F .0511 reserved for future codification {#sec-18-ncac-07f-.0511 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07F .0511}

18 NCAC 07F .0512 Confirmation of Electronic Notary Status {#sec-18-ncac-07f-.0512 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07F .0512}

Upon electronic request of a technology provider, the Department shall report a notary public's status as an electronic notary public registered to perform electronic and remote electronic notarizations.

History

Authority G.S. 10B-4; 10B-106; 10B-134.15; 10B-134.17; 10B-134.21
Eff. March 1, 2025.

18 NCAC 07F .0513 Performing Electronic and Remote Electronic Notarial Acts {#sec-18-ncac-07f-.0513 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07F .0513}

A notary public shall not perform any electronic or remote electronic notarial act until:

(1) the notary has received the electronic notary registration certificate; and

(2) the electronic notary public has provided notice to the Department of all technology providers pursuant to Rule .0601 of this Subchapter.

History

Authority G.S. 10B-4; 10B-125; 10B-126; 10B-134.15; 10B-134.17; 10B-134.21
Eff. March 1, 2025.

18 NCAC 07F .0601 Notice to Department of Technology Provider {#sec-18-ncac-07f-.0601 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07F .0601}

An electronic notary public shall use the form described in 18 NCAC 07B .0405 to provide notice to the Department of all technology providers proposed to be used:

(1) to affix the electronic notary's electronic signature and electronic notary's seal;

(2) as the means to create and maintain the electronic notary's electronic journal and a backup copy of the journal;

(3) as the custodian of the electronic notary's journal;

(4) as the platform that the electronic notary will use if the notary intends to perform remote electronic notarial acts; and

(5) for identity proofing and credential analysis technologies not otherwise associated with platforms disclosed in Item (4) of this Rule.

History

Authority G.S. 10B-4; 10B-125; 10B-126; 10B-127; 10B-134.15; 10B-134.17; 10B-134.21
Eff. March 1, 2025
Amended Eff. July 1, 2025.

18 NCAC 07F .0602 Approved Technology Provider {#sec-18-ncac-07f-.0602 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07F .0602}

An electronic notary public shall use only technology providers approved or licensed by the Department and listed on the Department's website.

History

Authority G.S. 10B-4; 10B-125; 10B-126; 10B-134.15; 10B-134.17; 10B-134.21; 10B-134.23
Eff. July 1, 2024.

18 NCAC 07F .0701 Unique Signature {#sec-18-ncac-07f-.0701 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07F .0701}

The electronic notary signature shall be independently verifiable and specific to each electronic notary public.

History

Authority G.S. 10B-4; 10B-125(b); 10B-126(d); 10B-127; 10B-134.21
Eff. January 1, 2007
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. December 6, 2016
Transferred from 18 NCAC 07C .0401(a) Eff. June 1, 2023
Amended Eff. July 1, 2024.

18 NCAC 07F .0702 Sole Control {#sec-18-ncac-07f-.0702 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07F .0702}

The electronic notary public shall retain exclusive control of the electronic notary signature such that the electronic signature can be attributed solely to the electronic notary.

History

Authority G.S. 10B-4; 10B-125(b); 10B-126(d); 10B-127; 10B-134.21
Eff. January 1, 2007
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. December 6, 2016
Transferred from 18 NCAC 07C .0401(b) Eff. June 1, 2023
Amended Eff. July 1, 2024.

18 NCAC 07F .0703 Exclusive {#sec-18-ncac-07f-.0703 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07F .0703}

History

Status: repealed
Authority G.S. 10B-125(b), 10B-126(d); 47-16.5; 47-16.7; 147-36; 15 USC 7002
Eff. January 1, 2007
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. December 6, 2016
Transferred from 18 NCAC 07C .0401(c) Eff. June 1, 2023
Repealed Eff. July 1, 2024.

18 NCAC 07F .0704 Electronic Signature {#sec-18-ncac-07f-.0704 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07F .0704}

The electronic notary public shall apply the electronic notary's electronic signature to the document being notarized and upon commitment the signature shall be permanently affixed to the document.

History

Authority G.S. 10B-4; 10B-125(b); 10B-126(d); 10B-127; 10B-134.21
Eff. January 1, 2007
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. December 6, 2016
Transferred from 18 NCAC 07C .0401(d) Eff. June 1, 2023
Amended Eff. July 1, 2025; July 1, 2024.

18 NCAC 07F .0705 Appearance of Electronic Signature {#sec-18-ncac-07f-.0705 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07F .0705}

An electronic notary public shall:

(1) electronically sign the electronic notary certificate; and

(2) verify that the image of the electronic notary's handwritten electronic signature is an accurate representation of the notary's handwritten signature.

History

Authority G.S. 10B-4; 10B-125(b); 10B-126(d); 10B-127; 10B-134.21
Eff. January 1, 2007
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. December 6, 2016
Transferred from 18 NCAC 07C .0401(e) Eff. June 1, 2023
Amended Eff. July 1, 2024.

18 NCAC 07F .0706 Signature Compliance {#sec-18-ncac-07f-.0706 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07F .0706}

An electronic notary public shall ensure that the electronic notary's electronic signature complies with Chapter 10B of the General Statutes and the rules in this Subchapter each time it is affixed.

History

Authority G.S. 10B-4; 10B-125(b); 10B-126(d); 10B-134.21
Eff. July 1, 2024.

18 NCAC 07F .0707 Signature Review Before Use {#sec-18-ncac-07f-.0707 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07F .0707}

An electronic notary public shall review the electronic notary's electronic signature for accuracy before the signature is used for the first time.

History

Authority G.S. 10B-4; 10B-125(b); 10B-126(d); 10B-134.21
Eff. July 1, 2024.

18 NCAC 07F .0708 Affixing Electronic Signature {#sec-18-ncac-07f-.0708 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07F .0708}

An electronic notary public shall not affix the electronic notary's electronic signature until:

(1) the principals have appeared before the electronic notary as required by Article 2 of Chapter 10B of the General Statutes;

(2) the principals have been identified;

(3) the oath or affirmation has been administered, if required;

(4) the principals have affixed their signatures to the electronic document or acknowledged them, if applicable; and

(5) the journal entry has been made in accordance with the rules in 18 NCAC 07I.

History

Authority G.S. 10B-4; 10B-125(b); 10B-126(d); 10B-134.15; 10B-134.21
Eff. July 1, 2024.

18 NCAC 07F .0709 Review After Affixing Electronic Signature {#sec-18-ncac-07f-.0709 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07F .0709}

After the electronic notary public affixes the notary's electronic signature, and before the electronic signature is committed by the notary, the electronic notary shall review the electronic signature to ensure that it:

(1) is present on the notary certificate;

(2) is legible; and

(3) does not obscure:

(a) the notary certificate;

(b) any content in the notary certificate; or

History

Authority G.S. 10B-4; 10B-125(b); 10B-126(d); 10B-127; 10B-134.21
Eff. July 1, 2024.

18 NCAC 07F .0710 Placement of Electronic Signature {#sec-18-ncac-07f-.0710 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07F .0710}

Before committal, the electronic notary shall ensure that the electronic notary's electronic signature does not obscure any text or signatures on the electronic record.

History

Authority G.S. 10B-4; 10B-125(b); 10B-126(a); 10B-134.21
Eff. July 1, 2025.

18 NCAC 07F .0801 Unique Seal {#sec-18-ncac-07f-.0801 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07F .0801}

The electronic notary seal shall be independently verifiable and specific to each electronic notary public.

History

Authority G.S. 10B-4; 10B-125(b); 10B-126(d); 10B-127; 10B-134.21
Eff. January 1, 2007
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. December 6, 2016
Transferred from 18 NCAC 07C .0402(a) Eff. June 1, 2023
Amended Eff. July 1, 2024.

18 NCAC 07F .0802 Sole Control {#sec-18-ncac-07f-.0802 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07F .0802}

The electronic notary public shall retain exclusive control of the electronic notary seal such that the electronic notary seal can be attributed solely to the electronic notary.

History

Authority G.S. 10B-4; 10B-125(b); 10B-126(d); 10B-127; 10B-134.17; 10B-134.21
Eff. January 1, 2007
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. December 6, 2016
Transferred from 18 NCAC 07C .0402(b) Eff. June 1, 2023
Amended Eff. July 1, 2024.

18 NCAC 07F .0803 exclusive {#sec-18-ncac-07f-.0803 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07F .0803}

History

Status: repealed
Authority G.S. 10B-125(b); 10B-126(d); 47-16.5; 47-16.7; 147-36; 15 USC 7002
Eff. January 1, 2007
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. December 6, 2016
Transferred from 18 NCAC 07C .0402(c) Eff. June 1, 2023
Repealed Eff. July 1, 2024.

18 NCAC 07F .0804 Attributes of Electronic Seal {#sec-18-ncac-07f-.0804 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07F .0804}

(a) After completing a notarial certificate for an in-person electronic or remote electronic notarial act, the

electronic notary public shall do the following in this order:

(1) apply an image of the notary's electronic seal;

(2) apply an image of the notary's electronic signature;

(3) review the notarial certificate and images of the notary's electronic seal and signature for accuracy; and

(4) digitally sign, or authorize the platform or IPEN solution to digitally sign, the certificate.

(b) An electronic notary shall not exit the notarial session before satisfying the requirements of Paragraph (a) of this Rule.

(c) For purposes of Paragraph (a)(4) of this Rule, "digitally sign" means applying a digital signature to the electronically notarized record using security features established by the IPEN provider or platform.

History

Authority G.S. 10B-4; 10B-125(b); 10B-126(d); 10B-127; 10B-134.21
Eff. January 1, 2007
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. December 6, 2016
Transferred from 18 NCAC 07C .0402(d) Eff. June 1, 2023
Amended Eff. July 1, 2025; July 1, 2024.

18 NCAC 07F .0805 Appearance of Electronic Notary Seal {#sec-18-ncac-07f-.0805 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07F .0805}

An electronic notary public shall:

(1) electronically affix the electronic notary seal; and

(2) verify that the image is an accurate representation of the seal.

History

Authority G.S. 10B-4; 10B-125(b); 10B-126(d); 10B-134.21
Eff. January 1, 2007
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. December 6, 2016
Transferred from 18 NCAC 07C .0402(e) Eff. June 1, 2023
Amended Eff. July 1, 2024.

18 NCAC 07F .0806 Perimeter {#sec-18-ncac-07f-.0806 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07F .0806}

History

Status: repealed
Authority G.S. 10B-125(b); 10B-126(d); 47-16.5; 47-16.7; 147-36; 15 USC 7002
Eff. January 1, 2007
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. December
6, 2016
Transferred from 18 NCAC 07C .0402(f) Eff. June 1, 2023
Repealed Eff. March 1, 2025.

18 NCAC 07F .0807 Contents of Electronic Notary Seal {#sec-18-ncac-07f-.0807 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07F .0807}

When the electronic record to which the electronic notary's electronic seal is affixed is printed on an eight and one-half by 11 sheet of paper, the notary's seal shall have:

(1) a visible border:

(a) having a physical appearance of the seal that replicates the appearance of an inked seal on paper;

(b) with the size and shape required by G.S. 10B-37(c); and

(c) that includes an identifier in no less than an eight point type assigned by the Department to the producer of the electronic seal; and

(2) inside its border with a minimum eight point type:

(a) the information required by G.S. 10B-117(1), (2), and (4);

(b) the words:

(i) "State of North Carolina";

(ii) "North Carolina"; or

(iii) the abbreviation "N.C.";

(i) the word "County"; or

(ii) the abbreviation "Co."; and

(d) the expiration date of the electronic notary's commission.

History

Authority G.S. 10B-4; 10B-125(b); 10B-126(d)
Eff. January 1, 2007
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. December 6, 2016
Transferred from 18 NCAC 07C .0402(g) Eff. June 1, 2023
Amended Eff. July 1, 2025; March 1, 2025.

18 NCAC 07F .0808 Use of Electronic Notary Seals {#sec-18-ncac-07f-.0808 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07F .0808}

Only the electronic notary public whose commission name and county of commission is incorporated into the electronic seal is permitted to apply the electronic notary's electronic notary seal to an electronic document.

History

Authority G.S. 10B-4; 10B-125(b); 10B-126(d)
Eff. January 1, 2007
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. December 6, 2016
Transferred from 18 NCAC 07C .0602 Eff. June 1, 2023
Amended Eff. July 1, 2024.

18 NCAC 07F .0809 Seal Compliance {#sec-18-ncac-07f-.0809 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07F .0809}

An electronic notary public shall ensure that the electronic notary's electronic seal complies with Chapter 10B of the General Statutes and the rules in this Subchapter each time it is affixed.

History

Authority G.S. 10B-4; 10B-125(b); 10B-126(d); 10B-134.21
Eff. July 1, 2024.

18 NCAC 07F .0810 Seal Limitation {#sec-18-ncac-07f-.0810 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07F .0810}

An electronic notary public's electronic seal shall include no information or images other than those required by Rule .0807 of this Subchapter.

History

Authority G.S. 10B-4; 10B-125(b); 10B-126(d); 10B-134.21
Eff. July 1, 2024.

18 NCAC 07F .0811 Seal Review Before Use {#sec-18-ncac-07f-.0811 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07F .0811}

An electronic notary public shall review the electronic notary's electronic seal for compliance with the rules in this Section before the seal is used for the first time.

History

Authority G.S. 10B-4; 10B-125(b); 10B-126(d); 10B-134.21
Eff. July 1, 2024.

18 NCAC 07F .0812 Affixing Electronic Seal {#sec-18-ncac-07f-.0812 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07F .0812}

An electronic notary public shall not affix the electronic notary's electronic seal until:

(1) the principals have appeared before the electronic notary as required by Article 2 of Chapter 10B of the General Statutes;

(2) the principals have been identified;

(3) the oaths or affirmations have been administered, if required;

(4) the principals have affixed their signatures to the electronic document or acknowledged them if applicable; and

(5) the journal entry has been made in accordance with the rules in 18 NCAC 07I.

History

Authority G.S. 10B-4; 10B-125(b); 10B-126(d); 10B-134.15; 10B-134.21
Eff. July 1, 2024.

18 NCAC 07F .0813 Review After Affixing Electronic Seal {#sec-18-ncac-07f-.0813 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07F .0813}

After the electronic notary public affixes the electronic notary's electronic seal, and before the electronic notary commits the electronic seal, the electronic notary shall review the notary's electronic seal to ensure that it:

(1) is present on the notary certificate;

(2) is legible; and

(3) does not obscure:

(a) the notary certificate;

(b) any content in the notary certificate; or

History

Authority G.S. 10B-4; 10B-125(b); 10B-126(d); 10B-134.21
Eff. July 1, 2024.

18 NCAC 07F .0814 Finalization of Notarial Session {#sec-18-ncac-07f-.0814 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07F .0814}

After an electronic notary public has complied with the requirements of Sections .0700 and .0800 of this Subchapter relating to review of signatures and seals after affixing them, the electronic notary shall:

(1) ensure that the required journal entry has been made;

(2) commit:

(a) the notary's electronic signature;

(b) the notary's electronic seal; and

(3) apply the notary's digital certificate to the electronic record to which the notary has applied his or her electronic notary seal and signature.

History

Authority G.S. 10B-4; 10B-125(b); 10B-126(d); 10B-134.5(b); 10B-134.21
Eff. July 1, 2024
Amended Eff. July 1, 2025.

18 NCAC 07F .0815 Placement of Electronic Seal {#sec-18-ncac-07f-.0815 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07F .0815}

Before committal, the electronic notary shall ensure that the electronic notary's electronic seal does not obscure any text or signatures on the electronic record.

History

Authority G.S. 10B-4; 10B-125(b); 10B-126(a); 10B-134.21
Eff. July 1, 2025.

18 NCAC 07F .0816 Application of Electronic Notary's Digital Certificate {#sec-18-ncac-07f-.0816 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07F .0816}

An electronic notary public shall apply, or allow the platform or IPEN provider to apply, the electronic notary's digital certificate to an electronic record after the electronic notary's electronic signature and seal have been:

(1) affixed; and

(2) reviewed.

History

Authority G.S. 10B-4; 10B-125(b); 10B-126(a); 10B-134.5(b); 10B-134.21
Eff. July 1, 2025.

18 NCAC 07F .0901 Reregistration {#sec-18-ncac-07f-.0901 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07F .0901}

An electronic notary public applying to reregister as an electronic notary shall comply with application procedures:

(1) in Chapter 10B of the General Statutes; and

(2) in this Subchapter.

History

Authority G.S. 10B-4; 10B-106; 10B-125; 10B-126; 10B-134.21
Eff. January 1, 2007
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. December 6, 2016
Transferred from 18 NCAC 07C .0203 Eff. June 1, 2023
Amended Eff. July 1, 2024.

18 NCAC 07F .0902 Timing of Reregistration {#sec-18-ncac-07f-.0902 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07F .0902}

An electronic notary public desiring to reregister and who does not apply for reregistration at the same time the notary applies for recommissioning shall comply with Rule .0905 of this Section.

History

Authority G.S. 10B-4; 10B-106; 10B-125; 10B-126; 10B-134.21
Eff. July 1, 2024.

18 NCAC 07F .0903 Form {#sec-18-ncac-07f-.0903 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07F .0903}

An electronic notary public shall use the form described in 18 NCAC 07B .0404 to apply for reregistration as an electronic notary.

History

Authority G.S. 10B-4; 10B-106; 10B-125; 10B-126; 10B-134.21
Eff. March 1, 2025.

18 NCAC 07F .0904 Education {#sec-18-ncac-07f-.0904 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07F .0904}

An applicant for reregistration as an electronic notary public shall successfully complete the electronic notary course again before applying.

History

Authority G.S. 10B-4; 10B-125; 10B-126; 10B-134.21
Eff. July 1, 2024.

18 NCAC 07F .0905 Electronic Notary Reregistration Other Than at Recommissioning {#sec-18-ncac-07f-.0905 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07F .0905}

An electronic notary public who does not apply for reregistration as an electronic notary at the same time that the notary applies for recommissioning as a traditional notary and who later desires to reregister as an electronic notary shall:

(1) successfully complete the electronic notary course again;

(2) apply for reregistration; and

(3) pay the applicable fee.

History

Authority G.S. 10B-4; 10B-125; 10B-126; 10B-134.21
Eff. July 1, 2024.

18 NCAC 07F .0906 Registration {#sec-18-ncac-07f-.0906 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07F .0906}

Section .0500 of this Subchapter shall apply to an electronic notary applicant who is reregistered as an electronic notary public.

History

Authority G.S. 10B-4; 10B-125; 10B-126; 10B-134.15; 10B-134.17; 10B-134.21
Eff. March 1, 2025.

18 NCAC 07F .1001 Employers of Electronic Notaries {#sec-18-ncac-07f-.1001 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07F .1001}

(a) Neither the employer nor any of the employer's employees or agents shall use or permit the use of an electronic notary seal or electronic notary signature by anyone other than the electronic notary public to whom it is registered.

(b) Upon the cessation of employment of an electronic notary public, the employer of the electronic notary shall:

(1) have no control of the electronic notary's electronic notary seal; or

(2) eliminate the ability of any other person to use the former electronic notary employee's electronic notary seal and electronic notary's electronic signature.

History

Authority G.S. 10B-4; 10B-125(b); 10B-126(d); 10B-134.15; 10B-134.17; 10B-134.21
Eff. January 1, 2007
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. December 6, 2016
Transferred from 18 NCAC 07C .0603 Eff. June 1, 2023
Amended Eff. July 1, 2024.

18 NCAC 07F .1002 Protecting Access {#sec-18-ncac-07f-.1002 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07F .1002}

An electronic notary public shall limit access to the electronic notary signatures, electronic seals, and journals by complying with the provider's requirements for the use of means of authentication approved by the Department.

History

Authority G.S. 10B-4; 10B-125; 10B-126; 10B-134.15; 10B-134.17; 10B-134.21
Eff. January 1, 2007
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. December 6, 2016
Transferred from 18 NCAC 07C .0604 Eff. June 1, 2023
Amended Eff. July 1, 2024.

18 NCAC 07F .1003 Retention of Electronic Journal {#sec-18-ncac-07f-.1003 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07F .1003}

An electronic notary public shall maintain a copy of the electronic notary's electronic journal and the backup copy of the journal for at least 10 years after the last notarial act.

History

Authority G.S. 10B-4; 10B-126(d); 10B-134.15; 10B-134.17; 10B-134.21
Eff. July 1, 2024
Amended Eff. July 1, 2025.

An electronic notary public shall not share the means of authentication that the electronic notary uses to access an electronic notary solution with anyone.

History

Authority G.S. 10B-4; 10B-126; 10B-134.15; 10B-134.17; 10B-134.21
Eff. July 1, 2024
Amended Eff. July 1, 2025.

18 NCAC 07F .1101 Presence Requirement for Electronic Notarization {#sec-18-ncac-07f-.1101 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07F .1101}

When an electronic notary public performs an electronic notarization, the principal shall be in the presence of the electronic notary at the time of notarization so that:

(1) the principal and the electronic notary can see, hear, and communicate with each other; and

(2) the principal can physically provide to the electronic notary identification documents as required under G.S. 10B-3(22).

History

Authority G.S. 10B-4; 10B-125(b); 10B-126(d)
Eff. January 1, 2007
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. December 6, 2016
Transferred from 18 NCAC 07C .0403 Eff. June 1, 2023
Amended Eff. July 1, 2024.

18 NCAC 07F .1102 Presence Requirement for Remote Electronic Notarization {#sec-18-ncac-07f-.1102 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07F .1102}

When an electronic notary public performs a remote electronic notarization, the remotely located principal shall appear before the electronic notary at the time of notarization using communication technology.

History

Authority G.S. 10B-4; 10B-125(b); 10B-126(d); 10B-134.21
Eff. January 1, 2007
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. December 6, 2016
Transferred from 18 NCAC 07C .0601 Eff. June 1, 2023
Amended Eff. March 1, 2025.

18 NCAC 07F .1103 Individual Principal Signatures for Electronic Notarial Act {#sec-18-ncac-07f-.1103 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07F .1103}

An electronic notary public who performs an electronic or remote electronic notarial act shall require the principal to affix each signature individually.

History

Authority G.S. 10B-4; 10B-125(b); 10B-126(d)
Eff. July 1, 2024.

18 NCAC 07F .1104 Additional Obligations {#sec-18-ncac-07f-.1104 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07F .1104}

In addition to complying with the continuing obligations imposed by the rules in 18 NCAC 07D, an electronic notary public shall comply with the requirements of 18 NCAC 07I.

History

Authority G.S. 10B-4; 10B-106(f); 10B-125(b); 10B-126(d); 10B-134.15; 10B-134.17; 10B-134.21
Eff. July 1, 2024.

18 NCAC 07F .1105 No Electronic Notarization of Ink Signature {#sec-18-ncac-07f-.1105 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07F .1105}

An electronic notary public shall not use the electronic notary's electronic signature and electronic seal to notarize an ink signature signed by hand.

History

Authority G.S. 10B-4; 10B-125(b); 10B-126(d)
Eff. July 1, 2024.

18 NCAC 07F .1106 Notice of Changes {#sec-18-ncac-07f-.1106 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07F .1106}

Within 10 business days of an electronic notary public choosing to use a different technology provider, an electronic notary shall notify the Department using the form described in 18 NCAC 07B .0406.

History

Authority G.S. 10B-4; 10B-106(f); 10B-125(b); 10B-126(d); 10B-134.15; 10B-134.17; 10B-134.21
Eff. March 1, 2025.

18 NCAC 07F .1107 Technological Issue as Reason to Halt Electronic or Remote Electronic Notarial Act {#sec-18-ncac-07f-.1107 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07F .1107}

An electronic notary public shall not perform an electronic notarial act or a remote notarial act if there is:

(1) a complete technological failure that impedes the performance of the notarial act; or

(2) a partial technological failure that the electronic notary decides warrants termination of the transaction.

History

Authority G.S. 10B-4; 10B-125(b); 10B-126(d); 10B-134.21
Eff. July 1, 2024.

18 NCAC 07F .1108 Resolution of Technological Issues {#sec-18-ncac-07f-.1108 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07F .1108}

An electronic notary public may continue and complete an electronic or remote electronic notarial transaction if the electronic notary concludes that any technological failure:

(1) has been resolved;

(2) will not impair performance of the notarial act; and

(3) will not discredit the integrity of the notary certificate, seal, or journal.

History

Authority G.S. 10B-4; 10B-125(b); 10B-126(d); 10B-134.21
Eff. July 1, 2024.

18 NCAC 07F .1109 Ceasing to Use a Technology Provider {#sec-18-ncac-07f-.1109 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07F .1109}

An electronic notary public shall notify the Department within 10 business days of the date on which:

(1) the electronic notary cancels a contract or subscription with a technology provider; or

(2) the electronic notary is prevented by the provider from accessing the technology provider's services.

History

Authority G.S. 10B-4; 10B-106(f); 10B-125(b); 10B-126(d); 10B-127(b); 10B-134.21
Eff. March 1, 2025.

18 NCAC 07F .1110 Notice of Cancellation by Provider {#sec-18-ncac-07f-.1110 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07F .1110}

An electronic notary public shall notify the Department within 10 business days if the technology provider takes actions that:

(1) suspend or halt the provider's operations or the availability of its technology; or

(2) impair the ability of the electronic notary to perform notarial functions.

History

Authority G.S. 10B-4; 10B-125(b); 10B-126(d); 10B-127(b); 10B-134.21
Eff. March 1, 2025.

18 NCAC 07F .1111 Content of Notice {#sec-18-ncac-07f-.1111 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07F .1111}

A notice pursuant to Rules .1109 or .1110 of this Section shall include:

(1) the reason for the notice; and

(2) any other information the electronic notary public thinks may help the Department to assess the action of the provider.

History

Authority G.S. 10B-4; 10B-125(b); 10B-126(d); 10B-127(b); 10B-134.21
Eff. March 1, 2025.

Subchapter G

18 NCAC 07G .0101 Scope {#sec-18-ncac-07g-.0101 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07G .0101}

The rules in this Subchapter govern notary public seals made, offered for sale, sold, or delivered for use by North Carolina notaries public by:

(1) manufacturers of physical notary public seals;

(2) vendors of physical notary public seals; and

(3) platforms and IPENs providing electronic notary public seals.

History

Authority G.S. 10B-4; 10B-36; 10B-125(b)
Eff. July 1, 2025.

18 NCAC 07G .0102 Physical Seal Requirements {#sec-18-ncac-07g-.0102 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07G .0102}

A manufacturer or vendor of physical notary public seals shall not offer, sell, or deliver a physical notary public seal to a North Carolina notary public unless the seal complies with G.S. 10B-36 and 10B-37.

History

Authority G.S. 10B-4; 10B-36; 10B-125(b)
Eff. July 1, 2025.

18 NCAC 07G .0103 Electronic Notary Seal Requirements {#sec-18-ncac-07g-.0103 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07G .0103}

A platform or IPEN provider shall not provide an electronic notary seal unless the seal complies with:

(1) G.S. 10B-117(1)-(4);

(2) 18 NCAC 07F .0800; and

(3) 18 NCAC 07J .0700.

History

Authority G.S. 10B-4; 10B-125(b)
Eff. July 1, 2025.

18 NCAC 07G .0104 Requirements for Sale of Physical Seal to North Carolina Notary {#sec-18-ncac-07g-.0104 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07G .0104}

A manufacturer or vendor shall comply with the requirements in Rule .0105 of this Subchapter before offering for sale, selling, mailing, or delivering a physical notary public seal to an individual claiming to be a North Carolina notary.

History

Authority G.S. 10B-4; 10B-36(e)(2)
Eff. July 1, 2025.

18 NCAC 07G .0105 Identification of Notary Public Appearing in Person {#sec-18-ncac-07g-.0105 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07G .0105}

A manufacturer or vendor shall not provide a physical notary seal to an individual claiming to be a North Carolina notary public appearing in person for the purchase unless:

(1) the individual is personally known to the manufacturer or vendor and the individual's information matches the information on the notary commission certificate presented; or

(2) the individual:

(a) presents documents qualifying as satisfactory evidence of identity as defined in G.S. 10B-3(22);

(b) the manufacturer compares the face and name of the individual to information on the document; and

History

Authority G.S. 10B-4; 10B-36(e)(2)
Eff. July 1, 2025.

18 NCAC 07G .0106 Notary Commission Certificate Receipt by Manufacturer or Vendor {#sec-18-ncac-07g-.0106 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07G .0106}

A manufacturer or vendor shall require any individual claiming to be a North Carolina notary public purchasing or ordering a physical notary public seal to present:

(1) for an in-person purchase, the original notary commission certificate defined at 18 NCAC 07B .0102(9) from the Department; and

(2) for an order by mail or delivery service, an exact, legible copy of the original commission certificate defined at 18 NCAC 07B .0102(9) from the Department.

History

Authority G.S. 10B-4; 10B-36(e)(2)
Eff. July 1, 2025.

18 NCAC 07G .0107 Making and Retaining Copy of Notary Commission Certificate {#sec-18-ncac-07g-.0107 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07G .0107}

A manufacturer or vendor shall retain in its records for 10 years a copy of the notary commission certificate presented pursuant to Rule .0106 of this Section.

History

Authority G.S. 10B-4; 10B-36(e)(2)
Eff. July 1, 2025.

18 NCAC 07G .0108 Confirmation of Notary's Active Status with the Department {#sec-18-ncac-07g-.0108 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07G .0108}

A manufacturer or vendor shall not deliver a physical seal to an individual claiming to be a North Carolina notary public until the manufacturer has:

(1) obtained the commission number from the notarial commission certificate;

(2) entered the commission number found on the notarial commission certificate into the search field in the Department's online notary confirmation tool;

(3) compared the information returned by the Department's online notary confirmation tool to the information on the commission certificate to determine if there is an exact match between the commission certificate, the individual's order form, and the information returned by the search for:

(a) the name of the notary;

(b) the commission expiration date; and

(4) confirmed that the notary is in active status with the Department.

History

Authority G.S. 10B-4; 10B-36(e)(2)
Eff. July 1, 2025.

18 NCAC 07G .0109 Registration with the Department {#sec-18-ncac-07g-.0109 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07G .0109}

Prior to making or selling a physical seal to a North Carolina notary public, the manufacturer or vendor shall register with the Department by electronically submitting the form specified in 18 NCAC 07B .0430.

History

Authority G.S. 10B-4; 10B-36(e)(2)
Eff. July 1, 2025.

18 NCAC 07G .0110 Annual Registration Update {#sec-18-ncac-07g-.0110 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07G .0110}

On or before the first day of July each year, a manufacturer or vendor shall electronically update its registration with the Department by electronically submitting the form specified in 18 NCAC 07B .0430 to inform the Department of any changes since its registration in the prior year.

History

Authority G.S. 10B-4; 10B-36(e)(2)
Eff. July 1, 2025.

Subchapter H

18 NCAC 07H .0101 Scope {#sec-18-ncac-07h-.0101 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07H .0101}

(a) The rules in this Subchapter implement Part 4A, Remote Electronic Notarization of Article 2, Electronic Notary Act, of Chapter 10B of the General Statutes.

(b) The rules in this Subchapter are adopted pursuant to the provisions of Subchapter I of Chapter 96 of Title 15 of the United States Code, Electronic Records and Signatures in Commerce.

History

Authority G.S. 10B-4; 10B-134.21
Eff. July 1, 2025.

18 NCAC 07H .0102 Requirements for Electronic Notaries Performing Remote Electronic Notarial Acts {#sec-18-ncac-07h-.0102 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07H .0102}

Before performing a remote electronic notarial act, other than one subject to 18 NCAC 07D .0500, an electronic notary public shall comply with the applicable rules in:

(1) this Subchapter; and

(2) Subchapter 07F of this Chapter.

History

Authority G.S. 10B-4; 10B-134.21
Eff. July 1, 2025.

18 NCAC 07H .0103 Definitions {#sec-18-ncac-07h-.0103 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07H .0103}

For purposes of this Subchapter:

(1) "Active duty" means that term as it is defined in 10 U.S.C. 101(d)(1).

(2) "Armed Forces" means that term as it is defined in 18 NCAC 07B .0102(4).

(3) "Credential" or "credentials" means a document presented as satisfactory evidence of identity pursuant to G.S. 10B-3(22)a and G.S. 10B-134.11(a)(2)a.

(4) "Dependent" means that term as it is defined in 37 U.S.C. 401.

(5) "Military orders" means that term as it is defined in 50 U.S.C. 3955(i)(1), except that it shall not include orders for separation or retirement.

History

Authority G.S. 10B-4; 10B-134.15; 10B-134.17; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07H .0104 Prohibited Acts {#sec-18-ncac-07h-.0104 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07H .0104}

A notary public shall not perform a remote electronic notarial act if the act:

(1) is prohibited by G.S. 10B-20, 10B-22, 10B-23, 10B-134.3, or 163-231; or

(2) is an inventory of a safe deposit box as described in G.S. 53C-6-13(a).

History

Authority G.S. 10B-4; 10B-134.21
Eff. July 1, 2025.

18 NCAC 07H .0201 Timing of Verification of Location {#sec-18-ncac-07h-.0201 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07H .0201}

(a) A notary public shall verify the location of a principal seeking a remote electronic notarization as required by G.S. 10B-134.9(a)(6) before beginning a remote electronic notarial act.

(b) An electronic notary public shall state, during the recorded recitation required by Rule .0607 of this Subchapter, how the location was verified.

History

Authority G.S. 10B-4; 10B-134.9; 10B-134.15; 10B-134.17; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07H .0202 Means of Determining Principal Location {#sec-18-ncac-07h-.0202 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07H .0202}

A notary public shall determine the location of a principal seeking a remote electronic notarization by:

(1) geolocation if the principal is using a GPS-enabled device; or

(2) self-attestation by the principal if the principal is not using a GPS-enabled device.

History

Authority G.S. 10B-4; 10B-134.9; 10B-134.15; 10B-134.17; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07H .0203 Procedure When Principal Uses Gps-Enabled Device {#sec-18-ncac-07h-.0203 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07H .0203}

Unless an exception in Rule .0204 of this Section applies, a notary public shall terminate a notarial transaction if:

(1) the platform indicates that the principal has a GPS-enabled device capable of geolocation that:

(a) has the GPS location feature disabled; and

(b) the principal declines to enable the GPS-location feature of the device; or

(2) the principal is not in a permitted location pursuant to G.S. 10B-134.1(10).

History

Authority G.S. 10B-4; 10B-134.9; 0B-134.15; 10B-134.17; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07H .0204 Exception to Rule .0203 {#sec-18-ncac-07h-.0204 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07H .0204}

A notary public shall not terminate a notarial transaction pursuant to Rule .0203 of this Section if the principal seeking a remote electronic notarization makes a self-attestation pursuant to Rules .0206 or .0207 of this Section.

History

Authority G.S. 10B-4; 10B-134.9; 10B-134.15; 10B-134.17; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07H .0205 Contents of Attestation of Location {#sec-18-ncac-07h-.0205 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07H .0205}

A principal's self-attestation of current location shall consist of:

(1) the name of the principal who is identified to the notary public;

(2) a statement that the principal is currently located:

(a) inside the United States including:

(i) the name of the state, territory, or federally recognized tribal area in which the principal is located; and

(ii) the name of the county, parish, or equivalent governmental subdivision;

(b) outside the United States in a U.S. embassy, consulate or diplomatic mission including:

(i) whether the principal is located in a U.S. embassy, a U.S. consulate, or a U.S. diplomatic mission;

(ii) the name of the country and city in which the embassy, consulate, or diplomatic mission is located; and

(iii) the name of the U.S. embassy, consulate, or diplomatic mission; or

(3) the information required by Rule .0206 of this Section for a principal on a United States military installation or vessel outside the United States.

History

Authority G.S. 10B-4; 10B-134.9; 10B-134.15; 10B-134.17; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07H .0206 Contents of Attestation of Location on U.s. Military Installation or Vessel {#sec-18-ncac-07h-.0206 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07H .0206}

Self-attestation by a principal of current location on a United States military installation or vessel outside the United States shall consist of:

(1) the name of the principal making the attestation to the notary public;

(2) whether the principal is:

(a) a member of the Armed Forces of the United States; or

(b) a dependent of a member of the Armed Forces, and the name of the member;

(3) the branch of the Armed Forces in which the member serves;

(4) that the principal is physically located outside the United States on:

(a) a U.S. military installation; or

(b) a U.S. military vessel; and

(5) unless Rule .0207 of this Section applies, the name of:

(a) the installation and the country in which the installation is located; or

(b) the name of the vessel; and

(6) that the principal is on the named installation or vessel pursuant to military orders assigning the member to active duty for more than 120 days.

History

Authority G.S. 10B-4; 10B-134.9; 10B-134.15; 10B-134.17; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07H .0207 Exception to Rule .0206 {#sec-18-ncac-07h-.0207 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07H .0207}

If a principal cannot provide the information in Rule .0206 of this Section for reasons of United States national security, the principal may attest that:

(1) the principal is on a U.S. military installation or vessel pursuant to military orders assigning the member to active duty for more than 120 days; and

(2) the name and location cannot be divulged for reasons of national security.

History

Authority G.S. 10B-4; 10B-134.9; 10B-134.17; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07H .0208 Additional Requirements for Written Attestation of Location {#sec-18-ncac-07h-.0208 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07H .0208}

A remotely located principal may self-attest to the principal's location by using communication technology to deliver a writing to the notary public that conforms to Rules .0205 or .0206 of this Section and, in addition, contains:

(1) the printed name of the principal;

(2) the signature of the principal; and

(3) the date on which the principal signed the self-attestation, which shall be the same date as the remote electronic notarial act.

History

Authority G.S. 10B-4; 10B-134.15; 10B-134.17; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07H .0301 Verification of Identity by Notary Public {#sec-18-ncac-07h-.0301 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07H .0301}

Prior to performing a remote electronic notarial act, a notary public shall identify the remotely located principal by:

(1) personal knowledge as defined in G.S. 10B-3(17); or

(2) reviewing to the satisfaction of the notary:

(a) all results, both separately and together, provided by the technology provider for:

(i) credential analysis; and

(ii) identity proofing;

(b) comparing the face of the remotely located principal to the image on the credential uploaded for credential analysis; and

(c) any additional information or identification credentials that the notary deems necessary to confirm the identity of the remotely located principal.

History

Authority G.S. 10B-4; 10B-134.15; 10B-134.17; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07H .0302 Credible Witness Prohibited for Identity Verification of Remote Principals {#sec-18-ncac-07h-.0302 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07H .0302}

For purposes of identifying a remotely located principal, a notary public shall not rely upon a credible witness.

History

Authority G.S. 10B-4; 10B-134.15; 10B-134.17; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07H .0303 Notary Request for Additional Information {#sec-18-ncac-07h-.0303 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07H .0303}

If a notary public determines that additional information, identity proofing, or identification credentials are necessary to confirm the identity of the remotely located principal, then the notary shall:

(1) require the principal to:

(a) provide additional information; or

(b) undergo additional identity proofing, credential analysis, or both by the technology provider; or

(2) cancel the remote notarial transaction if:

(a) the principal refuses to provide additional information or undergo additional credential analysis; or

(b) the notary decides the principal's identity has not been verified.

History

Authority G.S. 10B-4; 10B-134.15; 10B-134.17; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07H .0401 Unobstructed View {#sec-18-ncac-07h-.0401 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07H .0401}

Except as noted in Rule .0406 of this Section, a notary public shall not perform a remote electronic notarization unless, in the judgment of the notary, there is a clear and unobstructed view of:

(1) all principals;

(2) any interpreter or transliterator who is interpreting for a principal; and

(3) the text that a CART captioner is providing to the principal.

History

Authority G.S. 10B-4; 10B-134.15; 10B-134.17; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07H .0402 Modified Image of Principal {#sec-18-ncac-07h-.0402 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07H .0402}

A notary public shall not perform a remote electronic notarization if, in the judgment of the notary, the live on-screen image of the remotely located principal:

(1) appears to be:

(a) altered;

(b) unnatural; or

(2) does not accurately reflect a real-time two-way communication between the notary and the principal.

History

Authority G.S. 10B-4; 10B-134.15; 10B-134.17; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07H .0403 Audio Impairment {#sec-18-ncac-07h-.0403 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07H .0403}

A notary public shall not perform a remote electronic notarization if, in the judgment of the notary, the quality and clarity of the audio communication prevents each participant from hearing and understanding all other participants.

History

Authority G.S. 10B-4; 10B-134.5; 10B-134.15; 10B-134.17; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07H .0404 Modified Voice of Principal {#sec-18-ncac-07h-.0404 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07H .0404}

Except as permitted in Rule .0405 of this Section, a notary public shall not perform a remote electronic notarization if, in the judgment of the notary, the voice of the remotely located principal:

(1) appears to be:

(a) altered;

(b) unnatural; or

(2) does not accurately reflect a live two-way communication between the notary and the remotely located principal.

History

Authority G.S. 10B-4; 10B-134.15; 10B-134.17; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07H .0405 Exception to Rule .0404 {#sec-18-ncac-07h-.0405 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07H .0405}

A notary public may perform a remote electronic notarization for a principal who, in order to be accommodated pursuant to G.S. 134.1(1), must use a technology that:

(1) filters, alters, or simulates the principal's voice or produces speech that is asynchronous with the video communication;

(2) is under the control of the principal; and

(3) is otherwise compliant with 18 NCAC 07B .0800.

Note: An example of a principal using this exception would be an individual with ALS who uses eye movements to manipulate a computer to speak.

History

Authority G.S. 10B-4; 10B-134.15; 10B-134.17; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07H .0406 Principal Disappearance or Exit {#sec-18-ncac-07h-.0406 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07H .0406}

A notary public shall terminate the remote electronic notarial transaction process if the remotely located principal:

(1) disappears from the notary's view for an excessive amount of time, as determined by the notary; or

(2) exits the session.

Note: Examples of disappearing would be moving out of view or turning off the camera.

History

Authority G.S. 10B-4; 10B-134.15; 10B-134.17; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07H .0501 Designation of Approved Custodian {#sec-18-ncac-07h-.0501 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07H .0501}

An electronic notary public shall designate an approved custodian to maintain the electronic notary's records, using the form described 18 NCAC 07B .0405.

History

Authority G.S. 10B-4; 10B-134.15; 10B-134.17; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07H .0502 Custodian Designation Limitation {#sec-18-ncac-07h-.0502 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07H .0502}

An electronic notary public shall designate as custodian only an approved custodian that has agreed to provide custodial services to the electronic notary.

History

Authority G.S. 10B-4; 10B-134.15; 10B-134.17; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07H .0503 Notice to Department of Custodian {#sec-18-ncac-07h-.0503 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07H .0503}

An electronic notary public shall use the form in 18 NCAC 07B .0405 to notify the Department of:

(1) designation of an approved custodian for the electronic notary's records;

(2) designation of the electronic notary as a custodial notary; or

(3) designation of a new approved custodian upon a change in custodians.

History

Authority G.S. 10B-4; 10B-134.15; 10B-134.17; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07H .0504 Self-Designation as Custodial Notary {#sec-18-ncac-07h-.0504 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07H .0504}

An electronic notary public may be designated as custodian of the electronic notary's own electronic journal consisting solely of IPEN acts only if the electronic notary:

(1) lists the electronic notary's name as custodial notary on the form described in 18 NCAC 07B .0405;

(2) agrees to comply with the rules of this Subchapter applicable to custodial notaries; and

(3) complies with the requirements of the custodial notary rules in 18 NCAC 07J .2200.

History

Authority G.S. 10B-4; 10B-134.15; 10B-134.17; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07H .0505 Custodial Notary Prohibitions {#sec-18-ncac-07h-.0505 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07H .0505}

A custodial notary shall not serve as the custodian for:

(1) the records of another notary public; or

(2) the records of a remote electronic notarial act.

History

Authority G.S. 10B-4; 10B-134.15; 10B-134.17; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07H .0506 Electronic Notary Notice to Platform or Ipen Provider of Custodian {#sec-18-ncac-07h-.0506 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07H .0506}

An electronic notary public shall notify the electronic notary's designated platform or IPEN provider of the name of the electronic notary's custodian:

(1) before the first use of the platform or IPEN solution; and

(2) before a change in custodian that will require transfer of records to a different custodian.

History

Authority G.S. 10B-4; 10B-134.15; 10B-134.17; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07H .0507 Storing Records with Approved Depositories and Custodians {#sec-18-ncac-07h-.0507 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07H .0507}

An electronic notary public shall ensure that the electronic notary's session records are accessible to, and readable by, the electronic notary while stored with:

(1) an approved depository; and

(2) an approved custodian:

(a) for 10 years from the date of the journal entry for a notarial act; or

(b) for any period of more than 10 years during which:

(i) there is a litigation hold or other order requiring retention for more than 10 years; or

(ii) the electronic notary public arranges for the custodian to keep the records more than 10 years.

History

Authority G.S. 10B-4; 10B-134.15; 10B-134.17; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07H .0508 Transfer of Records for Which Retention Period Has Not Ended {#sec-18-ncac-07h-.0508 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07H .0508}

If the retention period for an electronic notary public's records has not expired, an electronic notary public shall:

(1) transfer the records only to another approved custodian; and

(2) notify the Department of the change in custodian as required by Rule .0503 of this Section.

History

Authority G.S. 10B-4; 10B-134.15; 10B-134.17; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07H .0509 Records for Which Retention Period Has Ended {#sec-18-ncac-07h-.0509 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07H .0509}

An electronic notary public shall, with regard to session records for which the retention period has expired:

(1) direct the custodian to securely delete the records;

(2) if a custodial notary, securely delete the records; or

(3) retain or arrange for further retention of the records.

History

Authority G.S. 10B-4; 10B-134.15; 10B-134.17; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07H .0510 No Deletion of Session Records Prior to Expiration of Retention Period {#sec-18-ncac-07h-.0510 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07H .0510}

An electronic notary public shall not direct a custodian to delete a session record or its backup prior to the end of the retention period established by Rule .0507 of this Section.

History

Authority G.S. 10B-4; 10B-134.15; 10B-134.17; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07H .0511 Custodial Notary Limitations on Deletion of Session Record {#sec-18-ncac-07h-.0511 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07H .0511}

A custodial notary shall not delete a session record or its backup prior to the end of the retention period established by Rule .0507 of this Section.

History

Authority G.S. 10B-4; 10B-134.15; 10B-134.17; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07H .0512 Electronic Notary Direction of Deletion of Records After Transfer to Custodian {#sec-18-ncac-07h-.0512 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07H .0512}

After a session record has been transferred to a custodian, an electronic notary public may direct a depository to securely delete any of the notary's journal convenience copies.

History

Authority G.S. 10B-4; 10B-134.15; 10B-134.17; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07H .0601 Scope {#sec-18-ncac-07h-.0601 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07H .0601}

The rules in this Section of this Subchapter shall apply to communication technology recordings and shall not apply to recordings of remote oaths or affirmations administered pursuant to G.S. 10B-134.9(d).

History

Authority G.S. 10B-4; 10B-134.15; 10B-134.17; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07H .0602 Principal Refusal to Be Recorded {#sec-18-ncac-07h-.0602 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07H .0602}

If a remotely located principal refuses to be recorded, the electronic notary public shall cancel the remote electronic notarization.

History

Authority G.S. 10B-4; 10B-134.15; 10B-134.17; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07H .0603 Requests for Attorney {#sec-18-ncac-07h-.0603 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07H .0603}

If a remotely located principal requests the presence of an attorney, the electronic notary public shall not proceed with the remote electronic notarial transaction process unless:

(1) the attorney is present:

(a) physically in the same place with the principal; or

(b) through the communication technology; or

(2) the principal withdraws the request.

History

Authority G.S. 10B-4; 10B-134.15; 10B-134.17; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07H .0604 Recording Shall Start Before Notarial Act Is Performed {#sec-18-ncac-07h-.0604 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07H .0604}

An electronic notary public shall begin the communication technology recording before performing a remote electronic notarial act.

History

Authority G.S. 10B-4; 10B-134.15; 10B-134.17; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07H .0605 Recording Shall Be Continuous {#sec-18-ncac-07h-.0605 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07H .0605}

Once an electronic notary public starts a communication technology recording, the electronic notary shall not end the recording until:

(1) all remote electronic notarial acts comprising the remote electronic notarial transaction have been completed; or

(2) the remote electronic notarial transaction has been canceled.

History

Authority G.S. 10B-4; 10B-134.15; 10B-134.17; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07H .0606 Communication Recording Preface to Remote Electronic Notarial Act {#sec-18-ncac-07h-.0606 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07H .0606}

When an electronic notary public starts a communication technology recording of a remote electronic notarial act, the electronic notary shall:

(1) state the information required by Rule .0607 of this Section; and

(2) direct the remotely located principal to provide the information required by Rule .0608 of this Section.

History

Authority G.S. 10B-4; 10B-134.15; 10B-134.17; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07H .0607 Electronic Notary Recitation for Communication Technology Recording {#sec-18-ncac-07h-.0607 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07H .0607}

Immediately after initiating a communication technology recording, an electronic notary public shall state:

(1) the electronic notary's commission name;

(2) that the electronic notary is then located in the State of North Carolina and the county in which the electronic notary is located;

(3) the names of all participants;

(4) that all individuals present have been informed that the remote notarization will be recorded;

(5) the date on which the notarial act is being performed;

(6) whether the remote electronic notarial act will be performed on an electronic record;

(7) how the remotely located principal for whom the notarial act is being performed has been identified; and

(8) whether the principal's location was verified by geolocation or self-attestation.

History

Authority G.S. 10B-4; 10B-134.15; 10B-134.17; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07H .0608 Remotely Located Principal's Declaration for Communication Technology Recording {#sec-18-ncac-07h-.0608 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07H .0608}

Prior to performing any remote electronic notarial act, the electronic notary public shall direct each remotely located principal to state:

(1) the remotely located principal's name as it appears on the credential presented by the principal for credential analysis;

(2) that the principal agrees to be recorded;

(3) if an attorney is not present, that the principal was informed of the right to have an attorney present and declined;

(4) the documents being signed or a description of the general nature of the transaction;

(5) the principal's location; and

(6) if the principal's location is not established by geolocation, the principal's self-attestation establishing location pursuant to Section .0200 of this Subchapter.

History

Authority G.S. 10B-4; 10B-134.15; 10B-134.17; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07H .0609 Identifying Individuals in Same Location as Principal {#sec-18-ncac-07h-.0609 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07H .0609}

While recording the remote electronic notarial transaction process, an electronic notary public shall direct the remotely located principal to:

(1) state the names of any individuals who are then physically present at the same place as the principal, if known; and

(2) inform the electronic notary if any other individuals become physically present with the principal during the notarial session and their names, if known.

History

Authority G.S. 10B-4; 10B-134.15; 10B-134.17; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07H .0610 Statement from Non-Principals Appearing Via Communication Technology {#sec-18-ncac-07h-.0610 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07H .0610}

After the communication technology recording begins, the electronic notary public shall direct all participants who are not principals to state:

(1) their names; and

(2) their role, if any, with respect to the notarial act.

History

Authority G.S. 10B-4; 10B-134.15; 10B-134.17; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07H .0611 acknowledgment – additional requirements for communication technology recording {#sec-18-ncac-07h-.0611 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07H .0611}

An electronic notary public performing a remote acknowledgment for a remotely located principal shall require the principal to acknowledge during the communication technology recording:

(1) that the signature on the record being notarized is that of the principal; and

(2) the date the principal signed the record being notarized.

History

Authority G.S. 10B-4; 10B-134.15; 10B-134.17; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07H .0612 Communication Technology Recording Ownership {#sec-18-ncac-07h-.0612 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07H .0612}

A communication technology recording shall be the private property of the electronic notary public.

History

Authority G.S. 10B-4; 10B-134.15; 10B-134.17; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07H .0701 Access to Communication Technology Recordings {#sec-18-ncac-07h-.0701 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07H .0701}

An electronic notary public shall not permit access to communication technology recordings by any person unless allowed pursuant to G.S. 10B-20(p) and the rules in this Chapter.

History

Authority G.S. 10B-4; 10B-134.15; 10B-134.17; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

Subchapter I

18 NCAC 07I .0101 Notaries Subject to Journaling Requirements {#sec-18-ncac-07i-.0101 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07I .0101}

(a) An electronic notary public who performs electronic notarial acts shall maintain an electronic journal in conformity with the rules in this Subchapter.

(b) A notary public performing a traditional notarial act who maintains a journal in conformity with the rules in this Subchapter shall be deemed to have complied with G.S. 10B-38.

History

Authority G.S. 10B-4; 10B-38; 10B-126; 10B-134.15; 10B-134.21
Eff. July 1, 2024.

18 NCAC 07I .0102 Definitions {#sec-18-ncac-07i-.0102 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07I .0102}

The definitions in this Rule apply to this Subchapter, and Subchapters 07H and 07J of this Chapter:

(1) "Canceled act" means an instance where a notary public or a principal begins the notarial transaction process and halts it for any reason. Note: An example of a canceled act would be one where the notary is not able to establish the identity of the signer as required by G.S. 10B-20.

(2) "Mode of notarial act" means a traditional notarization, an in-person electronic notarization, or a remote electronic notarization.

(3) "Supplemental information" means information that a notary public enters into a journal:

(a) as a separate entry that is not for a notarial act;

(b) that relates to a prior notarial act recorded in the journal; and

Note: An entry six months after the initial committed entry stating that the notary received a subpoena for that initial committed journal entry is an example of supplemental information.

History

Authority G.S. 10B-4; 10B-38; 10B-126; 10B-134.15; 10B-134.21
Eff. July 1, 2024
Amended Eff. July 1, 2025.

18 NCAC 07I .0103 Journal Requirement {#sec-18-ncac-07i-.0103 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07I .0103}

For any journal created pursuant to this Subchapter:

(1) an electronic notary public shall maintain an accurate backup copy of the notary's journal; and

(2) a traditional notary public who maintains a journal shall retain a copy of a journal or any portion of a journal delivered to a third party.

History

Authority G.S. 10B-4; 10B-38; 10B-126; 10B-134.15; 10B-134.21
Eff. July 1, 2024.

18 NCAC 07I .0104 Journal Ownership {#sec-18-ncac-07i-.0104 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07I .0104}

The information in the notary journal is the private property of the notary public.

History

Authority G.S. 10B-4; 10B-38; 10B-126; 10B-134.15; 10B-134.21
Eff. July 1, 2024.

18 NCAC 07I .0105 Entry of Data Into Journal {#sec-18-ncac-07i-.0105 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07I .0105}

A notary public shall be the only person to make entries into the notary's journal, unless otherwise permitted for traditional notaries by Chapter 10B of the General Statutes or Rule .0106 of this Section.

History

Authority G.S. 10B-4; 10B-38; 10B-126; 10B-134.15; 10B-134.21
Eff. July 1, 2024.

18 NCAC 07I .0106 Exceptions to Rule .0105 {#sec-18-ncac-07i-.0106 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07I .0106}

Exceptions to Rule .0105 of this Section shall be limited to entries in journals of in-person notarizations consisting of the following:

(1) signatures by principals;

(2) signatures by credible witnesses; or

(3) signatures by designees of the principals pursuant to G.S. 10B-20(e).

History

Authority G.S. 10B-4; 10B-38; 10B-126; 10B-134.15; 10B-134.21
Eff. July 1, 2024
Amended Eff. July 1, 2025.

18 NCAC 07I .0107 Access to the Journal {#sec-18-ncac-07i-.0107 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07I .0107}

A notary public shall not permit access to the journal by any person except to the extent permitted pursuant to Chapter 10B of the General Statutes and the rules in this Chapter.

History

Authority G.S. 10B-4; 10B-20(p); 10B-38; 10B-126; 10B-134.15; 10B-134.21
Eff. July 1, 2024.

18 NCAC 07I .0201 Form of Traditional Notary Journal {#sec-18-ncac-07i-.0201 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07I .0201}

A traditional notary public keeping a journal may meet the journal requirements by maintaining either a tangible or an electronic journal pursuant to Chapter 10B of the General Statutes and the rules in this Subchapter.

History

Authority G.S. 10B-4; 10B-38
Eff. July 1, 2024.

18 NCAC 07I .0202 Form of Electronic Notary Journal {#sec-18-ncac-07i-.0202 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07I .0202}

Electronic notarizations and remote electronic notarizations shall be documented in an electronic journal that is maintained as an electronic document.

History

Authority G.S. 10B-4; 10B-38; 10B-126; 10B-134.15; 10B-134.21
Eff. July 1, 2024.

18 NCAC 07I .0203 Combined Journal {#sec-18-ncac-07i-.0203 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07I .0203}

A notary public may maintain an electronic journal that includes entries for any of these acts that the notary is qualified to perform:

(1) traditional notarial acts;

(2) electronic notarial acts; and

(3) remote electronic notarial acts.

History

Authority G.S. 10B-4; 10B-38; 10B-126; 10B-134.15; 10B-134.21
Eff. July 1, 2024.

18 NCAC 07I .0204 Entries in a Tangible Journal {#sec-18-ncac-07i-.0204 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07I .0204}

Entries in a tangible journal shall be:

(1) entered in permanent ink; and

(2) in chronological order.

History

Authority G.S. 10B-4; 10B-38
Eff. July 1, 2024.

18 NCAC 07I .0205 Requirements for a Tangible Journal {#sec-18-ncac-07i-.0205 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07I .0205}

A tangible journal shall:

(1) be made in a bound journal into which pages cannot be inserted; and

(2) have on the first page:

(a) the name of the notary public as commissioned;

(b) the commission date of the notary; and

(3) have sequentially numbered pages.

History

Authority G.S. 10B-4; 10B-38
Eff. July 1, 2024.

18 NCAC 07I .0206 Provision of Journal to Department {#sec-18-ncac-07i-.0206 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07I .0206}

When a person responds to a request from the Department for all or part of a notary public's journal, the person shall submit the journal together with a transmittal document containing:

(1) the name on the notary's commission;

(2) the most recent commission date of the notary; and

(3) the dates of the first and last entries in the journal.

History

Authority G.S. 10B-4; 10B-38; 10B-126; 10B-134.15; 10B-134.17; 10B-134.21
Eff. July 1, 2024.

18 NCAC 07I .0207 Acts Included in Journal {#sec-18-ncac-07i-.0207 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07I .0207}

(a) A traditional notary public who chooses to maintain a journal in accordance with the rules in this Chapter shall make a separate entry in the notary's journal for each notarial act performed or canceled.

(b) An electronic notary public shall make a separate entry in the notary's journal for each notarial act performed or canceled.

History

Authority G.S. 10B-4; 10B-38; 10B-126; 10B-134.15; 10B-134.21
Eff. July 1, 2024
Amended Eff. July 1, 2025.

18 NCAC 07I .0208 Designation of Notarial Act {#sec-18-ncac-07i-.0208 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07I .0208}

Except as set out in Rule .0209 of this Section, a notary public who maintains a journal shall state in the journal whether each notarial act entered into the journal is:

(1) traditional;

(2) electronic; or

(3) remote electronic.

History

Authority G.S. 10B-4; 10B-38: 10B-126; 10B-134.15; 10B-134.21
Eff. July 1, 2024.

18 NCAC 07I .0209 Exception to Rule .0208 {#sec-18-ncac-07i-.0209 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07I .0209}

A notary public who enters only a single mode of notarial act in a journal may:

(1) make a single notation of the mode of notarial acts at the beginning of the journal; and

(2) omit the notations required by Rule .0208 of this Section.

Note: An example would be a journal first-page statement that the journal documents only traditional notarial acts.

History

Authority G.S. 10B-4; 10B-38; 10B-126; 10B-134.15; 10B-134.21
Eff. July 1, 2024.

18 NCAC 07I .0210 Designation of Type of Notarial Act {#sec-18-ncac-07i-.0210 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07I .0210}

A notary public shall designate in the journal whether the type of a notarial act is:

(1) an acknowledgement;

(2) the taking of a verification or proof;

(3) an administration of an oath or affirmation;

(4) a notarization of an absentee voter application; or

(5) an inventorying of a safe deposit box pursuant to G.S. 53C-6-18(a).

History

Authority G.S. 10B-4; 10B-38; 10B-126; 10B-134.15; 10B-134.21
Eff. July 1, 2024.

If a notary public performs both employer-related and non-employer related notarial acts, the notary may maintain:

(1) a separate journal for each of the employer-related and non-employer related notarial acts; or

(2) a single journal reflecting all notarial acts.

History

Authority G.S. 10B-4; 10B-38; 10B-126; 10B-134.15; 10B-134.21
Eff. July 1, 2024.

18 NCAC 07I .0212 Journal Retention Period {#sec-18-ncac-07i-.0212 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07I .0212}

For at least 10 years after the last notarial act entered into a journal by a notary public, the journal or the backup copy of the journal shall be retained by:

(1) the notary; or

(2) a designated custodian.

History

Authority G.S. 10B-4; 10B-38; 10B-126; 10B-134.15; 10B-134.21
Eff. July 1, 2024.

18 NCAC 07I .0301 Contents of Journal for Canceled Act {#sec-18-ncac-07i-.0301 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07I .0301}

For each canceled act to be recorded in the journal, a notary public shall include:

(1) the date and time of the canceled act;

(2) the names of the principals; and

(3) the reason the act was canceled.

History

Authority G.S. 10B-4; 10B-38; 10B-126; 10B-134.15; 10B-134.21
Eff. July 1, 2024.

18 NCAC 07I .0302 Contents of Journal {#sec-18-ncac-07i-.0302 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07I .0302}

Notaries public who maintain a journal in compliance with the rules in this Chapter shall enter the following information in the journal for each notarial act:

(1) the date and time at the notary's location that the notarial act occurs;

(2) the name of each principal and designee, if any;

(3) the type and mode of notarial act performed;

(4) the title of the document notarized, if any;

(5) how the identity of each principal was determined;

(6) if satisfactory evidence of the principal's identity was presented:

(a) the type of satisfactory evidence;

(b) the addresses of each principal:

(i) as shown on any documents used as satisfactory evidence; and

(ii) the address as stated by the principal if the principal indicates the address on the documents used as satisfactory evidence is incorrect;

(c) where the satisfactory evidence was based on the sworn statement of a credible witness in a traditional or in-person electronic notarial act:

(i) the name of the credible witness;

(ii) the contact information of the credible witness;

(iii) the signature of the credible witness in a traditional notary's journal; or

(iv) the signature of the credible witness has been added to the electronic journal by the notary;

(7) the signature of each principal as specified in Rule .0404 of this Subchapter;

(8) the address of the designee, if any;

(9) information required by 18 NCAC 07D .0203 for any fees charged; and

(10) designation of each notarial act as employer-related or non-employer related if the journal includes both categories of notarial acts and which employer the notarial act is related to, if any.

History

Authority G.S. 10B-4; 10B-38; 10B-126; 10B-134.15; 10B-134.21
Eff. July 1, 2024
Amended Eff. July 1, 2025.

18 NCAC 07I .0303 Additional Journal Contents for Remote Electronic Notarizations {#sec-18-ncac-07i-.0303 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07I .0303}

In addition to the requirements of Rule .0302 of this Section, for each remote electronic notarial act completed, an electronic notary public shall enter in the journal:

(1) the locations of the principals and notary at the time of the act;

(2) the method of establishing the location of the remotely located principals;

(3) the names of any individuals identified pursuant to 18 NCAC 07H .0609 and .0610; and

(4) the total number of oaths or affirmations administered to individual principals that do not include a principal signature in connection with each oath or affirmation.

History

Authority G.S. 10B-4; 10B-38; 10B-126; 10B-134.15; 10B-134.21
Eff. March 1, 2025
Amended Eff. July 1, 2025.

18 NCAC 07I .0304 Employer Request for Inclusion of Additional Information in Journal {#sec-18-ncac-07i-.0304 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07I .0304}

A notary public may include additional information in the journal regarding an employer-related electronic notarial act if:

(1) the employer so requests;

(2) the request is made before the notary commits the journal entry; and

(3) in the judgment of the electronic notary, the information is directly related to the notarial act. Note: A loan origination number or a client number is an example of information directly related to the notarial act.

History

Authority G.S. 10B-4; 10B-38; 10B-126; 10B-134.15; 10B-134.21
Eff. July 1, 2024.

18 NCAC 07I .0305 Party Request for Inclusion of Additional Information in Journal for Remote Electronic Notarization {#sec-18-ncac-07i-.0305 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07I .0305}

An electronic notary public shall include additional information in the journal if:

(1) the notarial act is a remote electronic notarial act;

(2) the requestor is a party involved in the transaction;

(3) the request is made before the notary commits the journal entry; and

(4) in the judgment of the electronic notary, the information is directly related to the notarial act. Note: A loan origination number or a client number is an example of information directly related to the notarial act.

History

Authority G.S. 10B-4; 10B-38; 10B-126; 10B-134.15; 10B-134.21
Eff. March 1, 2025.

18 NCAC 07I .0306 Notation of Requests for Inclusion of Additional Information in Journal {#sec-18-ncac-07i-.0306 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07I .0306}

If a notary public receives a request for inclusion of additional information in the journal, the notary shall note in the journal:

(1) who requested inclusion of the information; and

(2) if the notary refused to include requested information, the reason the notary refused to do so.

History

Authority G.S. 10B-4; 10B-38; 10B-126; 10B-134.15; 10B-134.21
Eff. July 1, 2024.

18 NCAC 07I .0307 Notary Shall Not Provide Unrelated Notarial Act Information to Employer {#sec-18-ncac-07i-.0307 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07I .0307}

A notary public who performs both employer-related and unrelated notarial acts shall not provide the notary's employer with:

(1) information regarding the notarial acts unrelated to the employer; or

(2) copies of, or access to, unrelated notarial act entries in the journal.

History

Authority G.S. 10B-4; 10B-38; 10B-126; 10B-134.15; 10B-134.21
Eff. July 1, 2024.

18 NCAC 07I .0308 Journal Supplements {#sec-18-ncac-07i-.0308 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07I .0308}

A notary public may add supplemental information to a journal if:

(1) the notary specifies the journal entry to which the supplemental information relates;

(2) for an electronic notarial act or a remote electronic notarial act, the notary includes the applicable journal entry or session record identifier; and

(3) the notary enters the names of the principals in the notarial session to whom the supplemental entry relates.

History

Authority G.S. 10B-4; 10B-38; 10B-126; 10B-134.15; 10B-134.21
Eff. July 1, 2024
Amended Eff. July 1, 2025.

18 NCAC 07I .0401 Maintain Backup Copy {#sec-18-ncac-07i-.0401 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07I .0401}

A notary public shall maintain an exact backup copy of the notary's electronic journal.

History

Authority G.S. 10B-4; 10B-38; 10B-126; 10B-134.15; 10B-134.21
Eff. July 1, 2024.

18 NCAC 07I .0402 Format of Backup Copy {#sec-18-ncac-07i-.0402 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07I .0402}

A notary public may maintain the backup copy of the electronic journal:

(1) on paper; or

(2) as an electronic document on a separate physical device.

History

Authority G.S. 10B-4; 10B-38; 10B-126; 10B-134.15; 10B-134.21
Eff. July 1, 2024.

18 NCAC 07I .0403 Printing Out of Electronic Journal Entries {#sec-18-ncac-07i-.0403 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07I .0403}

A notary public shall only use an electronic journal that permits printing the contents.

History

Authority G.S. 10B-4; 10B-38; 10B-126; 10B-134.15; 10B-134.21
Eff. July 1, 2024.

18 NCAC 07I .0404 Including Signatures in Journal {#sec-18-ncac-07i-.0404 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07I .0404}

A notary public who maintains an electronic journal shall ensure that:

(1) the principals acknowledge that their electronic signatures have been included in the journal as signed on the documents in the transaction;

(2) with regard to designees signing on behalf of a principal:

(a) the designee signs the principal's name on the documents being notarized pursuant to G.S. 10B-20(e), and the notary then includes the signature in the journal; and

(b) the designee signs his or her own name on the electronic notary solution for capture and the notary then includes the signature of the designee in the journal; and

(3) any credible witness signs his or her own name on an electronic journal for capture and the notary then includes the signature of the credible witness in the journal where the notarial act is in person.

History

Authority G.S. 10B-4; 10B-38; 10B-126; 10B-134.15; 10B-134.21
Eff. July 1, 2024
Amended Eff. July 1, 2025.

18 NCAC 07I .0405 Technological Issues {#sec-18-ncac-07i-.0405 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07I .0405}

A notary public who maintains an electronic journal shall note in the journal complete or partial technological failures that lead the notary to terminate the transaction pursuant to 18 NCAC 07F .1107.

History

Authority G.S. 10B-4; 10B-38; 10B-126; 10B-134.15; 10B-134.21
Eff. July 1, 2024.

18 NCAC 07I .0406 Pre-Filled Data to Be Confirmed by Notary Public {#sec-18-ncac-07i-.0406 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07I .0406}

A notary public may enter the information listed in Rules .0302 and .0303 of this Subchapter in an electronic journal by:

(1) reviewing each individual item of information offered as an option or by pre-filling; and

(2) confirming that offered information is accurate by selecting:

(a) the offered information; or

(b) the accurate item from among other options offered; or

(3) correcting an incorrect item.

History

Authority G.S. 10B-4; 10B-38; 10B-126; 10B-134.15; 10B-134.21
Eff. March 1, 2025
Amended Eff. July 1, 2025.

18 NCAC 07I .0407 Steps Before Committing an Electronic Journal Entry {#sec-18-ncac-07i-.0407 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07I .0407}

Before committing an electronic journal entry, a notary public shall:

(1) review the information entered for accuracy; and

(2) correct any errors in the entry.

History

Authority G.S. 10B-4; 10B-38; 10B-126; 10B-134.15; 10B-134.21
Eff. July 1, 2024.

Subchapter J

18 NCAC 07J .0101 Definitions {#sec-18-ncac-07j-.0101 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .0101}

For purposes of this Subchapter:

(1) "Break in service" means:

(a) the technology provider is subject to a disciplinary action by the Department that:

(i) restricts its services;

(ii) suspends its services; or

(iii) revokes its authorization;

(b) the technology provider has been denied a subsequent license or approval by the Department;

(d) the technology provider has discontinued providing its authorized solution in North Carolina or support for the solution for any reason.

(2) "Communication technology recording" means a data file that contains the audio, video, and written communication that occurred during a remote notarial transaction process via the communication technology in a platform.

(3) "Custodial notary" means an electronic notary public who designates himself or herself as a custodian of the electronic notary's own session records pursuant to 18 NCAC 07H .0504.

(4) "Cybersecurity incident" means an occurrence defined in G.S. 143B-1320(a)(4a).

(5) "Depository" means a storage services solution for electronic journal entries and communication technology recordings, if applicable, that is offered by an IPEN solution provider or a platform provider.

(6) "Electronic notary solution" means any of the following products or services:

(a) an IPEN solution that is:

(i) available from an existing technology provider subject to Section .1100 of this Subchapter; or

(ii) subject to approval pursuant to Rule .1301 of this Subchapter;

(b) a platform as defined in G.S. 10B-134.1(6) and subject to approval pursuant to Rule .1501 of this Subchapter;

(c) an identity proofing solution as defined in G.S. 10B-134.1(5) and subject to approval pursuant to Rule .1901 of this Subchapter;

(d) a credential analysis solution as defined in G.S. 10B-134.1(3) and subject to approval pursuant to Rule .1701 of this Subchapter; and

(e) custodial services as defined in G.S. 10B-134.1(3a) and subject to approval pursuant to Rule .2101 of this Subchapter.

(7) "Encryption" shall have the meaning in G.S. 75-61(8).

(8) "Existing technology providers" means IPEN solution providers approved before the effective date of these rules.

(9) "Geolocation" means technology that identifies the location of remotely located principals connecting to a platform.

(10) "Journal convenience copy" means a collection of a notary's electronic journal entries hosted by a depository in an electronic format for use by the notary as a convenience and that may be retained or deleted by the depository at the notary's discretion. The journal convenience copy is not a session record.

(11) "Key individuals" are those individuals who are identified by a platform provider or an IPEN solution provider as meeting the criteria identified in G.S. 10B-134.19(c)(2).

(12) "Protocols" or "Department's Scientific, Architectural, and Engineering Protocols for Technology Providers" means a document prepared by the Department and made available to the public that contains scientific, architectural, and engineering standards, forms, or procedures related to information technology for technology providers.

(13) "Session record" means the electronic journal entries for a notarial session preserved in PDF/A format in accordance with the Department's protocols, including any embedded communication technology recording and associated metadata.

(14) "Supporting vendor" means a person that provides an electronic service to a technology provider:

(a) upon which the provider relies to provide the notarial service for which the provider seeks or has approval or licensure; and

(b) that must be reported to the Department pursuant to Rule .0410 of this Subchapter.

(15) "Transferee" means a custodian that receives a session record from a depository or a custodian.

(16) "Transferor" means a depository or a custodian that transfers a session record to a custodian.

History

Authority G.S. 10B-4; 10B-106; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07J .0102 technology providers licensed or approved {#sec-18-ncac-07j-.0102 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .0102}

Only authorized technology providers may offer electronic notary solutions to any North Carolina notary public.

History

Authority G.S. 10B-4; 10B-106; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07J .0103 multiple services {#sec-18-ncac-07j-.0103 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .0103}

A technology provider that seeks or has authorization for a product or service that offers one or more types of electronic notary solution shall comply with the rules in this Subchapter applicable to each solution.

Note: An IPEN solution that includes credential analysis and identity proofing services is an example of a solution to which this rule applies.

History

Authority G.S. 10B-4; 10B-106; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07J .0104 no transfer of license or approval {#sec-18-ncac-07j-.0104 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .0104}

A technology provider shall not assign, transfer, or sell its authorization to offer an electronic notary solution in North Carolina.

History

Authority G.S. 10B-4; 10B-106; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07J .0105 permissible provider designations {#sec-18-ncac-07j-.0105 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .0105}

An authorized technology provider may use the applicable following designations for its authorized electronic notary solutions only during the period that each approval or license is effective:

(1) "approved North Carolina in-person electronic notary solution" or "approved North Carolina IPEN solution";

(2) "licensed North Carolina electronic notary platform";

(3) "approved North Carolina identity proofing solution";

(4) "approved North Carolina credential analysis solution"; and

(5) "approved North Carolina custodial services solution."

Note: An authorized technology provider may use "NC" or "N.C." as well as "North Carolina."

History

Authority G.S. 10B-4; 10B-106; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07J .0106 authorization does not mean endorsement {#sec-18-ncac-07j-.0106 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .0106}

A technology provider shall not state or imply that the Department endorses the services of the technology provider.

History

Authority G.S. 10B-4; 10B-106; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07J .0107 timely response required {#sec-18-ncac-07j-.0107 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .0107}

A technology provider or applicant shall respond to any inquiry from the Department in the manner and within the time set by the Department. Extensions may be requested and granted pursuant to 18 NCAC 07B .0313 and .0314, respectively.

History

Authority G.S. 10B-4; 10B-106; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07J .0108 subpoena or warrant {#sec-18-ncac-07j-.0108 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .0108}

Within three business days after receiving a subpoena, warrant, or court order that is related to a notary public's records, a technology provider shall notify the notary in writing of the subpoena, warrant, or court order, unless:

(1) the subpoena, warrant, or court order is issued in relation to an investigation by the Department pursuant to G.S. 10B-60; or

(2) notice is otherwise prohibited by law.

History

Authority G.S. 10B-4; 10B-106; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07J .0109 service level agreement {#sec-18-ncac-07j-.0109 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .0109}

A technology provider's service level agreement shall include:

(1) guaranteed uptime for the electronic notary solution; and

(2) terms and conditions for crediting or reimbursing a notary public for unscheduled service outages.

History

Authority G.S. 10B-4; 10B-106; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07J .0110 advertising restriction {#sec-18-ncac-07j-.0110 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .0110}

A technology provider shall not display any of the following on screen during an electronic notarial transaction:

(1) its own logos or those of another;

(2) its own symbols or those of another;

(3) advertising for itself or others; or

(4) pre-recorded audio or video.

Note: Display of text from chats between transaction participants or text from a CART captioner shall not constitute a violation of this Rule.

History

Authority G.S. 10B-4; 10B-106; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07J .0111 compliance with technology provider protocols required {#sec-18-ncac-07j-.0111 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .0111}

Technology providers shall comply with applicable provisions of the Department's Scientific, Architectural, and Engineering Protocols for Technology Providers. The protocols may be accessed on the Department's website at no cost.

History

Authority G.S. 10B-4; 10B-106; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07J .0112 implementation of policies and plans {#sec-18-ncac-07j-.0112 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .0112}

A technology provider shall implement all plans and policies required by the rules in this Subchapter.

History

Authority G.S. 10B-4; 10B-106; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07J .0113 continuity of service {#sec-18-ncac-07j-.0113 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .0113}

In the event of a break in service, a technology provider shall, pursuant to Rule .0207 of this Subchapter, ensure that notaries public using its authorized services:

(1) have continuous access to the notaries' records; and

(2) have assistance, if requested by a notary public, to transfer the notary's records to an approved custodian.

History

Authority G.S. 10B-4; 10B-106; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07J .0114 when provider may use information {#sec-18-ncac-07j-.0114 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .0114}

Facilitating a notarial transaction and mitigating fraud are the only reasons that a technology provider or its supporting vendor may use, disclose, or permit disclosure of information that has not been anonymized and that is specific to:

(1) the contents of a notarial transaction;

(2) a transaction participant;

(3) credentials of a notarial transaction participant; or

(4) a notarial transaction record or electronic record.

History

Authority G.S. 10B-4; 10B-106; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07J .0115 when provider may retain backup copies of data {#sec-18-ncac-07j-.0115 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .0115}

A technology provider may retain backup copies of data associated with the notarial transaction process longer than the retention period otherwise specified in this Subchapter only if:

(1) the backup copies of the data are retained offline;

(2) the provider has a backup retention policy; and

(3) the offline backup copies are securely deleted in accordance with the provider's backup policy.

History

Authority G.S. 10B-4; 10B-106; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07J .0116 data deletion requirement {#sec-18-ncac-07j-.0116 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .0116}

A technology provider shall securely delete data upon the finalization of the notarial session record if there is no retention requirement in the rules in this Subchapter.

History

Authority G.S. 10B-4; 10B-106; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07J .0201 notice of material change to electronic notary solution {#sec-18-ncac-07j-.0201 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .0201}

(a) After authorization by the Department and before implementation, a technology provider shall notify the Department of any material change to its authorized electronic notary solution.

(b) For purposes of this Section, a material change is one affecting the electronic notary solution's core:

(1) functionality;

(2) security; or

(3) reliability.

History

Authority G.S. 10B-4; 10B-106; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. January 1, 2007
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. December 6, 2016
Transferred from 18 NCAC 07C .0501 Eff. June 1, 2023
Amended Eff. July 1, 2025.

18 NCAC 07J .0202 Implementation of Material Changes Prohibited Pending Departmental Approval {#sec-18-ncac-07j-.0202 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .0202}

No material change to an electronic notary solution shall be implemented and offered to a notary public until the technology provider:

(1) files written notice pursuant to the rules in this Section;

(2) complies with Section .0500 of this Subchapter; and

(3) receives approval from the Department upon its determination that the material change does not adversely affect the provider's continued compliance with the standards established in the rules in this Subchapter and the Protocols.

History

Authority G.S. 10B-4; 10B-106; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07J .0203 notice to department of business information changes {#sec-18-ncac-07j-.0203 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .0203}

After authorization by the Department, a technology provider shall provide written notice to the Department:

(1) within five business days of changes to:

(a) the information required by 18 NCAC 07B .0402(2);

(b) the information required by 18 NCAC 07B .0402(3);

(d) conversion to a foreign entity;

(e) failure to remain active and current with the Department's Business Registration Division;

(f) merger with another business entity;

(g) filing of a bankruptcy petition; or

(h) a change in the technology provider's controlling ownership; and

(2) within 45 calendar days of changes to any other information on the provider's application for authorization.

History

Authority G.S. 10B-4; 10B-106; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07J .0204 contents of notice of changes {#sec-18-ncac-07j-.0204 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .0204}

A technology provider's written notice pursuant to Rule .0203 of this Section shall state:

(1) what has changed; and

(2) the correct information after the change.

History

Authority G.S. 10B-4; 10B-106; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07J .0205 notice to notaries of planned service outages {#sec-18-ncac-07j-.0205 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .0205}

(a) A technology provider shall provide at least five calendar days' notice to its subscribers and electronic notaries public that its systems will be unavailable due to planned maintenance.

(b) The notice required under Paragraph (a) of this Rule shall include:

(1) the date that the service will begin to be unavailable; and

(2) the approximate amount of time during which the service is expected to be unavailable.

History

Authority G.S. 10B-4; 10B-106; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07J .0206 service outage notification to the department {#sec-18-ncac-07j-.0206 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .0206}

As specified in the Department's authorization letter, a technology provider shall notify the Department immediately of any service outage or lack of accessibility to notaries public:

(1) when the outage exceeds four consecutive hours; and

(2) when service to notaries is restored.

History

Authority G.S. 10B-4; 10B-106; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07J .0207 notice to notaries of break in service {#sec-18-ncac-07j-.0207 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .0207}

A technology provider subject to Rule .0114 of this Subchapter shall notify notaries public using its authorized services within three days of the occurrence of a break in service and include:

(1) the reason for the break in service;

(2) whether the break in service is for a specific time period or is permanent;

(3) whether the notaries:

(a) can continue using the provider's authorized services:

(i) with limits and what the limits are; or

(ii) without limits; or

(b) cannot continue to use the provider's authorized services and, where the provider is a depository or custodian:

(i) will have 60 days to transfer any records maintained by the provider to a custodian; and

(ii) that the notaries may continue to access the records maintained by the provider until they are transferred; and

(4) any actions the provider requires the notaries to take.

History

Authority G.S. 10B-4; 10B-106; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07J .0208 notice of reportable incident {#sec-18-ncac-07j-.0208 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .0208}

(a) Within 72 hours of discovery of a reportable incident, a technology provider shall notify the Department.

(b) For purposes of the rules in this Section of this Subchapter, a reportable incident is one that involves:

(1) a technology provider's electronic notary solution, a notary public's records, an electronic notary's electronic seal or signature, or a principal's records or information;

(2) any of the following affecting data or access:

(A) unauthorized access, use, alteration, or disclosure;

(B) theft;

(D) compromise; or

(3) a cybersecurity incident.

History

Authority G.S. 10B-4; 10B-106; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07J .0209 content of notification to department {#sec-18-ncac-07j-.0209 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .0209}

Notification to the Department pursuant to Rule .0208 of this Section shall include the following information when available:

(1) the names of the affected notaries public including their notary commission numbers;

(2) a description of the affected records, data, or solution;

(3) a copy of any law enforcement report made in connection with the incident;

(4) a description of how the reportable incident occurred;

(5) the duration of the reportable incident;

(6) a description of actions taken to prevent or mitigate a similar reportable incident;

(7) when the reportable incident occurred; and

(8) a point of contact for the technology provider who has knowledge of:

(a) the reportable incident;

(b) actions taken to address the reportable incident; and

History

Authority G.S. 10B-4; 10B-106; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07J .0210 notification to other parties {#sec-18-ncac-07j-.0210 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .0210}

Technology providers shall notify affected persons of a reportable incident as required by applicable law, rule, or regulation. Note: The Identity Theft Protection Act, Chapter 75, Article 2A of the General Statutes is an example of an applicable law.

History

Authority G.S. 10B-4; 10B-106; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07J .0211 Verification of Continuing Compliance {#sec-18-ncac-07j-.0211 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .0211}

A technology provider shall:

(1) annually verify its compliance with the rules in this Subchapter for each approved electronic notary solution, by submitting the form in 18 NCAC 07B .0429; or

(2) submit notice that it will not apply again pursuant to Rule .0215 of this Subchapter.

Item (1) of this Rule shall not apply to licensed platforms.

History

Authority G.S. 10B-4; 10B-106; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07J .0212 timing of verification of continuing compliance {#sec-18-ncac-07j-.0212 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .0212}

A technology provider's verification of compliance pursuant to Rule .0211 of this Section shall be submitted to the Department:

(1) no more than 60 days before the expiration of its approval; or

(2) as part of its application for a subsequent approval.

History

Authority G.S. 10B-4; 10B-106; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07J .0213 Due diligence {#sec-18-ncac-07j-.0213 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .0213}

A technology provider's verification pursuant to Rule .0211 of this Section shall be made only after the exercise of due diligence to enable the signer to comply with Rule .0214 of this Section.

History

Authority G.S. 10B-4; 10B-106; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07J .0214 signer of verification {#sec-18-ncac-07j-.0214 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .0214}

A technology provider's verification pursuant to Rule .0211 of this Section shall be signed by a person with the authority to bind the provider and who certifies under penalty of perjury that the information on the form is true and complete to the best of the signer's knowledge and belief.

History

Authority G.S. 10B-4; 10B-106; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07J .0215 notice to department that provider will not review {#sec-18-ncac-07j-.0215 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .0215}

At least 90 days before its existing authorization expires, a technology provider shall notify the Department in writing:

(1) if it declines to apply for a subsequent authorization of its electronic notary solution;

(2) the date on which it will cease offering its electronic notary solution to North Carolina notaries public; and

(3) that it has complied with Rule .0216 of this Section.

History

Authority G.S. 10B-4; 10B-106; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07J .0216 notice to subscribers and notaries of nonrenewaL {#sec-18-ncac-07j-.0216 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .0216}

No later than the date that a technology provider gives notice to the Department pursuant to Rule .0215 of this Section, the provider shall:

(1) notify each subscriber and notary public account holder in writing that it will cease offering its electronic notary solution to North Carolina notaries public;

(2) specify the date on which it will cease offering its electronic notary solution; and

(3) comply with the rules in this Subchapter regarding notary access to records and transfer of records to a custodian.

History

Authority G.S. 10B-4; 10B-106; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07J .0301 application process {#sec-18-ncac-07j-.0301 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .0301}

A technology provider applicant for authorization of an electronic notary solution shall:

(1) submit a complete electronic application to the Department;

(2) demonstrate the electronic notary solution to the Department to enable it to evaluate compliance with applicable laws, rules, and protocols; and

(3) submit the filing fee, if applicable, with the application.

History

Authority G.S. 10B-4; 10B-106; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07J .0302 separate applications for each solution type {#sec-18-ncac-07j-.0302 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .0302}

A technology provider shall complete an application designating each type of electronic notary solution for which it seeks authorization.

History

Authority G.S. 10B-4; 10B-106; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07J .0303 Application fees {#sec-18-ncac-07j-.0303 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .0303}

(a) Each application for a platform license shall be accompanied by a non-refundable five thousand dollar ($5,000) fee pursuant to G.S. 10B-134.19(b).

(b) No fee is required to accompany an application for any other electronic notary solution.

History

Authority G.S. 10B-4; 10B-106; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07J .0304 binding representations in application {#sec-18-ncac-07j-.0304 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .0304}

All representations, promises and assurances of performance made to the Department by a technology provider during the application process shall be binding and made under penalty of perjury.

History

Authority G.S. 10B-4; 10B-106; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07J .0305 limit on designation of trade secret or confidential information {#sec-18-ncac-07j-.0305 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .0305}

A technology provider applicant shall not designate its entire application as:

(1) a trade secret; or

(2) confidential information.

History

Authority G.S. 10B-4; 10B-106; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07J .0306 designation of confidential or trade secret information {#sec-18-ncac-07j-.0306 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .0306}

A technology provider applicant shall designate each specific item on its application, attachments, and other filings for which confidentiality or trade secret protection is claimed. Each designation shall comply with:

(1) the North Carolina Trade Secrets Protection Act, Chapter 66, Article 24 of the General Statutes; or

(2) the confidentiality provisions of G.S. 132-1.2.

History

Authority G.S. 10B-4; 10B-106; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07J .0307 redacted copy {#sec-18-ncac-07j-.0307 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .0307}

A technology provider applicant that designates information as confidential or trade secret shall submit:

(1) the unredacted filing with the confidential and trade secret designations; and

(2) an exact duplicate of the filing with redactions of the confidential and trade secret information.

History

Authority G.S. 10B-4; 10B-106; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07J .0308 designation of redacted copy {#sec-18-ncac-07j-.0308 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .0308}

For any redacted document submitted pursuant to Rule .0307 of this Section, a technology provider applicant shall include the word "redacted" in:

(1) the document title;

(2) the document digital file name; and

(3) a header on each page.

History

Authority G.S. 10B-4; 10B-106; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07J .0309 good faith basis for confidential or trade secret designation {#sec-18-ncac-07j-.0309 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .0309}

If a technology provider designates items on its application as confidential or trade secret, the applicant shall certify on the application that it has formed a good faith opinion that the information claimed as confidential or trade secret meets the requirements for designation under the laws specified in Rule .0306 of this Section.

History

Authority G.S. 10B-4; 10B-106; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07J .0310 Sources of Confidential Information {#sec-18-ncac-07j-.0310 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .0310}

If designated as confidential or trade secret, the Department shall presume that the following plans and documents are confidential information or trade secrets:

(1) configuration management plan required by Rule .0616 of this Subchapter;

(2) information technology security audit and summary required by Rules .0620 and .0621 of this Subchapter;

(3) security plan required by Rule .0624 of this Subchapter;

(4) security incident response plan required by Rule .0626 of this Subchapter; and

(5) contingency plan required by Rule .0628 of this Subchapter.

History

Authority G.S. 10B-4; 10B-106; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07J .0311 application changes prior to licensure or approval {#sec-18-ncac-07j-.0311 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .0311}

If information in a technology provider's application changes before the Department's decision on the application, the provider shall inform the Department in writing, and:

(1) state what has changed; and

(2) state the correct information after the change.

History

Authority G.S. 10B-4; 10B-106; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07J .0312 application withdrawal {#sec-18-ncac-07j-.0312 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .0312}

A technology provider applicant may withdraw its application:

(1) before receiving notice of the Department's decision on its application; and

(2) by providing written notice:

(a) with the effective date of the withdrawal; and

(b) signed by a person with the authority to bind the applicant.

History

Authority G.S. 10B-4; 10B-106; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07J .0313 application resubmission {#sec-18-ncac-07j-.0313 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .0313}

A technology applicant may resubmit its application without a new application fee if the resubmission is delivered within 45 days of:

(1) the application initially being rejected as incomplete; or

(2) the application being withdrawn.

History

Authority G.S. 10B-4; 10B-106; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07J .0314 notice of department decision {#sec-18-ncac-07j-.0314 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .0314}

The Department shall notify a technology provider applicant whether its application is:

(1) rejected as incomplete, with:

(a) information regarding the areas in which the application is incomplete; and

(b) a time within which the application must be amended to include the information;

(2) denied, in which case the Department shall provide reasons for the denial; or

(3) approved.

History

Authority G.S. 10B-4; 10B-106; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07J .0315 timing of submission of application for subsequent authorization {#sec-18-ncac-07j-.0315 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .0315}

A technology provider's application for a subsequent authorization shall be submitted:

(1) no earlier than 120 days before its existing authorization expires; and

(2) no later than 90 days before its existing authorization expires.

History

Authority G.S. 10B-4; 10B-106; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07J .0401 contents of all technology provider applications {#sec-18-ncac-07j-.0401 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .0401}

All technology provider applicants shall submit applications that include the information required by:

(1) this Section; and

(2) 18 NCAC 07B .0422.

History

Authority G.S. 10B-4; 10B-106; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07J .0402 provider name {#sec-18-ncac-07j-.0402 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .0402}

All technology provider applications shall include:

(1) the provider's name in its state or jurisdiction of formation as required by 18 NCAC 07B .0402(2)(a); and

(2) the names required by 18 NCAC 07B .0422(3)(c) and (d).

History

Authority G.S. 10B-4; 10B-106; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. January 1, 2007
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. December 6, 2016
Transferred from 18 NCAC 07C .0502 Eff. June 1, 2023
Amended Eff. July 1, 2025.

18 NCAC 07J .0403 contact information {#sec-18-ncac-07j-.0403 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .0403}

A technology provider's application shall include the contact information required by 18 NCAC 07B .0402.

History

Authority G.S. 10B-4; 10B-106; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07J .0404 certification of standing {#sec-18-ncac-07j-.0404 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .0404}

A technology provider applicant shall certify in its application that it:

(1) is currently registered to do business in North Carolina or has a certificate of authority to do business in North Carolina; and

(2) is in current-active status with the Department and the business registrar in the jurisdiction where formed, if not North Carolina.

History

Authority G.S. 10B-4; 10B-106; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07J .0405 notary services in other jurisdictions {#sec-18-ncac-07j-.0405 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .0405}

A technology provider applicant's application shall provide the following information for each state, federally recognized tribe, or nation in which it has offered the same or similar services within the previous 10 years:

(1) the types of service provided;

(2) the month and year in which the technology provider received its most recent license or approval or a statement that a license or approval is not required;

(3) the expiration date of the most recent required license, approval, or equivalent, if any;

(4) whether any application for a required license, approval, or equivalent has been denied;

(5) whether the applicant has discontinued a service and if applicable:

(a) an explanation of the discontinuance of the service; and

(b) the month and year in which the applicant discontinued services; and

(6) for any open, pending, or active governmental or authorizing entity's investigations in relation to the applicant's provision of services in another jurisdiction and of which the applicant is aware at the time of application:

(a) the name of the governmental or authorizing entity; and

(b) a brief description of what the applicant believes is being investigated.

History

Authority G.S. 10B-4; 10B-106; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07J .0406 compliance contact {#sec-18-ncac-07j-.0406 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .0406}

A technology provider applicant shall name a compliance contact on its application who shall:

(1) be an employee;

(2) be a key individual;

(3) successfully complete the Department's electronic notary public course; and

(4) successfully complete the Department's technology provider course.

History

Authority G.S. 10B-4; 10B-106; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07J .0407 compliance contact duties {#sec-18-ncac-07j-.0407 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .0407}

A technology provider's compliance contact shall, for the duration of the provider's authorization:

(1) have the duty to monitor the provider's compliance with:

(a) Chapter 10B of the General Statutes; and

(b) the rules in this Chapter;

(2) ensure that notices are provided to the Department as required by the rules in this Subchapter; and

(3) receive notices from the Department made pursuant to the rules in this Chapter.

History

Authority G.S. 10B-4; 10B-106; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07J .0408 third-party vendors included in electronic notary solution {#sec-18-ncac-07j-.0408 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .0408}

A technology provider applicant shall list on its application any third-party vendors providing services to the technology provider in connection with the electronic notary solution for which it seeks authorization.

History

Authority G.S. 10B-4; 10B-106; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07J .0409 third-party vendor information {#sec-18-ncac-07j-.0409 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .0409}

A technology provider applicant shall provide the following information for each third-party vendor listed on its application:

(1) the type of service that the vendor provides to the applicant; and

(2) which, if any, of the third-party vendors used by the solution are:

(a) currently approved by the Department;

(b) currently under consideration for approval by the Department; or

History

Authority G.S. 10B-4; 10B-106; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07J .0410 supporting vendors {#sec-18-ncac-07j-.0410 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .0410}

A technology provider applicant shall list on its application any supporting vendors providing the following services to the technology provider in connection with the electronic notary solution for which it seeks authorization:

(1) cloud services;

(2) geolocation services;

(3) communication technology;

(4) communication recording technology;

(5) electronic journal;

(6) digital certificate authorities; and

(7) electronic signature and electronic seal.

History

Authority G.S. 10B-4; 10B-106; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07J .0411 supporting vendor information {#sec-18-ncac-07j-.0411 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .0411}

A technology provider applicant shall specify the type of service provided by each supporting vendor listed on its application.

History

Authority G.S. 10B-4; 10B-106; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07J .0412 vendors with access to notarial transaction data {#sec-18-ncac-07j-.0412 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .0412}

A technology provider applicant shall disclose on its application the names of all vendors, business entities, and any of their affiliates that will have access to notarial transaction data when at rest.

History

Authority G.S. 10B-4; 10B-106; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07J .0413 disclosure of certifications and compliance reports {#sec-18-ncac-07j-.0413 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .0413}

A technology provider applicant shall disclose on its application each independent third-party certification, SOC 2 Type 2 compliance report, or equivalent pertaining to the electronic notary solution for which authorization is sought, with:

(1) the name of the issuer of the certification, compliance report, or equivalent;

(2) the name or title of the certification, compliance report, or equivalent;

(3) the date of its issuance; and

(4) its expiration date, if applicable.

Note: FIPS validation, NSA approval, FedRAMP, ISO 27001, or HITRUST are examples of an independent third-party certification or equivalent.

History

Authority G.S. 10B-4; 10B-106; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07J .0414 disclosure of debarments {#sec-18-ncac-07j-.0414 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .0414}

A technology provider applicant shall disclose on its application if it or any of its key individuals is now or has ever been the subject of a debarment by a state, federally recognized tribe, or nation, and for each:

(1) whether the debarment was for the applicant or a key individual, and the name of the key individual;

(2) the name of each government that debarred the applicant or the key individual;

(3) an explanation of the reason for each debarment; and

(4) the start and end dates of each debarment.

History

Authority G.S. 10B-4; 10B-106; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07J .0415 disclosure of voluntary exclusions in lieu of debarment {#sec-18-ncac-07j-.0415 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .0415}

A technology provider applicant shall disclose on its application:

(1) whether, within 10 years of its application, the applicant or any of its key individuals have agreed to voluntary exclusion in lieu of debarment being taken against it or any of its key individuals by a state, federally recognized tribe, or nation; and

(2) for each disclosed voluntary exclusion of the applicant or its key individuals:

(a) the name of the person for whom any voluntary exclusion was agreed to;

(b) the name of each governmental entity for which the applicant or the key individual agreed to voluntary exclusion in lieu of debarment;

(d) the start and end dates of each voluntary exclusion.

History

Authority G.S. 10B-4; 10B-106; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07J .0416 disclosure of civil legal actions {#sec-18-ncac-07j-.0416 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .0416}

A technology provider applicant shall disclose on its application all findings in civil legal actions, including arbitration:

(1) made within 10 years of its application date;

(2) that are against the applicant or any of its key individuals for:

(a) activity involving dishonesty, untruthfulness, deceit, fraud, false dealing, cheating, stealing, or insider trading;

(b) mishandling or misuse of customer data; or

History

Authority G.S. 10B-4; 10B-106; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07J .0417 content of civil legal action disclosures {#sec-18-ncac-07j-.0417 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .0417}

A technology provider's application disclosure pursuant to Rule .0416 of this Section shall include:

(1) a description of each finding or admission;

(2) a copy of the document containing the finding or admission;

(3) a brief description of the circumstances surrounding the finding or admission;

(4) if not included in the document in Item (2) of this Rule:

(a) the date on which the finding or admission was made;

(b) the court in which the civil lawsuit was filed; and

(5) any additional information that the applicant wishes the Department to consider.

History

Authority G.S. 10B-4; 10B-106; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07J .0418 disclosure of disciplinary actions {#sec-18-ncac-07j-.0418 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .0418}

A technology provider shall disclose on its application any disciplinary actions:

(1) taken against it or any of its key individuals by any state, federally recognized tribe, or nation's government; and

(2) concluded within 10 years of the application date.

History

Authority G.S. 10B-4; 10B-106; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07J .0419 content of disciplinary action disclosures {#sec-18-ncac-07j-.0419 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .0419}

For each disciplinary action listed pursuant to Rule .0418 of this Section, a technology provider shall disclose:

(1) the date of each disciplinary action;

(2) the disciplinary action taken;

(3) a copy of each disciplinary action;

(4) if not included in the copy of the disciplinary action provided:

(a) the reason given for the disciplinary action;

(b) an explanation of the circumstances that led to the disciplinary action; and

(5) where the disciplinary action included any corrective action or conditions:

(a) whether the applicant or key individual has complied with the corrective actions or conditions; and

(b) the date on which compliance with the corrective actions or conditions was satisfied;

(6) whether the applicant or key individual would be eligible for relicensure or recommissioning; and

(7) other information that the applicant wishes to include in order to aid the Department in assessing the application.

History

Authority G.S. 10B-4; 10B-106; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07J .0420 disclosure of bankruptcy {#sec-18-ncac-07j-.0420 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .0420}

A technology provider applicant shall disclose on its application whether the applicant is in, or has previously exited within the past 10 years, bankruptcy proceedings pursuant to the laws of the United States or other nation.

History

Authority G.S. 10B-4; 10B-106; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07J .0421 contents of bankruptcy disclosure {#sec-18-ncac-07j-.0421 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .0421}

A technology provider applicant that discloses a bankruptcy pursuant to Rule .0420 of this Section shall state:

(1) the status of the matter;

(2) the style of the case, including the case number; and

(3) the court in which the bankruptcy was filed.

History

Authority G.S. 10B-4; 10B-106; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07J .0422 Website Information {#sec-18-ncac-07j-.0422 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .0422}

The application of a technology provider applicant shall include:

(1) the single URL link required by Rule .0607 of this Subchapter; and

(2) the form required by 18 NCAC 07B .0422(6).

History

Authority G.S. 10B-4; 10B-106; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07J .0423 It Security Audit Summary {#sec-18-ncac-07j-.0423 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .0423}

The application of a technology provider applicant shall include:

(1) how often the applicant conducts IT security audits; and

(2) the IT security audit summary required by Rule .0621 of this Subchapter.

History

Authority G.S. 10B-4; 10B-106; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07J .0501 solution availability required {#sec-18-ncac-07j-.0501 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .0501}

After submitting its application, a technology provider applicant shall make its electronic notary solution available to the Department for evaluation as specified in the rules in this Subchapter.

History

Authority G.S. 10B-4; 10B-106; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07J .0502 demonstration content {#sec-18-ncac-07j-.0502 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .0502}

A technology provider's demonstration of its electronic notary solution shall establish that the features, functionality, and instructional materials for users comply with the rules in this Subchapter.

History

Authority G.S. 10B-4; 10B-106; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07J .0503 demonstration to include use of solution in notarial transaction {#sec-18-ncac-07j-.0503 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .0503}

A technology provider's demonstration of its electronic notary solution shall include a step-by-step exhibition of how the electronic notary solution will be used for notarial transactions.

History

Authority G.S. 10B-4; 10B-106; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07J .0504 additional demonstrations {#sec-18-ncac-07j-.0504 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .0504}

Upon request by the Department, a technology provider applicant shall provide additional demonstrations of its electronic notary solution to establish:

(1) resolution of issues identified in a prior demonstration; and

(2) compliance with the rules in this Subchapter.

History

Authority G.S. 10B-4; 10B-106; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07J .0505 waiver of demonstration requirement {#sec-18-ncac-07j-.0505 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .0505}

The Department may waive the requirement that a technology provider applicant provide the demonstration required by Rule .0501 of this Section based upon the factors in 18 NCAC 07B .0108.

History

Authority G.S. 10B-4; 10B-106; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07J .0601 Scope {#sec-18-ncac-07j-.0601 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .0601}

The rules in this Section apply to electronic notary solutions.

History

Authority G.S. 10B-4; 10B-106; 10B-125(b); 10-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. January 1, 2007
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. December 6, 2016
Transferred from 18 NCAC 07C .0503 Eff. June 1, 2023
Amended Eff. July 1, 2025.

18 NCAC 07J .0602 notary account access {#sec-18-ncac-07j-.0602 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .0602}

A technology provider shall ensure that only the notary public, the technology provider, or a person authorized by law can access the notary's:

(1) account information;

(2) journals;

(3) communication technology recordings;

(4) session records; or

(5) metadata associated with the notarial transaction.

History

Authority G.S. 10B-4; 10B-106; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07J .0603 require notary multi-factor authentication {#sec-18-ncac-07j-.0603 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .0603}

A technology provider shall require multi-factor authentication before a notary public may access the notary's account.

History

Authority G.S. 10B-4; 10B-106; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07J .0604 inactivity warning timing {#sec-18-ncac-07j-.0604 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .0604}

A technology provider's electronic notary solution shall issue a warning on screen to a notary public:

(1) who is logged into the notary's account; and

(2) has been inactive longer than 15 minutes.

History

Authority G.S. 10B-4; 10B-106; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07J .0605 provider action after warning {#sec-18-ncac-07j-.0605 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .0605}

No more than five minutes after the on screen warning in Rule .0604 of this Section, a technology provider's electronic notary solution shall:

(1) determine whether there has been activity by the notary public in that five minutes; and

(2) log the notary out if there has been no activity.

History

Authority G.S. 10B-4; 10B-106; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07J .0606 technology provider web page {#sec-18-ncac-07j-.0606 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .0606}

A technology provider shall create a publicly accessible web page or pages containing the information required by Rule .0607 of this Section.

History

Authority G.S. 10B-4; 10B-106; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07J .0607 single link and submission to department {#sec-18-ncac-07j-.0607 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .0607}

A technology provider shall ensure that the website page or pages required by Rule .0606 of this Section and website content required by Rule .0608 of this Section are accessible through a single link provided to the Department:

(1) for inclusion on the Department's authorized technology provider web page; and

(2) with any sub-pages directly accessible through the single linked page.

History

Authority G.S. 10B-4; 10B-106; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07J .0608 website content {#sec-18-ncac-07j-.0608 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .0608}

A technology provider's website shall include the following content in the order set out in this Rule:

(1) the provider's name;

(2) the provider's contact information, including:

(a) a general telephone number;

(b) a sales number, if different; and

(3) the types of authorized electronic notary solution offered and each product name;

(4) if applicable, a notice that North Carolina notaries may use only electronic notary solutions authorized by the Department;

(5) a product description, including the functions offered;

(6) service sectors served by the products described;

(7) the minimum technical specifications for use of the electronic notary solution by:

(a) a notary public;

(b) a principal; and

(8) a direct link to the service level agreement required by Rule .0109 of this Subchapter;

(9) either the disclosures required by the following rules in this Subchapter or a link to those disclosures:

(a) Rule .1208;

(b) Rule .1427;

(d) Rule .1812; and

(e) Rule .2021;

(10) either the instructions for use and demonstrations or tutorials or links to them; and

(11) other information that the provider wishes to provide, such as pricing.

History

Authority G.S. 10B-4; 10B-106; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07J .0609 updating single link url {#sec-18-ncac-07j-.0609 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .0609}

A technology provider shall notify the Department within five business days of a change in the URL of the information required by Rule .0606 of this Section.

History

Authority G.S. 10B-4; 10B-106; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07J .0610 encryption of data {#sec-18-ncac-07j-.0610 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .0610}

A technology provider shall securely encrypt data while it is at rest and in transit.

History

Authority G.S. 10B-4; 10B-106; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07J .0611 data stored domestically {#sec-18-ncac-07j-.0611 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .0611}

A technology provider shall:

(1) store all data associated with the notarial transaction process in the United States while the data is at rest; and

(2) certify compliance with Item (1) of this Rule:

(a) on its initial and subsequent applications; and

(b) on its verification of compliance pursuant to Rule .0211 of this Subchapter, if applicable.

History

Authority G.S. 10B-4; 10B-106; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07J .0612 data storage facility requirements {#sec-18-ncac-07j-.0612 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .0612}

A technology provider shall store all data associated with a notarial session in facilities that are:

(1) climate-controlled; and

(2) secure from unauthorized physical access.

History

Authority G.S. 10B-4; 10B-106; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07J .0613 data center security {#sec-18-ncac-07j-.0613 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .0613}

A technology provider shall ensure that each data center it uses has physical security measures in place that include:

(1) restricting physical system access to personnel authorized by the provider to access the data center's system;

(2) monitoring and logging physical access to the data center's information systems;

(3) maintaining the physical access logs for five years; and

(4) monitoring and responding to:

(a) physical intrusion alarms; and

(b) surveillance system observations and alerts.

History

Authority G.S. 10B-4; 10B-106; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07J .0614 certification re data center security {#sec-18-ncac-07j-.0614 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .0614}

A technology provider shall certify its compliance with Rules .0612 and .0613 of this Section on its:

(1) initial and subsequent applications; and

(2) verification of compliance pursuant to Rule .0211 of this Subchapter, if applicable.

History

Authority G.S. 10B-4; 10B-106; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07J .0615 maintenance of software and hardware {#sec-18-ncac-07j-.0615 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .0615}

A technology provider's hardware, software, and firmware for systems supporting the electronic notary solution shall:

(1) not be classified as end-of-life by their manufacturers;

(2) still be eligible for vendor security patches; and

(3) comply with the "N-1" principle that states that all systems should be running either the newest stable release or one version prior to that release.

History

Authority G.S. 10B-4; 10B-106; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07J .0616 configuration management plan {#sec-18-ncac-07j-.0616 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .0616}

A technology provider shall maintain a configuration management plan for systems supporting the electronic notary solution that addresses:

(1) maintenance of an accurate inventory of items including:

(a) software;

(b) hardware; and

(2) implementation of configuration settings which represent the most restrictive security settings compatible with the systems' operational requirements;

(3) use of automated mechanisms to detect inventory and configuration changes;

(4) prevention of unauthorized changes to the systems; and

(5) evaluation of the potential security impact of proposed changes.

History

Authority G.S. 10B-4; 10B-106; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07J .0617 identification and access control {#sec-18-ncac-07j-.0617 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .0617}

A technology provider shall implement personnel identification and access control measures for systems supporting the electronic notary solution that:

(1) designate and authorize users;

(2) assign access to its data and systems based on users' roles;

(3) restrict non-privileged users from performing privileged functions;

(4) review, manage, and monitor users' role-based access;

(5) restrict notarial transaction process-related data access to authorized persons; and

(6) delete, revise, or remove access for users:

(a) whose role changes; or

(b) who are no longer employed with the provider.

History

Authority G.S. 10B-4; 10B-106; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07J .0618 identification and access control by third party vendors and supporting vendors {#sec-18-ncac-07j-.0618 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .0618}

A technology provider shall confirm that each of its third-party and supporting vendors maintain and implement identification and access control measures equivalent to or more stringent than those required by Rule .0617 of this Section.

History

Authority G.S. 10B-4; 10B-106; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07J .0619 vulnerability detection and remediation {#sec-18-ncac-07j-.0619 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .0619}

A technology provider shall:

(1) at least weekly execute or cause to be executed a third party security program which shall evaluate each system endpoint for indications of malware, known security risks, and other vulnerabilities; and

(2) detect and remediate IT security vulnerabilities.

History

Authority G.S. 10B-4; 10B-106; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07J .0620 it security audit {#sec-18-ncac-07j-.0620 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .0620}

A technology provider shall have a third-party audit of its IT security conducted at least once every three years:

(1) sufficient to comply with Rule .0622 of this Section; and

(2) by Certified Information Systems Auditors or the equivalent.

History

Authority G.S. 10B-4; 10B-106; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07J .0621 summary of it security audit {#sec-18-ncac-07j-.0621 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .0621}

A technology provider shall provide a summary to the Department of its most recent IT security audit, which shall not be more than three years old:

(1) on its initial and subsequent applications; and

(2) on its verification of compliance pursuant to Rule .0211 of this Section, if applicable.

History

Authority G.S. 10B-4; 10B-106; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07J .0622 contents of it security audit summary {#sec-18-ncac-07j-.0622 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .0622}

(a) The IT audit summary provided to the Department pursuant to Rule .0620 of this Section shall include:

(1) the date of the audit;

(2) the third-party audit standards by which the audit was conducted;

(3) the name, contact information, and title or role of a representative of the organization conducting the audit;

(4) the IT security audit findings; and

(5) any plan of action including a timeline to address all findings.

(b) For purposes of this Rule, "finding" means:

(1) a deficiency in internal control;

(2) noncompliance with applicable laws and rules; or

(3) instances of fraud.

History

Authority G.S. 10B-4; 10B-106; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07J .0623 cybersecurity incident prevention {#sec-18-ncac-07j-.0623 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .0623}

A technology provider shall take steps to prevent cybersecurity incidents by:

(1) logging and monitoring access to the system; and

(2) detecting, tracking, and addressing security flaws.

History

Authority G.S. 10B-4; 10B-106; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07J .0624 security plan {#sec-18-ncac-07j-.0624 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .0624}

A technology provider shall maintain a security plan specifying how it will comply with laws, rules, and the Department's protocols related to:

(1) physical security; and

(2) IT security.

History

Authority G.S. 10B-4; 10B-106; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07J .0626 security incident response plan {#sec-18-ncac-07j-.0626 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .0626}

A technology provider shall maintain a security incident response plan that:

(1) addresses the capabilities required by the rules in this Section;

(2) includes annual testing; and

(3) is revised annually, as needed.

History

Authority G.S. 10B-4; 10B-106; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07J .0627 cybersecurity incident response {#sec-18-ncac-07j-.0627 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .0627}

A technology provider shall:

(1) detect and respond to any cybersecurity incident;

(2) store evidence related to a cybersecurity incident in a manner that:

(a) establishes chain of custody; and

(b) preserves chain of custody; and

(3) retain security logs and other data related to cybersecurity incidents and response for at least three years.

History

Authority G.S. 10B-4; 10B-106; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07J .0628 contingency plan requirement {#sec-18-ncac-07j-.0628 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .0628}

A technology provider shall maintain a contingency plan for recovery to a functional state in the event of a cybersecurity incident or other service disruption of:

(1) its authorized electronic notary solutions;

(2) the following businesses upon which its electronic notary solutions are reliant:

(a) critical infrastructure companies, as defined in G.S. 166A-19.70A; and

(b) supporting vendors listed pursuant to Rule .0410 of this Subchapter.

History

Authority G.S. 10B-4; 10B-106; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07J .0629 contents of contingency plan {#sec-18-ncac-07j-.0629 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .0629}

A technology provider's contingency plan shall include:

(1) the manner in which it will recover its authorized services to a functional state;

(2) a projected timeline for recovery to a functional state; and

(3) required notices to the Department and notaries public pursuant to Section .0200 of this Subchapter.

History

Authority G.S. 10B-4; 10B-106; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07J .0701 Application of Electronic Seal {#sec-18-ncac-07j-.0701 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .0701}

An electronic notary seal shall be applied only by an electronic notary using an IPEN or platform provider's electronic notary solution.

History

Authority G.S. 10B-4; 10B-106; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07J .0702 compliance with electronic signature and seal rules {#sec-18-ncac-07j-.0702 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .0702}

An IPEN or platform provider's electronic notary solution shall enable an electronic notary public to comply with the following rules:

(1) 18 NCAC 07F Section .0700, Electronic Notary Signature;

(2) 18 NCAC 07F Section .0800, Electronic Notary Seal; and

(3) 18 NCAC 07F Section .1000, Confidentiality, Security, and Records Retention.

History

Authority G.S. 10B-4; 10B-106; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07J .0703 application of electronic signature {#sec-18-ncac-07j-.0703 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .0703}

An IPEN or platform provider's electronic notary solution shall enable an electronic notary public to affix the electronic notary's electronic signature on an electronic notarial certificate.

History

Authority G.S. 10B-4; 10B-106; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07J .0704 electronic signature appearance {#sec-18-ncac-07j-.0704 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .0704}

An IPEN or platform provider's electronic notary solution shall enable an electronic notary public to apply the electronic notary's electronic signature to an electronic record being notarized only if:

(1) the electronic signature is an exact copy of the electronic notary's handwritten signature delivered pursuant to Rules .1201 and .1410 of this Subchapter; or

(2) the signature is handwritten by the electronic notary using electronic means during the notarial transaction.

History

Authority G.S. 10B-4; 10B-106; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07J .0705 electronic signature and seal review {#sec-18-ncac-07j-.0705 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .0705}

An IPEN or platform provider's electronic notary solution shall enable an electronic notary public to comply with 18 NCAC 07F .0710 and .0815 by permitting the electronic notary to:

(1) view the electronic signature and seal after application; and

(2) delete and reapply the electronic signature and seal before committal.

History

Authority G.S. 10B-4; 10B-106; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07J .0706 electronic signature and seal changes {#sec-18-ncac-07j-.0706 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .0706}

If an IPEN or platform provider's electronic notary solution receives a registration certificate reflecting a change in an electronic notary public's name, county, or expiration date, the provider shall:

(1) use the Department's notary public database to:

(a) verify that the electronic notary's information has changed as shown on the certificate; and

(b) verify that the electronic notary continues to be in active status with the Department;

(2) generate a new electronic seal reflecting the changed information;

(3) obtain an updated handwritten signature from the electronic notary in compliance with Rule .1201(5) or .1410(5) of this Subchapter, as applicable, if the notary's name has changed;

(4) provide exemplars of the updated signature and seal to the Department; and

(5) reconfirm the Department's receipt of the exemplars.

History

Authority G.S. 10B-4; 10B-106; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07J .0801 Electronic Journal Required {#sec-18-ncac-07j-.0801 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .0801}

An IPEN or platform provider's electronic notary solution shall provide an electronic journal in which an electronic notary can record all completed and canceled electronic notarial transactions.

History

Authority G.S. 10B-4; 10B-106; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07J .0802 Compliance with journal rules {#sec-18-ncac-07j-.0802 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .0802}

An IPEN or platform provider shall design its electronic journals in a way that enables an electronic notary public to comply with the journal rules in this Chapter.

History

Authority G.S. 10B-4; 10B-106; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07J .0803 journal entry for each notarial transaction {#sec-18-ncac-07j-.0803 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .0803}

An IPEN or platform provider shall design its electronic journals to require a single journal entry for each:

(1) notarial act;

(2) canceled notarial act; and

(3) supplemental journal entry.

History

Authority G.S. 10B-4; 10B-106; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07J .0804 Classification of Journal Entries {#sec-18-ncac-07j-.0804 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .0804}

An IPEN solution or platform provider shall design its electronic journals to enable a notary public to classify each journal entry as:

(1) a completed notarial act;

(2) a canceled notarial transaction; or

(3) a supplemental journal entry.

History

Authority G.S. 10B-4; 10B-106; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07J .0805 Minimum length of notes field {#sec-18-ncac-07j-.0805 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .0805}

An IPEN solution or platform provider shall design its electronic journals to provide a notes field:

(1) that allows a notary to enter observations about a notarial transaction; and

(2) that accommodates at least 3,000 characters.

History

Authority G.S. 10B-4; 10B-106; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07J .0806 Journal data validation {#sec-18-ncac-07j-.0806 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .0806}

An IPEN or platform provider shall design its electronic journal to allow a notary public to review, amend, or confirm information in all fields contained within a journal entry before committing it.

History

Authority G.S. 10B-4; 10B-106; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07J .0807 committed journal entry amendments prohibited {#sec-18-ncac-07j-.0807 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .0807}

An IPEN or platform provider shall design its electronic journal to prohibit amendment of an electronic journal entry after it is committed by the notary public.

History

Authority G.S. 10B-4; 10B-106; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07J .0808 printing of electronic journal information {#sec-18-ncac-07j-.0808 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .0808}

An IPEN or platform provider shall design its electronic journal to permit the notary public to print a tangible and legible copy of each journal entry selected by the notary.

History

Authority G.S. 10B-4; 10B-106; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07J .0809 journal search {#sec-18-ncac-07j-.0809 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .0809}

An IPEN or platform provider shall ensure that its electronic journal can be searched based on the information entered by a notary public in any field in the journal.

History

Authority G.S. 10B-4; 10B-106; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07J .0810 Segregation of entries {#sec-18-ncac-07j-.0810 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .0810}

An IPEN or platform provider shall ensure that entries in its electronic journals can be annotated and distinguished from other entries. Note: An example of separate and distinguishing annotation would be flagging entries subject to a litigation hold.

History

Authority G.S. 10B-4; 10B-106; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07J .0811 Notary Access to Journal {#sec-18-ncac-07j-.0811 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .0811}

During the contract period in which a notary public has use of an IPEN or platform provider's electronic journal, the provider shall make the entries and journal:

(1) viewable by the notary;

(2) printable by the notary;

(3) available for download; and

(4) available for transfer to a custodian.

History

Authority G.S. 10B-4; 10B-106; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07J .0812 Termination of relationship with notary {#sec-18-ncac-07j-.0812 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .0812}

An IPEN or platform provider shall do the following upon the termination of its relationship with a notary public:

(1) within 45 days, transfer the notary's electronic journal to a custodian; and

(2) delete the electronic journal entries and journal after transfer to a custodian unless retention is permitted pursuant to law or the rules in this Subchapter.

Note: For purposes of this rule, termination of relationship means:

(1) termination of a contract between the provider and a notary or the notary's employer; or

(2) restriction, suspension, or termination of the provider's authorization by the Department or a court of general jurisdiction.

History

Authority G.S. 10B-4; 10B-106; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07J .0813 supplemental journal entries {#sec-18-ncac-07j-.0813 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .0813}

An IPEN or platform provider's electronic journal shall allow a notary public to record one or more supplemental journal entries pursuant to 18 NCAC 07I .0308.

History

Authority G.S. 10B-4; 10B-106; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07J .0901 Access limited {#sec-18-ncac-07j-.0901 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .0901}

A platform provider shall limit participation in a notarial session to individuals authorized to have access by:

(1) the notary public who will perform the notarial acts;

(2) the principals in the notarial transaction; and

(3) other parties authorized by the notary or principals.

History

Authority G.S. 10B-4; 10B-106; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07J .0902 View of Document {#sec-18-ncac-07j-.0902 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .0902}

The communication technology shall allow an electronic notary public to view the application of the principal's signature to any document being notarized.

History

Authority G.S. 10B-4; 10B-106; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07J .0903 video standards {#sec-18-ncac-07j-.0903 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .0903}

A platform provider's communication technology shall enable:

(1) comparison by the notary of a remotely located principal's facial features with the credential that was used for credential analysis;

(2) visual communication between the notary, principals, and any additional participants, including interpreters and transliterators, for the duration of the notarial transaction; and

(3) the remotely located principal for whom CART captioning is being provided and the speaker to see the CART captions.

Note: Visual communication includes American Sign Language and cued speech.

History

Authority G.S. 10B-4; 10B-106; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07J .0904 video customization standard {#sec-18-ncac-07j-.0904 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .0904}

A platform provider's communication technology shall include a feature that allows each participant to lock the size and position of a priority video window and can be located easily by a participant in a notarial transaction.

History

Authority G.S. 10B-4; 10B-106; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07J .0905 audio standards {#sec-18-ncac-07j-.0905 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .0905}

A platform provider's communication technology shall support audio interactions between all participants in a notarial transaction that:

(1) provide live audio transmission for the duration of the notarial transaction;

(2) provide clarity and volume so that all participants can hear the audio; and

(3) synchronize the audio with the video transmission, except as permitted pursuant to 18 NCAC 07H .0405.

History

Authority G.S. 10B-4; 10B-106; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07J .0906 written communication standard {#sec-18-ncac-07j-.0906 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .0906}

A platform provider's communication technology shall support:

(1) live transmission of on-screen text communication between all participants in a notarial transaction;

(2) CART captioning pursuant to Rule .0903 of this Section; and

(3) customization by each participant of all text outputs generated by the participants of:

(a) the contrast between the text and background;

(b) the size of the text; and

History

Authority G.S. 10B-4; 10B-106; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07J .0907 recording capability {#sec-18-ncac-07j-.0907 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .0907}

A platform provider's communication technology shall:

(1) permit recording of a remote electronic notarial session; and

(2) provide the electronic notary public with the controls to:

(a) initiate a communication technology recording;

(b) conclude a communication technology recording; and

History

Authority G.S. 10B-4; 10B-106; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07J .0908 recording content {#sec-18-ncac-07j-.0908 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .0908}

A platform provider's communication technology shall preserve all audio, visual, and written content as it occurred or was presented during the notarial session.

History

Authority G.S. 10B-4; 10B-106; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07J .0909 recording metadata {#sec-18-ncac-07j-.0909 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .0909}

A platform provider's communication technology shall associate metadata to a communication technology recording documenting:

(1) the format of the recording; and

(2) the length of the recording.

History

Authority G.S. 10B-4; 10B-106; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07J .0910 recording of remote judicial actions or proceedings {#sec-18-ncac-07j-.0910 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .0910}

Any recording of a remote judicial action or proceeding authorized by G.S. 10B-134.9(d) shall be exempted from the rules of this Subchapter.

History

Authority G.S. 10B-4; 10B-106; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07J .1001 Depository Requirements {#sec-18-ncac-07j-.1001 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .1001}

Except as noted, the rules in this Section apply to the depositories of IPEN solution providers and platform providers.

History

Authority G.S. 10B-4; 10B-106; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07J .1002 Session Record Creation {#sec-18-ncac-07j-.1002 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .1002}

(a) A session record shall be created at the end of a notarial session and include:

(1) all journal entries made in the session;

(2) any communication technology recording made of the session; and

(3) metadata as required by Rule .1017 of this Section.

(b) A session record shall be created for a traditional notary public using a platform depository's services only if the traditional notary:

(1) administers an oath or affirmation pursuant to G.S. 10B-134.9(d);

(2) chooses to make an entry in the provider's electronic journal; and

(3) designates a custodian.

History

Authority G.S. 10B-4; 10B-106; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07J .1003 Session Record Digital Signature {#sec-18-ncac-07j-.1003 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .1003}

A depository shall digitally sign each session record.

History

Authority G.S. 10B-4; 10B-106; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07J .1005 session identifier {#sec-18-ncac-07j-.1005 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .1005}

A depository shall establish a session identifier for each notarial session or supplemental journal entry by concatenating the following numbers, with no separation or punctuation:

(1) the four-digit identifying number assigned to the authorized depository by the Department;

(2) the 12 digit commission number of the notary public who performs notarial acts during the session, padded with leading zeros as necessary;

(3) the eight-digit date on which the session occurred, comprised of the following numbers in the order listed:

(a) the four-digit calendar year;

(b) the two-digit month; and

(4) a seven-digit sequential session number that is assigned by the depository and that:

(a) begins with number 0000001 on the first day of the calendar year; and

(b) ends with the last sequential number for sessions in that same calendar year.

History

Authority G.S. 10B-4; 10B-106; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07J .1006 searchable session record fields {#sec-18-ncac-07j-.1006 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .1006}

A depository shall make session records searchable and identifiable by the following fields:

(1) the session identifier required pursuant to Rule .1005 of this Section;

(2) the commission name of the notary public;

(3) the county of the notary's commission;

(4) the names of the remotely located principals as they appear on the credentials presented for credential analysis;

(5) the time when the session ended;

(6) whether the session was performed in the conduct of the business of a notary's employer;

(7) the name of the employer, if applicable;

(8) the types of notarial acts, or cancellation of the session; and

(9) whether the electronic notarial act was:

(a) an electronic notarial act; or

(b) a remote electronic notarial act:

(i) pursuant to G.S. 10B-134.9(d) for which no electronic journal entry is made; or

(ii) other remote electronic notarial act pursuant to Article 4A of Chapter 10B of the General Statutes; or

(10) whether the session record is for a supplemental journal entry.

History

Authority G.S. 10B-4; 10B-106; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07J .1007 session record unchanged {#sec-18-ncac-07j-.1007 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .1007}

A depository shall ensure that there are no changes to a session record held in its depository from the time the record is created until transfer to a custodian.

History

Authority G.S. 10B-4; 10B-106; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07J .1008 Storage Locations {#sec-18-ncac-07j-.1008 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .1008}

A depository shall maintain copies of each session record and session record log in two or more geographically separated data facilities.

History

Authority G.S. 10B-4; 10B-106; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07J .1009 Time Limit for Transfer from Depository {#sec-18-ncac-07j-.1009 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .1009}

A depository shall transfer a session record to a custodian selected by a notary public on the earliest of:

(1) a time agreed to by the notary;

(2) no later than 10 days from receipt of a written transfer request from the notary;

(3) one year from the date the session concluded; or

(4) the expiration of the provider's contract with the notary.

History

Authority G.S. 10B-4; 10B-106; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07J .1010 exceedance of storage time limit {#sec-18-ncac-07j-.1010 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .1010}

A depository that is unable to comply with Rule .1009 of this Section shall:

(1) notify the Department upon discovering the inability; and

(2) comply with the rules for custodians in Section .2000 of this Subchapter.

History

Authority G.S. 10B-4; 10B-106; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07J .1011 deletion of session record {#sec-18-ncac-07j-.1011 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .1011}

A depository shall securely delete a session record from its depository within 45 days of receiving a confirmation receipt from the electronic notary public's designated transferee custodian.

History

Authority G.S. 10B-4; 10B-106; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07J .1012 validation before deletion {#sec-18-ncac-07j-.1012 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .1012}

A depository shall not delete a session record until it receives the transferee custodian's receipt confirming that the record has been:

(1) received; and

(2) validated.

History

Authority G.S. 10B-4; 10B-106; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07J .1013 notary access to session record from depository {#sec-18-ncac-07j-.1013 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .1013}

A depository shall allow a notary public to view, copy, print, and download any of the notary's session records in the possession of the depository at any time and at no cost.

Note: This rule shall not apply to planned service outages for which notice is provided pursuant to Rule .0205 of this Subchapter.

History

Authority G.S. 10B-4; 10B-106; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07J .1014 depository continuity of services {#sec-18-ncac-07j-.1014 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .1014}

A depository shall not discontinue operation of its depository until all session records and session record logs are transferred to the custodians designated by the notaries public.

History

Authority G.S. 10B-4; 10B-106; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07J .1015 journal entry identifier {#sec-18-ncac-07j-.1015 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .1015}

A depository shall establish a journal entry identifier for each journal entry by concatenating the following numbers in order:

(1) the session identifier; and

(2) a four-digit number representing the sequential number of the journal entry within the session record.

History

Authority G.S. 10B-4; 10B-106; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07J .1016 Session record log for which there is no electronic journal entry {#sec-18-ncac-07j-.1016 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .1016}

If a traditional notary public administers an oath or affirmation pursuant to G.S. 10B-134.9(d) and chooses not to make an electronic journal entry, the platform depository shall create a session record log entry of the oaths or affirmations administered during the session.

History

Authority G.S. 10B-4; 10B-106; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07J .1017 required metadata {#sec-18-ncac-07j-.1017 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .1017}

After the notary public has committed the session record and before the depository digitally signs the PDF/A of the session record, the depository shall add the following metadata:

(1) the session identifier;

(2) the notary public's name as shown on the notary's commission certificate;

(3) the sum of:

(a) the platform's count of the number of notarial acts for which the notary's electronic seal was applied with the notary's signature; and

(b) the notary's count of the number of oaths or affirmations administered without a principal signature;

(4) the date and time the session record was created and sealed by the depository;

(5) a list of the types of notarial acts performed; and

(6) whether the notarial acts performed were:

(a) electronic notarial acts;

(b) remote electronic notarial acts pursuant to G.S. 10B-134.9(d) for which no electronic journal entry is made; or

History

Authority G.S. 10B-4; 10B-106; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07J .1018 Session Record Log {#sec-18-ncac-07j-.1018 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .1018}

A depository shall establish a session record log for each session as required by Rule .1019 of this Section.

History

Authority G.S. 10B-4; 10B-106; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07J .1019 Contents of Session Record Log {#sec-18-ncac-07j-.1019 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .1019}

A session record log shall include:

(1) the session record identifier;

(2) the time and date that the session:

(a) started; and

(b) ended;

(3) whether a session record was created;

(4) the name of the notary public exactly as it appears on the notary's commission certificate;

(5) whether the notarial act was performed for the notary's employer, and the name of the employer, if applicable;

(6) the types of notarial acts performed during the notarial session as defined in G.S. 10B-3(11);

(7) whether the notarial act was:

(a) an electronic notarial act; or

(b) a remote electronic notarial act:

(i) pursuant to G.S. 10B-134.9(d) for which no electronic journal entry is made; or

(ii) other remote electronic notarial act pursuant to Article 4A of Chapter 10B of the General Statutes;

(8) the IP address of the device used by the notary in the notarial transaction;

(9) for each principal in the notarial transaction:

(a) the principal's name as it appears on the credentials presented for credential analysis;

(b) the IP address of the primary device used by the principal to enter the communication technology of a platform used in the notarial transaction; and

(i) as determined by geolocation, if available; or

(ii) as entered by the notary if self-attestation is used as the means of verifying the principal's location;

(10) the notary's count of the oaths or affirmations administered by the notary without principal signatures;

(11) the platform's count of the number of notarial acts for which the notary's electronic signature or seal were applied;

(12) whether the platform facilitated payment to the notary, and if applicable:

(a) the name of the person making the payment;

(b) the method of payment:

(i) ACH;

(ii) credit card; or

(iii) other electronic method;

(d) the last four digits of the account number used; and

(13) the date on which the session record was deleted.

History

Authority G.S. 10B-4; 10B-106; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07J .1020 Entry to Department Database {#sec-18-ncac-07j-.1020 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .1020}

A depository shall update the Department's database at the conclusion of each notarial session with the following information:

(1) the session identifier;

(2) the date and time that:

(a) the session began; and

(b) the session ended;

(3) whether a session record was created;

(4) the IP address of the device used by the notary in the notarial transaction;

(5) whether the electronic notarial act was:

(a) an electronic notarial act; or

(b) a remote electronic notarial act:

(i) pursuant to G.S. 10B-134.9(d) for which no electronic journal entry is made; or

(ii) other remote electronic notarial act pursuant to Article 4A of Chapter 10B of the General Statutes;

(6) the principal names as they appear on the credentials presented for credential analysis; and

(7) the count of notarial acts performed during the session as described in Rule .1017(3) of this Subchapter.

History

Authority G.S. 10B-4; 10B-106; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07J .1021 retention of session record log by depository {#sec-18-ncac-07j-.1021 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .1021}

Each session record log shall be retained by the depository for no less than 15 years from the date of the session record log creation.

History

Authority G.S. 10B-4; 10B-106; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07J .1022 transfer of session reocrd log {#sec-18-ncac-07j-.1022 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .1022}

A depository shall transfer to a custodian a copy of a session record log together with any associated session record. A depository shall not be required to transfer a copy of a session record log to a custodial notary public.

History

Authority G.S. 10B-4; 10B-106; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07J .1023 Entry in Department's Database by Transferor {#sec-18-ncac-07j-.1023 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .1023}

Upon validation pursuant to Rule .1012 of this Section, a transferor shall update the Department's database with the following information:

(1) the session identifier;

(2) the four-digit identifying number assigned to the technology provider making the entry into the Department's database;

(3) the four-digit identifying number assigned to the transferor;

(4) for the transferee:

(a) the four-digit identifying number assigned to the transferee; or

(b) the custodial notary public's commission number, if applicable; and

(5) the date and time of the transfer.

History

Authority G.S. 10B-4; 10B-106; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07J .1101 Safe Harbor {#sec-18-ncac-07j-.1101 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .1101}

An existing technology provider may continue to provide its IPEN solution under its previous approval until:

(1) its first complete application submitted pursuant to Rule .1303 of this Subchapter has been approved or denied;

(2) it discontinues offering its IPEN solution in North Carolina and provides notice pursuant to Rules .0215 and .0216 of this Subchapter; or

(3) July 1, 2026, whichever is earlier.

History

Authority G.S. 10B-4; 10B-106; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07J .1102 Deadline for Existing Tech Provider Applications {#sec-18-ncac-07j-.1102 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .1102}

An existing technology provider shall:

(1) submit an application for authorization of its IPEN solution:

(a) no earlier than the effective date of the rules in this Subchapter; and

(b) no later than April 1, 2026; or

(2) provide notice no later than April 1, 2026, pursuant to Rules .0215 and .0216 of this Subchapter that it will discontinue offering its IPEN solution in North Carolina.

History

Authority G.S. 10B-4; 10B-106; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07J .1103 compliance with Rules during bridge period {#sec-18-ncac-07j-.1103 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .1103}

An existing technology provider shall comply with the following rules between the effective date of the rules in this Subchapter and the applicable date in Rule .1102 of this Section:

(1) Rules .0101-.0102, .0104-.0108, and .0110 of this Subchapter;

(2) Rules .0201-.0202 of this Subchapter;

(3) Rule .0602 of this Subchapter;

(4) Rules .0701-.0706 of this Subchapter;

(5) Rules .1101-.1104 of this Section; and

(6) Rule .1201(2)-(4) and (6)-(8) of this Subchapter and Rules .1203-.1205 of this Subchapter.

History

Authority G.S. 10B-4; 10B-106; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025
Amended Eff. April 1, 2026.

18 NCAC 07J .1104 Application Required Upon Changes {#sec-18-ncac-07j-.1104 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .1104}

If an existing technology provider operating pursuant to Rule .1101 of this Section undergoes a change reportable pursuant to Rule .0201 of this Subchapter, it shall file an application pursuant to Section .1300 of this Subchapter and not implement the change without Departmental approval of the application.

History

Authority G.S. 10B-4; 10B-106; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07J .1201 Ipen Solution Account Creation {#sec-18-ncac-07j-.1201 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .1201}

An IPEN solution provider shall create an account for an electronic notary public only after it:

(1) confirms the electronic notary's identity by using approved credential analysis and identity proofing solutions;

(2) receives the electronic notary registration certificate from the electronic notary;

(3) uses the Department's online database of notaries to:

(a) search for the electronic notary by commission name and number;

(b) verify whether the electronic notary:

(i) is in active status as an electronic notary;

(ii) the expiration date of the individual's commission certificate; and

(iii) the county of commissioning of the electronic notary;

(4) documents the electronic notary's designated custodian;

(5) acquires an image of the electronic notary's handwritten signature or arranges for the electronic notary to use its device to, by hand, electronically sign notarial certificates;

(6) creates an image of the electronic notary's electronic notary seal that complies with 18 NCAC 07F .0807;

(7) provides to the Department an exemplar of:

(a) the electronic notary's electronic signature; and

(b) the electronic notary's electronic seal; and

(8) receives confirmation of receipt of the electronic notary's signature and seal exemplars from the Department.

History

Authority G.S. 10B-4; 10B-106; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07J .1202 Changes to Electronic Registration Certificate Presented to Ipen Solution Provider {#sec-18-ncac-07j-.1202 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .1202}

Upon receiving an electronic notary registration certificate that differs from that previously presented by an electronic notary public, the IPEN solution provider shall comply again with Rule .1201 of this Section.

History

Authority G.S. 10B-4; 10B-106; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07J .1203 Verification of Notary Status {#sec-18-ncac-07j-.1203 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .1203}

When an electronic notary public initiates a notarial session, an IPEN solution provider shall use the Department's notary public database to verify whether the electronic notary is in active status as an electronic notary.

History

Authority G.S. 10B-4; 10B-106; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07J .1204 Inability to Verify Active Status {#sec-18-ncac-07j-.1204 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .1204}

If an IPEN solution provider cannot verify the active status of an electronic notary public, the provider shall:

(1) not allow the electronic notary to proceed with the notarial session; and

(2) enable the electronic notary's access to the IPEN solution only to search, view, print, and download existing records.

History

Authority G.S. 10B-4; 10B-106; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07J .1205 When Provider May Re-Enable Full Access {#sec-18-ncac-07j-.1205 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .1205}

An IPEN solution provider may re-enable an electronic notary public's full access to the solution if it can verify active status pursuant to Rule .1203 of this Section.

History

Authority G.S. 10B-4; 10B-106; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07J .1206 Ipen Verification of Custodian {#sec-18-ncac-07j-.1206 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .1206}

If an IPEN solution provider does not offer custodial services, it shall not allow an electronic notary public to begin a notarial session until:

(1) the electronic notary discloses the name of the custodian with whom the notary has contracted for custodial services; or

(2) the electronic notary discloses that he or she will be a custodial notary.

History

Authority G.S. 10B-4; 10B-106; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07J .1207 Format of Session Record {#sec-18-ncac-07j-.1207 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .1207}

An IPEN solution shall render a session record tamper evident by:

(1) preserving it in PDF/A format; and

(2) signing the PDF/A with a verifiable digital certificate to indicate the IPEN solution from which the notarized electronic record originated and prevent further alteration.

History

Authority G.S. 10B-4; 10B-106; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07J .1208 Ipen Solution Disclosure {#sec-18-ncac-07j-.1208 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .1208}

Following the information required by Rule .0608 of this Subchapter, an IPEN solution provider shall:

(1) publish the information required by Rule .1209 of this Section; and

(2) display the information as required by Rule .1210 of this Section.

History

Authority G.S. 10B-4; 10B-106; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07J .1209 Content of Additional Ipen Solution Disclosures {#sec-18-ncac-07j-.1209 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .1209}

An IPEN solution provider's additional disclosures pursuant to Rule .1208 of this Section shall include information regarding:

(1) records retention:

(a) whether the IPEN solution retains a copy of the notarized document upon conclusion of the notarial session and, if so, for how long; and

(b) whether the IPEN solution retains the principal's personal information upon conclusion of the notarial session and, if so, for how long;

(2) availability:

(a) projected IPEN solution unavailability due to monthly scheduled maintenance;

(b) the business hours during which a customer support representative is available for consultation; and

(3) the IPEN solution provider's technical issue resolution targets, which shall include:

(a) categorization of issue severity based on a numeric scale or denoted by single words such as "critical," "high," "medium," and "low;"

(b) a plain language description of each category; and

History

Authority G.S. 10B-4; 10B-106; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07J .1210 ipen solution disclosure format {#sec-18-ncac-07j-.1210 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .1210}

An IPEN solution provider shall present the additional disclosures required by Rule .1208 of this Section in tabular form in the order shown in the table in this Rule:

(1) add horizontal rows in the service disruption response time section as needed to describe each category;

(2) engineer as specified in the Department's protocols to support accommodation pursuant to G.S. 10B-134.1(1); and

(3) replace the rule references with the provider's responses.

History

Authority G.S. 10B-4; 10B-106; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07J .1301 Requirements for Authorization to Provide Ipen Services {#sec-18-ncac-07j-.1301 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .1301}

An IPEN provider applicant shall meet requirements established in:

(1) Article 2 of Chapter 10B of the General Statutes; and

(2) the rules in this Subchapter, except:

(a) Section .0900; and

(b) Sections .1400-.2200.

History

Authority G.S. 10B-4; 10B-106; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07J .1302 Duration of Ipen Solution Approval {#sec-18-ncac-07j-.1302 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .1302}

The Department's approval of an IPEN solution authorizes the IPEN solution provider to offer its solution to North Carolina notaries public for three years from the date of the approval.

History

Authority G.S. 10B-4; 10B-106; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07J .1303 Application Form for Ipen Services {#sec-18-ncac-07j-.1303 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .1303}

An IPEN provider applicant shall complete and submit the form described in 18 NCAC 07B .0423.

History

Authority G.S. 10B-4; 10B-106; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07J .1304 Identification of Key Individuals {#sec-18-ncac-07j-.1304 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .1304}

An IPEN provider applicant shall list key individuals in its application by reference to:

(1) the applicant's organizational structure; and

(2) the duties of its officers, directors, and employees.

History

Authority G.S. 10B-4; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07J .1305 Application Requirements for Ipen Provider Key Individuals {#sec-18-ncac-07j-.1305 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .1305}

An IPEN provider applicant shall provide to the Department the following information for each key individual identified pursuant to Rule .1304 of this Subchapter:

(1) the information required by 18 NCAC 07B .0402(1);

(2) the key individual's position title;

(3) a nationwide criminal history record for a key individual residing in the United States that:

(a) includes applicable records from all United States jurisdictions;

(b) is prepared at the applicant's expense; and

(4) a criminal history record for a key individual residing outside the United States with:

(a) a nationwide criminal history record from their country of residence; and

(b) the nationwide criminal history record required by Item (3) of this Rule; and

(5) a written statement by each key individual certifying under penalty of perjury:

(a) whether the criminal history record submitted is complete or incomplete; and

(b) that the key individual has provided the applicant with the information required by 18 NCAC 07B Section .0500, including submission of affidavits of moral character if applicable.

History

Authority G.S. 10B-4; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07J .1306 Frequency of Criminal History Record Checks for Key Individuals {#sec-18-ncac-07j-.1306 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .1306}

Criminal history record checks for key individuals that are submitted by an IPEN provider applicant shall:

(1) be valid for three years; or

(2) be updated as required pursuant to 18 NCAC 07B .0505 and .0506.

History

Authority G.S. 10B-4; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07J .1307 When More Frequent Criminal History Record Checks Required {#sec-18-ncac-07j-.1307 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .1307}

An IPEN provider's notice of changes pursuant to Item (2) of Rule .0203 of this Subchapter shall be made:

(1) within the time set forth in Rule .0203 of this Subchapter; and

(2) using the form specified in 18 NCAC 07B .0411.

History

Authority G.S. 10B-4; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07J .1401 Required General Platform Functions {#sec-18-ncac-07j-.1401 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .1401}

A platform provider shall integrate into its platform each of the following functions:

(1) use of communication technology as defined in G.S. 10B-134.1(1) that complies with Section .0900 of this Subchapter;

(2) use of geolocation as defined in G.S. 10B-134.1(4a) and Rule .0101(9) of this Subchapter that complies with the requirements of this Subchapter;

(3) use of credential analysis as defined in G.S. 10B-134.1(3) that complies with Section .1600 of this Subchapter;

(4) use of identity proofing as defined in G.S. 10B-134.1(5) that complies with Section .1800 of this Subchapter;

(5) an electronic journal as defined in G.S. 10B-134.1(4) that complies with Section .0800 of this Subchapter;

(6) the capability to attach or logically associate the electronic notary public's electronic signature and seal that complies with Section .0700 of this Subchapter; and

(7) a depository as defined in Rule .0101(5) of this Subchapter that complies with Section .1000 of this Subchapter.

History

Authority G.S. 10B-4; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07J .1402 Platform Functions for Traditional Notary {#sec-18-ncac-07j-.1402 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .1402}

(a) A platform provider shall allow a traditional notary public with whom it has a contract to:

(1) use its platform to administer an oath or affirmation pursuant to G.S. 10B-134.9(d);

(2) search, review, download, and print the notary's electronic journal entries, if any.

(b) A traditional notary may make an entry into an electronic journal offered by the platform only if the notary designates a custodian.

History

Authority G.S. 10B-4; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07J .1403 Platform Session Record for Traditional Notary {#sec-18-ncac-07j-.1403 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .1403}

A platform provider shall create a session record for a notarial session in which a traditional notary makes an electronic journal entry pursuant to Rule .1402(b) of this Section.

History

Authority G.S. 10B-4; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07J .1404 Platform Functions Unavailable to Traditional Notary {#sec-18-ncac-07j-.1404 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .1404}

A platform shall not allow a traditional notary public to:

(1) create an electronic signature or seal for use in performing electronic or remote electronic notarial acts;

(2) apply an electronic notary seal; or

(3) perform a remote notarial act other than as provided in Rule .1402 of this Section.

History

Authority G.S. 10B-4; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07J .1405 Reasonable Accommodation {#sec-18-ncac-07j-.1405 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .1405}

A platform provider shall accommodate a principal with vision, hearing, or speech impairment using:

(1) auxiliary aids;

(2) interpreters or transliteraters; or

(3) CART captioning.

History

Authority G.S. 10B-4; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07J .1406 Geolocation Detection {#sec-18-ncac-07j-.1406 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .1406}

A platform provider shall detect whether any device used by a principal to connect with the platform during the notarial transaction process is:

(1) GPS-enabled; and

(2) capable of geolocation at the time of the remote electronic notarial act.

History

Authority G.S. 10B-4; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07J .1407 Geolocation Communication to Notary {#sec-18-ncac-07j-.1407 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .1407}

A platform provider shall take the following steps after making the determination required by Rule .1406 of this Section:

(1) communicate the location of the principal to the notary public by displaying it on a map; or

(2) inform the notary that the principal:

(a) is not using a GPS-enabled device; or

(b) has disabled location services on a GPS-enabled device.

History

Authority G.S. 10B-4; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07J .1408 Notice of Image or Voice Alteration {#sec-18-ncac-07j-.1408 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .1408}

A platform shall notify the notary if it detects that the image or voice of a remotely located principal appears to be altered, unnatural, or simulated.

History

Authority G.S. 10B-4; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07J .1409 Personal Knowledge {#sec-18-ncac-07j-.1409 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .1409}

A platform shall provide a means to bypass credential analysis and identity proofing functions if the traditional notary public or electronic notary public confirms that the principal is personally known to the notary.

History

Authority G.S. 10B-4; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07J .1410 Platform Account Creation for Electronic Notary {#sec-18-ncac-07j-.1410 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .1410}

A platform provider shall create an account for an electronic notary public only after it:

(1) confirms the electronic notary's identity by using approved credential analysis and identity proofing solutions;

(2) receives the electronic notary registration certificate from the electronic notary;

(3) uses the Department's online database of notaries to:

(a) search for the electronic notary by commission name and number;

(b) verify:

(i) whether the electronic notary is in active status as an electronic notary;

(ii) the expiration date of the electronic notary's commission certificate; and

(iii) the county of the commissioning of the electronic notary;

(4) documents the electronic notary's designated custodian;

(5) acquires an image of the electronic notary's handwritten signature or arranges for the electronic notary to use its device to, by hand, electronically sign notarial certificates;

(6) creates an image of the electronic notary's seal that complies with 18 NCAC 07F .0807;

(7) provides to the Department an exemplar that is:

(a) the image of the electronic notary's signature created pursuant to Item (5) of this Rule; and

(b) the image of the electronic notary's seal created pursuant to Item (6) of this Rule; and

(8) receives confirmation of receipt of the electronic notary's signature and seal exemplars from the Department.

History

Authority G.S. 10B-4; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07J .1411 Platform Account Creation for Traditional Notary {#sec-18-ncac-07j-.1411 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .1411}

A platform provider shall create an account for a traditional notary public only after it:

(1) confirms the notary's identity by using approved credential analysis and identity proofing solutions;

(2) receives the notary's commission certificate from the notary;

(3) uses the Department's online database of notaries to verify:

(a) whether the notary is in active status as a notary;

(b) the expiration date of the notary's commission certificate; and

(4) documents the notary's designated custodian, if the notary will use the platform's electronic journal.

History

Authority G.S. 10B-4; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07J .1412 Changes to Commission or Registration Certificate Presented to Platform {#sec-18-ncac-07j-.1412 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .1412}

Upon receiving a commission certificate or electronic notary registration certificate that differs from that previously presented by a traditional notary public or an electronic notary public, the platform provider shall comply again with Rules .1410-.1411 of this Section, as applicable.

History

Authority G.S. 10B-4; 10B-106; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07J .1413 Verification of Notary Status {#sec-18-ncac-07j-.1413 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .1413}

When a traditional notary public or an electronic notary public initiates a notarial session, a platform shall use the Department's notary public database to verify whether:

(1) the notary public is in active status; and

(2) if the notary is an electronic notary, whether the notary is in active status as an electronic notary.

History

Authority G.S. 10B-4; 10B-106; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07J .1414 inability to verify electronic notary status {#sec-18-ncac-07j-.1414 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .1414}

If a platform cannot verify that an electronic notary public is in active status as an electronic notary, the platform shall not allow the electronic notary to perform any remote electronic notarial acts other than oaths and affirmations pursuant to G.S. 10B-134.9(d).

History

Authority G.S. 10B-4; 10B-106; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07J .1415 platform access for notary not in active status {#sec-18-ncac-07j-.1415 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .1415}

If, pursuant to Rule .1413 of this Section, a platform provider is unable to determine that a notary public is in active status, the platform:

(1) shall not allow the notary to administer oaths or affirmations pursuant to G.S. 10B-134.9(d); and

(2) shall allow the notary access to any of the notary's existing journal entries on the platform depository to search, review, print, or download until the entries are transferred to a custodian.

History

Authority G.S. 10B-4; 10B-106; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07J .1416 Verification Prior to Remotely Administering Judicial Oaths and Affirmations {#sec-18-ncac-07j-.1416 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .1416}

After verifying the status of a notary public, a platform shall allow a traditional notary in active status or an electronic notary whose registration is not active but whose notary commission is active only to:

(1) proceed with the session and administer oaths or affirmations pursuant to G.S. 10B-134.9(d);

(2) create an electronic journal entry for an oath or affirmation pursuant to Item (1) of this Rule, if applicable; and

(3) search, review, print, or download existing journal entries, if applicable.

History

Authority G.S. 10B-4; 10B-106; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07J .1417 When Provider May Re-Enable Functions {#sec-18-ncac-07j-.1417 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .1417}

A platform provider may restore a notary's or electronic notary's privileges at any time after verifying through the Department's notary database that the notary or electronic notary is in active status.

History

Authority G.S. 10B-4; 10B-106; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07J .1418 format of session record {#sec-18-ncac-07j-.1418 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .1418}

A platform shall render a session record tamper evident by:

(1) preserving it in PDF/A format; and

(2) signing the PDF/A with a verifiable digital certificate to indicate the platform from which the notarized electronic record originated and prevent further alteration.

History

Authority G.S. 10B-4; 10B-106; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07J .1419 notary count of notarial acts {#sec-18-ncac-07j-.1419 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .1419}

A platform shall require the notary public to enter the number of oaths or affirmations administered without a principal's signature.

History

Authority G.S. 10B-4; 10B-106; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07J .1420 Field for Count of Oaths or Affirmations Without Principal Signatures {#sec-18-ncac-07j-.1420 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .1420}

A platform shall design its system to provide a field for a notary public to enter the count of oaths or affirmations administered to principals without principal signatures.

History

Authority G.S. 10B-4; 10B-106; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07J .1421 PLATFORM PROVIDER CALCULATION OF MONTHLY fee REMISSION OWED TO THE DEPARTMENT {#sec-18-ncac-07j-.1421 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .1421}

When a platform calculates the total amount of monthly fees owed to the Department, the platform shall multiply the five dollar ($5.00) fee per notarial act by the count of notarial acts entered pursuant to Rule .1017(3) of this Subchapter by all notaries using the platform in the preceding calendar month.

History

Authority G.S. 10B-4; 10B-106; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07J .1422 Platform Fees Independent of Notary Fees Paid by Principals {#sec-18-ncac-07j-.1422 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .1422}

A platform shall not deduct the five dollar ($5.00) fee owed to the Department from the fee paid by principals to notaries public for any notarial act pursuant to G.S. 10B-31.

History

Authority G.S. 10B-4; 10B-106; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07J .1423 Timing of Monthly Fee Remission {#sec-18-ncac-07j-.1423 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .1423}

A platform provider shall make the remittance pursuant to G.S. 10B-134.19(g) no later than 30 days after the calendar month for which fees shall be remitted.

History

Authority G.S. 10B-4; 10B-106; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07J .1424 fee remission log {#sec-18-ncac-07j-.1424 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .1424}

A platform provider shall submit a fee remission log to the Department summarizing its monthly fee remission.

History

Authority G.S. 10B-4; 10B-106; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07J .1425 Fee Remission Log Contents {#sec-18-ncac-07j-.1425 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .1425}

A platform's fee remission log shall include:

(1) for each session record:

(a) the session record identifier;

(b) each journal entry identifier;

(d) whether the session record identifier applies to a supplemental journal entry;

(e) whether the session record identifier applies to administration of oaths or affirmations pursuant to G.S. 10B-134.9(d) for which no electronic journal entry was made;

(2) the number of completed notarial acts for the month calculated pursuant to Rule .1017(3) of this Subchapter; and

(3) the total fee remitted to the Department pursuant to Rule .1421 of this Section.

History

Authority G.S. 10B-4; 10B-106; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07J .1426 fee remission log retention {#sec-18-ncac-07j-.1426 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .1426}

A platform provider shall maintain a copy of each fee remission log submitted to the Department for no less than five years.

History

Authority G.S. 10B-4; 10B-106; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07J .1427 additional platform disclosures {#sec-18-ncac-07j-.1427 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .1427}

Following the information required for the provider's webpage by Rule .0608 of this Subchapter, a platform shall:

(1) publish the information required by Rule .1428 of this Section or a link to it; and

(2) display the information as required by Rule .1429 of this Section.

History

Authority G.S. 10B-4; 10B-106; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07J .1428 Content of Additional Platform Disclosures {#sec-18-ncac-07j-.1428 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .1428}

A platform's additional disclosures pursuant to Rule .1427 of this Section shall include information regarding:

(1) records retention:

(a) whether the platform retains a copy of the notarized document upon conclusion of the notarial session and, if so, for how long; and

(b) whether the platform retains the principal's personal information upon conclusion of the notarial session and, if so, for how long;

(2) devices for use with the platform:

(a) the electronic device types required for the principal to complete a notarial transaction. Note: Examples of such designations include "computer only," "mobile device only," "computer or mobile device," or "computer and mobile device"; and

(b) the types of auxiliary aids that have been successfully tested with the platform. Note: Examples of auxiliary aids include screen reader software and magnification software;

(3) availability:

(a) projected platform unavailability due to monthly scheduled maintenance;

(b) the business hours during which a customer support representative is available for consultation; and

(4) the maximum number of remote connections that the platform can simultaneously support for a single notarial transaction; and

(5) the platform provider's technical issue resolution targets, which shall include:

(a) categorization of service disruptions based on a numeric scale or denoted by single words such as "critical," "high," "medium," and "low;"

(b) a plain language description of each category; and

History

Authority G.S. 10B-4; 10B-106; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07J .1429 platform disclosure format {#sec-18-ncac-07j-.1429 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .1429}

A platform provider shall present the additional disclosures required by Rule .1427 of this Section in tabular form in the order shown in the table in this Rule:

(1) add horizontal rows to the table of service disruption response times as needed to describe each category;

(2) engineer the table as specified in the Department's protocols to support accommodation pursuant to G.S. 10B-134.1(1); and

(3) replace the rule references with the provider's responses.

History

Authority G.S. 10B-4; 10B-106; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07J .1501 Platform Licensure Requirements {#sec-18-ncac-07j-.1501 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .1501}

A platform provider applicant shall establish through its application and demonstration that its platform meets all requirements established in:

(1) Article 2 of Chapter 10B of the General Statutes;

(2) the applicable provisions of the Department's Protocols; and

(3) the rules in this Subchapter except:

(a) Section .1100;

(b) Section .1200;

(d) Section .2000;

(e) Section .2100; and

(f) Section .2200.

History

Authority G.S. 10B-4; 10B-106; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07J .1502 Duration of Platform License {#sec-18-ncac-07j-.1502 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .1502}

A platform license from the Department authorizes the platform provider to offer its platform solution, directly or indirectly, to North Carolina notaries public for one year from the date of its approval.

History

Authority G.S. 10B-4; 10B-106; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07J .1503 Application Form for Platform License {#sec-18-ncac-07j-.1503 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .1503}

An applicant for a platform license shall complete and submit the form described in 18 NCAC 07B .0424.

History

Authority G.S. 10B-4; 10B-106; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07J .1504 Identification of Key Individuals {#sec-18-ncac-07j-.1504 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .1504}

A platform provider applicant shall list key individuals in its application by reference to:

(1) the applicant's organizational structure; and

(2) the duties of its officers, directors, and employees.

History

Authority G.S. 10B-4; 10B-106; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07J .1505 Application Requirements for Platform Key Individuals {#sec-18-ncac-07j-.1505 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .1505}

A platform provider applicant shall provide to the Department the following information for each key individual identified pursuant to Rule .1504 of this Subchapter:

(1) the information required by 18 NCAC 07B .0402(1);

(2) the key individual's position title;

(3) the key individual's country of residence;

(4) a nationwide criminal history record for a key individual residing in the United States that:

(a) includes applicable records from all United States jurisdictions;

(b) is prepared at the applicant's expense; and

(5) a criminal history record for a key individual residing outside the United States with:

(a) a nationwide criminal history record from their country of residence; and

(b) the nationwide criminal history record required by Item (4) of this Rule; and

(6) a written statement by each key individual certifying under penalty of perjury:

(a) whether the criminal history record submitted is complete or incomplete; and

(b) that the key individual has provided the applicant with the information required by 18 NCAC 07B Section .0500 including submission of affidavits of moral character if applicable.

History

Authority G.S. 10B-4; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07J .1506 Frequency of Criminal History Record Checks for Key Individuals {#sec-18-ncac-07j-.1506 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .1506}

Criminal history record checks for key individuals that are submitted by a platform provider applicant shall:

(1) be valid for three years; or

(2) be updated as required pursuant to 18 NCAC 07B .0505 and .0506.

History

Authority G.S. 10B-4; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07J .1507 When More Frequent Criminal History Record Checks Required {#sec-18-ncac-07j-.1507 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .1507}

A platform's notice of changes pursuant to Item (2) of Rule .0203 of this Subchapter shall be made:

(1) within the time set forth in Rule .0203 of this Subchapter; and

(2) using the form specified in 18 NCAC 07B .0411.

History

Authority G.S. 10B-4; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07J .1601 Section Definitions {#sec-18-ncac-07j-.1601 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .1601}

For the purposes of the rules in this Section:

(1) "Credential verification false negative rate" means the number of authentic credentials that fail the credential analysis trial process divided by the number of authentic credentials tested.

(2) "Credential verification false positive rate" means the total number of inauthentic or modified credentials that pass the credential analysis trial process divided by the number of inauthentic or modified credentials tested.

(3) "Facial match false negative rate" means the number of times a credential is presented by the individual to whom the credential belongs, and fails the facial match test, divided by the number of tests in which the credential depicts the individual offering the credential.

(4) "Facial match false positive rate" means the number of times a credential is presented by an individual to whom the credential does not belong and passes the facial match test, divided by the number of tests in which the credential does not depict the individual presenting the credential.

(5) "Overall success rate" means:

(a) The sum of the number of tests in which the results are as set out in Sub-item (b) of this Item divided by the total number of tests presented to the solution.

(b) The tests to be summed for Sub-item (a) of this Item are the number of times the credential analysis solution accurately:

(i) verifies a credential and matches the credential to the individual to whom it belongs;

(ii) identifies an inauthentic or modified credential; and

(iii) identifies a credential that does not belong to the individual who presented the credential.

(6) "System error rate" means the number of times the solution fails to complete the credential analysis process divided by the number of tests presented to the solution.

(7) "Test" means a credential analysis solution evaluation of a credential pursuant to Rule .1606 of this Section.

(8) "Trial" means an analysis of the performance of the credential analysis solution pursuant to Rule .1602 of this Section.

History

Authority G.S. 10B-4; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07J .1602 Credential Analysis Solution – General {#sec-18-ncac-07j-.1602 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .1602}

A credential analysis solution provider shall conduct a trial of its credential analysis solution pursuant to Rule .1603 of this Section before submitting its application for authorization.

History

Authority G.S. 10B-4; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07J .1603 Credential Analysis Solution Trial Process {#sec-18-ncac-07j-.1603 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .1603}

A credential analysis solution provider shall conduct, or have a third-party conduct, a trial of its solution by presenting the solution with no less than 100 subjects to be evaluated:

(1) who are real individuals:

(a) whose ages, races, and sexes are within five percent of the proportion of ages, races, and sexes of the population of the United States that is 18 years or older, as established by the most recent United States decennial census; and

(b) at least 18 years old; and

(2) with no less than:

(a) 10 percent of the credentials presented being inauthentic or modified; and

(b) 10 percent of the credentials presented being authentic but not belonging to the individual depicted in the authentic credential with the individual presenting the credential being:

(i) of the same race and sex as the genuine owner of the credential; and

(ii) within five years of age of the individual depicted.

History

Authority G.S. 10B-4; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07J .1604 Evaluation of Credential Analysis Trial {#sec-18-ncac-07j-.1604 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .1604}

The results of a credential analysis trial shall describe:

(1) the overall success rate of the trial;

(2) the credential analysis verification false positive rate;

(3) the credential analysis verification false negative rate;

(4) the facial match false positive rate;

(5) the facial match false negative rate; and

(6) the system error rate.

History

Authority G.S. 10B-4; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07J .1605 Frequency of Credential Analysis Solution Trials {#sec-18-ncac-07j-.1605 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .1605}

At least once every three years, a credential analysis solution provider shall:

(1) conduct a trial of its approved solution to assess the reliability of the approved version of the credential analysis solution;

(2) conduct a trial of the credential analysis solution in connection with a material change that is reported to the Department pursuant to Rules .0201 and .0202 of this Subchapter; and

(3) update its disclosures pursuant to Rule .1611 of this Section.

History

Authority G.S. 10B-4; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07J .1606 Credential Analysis Test {#sec-18-ncac-07j-.1606 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .1606}

A credential analysis solution shall test a credential presented by an individual pursuant to Rule .1607 of this Section.

History

Authority G.S. 10B-4; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07J .1607 Credential Analysis {#sec-18-ncac-07j-.1607 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .1607}

A credential analysis solution shall:

(1) require the individual to:

(a) describe the type of credential being presented; and

(b) be in real-time, physical control of his or her credential at the time the credential is presented;

(2) ensure that the credential complies with G.S. 10B-3(22)a;

(3) evaluate, in order to authenticate:

(a) the integrity of the visual, physical, and security features of the credential;

(b) whether the credential is fraudulent or modified;

(4) compare the photograph from the individual's authenticated credential to the individual's facial features;

(5) use liveness detection technology if the individual is remotely located;

(6) present the image of the individual's credential to the notary public; and

(7) comply with Rule .1608 of this Section.

History

Authority G.S. 10B-4; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07J .1608 Credential Analysis Outcome {#sec-18-ncac-07j-.1608 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .1608}

After the process described in Rule .1607 of this Section is concluded, the credential analysis solution shall provide the outcome of credential analysis testing:

(1) of a principal, to a notary public prior to a notarial transaction; and

(2) of a notary public to:

(a) an IPEN solution provider pursuant to Rule .1201 of this Subchapter; or

(b) a platform provider pursuant to Rules .1410 and .1411 of this Subchapter.

History

Authority G.S. 10B-4; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07J .1609 Notification of Image Alteration {#sec-18-ncac-07j-.1609 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .1609}

A credential analysis solution shall:

(1) detect whether the image of a remotely located principal, whether on screen or as presented on the credential, appears to be:

(a) altered;

(b) unnatural; or

(2) pursuant to Rule .1608 of this Section, report if credential analysis finds the appearance of alteration, unnaturalness, or simulation of the image of the principal.

History

Authority G.S. 10B-4; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07J .1610 Verification Data Confidential {#sec-18-ncac-07j-.1610 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .1610}

The credential analysis solution shall keep confidential all information specific to the notary public or the principal that is acquired or used during the credential analysis process.

History

Authority G.S. 10B-4; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07J .1611 Data Storage Prohibited for Credential Analysis Solution {#sec-18-ncac-07j-.1611 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .1611}

A credential analysis solution shall not store any data specific to the notary public or the principal that is acquired from the credential analysis process after the conclusion of the process.

History

Authority G.S. 10B-4; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07J .1612 Additional Credential Analysis Disclosures {#sec-18-ncac-07j-.1612 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .1612}

Following the information required by Rule .0608 of this Subchapter, a credential analysis solution provider shall:

(1) publish the information required by Rule .1613 of this Section or a link to it; and

(2) display the information as required by Rule .1614 of this Section.

History

Authority G.S. 10B-4; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07J .1613 Content of Additional Credential Analysis Disclosures {#sec-18-ncac-07j-.1613 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .1613}

A credential analysis solution provider's additional disclosures pursuant to Rule .1612 of this Section shall include:

(1) the results of the credential analysis solution trial required by Rule .1602 of this Section;

(2) whether the trial of the credential analysis solution was performed by the solution provider or by a third party, and the name and contact information for the third party, if applicable;

(3) the year in which the trial was conducted; and

(4) for each type of electronic device that the individual presenting the credential may use to capture credential and facial images, the results of the credential analysis trial evaluation as required by Rules .1603 and .1604 of this Section.

History

Authority G.S. 10B-4; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07J .1614 credential analysis disclosure format {#sec-18-ncac-07j-.1614 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .1614}

A credential analysis solution provider shall:

(1) present the additional disclosures required by Rule .1611 of this Section in tabular form in the order shown in the table in this Rule;

(2) place the results described in Rule .1604 of this Section in the table in this Rule in the appropriate location; and

(3) engineer the table in this Rule as specified in the Department's protocols to support accommodation pursuant to G.S. 10B-134.1(1).

History

Authority G.S. 10B-4; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07J .1701 Requirements for Authorization to Provide Credential Analysis Services {#sec-18-ncac-07j-.1701 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .1701}

A credential analysis provider applicant shall meet requirements established in:

(1) Article 2 of Chapter 10B of the General Statutes;

(2) the applicable standards set forth in the Department's Protocols; and

(3) the rules in this Subchapter except:

(a) Sections .0700-.1500; and

(b) Sections .1800-.2200.

History

Authority G.S. 10B-4; 10B-106; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07J .1702 Duration of Credential Analysis Approval {#sec-18-ncac-07j-.1702 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .1702}

An approval from the Department of a credential analysis solution authorizes the credential analysis provider to directly or indirectly offer its credential analysis solution to North Carolina notaries public for three years from the date of its approval.

History

Authority G.S. 10B-4; 10B-106; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07J .1703 Application Form for Credential Analysis Services {#sec-18-ncac-07j-.1703 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .1703}

A person applying for authorization of its credential analysis solution shall complete and submit the form described in 18 NCAC 07B .0425.

History

Authority G.S. 10B-4; 10B-106; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07J .1801 Section Definitions {#sec-18-ncac-07j-.1801 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .1801}

For the purposes of the rules in this Section:

(1) "Identity proofing false negative rate" means the total number of times authentic individuals fail the identity proofing process based on their own information, divided by the number of authentic individuals tested.

(2) "Identity proofing false positive rate" means the total number of imposters that pass the identity proofing process divided by the number of imposters tested.

(3) "Overall success rate" means:

(a) the sum of the number of tests in which the identity proofing solution:

(i) accurately verifies the identity of an individual; and

(ii) accurately screens out an imposter; and

(b) divided by the total number of tests presented to the solution.

(4) "System error rate" means the number of times the identity proofing solution fails to process data needed to complete the identity proofing process, divided by the number of tests presented to the solution.

(5) "Test" means an identity proofing solution evaluation of identity pursuant to Rule .1806 of this Section.

(6) "Trial" means an analysis of the performance of the identity proofing solution pursuant to Rule .1802 of this Section.

History

Authority G.S. 10B-4; 10B-106; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07J .1802 Identity Proofing Solution Trial – General {#sec-18-ncac-07j-.1802 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .1802}

An identity proofing solution provider shall conduct a trial of its identity proofing solution pursuant to Rules .1803 and .1804 of this Section before submitting its application for authorization.

History

Authority G.S. 10B-4; 10B-106; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07J .1803 Identity Proofing Solution Trial Process {#sec-18-ncac-07j-.1803 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .1803}

An identity proofing solution provider shall conduct, or have a third-party conduct, a trial of its solution by presenting the solution with no less than 100 subjects to be evaluated:

(1) who are real individuals:

(a) whose ages, races, and sexes are within five percent of the proportion of ages, races, and sexes to that of the population of the United States that is 18 years or older, as established by the most recent United States decennial census; and

(b) at least 18 years old; and

(2) with no less than 10 percent of the tests assessing imposters who attempt to complete the identity proofing process using the personal information of other individuals.

History

Authority G.S. 10B-4; 10B-106; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07J .1804 Evaluation of Identity Proofing Trial {#sec-18-ncac-07j-.1804 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .1804}

The results of an identity proofing solution trial shall describe:

(1) the overall success rate of the trial;

(2) the identity proofing false positive rate;

(3) the identity proofing false negative rate; and

(4) the system error rate.

History

Authority G.S. 10B-4; 10B-106; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07J .1805 Frequency of Identity Proofing Solution Trials {#sec-18-ncac-07j-.1805 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .1805}

At least once every three years, an identity proofing solution provider shall:

(1) conduct a trial of its approved solution to assess the reliability of the approved version of the identity proofing solution;

(2) conduct a trial of the identity proofing solution in connection with a material change that is reported to the Department pursuant to Rules .0201 and .0202 of this Subchapter; and

(3) update its disclosures pursuant to Rule .1812 of this Section.

History

Authority G.S. 10B-4; 10B-106; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07J .1806 Identity Proofing Test {#sec-18-ncac-07j-.1806 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .1806}

An identity proofing solution shall test the identity of individuals who present themselves to the solution pursuant to Rules .1807-.1809 of this Section.

History

Authority G.S. 10B-4; 10B-106; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07J .1807 Identity Proofing Process Using Knowledge-Based Authentication {#sec-18-ncac-07j-.1807 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .1807}

An identity proofing solution using knowledge-based authentication to comply with G.S. 10B-134.11(a)(2)b shall:

(1) require the remotely located individual to attempt an online quiz meeting the requirements of Item (2) of this Rule;

(2) present a quiz to the remotely located individual that shall:

(a) consist of a minimum of five questions:

(i) related to the individual's personal history or identity; and

(ii) formulated from public or private data sources;

(b) have a minimum of five possible answer choices for each question;

(d) require at least 80 percent of the questions to be answered correctly in order to receive a passing score; and

(3) inform the individual whether the quiz has been passed or failed, and if failed, of the option to retake the quiz pursuant to Rule .1808 of this Section.

History

Authority G.S. 10B-4; 10B-106; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07J .1808 Re-Taking of Quiz by Individual {#sec-18-ncac-07j-.1808 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .1808}

An identity proofing solution using knowledge-based authentication to comply with G.S. 10B-134.11(a)(2)b shall:

(1) allow an individual who failed a first attempt to make a single subsequent attempt to pass the quiz if the attempt is initiated within one minute of the first failed quiz; and

(2) ensure that at least 40 percent of the questions from the first quiz are replaced for the second quiz.

History

Authority G.S. 10B-4; 10B-106; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07J .1809 Notice of Identity Proofing Methods and Outcomes {#sec-18-ncac-07j-.1809 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .1809}

After one or more identity proofing tests are concluded, an identity proofing solution shall provide the methods and outcomes of all identity proofing tests:

(1) for a principal, to the notary public performing the notarial act prior to a notarial transaction; and

(2) for a notary public, to the technology solution provider pursuant to:

(a) Rule .1201 of this Subchapter; or

(b) Rules .1410 and .1411 of this Subchapter.

History

Authority G.S. 10B-4; 10B-106; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07J .1810 Verification Data Confidential {#sec-18-ncac-07j-.1810 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .1810}

The identity proofing solution shall keep confidential all information specific to the notary public or the principal that is acquired or used during the identity proofing process.

History

Authority G.S. 10B-4; 10B-106; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07J .1811 Data Storage Prohibited for Identity Proofing Solution {#sec-18-ncac-07j-.1811 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .1811}

An identity proofing solution shall not store any data specific to the notary public or the principal that is acquired from the identity proofing process after the conclusion of the process.

History

Authority G.S. 10B-4; 10B-106; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07J .1812 Additional Identity Proofing Disclosures {#sec-18-ncac-07j-.1812 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .1812}

Immediately after the information required by Rule .0608 of this Subchapter, an identity proofing solution provider shall:

(1) publish the information required by Rule .1813 of this Section; and

(2) display the information as required by Rule .1814 of this Section.

History

Authority G.S. 10B-4; 10B-106; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07J .1813 Content of Additional Identity Proofing Disclosures {#sec-18-ncac-07j-.1813 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .1813}

An identity proofing solution provider's additional disclosures pursuant to Rule .1812 of this Section shall include:

(1) the method of identity proofing used. Note: Examples of identity proofing methods may be described as biometric or knowledge-based authentication;

(2) the results of the identity proofing solution trial required by Rule .1805 of this Section;

(3) whether the trial of the identity proofing solution was performed by the solution provider or by a third party, and the name and contact information for the third party, if applicable; and

(4) the year in which the trial was conducted.

History

Authority G.S. 10B-4; 10B-106; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07J .1814 Identity Proofing Disclosure Format {#sec-18-ncac-07j-.1814 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .1814}

An identity proofing solution provider shall:

(1) present the additional disclosures required by Rule .1813 of this Section in tabular form in the order shown in the table in this Rule;

(2) place the results described in Rule .1804 of this Section in the table in this Rule in the appropriate location; and

(3) engineer the table in this Rule as specified in the Department's protocols to support accommodation pursuant to G.S. 10B-134.1(1).

History

Authority G.S. 10B-4; 10B-106; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07J .1901 Requirements for Authorization to Provide Identity Proofing Services {#sec-18-ncac-07j-.1901 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .1901}

An identity proofing provider applicant shall meet requirements established in:

(1) Article 2 of Chapter 10B of the General Statutes;

(2) applicable standards set forth in the Department's Protocols; and

(3) the rules in this Subchapter except:

(a) Sections .0700-.1700; and

(b) Sections .2000-.2200.

History

Authority G.S. 10B-4; 10B-106; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07J .1902 Duration of Identity Proofing Approval {#sec-18-ncac-07j-.1902 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .1902}

An approval from the Department of an identity proofing solution authorizes the identity proofing provider to directly or indirectly offer its identity proofing solution to North Carolina notaries public for three years from the date of its approval.

History

Authority G.S. 10B-4; 10B-106; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07J .1903 Application Form for Identity Proofing Services {#sec-18-ncac-07j-.1903 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .1903}

An applicant for identity proofing services shall complete and submit the form described in 18 NCAC 07B .0426.

History

Authority G.S. 10B-4; 10B-106; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07J .2001 Custodian Requirements {#sec-18-ncac-07j-.2001 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .2001}

The rules in this Section apply to third-party custodians and IPEN solutions and platforms that are or become custodians.

History

Authority G.S. 10B-4; 10B-106; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07J .2002 receipt from custodian transferee {#sec-18-ncac-07j-.2002 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .2002}

A custodian transferee shall create a receipt and provide it to the transferor confirming that:

(1) the custodian has received from the depository or custodian transferor:

(a) one or more session records; and

(b) a copy of the session record logs associated with the session records; and

(2) the session records and associated session record logs have been:

(a) received; and

(b) verified as unmodified and uncorrupted.

History

Authority G.S. 10B-4; 10B-106; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07J .2003 Authenticity of Custodian Records {#sec-18-ncac-07j-.2003 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .2003}

A custodian shall ensure each session record obtained from a transferring depository or custodian is stored unchanged upon receipt.

History

Authority G.S. 10B-4; 10B-106; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07J .2004 Notary Access to Session Record from Custodian {#sec-18-ncac-07j-.2004 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .2004}

A custodian shall allow a notary public to view, copy, print, and download any of the notary's session records in its possession within 48 hours of a request by the notary at no cost.

Note: This rule shall not apply to planned service outages for which notice is provided pursuant to Rule .0205 of this Subchapter.

History

Authority G.S. 10B-4; 10B-106; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07J .2005 searchable session records {#sec-18-ncac-07j-.2005 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .2005}

The custodian shall ensure that a notary public's session records may be searched by any field described in Rule .1006 of this Subchapter.

History

Authority G.S. 10B-4; 10B-106; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07J .2006 session record storage locations {#sec-18-ncac-07j-.2006 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .2006}

A custodian shall maintain copies of each session record and session record log in two or more geographically separated data facilities.

History

Authority G.S. 10B-4; 10B-106; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07J .2007 duration of storage for custodian {#sec-18-ncac-07j-.2007 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .2007}

Unless it transfers the session record to another custodian, a custodian shall not delete the record until a minimum of 10 years have elapsed since the last committed journal entry associated with that record, whether original or supplemental.

History

Authority G.S. 10B-4; 10B-106; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07J .2008 Time Limit for Transfer from Custodian {#sec-18-ncac-07j-.2008 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .2008}

A custodian shall transfer a session record and associated session record log to another custodian designated by a notary public no later than 10 days from the earlier of:

(1) receipt of a written request from the notary public to transfer the record; or

(2) the expiration of the custodian's contract with the notary.

History

Authority G.S. 10B-4; 10B-106; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07J .2009 session record deletion by custodian upon transfer {#sec-18-ncac-07j-.2009 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .2009}

A custodian that transfers a session record to another custodian shall delete the record only after receiving confirmation from the transferee that the record has been:

(1) accepted; and

(2) verified as unmodified and uncorrupted.

History

Authority G.S. 10B-4; 10B-106; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07J .2010 Optional Extended Retention of Session Records {#sec-18-ncac-07j-.2010 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .2010}

A custodian may preserve a session record longer than the retention time established by the rules in this Subchapter if the electronic notary public:

(1) authorizes the extended retention period in writing; and

(2) specifies the duration of the extended retention period.

History

Authority G.S. 10B-4; 10B-106; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07J .2011 session record marked for extended retention {#sec-18-ncac-07j-.2011 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .2011}

A custodian shall provide a means to designate session records that are subject to mandatory retention pursuant to Rule .2012 of this Section.

History

Authority G.S. 10B-4; 10B-1. 06; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07J .2012 mandatory extended retention of session record upon notification {#sec-18-ncac-07j-.2012 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .2012}

A custodian shall retain a session record longer than the time period identified by Rule .2007 of this Section:

(1) if directed by the Department to retain the records pursuant to an investigation authorized by G.S. 10B-60; or

(2) upon receipt of a legal notification requiring the custodian, notary public, or principal to preserve the record.

History

Authority G.S. 10B-4; 10B-106; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07J .2013 deletion upon expiration of mandatory extended retention {#sec-18-ncac-07j-.2013 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .2013}

If a custodian is required to preserve a session record pursuant to Rule .2012 of this Section, the custodian shall not delete the record until:

(1) the Department notifies the custodian that the investigation is concluded; or

(2) the custodian has no further legal obligation to preserve the record.

History

Authority G.S. 10B-4; 10B-106; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07J .2014 Deletion of Session Record Entry in Log {#sec-18-ncac-07j-.2014 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .2014}

A custodian shall enter in the associated session record log the date that a session record is deleted.

History

Authority G.S. 10B-4; 10B-106; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07J .2015 session record log retention by custodian {#sec-18-ncac-07j-.2015 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .2015}

Each session record log shall be retained by the custodian for no less than 15 years from the date of the notarial session that the entry describes.

History

Authority G.S. 10B-4; 10B-106; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07J .2016 transfer of depository session record log by custodian {#sec-18-ncac-07j-.2016 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .2016}

The depository session record log shall accompany each session record transferred by a transferor custodian to custodian transferee.

History

Authority G.S. 10B-4; 10B-106; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07J .2017 Custodian Entry in Department's Database {#sec-18-ncac-07j-.2017 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .2017}

Upon validation pursuant to Rules .1012 and .2002 of this Subchapter, a custodian that is a transferee or a transferor shall update the Department's database with the following information:

(1) the session identifier;

(2) the four-digit identifying number assigned to the technology provider making the entry into the Department's database;

(3) the four-digit identifying number assigned to the transferor;

(4) for the transferee the four-digit identifying number assigned to the transferee custodian; and

(5) the date and time of the transfer.

History

Authority G.S. 10B-4; 10B-106; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07J .2018 Notice of Cessation of Custodial Services {#sec-18-ncac-07j-.2018 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .2018}

A custodian shall provide 60 days of notice to its subscribers and notary public account holders before it ceases to provide custodial services due to:

(1) bankruptcy;

(2) discontinuation of custodial services to North Carolina notaries; or

(3) going out of business.

History

Authority G.S. 10B-4; 10B-106; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07J .2019 Custodian Continuity of Services {#sec-18-ncac-07j-.2019 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .2019}

A custodian shall not discontinue its custodial services to North Carolina notaries public until all session records and associated session record log entries in its possession are transferred to the custodians designated by the notaries.

History

Authority G.S. 10B-4; 10B-106; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07J .2020 additional custodian disclosures {#sec-18-ncac-07j-.2020 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .2020}

Immediately following the information required by Rule .0608 of this Subchapter, a custodial services provider shall:

(1) publish on its website the information required by Rule .2021 of this Section; and

(2) format the information as required by Rule .2022 of this Section.

History

Authority G.S. 10B-4; 10B-106; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07J .2021 content of additional custodian disclosures {#sec-18-ncac-07j-.2021 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .2021}

A custodian's additional disclosure pursuant to Rule .2020 of this Section shall include information regarding:

(1) projected time that the custodial services solution will be unavailable for use to the notary due to scheduled maintenance each month;

(2) the business hours during which a customer support representative is available for consultation;

(3) the average wait time during business hours for a response from a customer support representative; and

(4) the custodian's technical issues resolution targets, which shall include:

(a) categorization of service disruptions based on a numeric scale or denoted by single words such as "critical," "high," "medium," and "low;"

(b) a plain language description of each category; and

History

Authority G.S. 10B-4; 10B-106; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07J .2022 custodian disclosure format {#sec-18-ncac-07j-.2022 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .2022}

A custodian shall:

(1) present the additional disclosures required by Rule .2020 of this Section in tabular form in the order shown in the table in this Rule;

(2) place the provider's responses described in Rule .2021 of this Section in the table in this Rule in the appropriate location; and

(3) engineer the table in this Rule as specified in the Department's protocols to support accommodation pursuant to G.S. 10B-134.1(1).

History

Authority G.S. 10B-4; 10B-106; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07J .2101 Requirements for Authorization to Provide Custodial Services {#sec-18-ncac-07j-.2101 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .2101}

A custodial services applicant shall meet the requirements established in:

(1) Article 2 of Chapter 10B of the General Statutes;

(2) the applicable standards set forth in the Department's Protocols; and

(3) the rules in this Subchapter, except:

(a) Sections .0700-.1900; and

(b) Section .2200.

History

Authority G.S. 10B-4; 10B-106; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07J .2102 Duration of Custodian Approval {#sec-18-ncac-07j-.2102 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .2102}

A custodial services solution approval authorizes the custodian to directly or indirectly offer its custodial services solution to North Carolina notaries public for three years from the date of its approval.

History

Authority G.S. 10B-4; 10B-106; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07J .2103 Application Form for Custodial Services {#sec-18-ncac-07j-.2103 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .2103}

A person applying to provide custodial services shall complete and submit the form described in 18 NCAC 07B .0427.

History

Authority G.S. 10B-4; 10B-106; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07J .2201 Scope {#sec-18-ncac-07j-.2201 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .2201}

The rules in this Section shall apply only to an electronic notary public who is approved as a custodial notary.

History

Authority G.S. 10B-4; 10B-106; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07J .2202 Custodial Notary Deemed Approved {#sec-18-ncac-07j-.2202 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .2202}

A notary public shall be deemed to have applied and been approved as that notary's own custodian if the notary:

(1) complies with 18 NCAC 07H .0506; and

(2) agrees in writing to comply with the rules of this Subchapter applicable to custodial notaries.

History

Authority G.S. 10B-4; 10B-106; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07J .2203 Custodial Notary as Custodian and Technology Provider {#sec-18-ncac-07j-.2203 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .2203}

A custodial notary shall be deemed a custodian and technology provider and comply with Rule .2204 of this Section.

History

Authority G.S. 10B-4; 10B-106; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07J .2204 Rules Applicable to Custodial Notaries {#sec-18-ncac-07j-.2204 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .2204}

A custodial notary shall comply with the following rules:

(1) 18 NCAC 07H Section .0500;

(2) Rules .0101, .0104, .0106-.0108, .0112, and .0115 of this Subchapter;

(3) Rule .0208 of this Subchapter;

(4) Rules .0611(1) and .0612 of this Subchapter; and

(5) Rule .2007 of this Subchapter.

History

Authority G.S. 10B-4; 10B-106; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07J .2205 Custodial Notary Session Record Storage Locations {#sec-18-ncac-07j-.2205 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .2205}

(a) A custodial notary shall maintain two copies of each session record that shall not be stored on the same device.

(b) A custodial notary shall ensure that at least one of the two session record copies is maintained in electronic form.

History

Authority G.S. 10B-4; 10B-106; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07J .2206 Providing Custodial Services After Electronic Notary Registration Termination {#sec-18-ncac-07j-.2206 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .2206}

An electronic notary public may continue serving as a custodial notary for session records in the notary's possession after the termination of the notary's electronic notary registration so long as the individual continues to comply with the rules applicable to custodial notaries.

History

Authority G.S. 10B-4; 10B-106; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07J .2207 Effect of Disciplinary Action on Service as Custodial Notary {#sec-18-ncac-07j-.2207 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .2207}

An electronic notary public shall not continue serving as a custodial notary if specifically prohibited by departmental disciplinary action.

History

Authority G.S. 10B-4; 10B-106; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07J .2208 Limitation on Custodial Notary After Registration Expiration {#sec-18-ncac-07j-.2208 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .2208}

A former electronic notary public who is a custodial notary shall not take custody of additional session records after the electronic notary's registration ends.

History

Authority G.S. 10B-4; 10B-106; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07J .2209 Custodial Notary Annual Verification Form {#sec-18-ncac-07j-.2209 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .2209}

A custodial notary shall, using the form described in 18 NCAC 07B .0428, annually:

(1) verify that the electronic notary has complied with all rules applicable to custodial notaries in this Section; and

(2) provide information regarding the electronic notary's continuation of service as a custodial notary.

History

Authority G.S. 10B-4; 10B-106; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07J .2210 Submission of Annual Verification {#sec-18-ncac-07j-.2210 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .2210}

A custodial notary shall submit the form described in 18 NCAC 07B .0428 on or before December 31st of each year.

History

Authority G.S. 10B-4; 10B-106; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

18 NCAC 07J .2211 Final Custodial Notary Verification Form {#sec-18-ncac-07j-.2211 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07J .2211}

An electronic notary public's obligations as a custodial notary cease when the electronic notary submits the form described in 18 NCAC 07B .0428 confirming that:

(1) the required retention period for all session records in the custodial notary's possession has expired; or

(2) the custodial notary has transferred all session records to an approved custodian.

History

Authority G.S. 10B-4; 10B-106; 10B-125(b); 10B-126; 10B-134.15; 10B-134.17; 10B-134.19; 10B-134.21; 10B-134.23
Eff. July 1, 2025.

Subchapter K

18 NCAC 07K .0101 Definitions {#sec-18-ncac-07k-.0101 omnilex-key=us-nc-regs-official--title-18--18 NCAC 07K .0101}

History

Authority G.S. 10B-4; 10B-14; 10B-36; 10B-38; 10B-106; 10B-125; 10B-126; 10B-134.15; 10B-134.19; 10B-134.21
Eff. July 1, 2024
Transferred to 18 NCAC 07B .0102 Eff. July 1, 2025.

Chapter 08 Land Records Management Division

18 NCAC 08 .0101 Purpose {#sec-18-ncac-08-.0101 omnilex-key=us-nc-regs-official--title-18--18 NCAC 08 .0101}

The purpose of the Land Records Management Division is to encourage county governments to utilize modern methods, techniques, equipment, and documentation which will improve the quality of public services with respect to land records and achieve a high degree of standardization throughout the state. The program provides technical assistance and grant funds for the improvement of county land records. Since the funds available in any one year are sufficient to meet only a part of the total need, in making grants the state will consider:

(1) the creation of a more efficient standardized land record system; and

(2) the willingness and ability of local government units to meet their responsibilities through sound fiscal policies, creative planning, and efficient operations and management.

History

Authority G.S. 102-15; 147-54.3
Eff. February 27, 1979
Transferred from 01 NCAC 21 effective August 25, 1986
Amended Eff. November 1, 1994
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. September 23, 2017.

18 NCAC 08 .0102 Functions {#sec-18-ncac-08-.0102 omnilex-key=us-nc-regs-official--title-18--18 NCAC 08 .0102}

The Land Records Management Division shall provide statewide coordination, technical advice, policy guidance, and financial assistance to county governments with respect to all records pertaining to land parcels.

History

Authority G.S. 102-15 through 102-17; 147-54.3
Eff. February 27, 1979
Transferred from T01.21 effective August 25, 1986
Amended Eff. November 1, 1994
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. September 23, 2017.

18 NCAC 08 .0103 County Participation {#sec-18-ncac-08-.0103 omnilex-key=us-nc-regs-official--title-18--18 NCAC 08 .0103}

Participation by county governments in the land records modernization program, as set forth in Sections .0100 through .1000 of this Chapter is entirely voluntary and is initiated only by an action of the board of county commissioners. If a board of commissioners chooses to initiate a land records modernization program and applies for a grant from this Department, the applicant shall adhere to all rules and procedures pursuant to Sections .0100 through .1000 of this Chapter.

History

Authority G.S. 102-16; 147-54.3
Eff. February 27, 1979
Transferred from T01.21 effective August 25, 1986
Amended Eff. November 1, 1994
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. September 23, 2017.

18 NCAC 08 .0104 Administration {#sec-18-ncac-08-.0104 omnilex-key=us-nc-regs-official--title-18--18 NCAC 08 .0104}

Administration of the Land Records Management Division shall be in accordance with the administrative rules prepared by the Secretary of State and made available to county governments from the Land Records Management Division , North Carolina Department of the Secretary of State.

History

Authority G.S. 102-17; 147-54.3
Eff. February 27, 1979
Transferred from T01.21 effective August 25, 1986
Amended Eff. November 1, 1994; April 1, 1990; April 1, 1988
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. September 23, 2017.

18 NCAC 08 .0105 Definitions of Terms {#sec-18-ncac-08-.0105 omnilex-key=us-nc-regs-official--title-18--18 NCAC 08 .0105}

The definitions in this Rule shall apply to the terms used in this Chapter:

(1) "Act" means the Act to Provide Assistance to Counties for Improvement of Land Records, Chapter 1099, 1977 N.C. Session Laws.

(2) "Applicant" means a board of county commissioners.

(3) "Department" means the North Carolina Department of the Secretary of State.

(4) "Division" means the Land Records Management Program established in G.S. 147-54.3 and the statewide program for improvement of county land records.

(5) "Effective Date of Receipt of Applications" means the first day of the next quarter of the fiscal year (July 1, October 1, January 1, April 1) following actual receipt of the application in the Department.

(6) "Grant Allotment" means an agreement to pay grant funds in a lump sum or in installments to an applicant in accordance with the terms of the agreement. For this purpose, allotments shall in no case exceed one dollar ($1.00) for every dollar of local tax funds expended on the project by the County. Federal or other state funds available to the project will not be eligible as matching money under the state program.

(7) "Inspection" means inspection or inspections of a project for which a grant has been made under the Act to determine compliance with applicable state and local laws and rules.

(8) "Project" means the work or works described in the application for a state grant, and which is to be undertaken by the County if a state grant is awarded and other required funds are obtained. It does not include any expansion of the project described in the application except as may be permitted under the provisions of Rule .0502 of this Chapter.

History

Authority G.S. 102-15; 102-16; 102-17; 147-54.3
Eff. November 1, 1994
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. September 23, 2017.

18 NCAC 08 .0201 Limitation {#sec-18-ncac-08-.0201 omnilex-key=us-nc-regs-official--title-18--18 NCAC 08 .0201}

History

Status: repealed
Authority G.S. 102-15 through 102-17; 143-345.6
Eff. February 27, 1979
Transferred from T01.21 effective August 25, 1986
Amended Eff. April 1, 1990; April 1, 1988
Repealed Eff. November 1, 1994.

18 NCAC 08 .0202 Act {#sec-18-ncac-08-.0202 omnilex-key=us-nc-regs-official--title-18--18 NCAC 08 .0202}

History

Status: repealed
Authority G.S. 102-15 through 102-17; 143-345.6
Eff. February 27, 1979
Transferred from T01.21 effective August 25, 1986
Amended Eff. April 1, 1990; April 1, 1988
Repealed Eff. November 1, 1994.

18 NCAC 08 .0203 Department {#sec-18-ncac-08-.0203 omnilex-key=us-nc-regs-official--title-18--18 NCAC 08 .0203}

History

Status: repealed
Authority G.S. 102-15 through 102-17; 143-345.6
Eff. February 27, 1979
Transferred from T01.21 effective August 25, 1986
Amended Eff. April 1, 1990; April 1, 1988
Repealed Eff. November 1, 1994.

18 NCAC 08 .0204 Effective Date of Receipt of Application {#sec-18-ncac-08-.0204 omnilex-key=us-nc-regs-official--title-18--18 NCAC 08 .0204}

History

Status: repealed
Authority G.S. 102-15 through 102-17; 143-345.6
Eff. February 27, 1979
Transferred from T01.21 effective August 25, 1986
Amended Eff. April 1, 1990; April 1, 1988
Repealed Eff. November 1, 1994.

18 NCAC 08 .0205 Grant Allotments {#sec-18-ncac-08-.0205 omnilex-key=us-nc-regs-official--title-18--18 NCAC 08 .0205}

History

Status: repealed
Authority G.S. 102-15 through 102-17; 143-345.6
Eff. February 27, 1979
Transferred from T01.21 effective August 25, 1986
Amended Eff. April 1, 1990; April 1, 1988
Repealed Eff. November 1, 1994.

18 NCAC 08 .0206 Inspection {#sec-18-ncac-08-.0206 omnilex-key=us-nc-regs-official--title-18--18 NCAC 08 .0206}

History

Status: repealed
Authority G.S. 102-15 through 102-17; 143-345.6
Eff. February 27, 1979
Transferred from T01.21 effective August 25, 1986
Amended Eff. April 1, 1990; April 1, 1988
Repealed Eff. November 1, 1994.

18 NCAC 08 .0207 Applicant {#sec-18-ncac-08-.0207 omnilex-key=us-nc-regs-official--title-18--18 NCAC 08 .0207}

History

Status: repealed
Authority G.S. 102-15 through 102-17; 143-345.6
Eff. February 27, 1979
Transferred from T01.21 effective August 25, 1986
Amended Eff. April 1, 1990; April 1, 1988
Repealed Eff. November 1, 1994.

18 NCAC 08 .0208 Land Records Management Division {#sec-18-ncac-08-.0208 omnilex-key=us-nc-regs-official--title-18--18 NCAC 08 .0208}

History

Status: repealed
Authority G.S. 102-15 through 102-17; 143-345.6
Eff. February 27, 1979
Transferred from T01.21 effective August 25, 1986
Amended Eff. April 1, 1990; April 1, 1988
Repealed Eff. November 1, 1994.

18 NCAC 08 .0209 Project {#sec-18-ncac-08-.0209 omnilex-key=us-nc-regs-official--title-18--18 NCAC 08 .0209}

History

Status: repealed
Authority G.S. 102-15 through 102-17; 143-345.6
Eff. February 27, 1979
Transferred from T01.21 effective August 25, 1986
Amended Eff. April 1, 1990; April 1, 1988
Repealed Eff. November 1, 1994.

18 NCAC 08 .0301 Eligible Projects {#sec-18-ncac-08-.0301 omnilex-key=us-nc-regs-official--title-18--18 NCAC 08 .0301}

Grants are available for projects which constitute one or more phases of a plan to standardize the county land records management systems. Any such plan must describe the work to be undertaken in relation to the county's revaluation schedule, and shall be shown to be a part of a larger undertaking for achieving ultimate long-term improvement in the land records maintained by the county register of deeds, the county tax supervisor, or other county offices.

History

Authority G.S. 102-15 through 102-17; 143-345.6
Eff. February 27, 1979
Transferred from T01.21 effective August 25, 1986
Amended Eff. April 1, 1988
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. September 23, 2017.

18 NCAC 08 .0302 Description of Projects {#sec-18-ncac-08-.0302 omnilex-key=us-nc-regs-official--title-18--18 NCAC 08 .0302}

Projects may include preparation of base maps, preparation of cadastral maps, utilization of a standard parcel identifier, or preparation and implementation of automated processing of land parcel records, as set forth in G.S. 102-17.

History

Authority G.S. 102-17; 143-345.6; 161-22.2
Eff. February 27, 1979
Transferred from T01.21 effective August 25, 1986
Amended Eff. April 1, 1988
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. September 23, 2017.

18 NCAC 08 .0401 County Commissioners {#sec-18-ncac-08-.0401 omnilex-key=us-nc-regs-official--title-18--18 NCAC 08 .0401}

The board of county commissioners of each county shall be eligible to apply for grants to assist in the financing of projects.

History

Authority G.S. 102-15 through 102-17; 143-345.6
Eff. February 27, 1979
Transferred from T01.21 effective August 25, 1986
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. September 23, 2017.

18 NCAC 08 .0402 Qualifications {#sec-18-ncac-08-.0402 omnilex-key=us-nc-regs-official--title-18--18 NCAC 08 .0402}

No applicant shall be eligible for the award of a grant unless it demonstrates to the satisfaction of the Department the following:

(1) the applicant is a board of county commissioners;

(2) the applicant has the financial capacity to provide its share of the project costs. To the extent that the costs are to be provided on a pay-as-you-go basis, the full amount indicated from this source shall be represented by cash on hand or cash expected to be included in the applicant's annual budget for the years in which payments under the project contract will be due. To the extent that borrowed funds are anticipated, the applicant shall certify that the additional debt, together with the applicant's existing debt, is within the debt limitation provisions of the general laws of the state. In making this determination, the Department may, in its discretion, seek the comments of the secretary of the local government commission when the applicant proposes the use of borrowed funds; and

(3) the applicant has complied or will comply with all applicable laws, rules, and ordinances, state and local.

History

Authority G.S. 102-15; 102-17; 147-54.3
Eff. February 27, 1979
Transferred from T01.21 effective August 25, 1986
Amended Eff. November 1, 1994; April 1, 1990; April 1, 1988
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. September 23, 2017.

18 NCAC 08 .0501 Grant Limitations {#sec-18-ncac-08-.0501 omnilex-key=us-nc-regs-official--title-18--18 NCAC 08 .0501}

Grants shall be made in such amount as the Department shall deem necessary or appropriate under the circumstances of the grant application, but in no event shall any grant award exceed one dollar for every dollar of local tax funds expended on the project by the county.

History

Authority G.S. 102-15; 102-17; 147-54.3
Eff. February 27, 1979
Transferred from T01.21 effective August 25, 1986
Amended Eff. November 1, 1994; April 1, 1990; April 1, 1988
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. September 23, 2017.

18 NCAC 08 .0502 Supplemental Grants {#sec-18-ncac-08-.0502 omnilex-key=us-nc-regs-official--title-18--18 NCAC 08 .0502}

Supplemental grants may be made for those approved projects for which a grant has already been awarded provided that additional matching funds are available and the supplemental grant is required for continued improvement in the county land records management program.

History

Authority G.S. 102-15; 102-17; 143-345.6
Eff. February 27, 1979
Transferred from T01.21 effective August 25, 1986
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. September 23, 2017.

18 NCAC 08 .0503 Eligible Project Costs {#sec-18-ncac-08-.0503 omnilex-key=us-nc-regs-official--title-18--18 NCAC 08 .0503}

Eligible costs may include the cost of purchase or acquisition of capital equipment or interests therein. Eligible costs are limited to the actual costs of the work or works described in the project application for a state grant and do not include recurring annual expenditures for administration, repairs, operation and maintenance of any land records management systems. No interest cost will be allowed.

History

Authority G.S. 102-15; 102-17; 143-345.6
Eff. February 27, 1979
Transferred from T01.21 effective August 25, 1986
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. September 23, 2017.

18 NCAC 08 .0601 Submitting Applications {#sec-18-ncac-08-.0601 omnilex-key=us-nc-regs-official--title-18--18 NCAC 08 .0601}

Applications for project grants for improvement or expansion of land records management systems shall be submitted to the Division on the Land Records Management Grant Application. Applications and all supporting documentation shall be submitted in such number and in such form as specified.

History

Authority G.S. 102-15; 102-17; 147-54.3
Eff. February 27, 1979
Transferred from T01.21 effective August 25, 1986
Amended Eff. November 1, 1994; April 1, 1990; April 1, 1988
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. September 23, 2017.

18 NCAC 08 .0602 Insufficient Information {#sec-18-ncac-08-.0602 omnilex-key=us-nc-regs-official--title-18--18 NCAC 08 .0602}

Any application which does not contain information sufficient to permit the Department to determine either the eligibility of the applicant or the assignment of a priority shall not be deemed as received until such information is furnished by the applicant to the Departments.

History

Authority G.S. 102-15; 102-17; 147-54.3
Eff. February 27, 1979
Transferred from T01.21 effective August 25, 1986
Amended Eff. November 1, 1994; April 1, 1990; April 1, 1988
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. September 23, 2017.

18 NCAC 08 .0603 Additional Information {#sec-18-ncac-08-.0603 omnilex-key=us-nc-regs-official--title-18--18 NCAC 08 .0603}

An applicant shall furnish information supplemental to the information contained in its application and supporting documentation upon request by the Department.

History

Authority G.S. 102-15; 102-17; 147-54.3
Eff. February 27, 1979
Transferred from T01.21 effective August 25, 1986
Amended Eff. November 1, 1994; April 1, 1990; April 1, 1988
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. September 23, 2017.

18 NCAC 08 .0604 Amendments {#sec-18-ncac-08-.0604 omnilex-key=us-nc-regs-official--title-18--18 NCAC 08 .0604}

An applicant may amend a pending application to include additional data or information in support of its original application at any time prior to the date on which the final priority to be assigned to the application is determined.

History

Authority G.S. 102-15; 102-17; 143-345.6
Eff. February 27, 1979
Transferred from T01.21 effective August 25, 1986
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. September 23, 2017.

18 NCAC 08 .0605 Withdrawal {#sec-18-ncac-08-.0605 omnilex-key=us-nc-regs-official--title-18--18 NCAC 08 .0605}

An application may be withdrawn from consideration upon request of the applicant and, if resubmitted, shall be considered as a new application.

History

Authority G.S. 102-15; 102-17; 143-345.6
Eff. February 27, 1979
Transferred from T01.21 effective August 25, 1986
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. September 23, 2017.

18 NCAC 08 .0701 Eligible Applications {#sec-18-ncac-08-.0701 omnilex-key=us-nc-regs-official--title-18--18 NCAC 08 .0701}

(a) Each application, and supporting documents, shall be reviewed by the Department to determine if it contains all required information and meets grant eligibility requirements.

(b) Each applicant will be notified by the Department within 30 days of the actual date of receipt of the application, of its eligibility for consideration for a project grant award.

History

Authority G.S. 102-15; 102-17; 147-54.3
Eff. February 27, 1979
Transferred from T01.21 effective August 25, 1986
Amended Eff. November 1, 1994; April 1, 1990; April 1, 1988
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. September 23, 2017.

18 NCAC 08 .0702 Ineligible Applications {#sec-18-ncac-08-.0702 omnilex-key=us-nc-regs-official--title-18--18 NCAC 08 .0702}

Ineligible applications will be returned to the applicant along with appropriate explanation of the eligibility.

History

Authority G.S. 102-15; 102-17; 143-345.6
Eff. February 27, 1979
Transferred from T01.21 effective August 25, 1986
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. September 23, 2017.

18 NCAC 08 .0801 Priorities {#sec-18-ncac-08-.0801 omnilex-key=us-nc-regs-official--title-18--18 NCAC 08 .0801}

(a) Each eligible application shall be assigned a priority for grant funds through use of the point system outlined in this Section.

(b) In determining the priority to be assigned to each eligible application, the Department will give consideration to the following factors:

(1) Primary consideration shall be given to those counties with long-range plans for the modernization of their land records.

(2) Consideration shall be given to those counties which demonstrate a willingness to cooperate with all county offices involved with land records.

(3) Consideration shall be given to those counties which have allocated funds for the modernization of land records.

History

Authority G.S. 102-15; 102-17; 147-54.3
Eff. February 27, 1979
Transferred from T01.21 effective August 25, 1986
Amended Eff. November 1, 1994; April 1, 1990; April 1, 1988
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. September 23, 2017.

18 NCAC 08 .0802 Categories {#sec-18-ncac-08-.0802 omnilex-key=us-nc-regs-official--title-18--18 NCAC 08 .0802}

(a) Applications shall be separated into categories for assignment of priority points.

(b) Separate priorities will be established within each of the following categories:

(1) county has plan which has not been initiated;

(2) county has initiated its plan and prepared base maps;

(3) county has initiated its plan and prepared cadastral maps;

(4) county has initiated its plan and assigned parcel identifiers;

(5) county has initiated its plan and implemented an automated system.

History

Authority G.S. 102-15; 102-17; 143-345.6
Eff. February 27, 1979
Transferred from T01.21 effective August 25, 1986
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. September 23, 2017.

18 NCAC 08 .0803 Point System {#sec-18-ncac-08-.0803 omnilex-key=us-nc-regs-official--title-18--18 NCAC 08 .0803}

Within each category in Rule .0802 of this Section, priority points will be assigned in the amounts indicated in this Rule for the following factors:

(1) Comprehensive long range county plan for modernization of land records (maximum -- 15 points);

(2) Establishment of an office of land records manager (maximum -- 15 points);

(3) Quality and detail of project description (maximum -- 10 points);

(4) Fiscal responsibility of the applicant (maximum -- 30 points):

(a) adequate current appropriations provided (maximum -- 15 points);

(b) bond issue or other financing provided (maximum -- 15 points);

(5) Status of Program. Points will be assigned in the following categories for completion of the tasks indicated according to specifications available from the Division (maximum -- 30 points):

(a) Aerial photography (maximum -- five points);

(b) Base maps (maximum -- five points);

(d) Parcel Identifiers. For each of the offices listed below which utilize assigned parcel identifiers, points will be awarded as follows: three points for each of the first two offices and one point for each additional office (maximum -- 10 points):

(i) register of deeds,

(ii) tax supervisor,

(iii) clerk of court,

(iv) county planner,

(v) building inspector, and

(vi) other identified;

(e) Automated system implemented (maximum -- five points);

(f) One point shall be awarded if applicant has not received prior funding under this program;

(g) Administrative Discretion. Points may be awarded at the discretion of the secretary of the department for favorable circumstances not covered by the criteria in other parts of this Rule (maximum -- five points).

History

Authority G.S. 102-15; 102-17; 147-54.3
Eff. February 27, 1979
Transferred from T01.21 effective August 25, 1986
Amended Eff. November 1, 1994; April 1, 1990; April 1, 1988
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. September 23, 2017.

18 NCAC 08 .0901 Certificate of Eligibility {#sec-18-ncac-08-.0901 omnilex-key=us-nc-regs-official--title-18--18 NCAC 08 .0901}

The land records management office shall forward to the secretary of the department a certificate indicating each land records management project eligible to receive a grant offer. This certificate of eligibility shall indicate the recommended amount of funding and the fiscal quarter in which the grant offer should be made.

History

Authority G.S. 102-15; 102-17; 143-345.6
Eff. February 27, 1979
Transferred from T01.21 effective August 25, 1986
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. September 23, 2017.

18 NCAC 08 .0902 Grant Offer {#sec-18-ncac-08-.0902 omnilex-key=us-nc-regs-official--title-18--18 NCAC 08 .0902}

Based on the total number of points assigned the application, grants shall be offered in the descending order of total points assigned all applications which are eligible for consideration during a given quarter.

History

Authority G.S. 102-15; 102-17; 143-345.6
Eff. February 27, 1979
Transferred from T01.21 effective August 25, 1986
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. September 23, 2017.

18 NCAC 08 .0903 Withdrawal of Grant Offer {#sec-18-ncac-08-.0903 omnilex-key=us-nc-regs-official--title-18--18 NCAC 08 .0903}

Failure of an applicant to arrange for necessary financing of the proposed projects, to award a contract (if necessary) for all or part of the proposed project and to fully execute a contract with the department for the payment of grant funds, within the fiscal quarter following the quarter in which the grant offer is made shall be sufficient cause for withdrawal of the grant offer. Prior to withdrawal of a grant offer, the department shall give due consideration to any extenuating circumstances presented by the applicant as reasons for such failure and the grant offer may be extended for an additional period of time if, in the judgment of the Department, such an extension is justified. Extenuating circumstances that shall justify an extension may include, but shall not be limited to, the following:

(1) a delay in contractor negotiations;

(2) a change in key personnel; or

(3) other situations that may occur beyond the control of the party seeking the extension.

History

Authority G.S. 102-15; 102-17; 147-54.3
Eff. February 27, 1979
Transferred from T01.21 effective August 25, 1986
Amended Eff. November 1, 1994; April 1, 1990; April 1, 1988
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. September 23, 2017.

18 NCAC 08 .0904 Failure to Qualify for Grant Awards {#sec-18-ncac-08-.0904 omnilex-key=us-nc-regs-official--title-18--18 NCAC 08 .0904}

(a) Upon determination that applicant will not receive a grant offer, the department shall so inform applicant.

(b) If an applicant does not receive a grant offer in the quarter of the fiscal year in which the application is first eligible, the application shall again be considered for a grant offer during the next three succeeding quarters upon written request of the applicant.

History

Authority G.S. 102-15; 102-17; 143-345.6
Eff. February 27, 1979
Transferred from T01.21 effective August 25, 1986
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. September 23, 2017.

18 NCAC 08 .1001 Requests for Payment {#sec-18-ncac-08-.1001 omnilex-key=us-nc-regs-official--title-18--18 NCAC 08 .1001}

Requests for payment of any grant funds awarded shall be made by the grant recipient to the land records management office. Following review, inspection, or audit, the land records management office shall notify the department as to whether or not the grant payment should be made.

History

Authority G.S. 102-15; 102-17; 143-345.6
Eff. February 27, 1979
Transferred from T01.21 effective August 25, 1986
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. September 23, 2017.

18 NCAC 08 .1002 Inspection of Project {#sec-18-ncac-08-.1002 omnilex-key=us-nc-regs-official--title-18--18 NCAC 08 .1002}

(a) A project for which a grant has been made may be inspected by the Division to determine the degree of completion of the project, and compliance with applicable laws and rules.

(b) Inspections shall be made by personnel of the Division, by professional engineers, or by other state personnel who are approved by the Department to make such inspection(s). If a federal agency makes an inspection of the project, such inspection may, at the sole discretion of the department, be accepted in lieu of an inspection by state personnel.

History

Authority G.S. 102-15; 102-17; 147-54.3
Eff. February 27, 1979
Transferred from T01.21 effective August 25, 1986
Amended Eff. November 1, 1994; April 1, 1990; April 1, 1988
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. September 23, 2017.

18 NCAC 08 .1003 Audit of Projects {#sec-18-ncac-08-.1003 omnilex-key=us-nc-regs-official--title-18--18 NCAC 08 .1003}

(a) An audit shall be required for each project for which a state grant has been made.

(b) If a federal agency making a grant to a project for which a state grant is made is required to make an audit or audits of the project, such audits may, at the discretion of the Department, be accepted in lieu of audits by state personnel or independent auditors as approved by the local government commission. Matching grant funds shall not be used to carry out audits.

History

Authority G.S. 102-15; 102-17; 147-54.3
Eff. February 27, 1979
Transferred from T01.21 effective August 25, 1986
Amended Eff. November 1, 1994; April 1, 1990; April 1, 1988
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. September 23, 2017.

18 NCAC 08 .1101 Introduction and Purpose {#sec-18-ncac-08-.1101 omnilex-key=us-nc-regs-official--title-18--18 NCAC 08 .1101}

(a) The Registers of Deeds of North Carolina are dedicated to sound management practices, progressive land records modernization efforts, and the best possible assistance to the citizens who depend on their services. Toward this end, the N.C. Association of Registers of Deeds, in conjunction with the Real Property Section of the N.C. Bar Association, developed indexing standards which shall be administered statewide beginning January 1, 1995. The standards will bring uniformity to the methods used for indexing land records documents in each Registers of Deeds office and will ultimately benefit every person who uses a Register of Deeds facility in conducting any phase of a land parcel and title search.

(b) The Land Records Management Division, hereinafter referred to as "Division", is responsible for encouraging local and county governments to utilize modern methods, techniques, equipment, and documentation which will improve the quality of public service with respect to land records and to achieve a high degree of standardization throughout the State. The Division also provides technical assistance to local and county governments in their efforts to further enhance their abilities to provide the best possible service to their public.

(c) The Indexing Standards, hereinafter referred to as "Standards", published in August 1990 and approved by the N.C. Association of Registers of Deeds in September 1990, and by the Real Property Section of the N.C. Bar Association in November 1990, are hereby incorporated by reference including any subsequent amendments and editions. The Standards contain uniform procedures to be used by all Registers of Deeds for indexing land records. Copies of the Standards may be viewed or obtained by contacting the Land Records Management Division, N.C. Department of the Secretary of State, P.O. Box 29626, Raleigh, NC 27626-0626, (919) 814-5455. The cost for receiving a copy of the standards will be twenty cents per page ($.20) to cover reproduction and postage.

History

Authority G.S. 147-37; 147-54.3 (b1); 150B-21.6; 161-22.3
Eff. August 3, 1992
Amended Eff. November 1, 1994
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. September 23, 2017
Amended Eff. October 1, 2019.

18 NCAC 08 .1102 Technical Assistance {#sec-18-ncac-08-.1102 omnilex-key=us-nc-regs-official--title-18--18 NCAC 08 .1102}

The Division shall make every effort, within reason, depending on financial and personnel resources, to assist any Register of Deeds in making the transition to the Standards. Requests for assistance from Registers of Deeds shall be in writing and submitted to the Division at the address contained in Rule .1101 of this Section. The requests for assistance shall describe in detail the problems encountered and types of assistance needed in making the transition.

History

Authority G.S. 147-54.3 (b); 147-54.3 (b1); 147-54.3 (e); 161.22.3
Eff. August 3, 1992
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. September 23, 2017.

18 NCAC 08 .1103 Compliance Reviews {#sec-18-ncac-08-.1103 omnilex-key=us-nc-regs-official--title-18--18 NCAC 08 .1103}

In order to determine that full statewide compliance with the standards has been accomplished and to assess additional needs of assistance, the Division may periodically make on-site visits to Registers of Deeds operations and advise Registers of Deeds of their compliance or non-compliance. The Division shall make on-site visits only after being requested to do so pursuant to Rule .1102 of this Section.

History

Authority G.S. 147-54.3 (b); 147-54.3 (b1); 161-22.3
Eff. August 3, 1992
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. September 23, 2017.

18 NCAC 08 .1104 Land Records Advisory Committee on Indexing, Computerization {#sec-18-ncac-08-.1104 omnilex-key=us-nc-regs-official--title-18--18 NCAC 08 .1104}

The Land Records Advisory Committee on Indexing and Computerization (hereinafter referred to as "Committee") is an established standing committee of the N.C. Association of Registers of Deeds. The Committee was appointed for the purpose of obtaining the goals and objectives that have been set by the General Assembly relative to the Land Records Management Division and the Registers of Deeds offices throughout the State. The Committee provides the Division with expertise, advice, and guidance with regard to the statewide modernization of land records in general, and specifically the implementation of uniform indexing standards. The Committee's guidance will be essential to the Division's ability to provide knowledgeable technical assistance to each county's efforts in complying with the Standards. Included in the Committee's functions shall be recommendations for additional standards of indexing and changes to the existing standards.

History

Authority G.S. 147-54.3 (b); 147-54.3 (b1); 161-22.3
Eff. August 3, 1992
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. September 23, 2017
Amended Eff. October 1, 2019.

18 NCAC 08 .1201 Introduction and Purpose {#sec-18-ncac-08-.1201 omnilex-key=us-nc-regs-official--title-18--18 NCAC 08 .1201}

(a) The Department of the Secretary of State (hereinafter referred to as Department), has developed minimum certification requirements for property mappers in North Carolina. These requirements are set forth in the rules of this Section. The purposes of these requirements are as follows:

(1) to insure that property mappers employed by local governments have every opportunity to expand their professional knowledge of new and state-of-the-art mapping technologies;

(2) to insure that property mappers have continual access to recognized courses of instruction in the principles of property mapping, and are cognizant of state laws and established standards pertaining to listing, appraisal, and assessment of real property for taxation purposes; and

(3) to insure that the State's investments through grant awards are used wisely and expertly by the local government personnel who are responsible for creating and maintaining large scale cadastral maps which may be financed, in part, by these funds.

(b) Copies of the requirements contained in this Section, as well as related laws, may be viewed or obtained by contacting the Land Records Management Division, Department of the Secretary of State, P.O. Box 29626, Raleigh, NC 27626-0626, (919) 814-5455. The cost of copies will be twenty cents ($.20) per page to cover re-production and postage.

History

Authority G.S. 147-37; 147-54.4(e)
Eff. March 1, 1994
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. September 23, 2017
Amended Eff. October 1, 2019.

18 NCAC 08 .1202 Definitions {#sec-18-ncac-08-.1202 omnilex-key=us-nc-regs-official--title-18--18 NCAC 08 .1202}

In addition to the terms defined in G.S. 147-54.4(a)(1), the following definitions shall apply to the rules in this Section:

(1) "AM/FM" means Automated Mapping and Facilities Management.

(2) "ASPRS" means the American Society for Photogrammetry and Remote Sensing.

(3) "Division" means the Land Records Management Division of the N.C. Department of the Secretary of State.

(4) "GIS/LIS" means Geographic Information Systems/Land Information Systems.

(5) "IAAO" means the International Association of Assessing Officers.

(6) "IOG" means the N.C. Institute of Government.

(7) "NCPMA" means the North Carolina Property Mappers Association.

(8) "URISA" means the Urban and Regional Information Systems Association.

History

Authority G.S. 147-54.4(a); 147-54.4(e)
Eff. March 1, 1994
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. September 23, 2017.

18 NCAC 08 .1203 Eligibility {#sec-18-ncac-08-.1203 omnilex-key=us-nc-regs-official--title-18--18 NCAC 08 .1203}

Persons who are eligible to apply for certifications are defined in G.S. 147-54.4(a) and (b).

History

Authority G.S. 147-54.4(a); 147-54.4(b); 147-54.4(e)
Eff. March 1, 1994
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. September 23, 2017.

18 NCAC 08 .1204 Application Procedures for Certification {#sec-18-ncac-08-.1204 omnilex-key=us-nc-regs-official--title-18--18 NCAC 08 .1204}

Eligible persons shall apply for certification by completing a Certification Application made available by the Department. The applicant shall include all documentation and fees as required in Rules .1206 and .1207 of this Section prior to being considered for certification.

History

Authority G.S. 147-54.4(d); 147-54.4(e)
Eff. March 1, 1994
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. September 23, 2017.

18 NCAC 08 .1205 Application Procedures for Renewal {#sec-18-ncac-08-.1205 omnilex-key=us-nc-regs-official--title-18--18 NCAC 08 .1205}

The Division shall mail renewal notifications to each property mapper whose certification is about to expire. The renewal notifications shall be mailed out on approximately October 1 and shall be returned by the property mapper with adequate documentation by December 1 in the year in which the property mapper's certification expires. For the convenience of the property mapper, the Division shall also send a Certification Application along with this notification accompanied by necessary instructions.

History

Authority G.S. 147-54.4(d); 147-54.4(e)
Eff. March 1, 1994
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. September 23, 2017.

18 NCAC 08 .1206 Required Documentation {#sec-18-ncac-08-.1206 omnilex-key=us-nc-regs-official--title-18--18 NCAC 08 .1206}

In order to be considered for certification or recertification, the applicant shall supply the Department with appropriate documents that give evidence that the applicant has completed the required courses, credit hours of instruction and examination as described in Rules .1208 and .1209 of this Section. This evidence may come in various forms including receipts, certificates, diplomas, and affidavits. This documentation shall accompany the completed application. If the Department determines that the documentation is inadequate, the application shall be deemed incomplete and shall be returned to the applicant with a request for more information. The applicant shall submit adequate documentation to the Department within 15 calendar days of this request.

History

Authority G.S. 147-54.4(b); 147-54.4(e)
Eff. March 1, 1994
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. September 23, 2017.

18 NCAC 08 .1207 Fees {#sec-18-ncac-08-.1207 omnilex-key=us-nc-regs-official--title-18--18 NCAC 08 .1207}

Applications for certification and renewal shall be accompanied by the proper fees as set out in G.S. 147-54.4(d). Checks or money orders made payable to the "State of North Carolina/General Fund" shall be accepted for payment of fees.

History

Authority G.S. 147-54.4(d); 147-54.4(e)
Eff. March 1, 1994
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. September 23, 2017.

18 NCAC 08 .1208 Instruction and Examination for Initial Certification {#sec-18-ncac-08-.1208 omnilex-key=us-nc-regs-official--title-18--18 NCAC 08 .1208}

(a) An applicant shall attend the following courses of instruction to be considered for initial certification:

(1) IOG Listing & Assessing Class.

(2) NCPMA Mapping School.

(b) An applicant shall also obtain a passing score on the following examinations prior to receiving initial certification by the Department:

(1) TOG Listing & Assessing Exam.

(2) NCPMA's Certified Property Mappers Exam.

History

Authority G.S. 147-54.4(b); 147-54.4(e)
Eff. March 1, 1994
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. September 23, 2017.

18 NCAC 08 .1209 Courses of Instruction for Recertification {#sec-18-ncac-08-.1209 omnilex-key=us-nc-regs-official--title-18--18 NCAC 08 .1209}

(a) The courses of instruction with corresponding hours that will be credited toward recertification are as follows:

COURSE HOURS

(1) AM/FM International 24 hours

(2) GIS/LIS 24 hours

(3) IAAO Course #6 24 hours

(4) IOG Listing & Assessing 16 hours per year

(5) National URISA 24 hours

(6) NC ASPRS 8 hours per year

(7) NC GIS Conference 8 hours per year

(8) NC Surveyors Conference 16 hours per year

(9) NC URISA 4 hours per year

(10) NCPMA Fall Conference 16 hours per year

(11) NCPMA GIS Conference 8 hours per year

(12) NCPMA Mapping School 24 hours

(13) NCPMA Regional Workshops 8 hours (one day

conference) or

16 hours (two day

conference) per year

(14) Society of Surveyors Chapter Meetings 2 hours (No more

than 12 hours credit

shall be allowed

for this course in

a two year period.)

(15) Surveyors Institute 24 hours

(16) URISA Workshop 8 hours (one day

conference) or

16 hours (two day

conference) per year

(b) An applicant shall complete at least 24 hours of the courses listed in Paragraph (a) of this Rule every two years to be considered for recertification. The credit hours may include a combination of courses with the maximum number of hours as specified in Paragraph (a) of this Rule equaling 24 hours or one course equaling 24 hours.

History

Authority G.S. 147-54.4(b); 147-54.4(c); 147-54.4(e)
Eff. March 1, 1994
Amended Eff. November 1, 1994
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. September 23, 2017.

18 NCAC 08 .1210 Certification Schedule {#sec-18-ncac-08-.1210 omnilex-key=us-nc-regs-official--title-18--18 NCAC 08 .1210}

(a) Local government property mapper initial certifications are effective upon approval by the Department and shall expire on December 31 of the second calendar year following such approval. Renewals are effective on January 1 and shall expire on December 31 of the second calendar year following such renewal. The fee submitted with the application or renewal shall be the fee pursuant to G.S. 147-54.4(d) and shall not be prorated, regardless of the month in which the application is received for consideration.

(b) If the property mapper allows his certification to lapse beyond 30 days, he will be required to meet the requirements as described in Rule .1208 of this Section.

History

Authority G.S. 147-54.4(b); 147-54.4(c); 147-54.4(d); 147-54.4(e)
Eff. March 1, 1994
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. September 23, 2017.

18 NCAC 08 .1211 Application Review {#sec-18-ncac-08-.1211 omnilex-key=us-nc-regs-official--title-18--18 NCAC 08 .1211}

The Department, with assistance from the Certification Board of the NCPMA, shall review each application to insure that the applicant is eligible, has completed all the necessary courses, and has succeeded in submitting all the required documents and fees.

History

Authority G.S. 147-54.4(b); 147-54.4(e)
Eff. March 1, 1994
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. September 23, 2017.

18 NCAC 08 .1212 North Carolina Certified Property Mapper Certificate {#sec-18-ncac-08-.1212 omnilex-key=us-nc-regs-official--title-18--18 NCAC 08 .1212}

Upon meeting the criteria set forth in G.S. 147-54.4 and the rules of this Section, the property mapper shall receive his certificate and personal certificate number within 30 days of submitting his application for certification or renewal. If the application has to be returned for any reason, (e.g., incomplete documentation pursuant to Rule .1206 of this Section) the property mapper shall receive his certificate within 30 days of submitting a new application or additional documentation or both.

History

Authority G.S. 147-54.4
Eff. March 1, 1994
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. September 23, 2017.

18 NCAC 08 .1213 Termination of Local Government Employment {#sec-18-ncac-08-.1213 omnilex-key=us-nc-regs-official--title-18--18 NCAC 08 .1213}

The termination of employment shall automatically disqualify the property mapper for renewal of certification.

History

Authority G.S. 147-54.4(a); 147-54.4(b); 147-54.4(e)
Eff. March 1, 1994
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. September 23, 2017.

Chapter 10 Electronic Commerce Section

18 NCAC 10 .0101 How to Contact the Electronic Commerce Section {#sec-18-ncac-10-.0101 omnilex-key=us-nc-regs-official--title-18--18 NCAC 10 .0101}

(a) The Electronic Commerce Section may be contacted by the following means: Regular mail may be sent to the Electronic Commerce Section at the following address: Electronic Commerce Section, Department of the Secretary of State, PO Box 29622, 2 South Salisbury Street, Raleigh, NC 27626-0622.

(b) Up-to-date contact information regarding the Electronic Commerce Section is contained on the Department of the Secretary of State's Internet site at https://www.sosnc.gov.

History

Authority G.S. 66-58.10
Temporary Adoption Eff. February 23, 1999
Codifier determined on November 23, 1999, agency findings did not meet criteria for temporary rule
Temporary Adoption Eff. December 3, 1999
Eff. March 26, 2001
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. December 6, 2016
Amended Eff. October 1, 2019.

18 NCAC 10 .0201 Applicable Definitions {#sec-18-ncac-10-.0201 omnilex-key=us-nc-regs-official--title-18--18 NCAC 10 .0201}

In addition to the definitions in the Electronic Commerce Act, Article 11A of Chapter 66 (G.S. 66-58.1 et seq.), the following apply to the rules in this Chapter:

(1) Affiliated Individual. An "affiliated individual" means the subject of a certificate that is associated with a sponsor approved by the Certification Authority (such as an employee affiliated with an employer). Certificates issued to affiliated individuals are intended to be associated with the sponsor and the responsibility for authentication lies with the sponsor.

(2) Asymmetric Cryptosystem. "Asymmetric cryptosystem" means a computer-based system that employs two different but mathematically related keys. The keys are computer-generated codes having the following characteristics:

(a) either key can be used to electronically sign or encrypt data, such that only the other key in that key pair is capable of verifying the electronic signature or decrypting the signed data; and

(b) the keys have the property that, knowing one key, it is computationally infeasible to discover the other key.

(3) Authorized Certification Authority. "Authorized Certification Authority" means a Certification Authority that has been issued a Certification Authority license by the North Carolina Department of the Secretary of State to issue certificates that reference the rules in this Chapter.

(4) Certification Authority Revocation List. "Certification Authority Revocation List" means a time-stamped list of revoked Certification Authorities digitally signed by a Certification Authority or the Electronic Commerce Section.

(5) Certificate. "Certificate" means a record which:

(a) identifies the certification authority issuing it;

(b) names or identifies its subscriber;

(d) identifies its operational period or period of validity;

(e) contains a certificate serial number and is digitally signed by the Certification Authority issuing it; and

(f) conforms to the ITU/ISO X.509 Version 3 standards or other standards accepted under the Rules in this Chapter. As used in the rules in this Chapter the term "Certificate" refers to certificates that expressly reference the rules in this Chapter in the "Certificates Policy" filed for an X.509 v.3 certificate.

(6) Certificate Manufacturing Authority. "Certificate Manufacturing Authority" means an entity that is responsible for the manufacturing and delivery of certificates signed by a Certification Authority, but is not responsible for identification and authentication of certificate subjects (i.e., a Certificate Manufacturing Authority is delegated the certificate manufacturing task by a Certification Authority).

(7) Certificate Revocation List. "Certificate Revocation List" means a Certification Authority digitally signed, time-stamped list of revoked certificates.

(8) Certification Authority. "Certification Authority" means an entity authorized by the Secretary of State to facilitate electronic commerce. A Certification Authority is responsible for authorizing and causing certificate issuance. A Certification Authority may perform the functions of a Registration Authority and a Certificate Manufacturing Authority, or it may delegate or outsource either of these functions. A Certification Authority vouches for the connection between an entity and that entity’s electronic signature. A Certification Authority performs two essential functions:

(a) First, it is responsible for identifying and authenticating the intended subscriber named in a certificate, and verifying the subscriber possesses the private key corresponding to the public key listed in the certificate; and

(b) Second, the Certification Authority actually creates (or manufactures) and digitally signs the certificate. The certificate issued by the Certification Authority represents the Certification Authority's statement as to the identity of the person named in the certificate and the binding of that person to a particular public-private key pair.

(9) Certification Practice Statement. "Certification Practice Statement" means documentation of the practices, procedures, and controls employed by a Certification Authority issuing, suspending, or revoking certificates and providing access to same. A Certification Practice Statement shall contain, at a minimum, detailed discussions of the following topics:

(a) technical security controls, including cryptographic modules and management;

(b) physical security controls;

(d) personnel security controls;

(e) repository obligations, including registration management, subscriber information protection, and certificate revocation management; and

(f) financial responsibility.

(10) Electronic Commerce Act. The term "Electronic Commerce Act" means The North Carolina Electronic Commerce Act, G.S. 66, Article 11A.

(11) Electronic Commerce Section. "Electronic Commerce Section" means the component of the North Carolina Department of the Secretary of State responsible for reviewing Certification Authority license applications and administering the Electronic Commerce Act in North Carolina.

(12) Electronic signature. "Electronic signature" means any identifier or authentication technique attached to or logically associated with an electronic record intended by the party using it to have the same force and effect as the party's manual signature.

(13) Federal Information Processing Standards. The term "Federal Information Processing Standards" means Federal standards prescribing specific performance requirements, practices, formats, communications protocols for hardware, software, data, and telecommunications operation.

(14) Internet Engineering Task Force. "Internet Engineering Task Force" means a large, open international community of network designers, operators, vendors, and researchers concerned with the evolution of the Internet architecture and the smooth operation of the Internet.

(15) ITS Security Director. "ITS Security Director" means the ITS Security Director of North Carolina State government as designated by the Chief Information Officer for North Carolina State Government.

(16) ITU/ISO X.509 Version 3 standards. "ITU/ISO X.509 Version 3 standards" means Version three of the X.509 standards promulgated by the International Telecommunications Union and the International Organization for Standardization.

(17) Key pair. The term "key pair" means two mathematically related keys, having the properties that one key can be used to encrypt a message that can only be decrypted using the other key, and even knowing one key, it is computationally infeasible to discover the other key.

(18) Object Identifier. An "object identifier" means an unambiguous identifying specially formatted number assigned in the United States by the American National Standards Institute (ANSI).

(19) Operational Period of a Certificate. The "operational period of a certificate" means the period of its validity. It begins on the date the certificate is issued (or such later date as specified in the certificate), and ends on the date and time it expires as noted in the certificate or as earlier revoked or suspended.

(20) PKIX. The term "PKIX" means an Internet Engineering Task Force Working Group developing technical specifications for a public key infrastructure components based on X.509 Version 3 certificates.

(21) Private Key. "Private key" means the key of a key pair used to create a digital signature. This key must be kept a secret. It is also known as the confidential key or secret key.

(22) Public Key. "Public key" means the key of a key pair used to verify a digital signature. The public key is made available to anyone who will receive digitally signed messages from the holder of the key pair. The public key is usually provided in a Certification Authority issued certificate and is often obtained by accessing a repository. A public key is used to verify the digital signature of a message purportedly sent by the holder of the corresponding private key. It is also known as the published key.

(23) Public Key Cryptography. "Public Key Cryptography" means a type of cryptographic technology employing an asymmetric cryptosystem.

(24) Registration Authority. The term "Registration Authority" means an entity responsible for identification and authentication of certificate subjects, but that does not sign or issue certificates (i.e., a Registration Authority is delegated certain tasks on behalf of a Certification Authority).

(25) Relying Party. "Relying party" means a recipient of a digitally signed message who relies on a certificate to verify the digital signature on the message.

(26) Repository. "Repository" means a trustworthy system for storing and retrieving certificates and other information relating to those certificates.

(27) Repository Services Provider. "Repository Services Provider" means an entity that maintains a repository accessible to the public, or at least to relying parties, for purposes of obtaining copies of certificates or verifying the status of such certificates.

(28) Responsible Individual. "Responsible Individual" means a person designated by a sponsor to authenticate individual applicants seeking certificates on the basis of their affiliation with the sponsor.

(29) Revoke A Certificate. "Revoke a certificate" means to prematurely end the operational period of a certificate from a specified time forward.

(30) Secretary. "Secretary" means the North Carolina Secretary of State.

(31) Sponsor. "Sponsor" means an organization with which a subscriber is affiliated (e.g., as an employee, user of a service, business partner, or customer).

(32) Subscriber. A "subscriber" means the person to whom a certificate is issued. A subscriber means a person who:

(a) is the subject named or identified in a certificate issued to such person;

(b) holds a private key that corresponds to a public key listed in that certificate; and

(33) Suspend a certificate. "Suspend a certificate" means to temporarily suspend the operational period of a certificate for a specified time period or from a specified time forward.

(34) Transaction. "Transaction" means an electronic transmission of data between an entity and a public agency, or between two public agencies, including, but not limited to contracts, filings, and other legally operative documents not specifically prohibited in the Electronic Commerce Act.

(35) Trustworthy System. "Trustworthy system" means computer hardware, software, and procedures that:

(a) are secure from intrusion and misuse;

(b) provide a level of availability, reliability, and correct operation;

(d) adhere to Federal Information Processing Standards.

(36) Valid Certificate. A "valid certificate" means one that:

(a) a Certification Authority has issued;

(b) the subscriber listed in it has accepted;

(d) has not been suspended or revoked.

A certificate is not valid until it is both issued by a Certification Authority and accepted by the subscriber.

(37) X.500. "X.500" means a directory standard / protocol for connecting local directory services to form one distributed global directory. X.500 is an OSI (Open System Interconnection) protocol, named after the number of the ITU (International Telecommunications Union - a United Nations Specialized Agency) CCITT (International Telegraph and Telephone Consultative Committee) Recommendation document containing its specification. This document is known as "Recommendation X.500 (03/00) - Information technology - Open systems interconnection - The Directory: public-key and attribute frameworks," and is available from International Telecommunication Union on the World Wide Web, www.itu.int, 183 Swiss Francs, price subject to change.

(38) X.509. "X.509" means a standard / protocol adopted by the International Telecommunication Union (formerly known as the International Telegraphy and Telephone Consultation Committee). For purposes of the Rules in this Chapter, all references to X.509 shall be construed as referring to version 3. Compliance with X.509 versions 1 or 2 shall not be construed as compliance with X.509. This document is known as "Recommendation X.509 (03/00) - Information technology - Open systems interconnection - The Directory: public-key and attribute frameworks," and is available from International Telecommunication Union on the World Wide Web, www.itu.int, 183 Swiss Francs, price subject to change.

History

Authority G.S. 66-58.10(a)(1)
Temporary Adoption Eff. February 23, 1999
Codifier determined on November 23, 1999, agency findings did not meet criteria for temporary rule
Temporary Adoption Eff. December 3, 1999
Eff. March 26, 2001
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. December 6, 2016.

18 NCAC 10 .0301 Public Key Technology Licensing, Fees, Renewal {#sec-18-ncac-10-.0301 omnilex-key=us-nc-regs-official--title-18--18 NCAC 10 .0301}

(a) To be considered for licensure under this subsection, a Certification Authority shall utilize certificate-based public key cryptography.

(b) Any applicant seeking licensure must demonstrate compliance with the North Carolina Electronic Commerce Act, G.S. 66, Article 11A, and the rules in this Chapter.

(c) To request licensure, a Certification Authority shall provide the Electronic Commerce Section with a copy of its current Certification Practice Statement and most recent reports of compliance audit(s) as required by 18 NCAC 10 .0303 (k).

(d) A Certification Authority shall adhere to its Certification Practice Statement. If a Certification Authority modifies its Certification Practice Statement, it shall provide an updated copy of the Certification Practice Statement to the Electronic Commerce Section as soon as is practicable, and no later than the date the updated Certification Practice Statement is put into operation. As a condition of continued licensure, the Electronic Commerce Section may require the Certification Authority to undergo an audit to document compliance with its updated Certification Practice Statement and the rules in this Chapter.

(e) An initial licensing fee of two thousand dollars ($2,000 US) shall accompany an initial application.

(f) A renewal fee of two thousand dollars ($2,000 US) shall accompany an application for renewal by a licensed Certification Authority.

(g) A license issued by the Electronic Commerce Section pursuant to this Section shall expire one year after its effective date, unless timely renewed.

(h) Financial Responsibility.

(1) As precondition of licensure a Certification Authority shall obtain a bond issued by a surety company authorized to do business in North Carolina. A copy of the bond shall be filed with the Electronic Commerce Section prior to licensure. The amount of the bond shall not be less than twenty-five thousand dollars ($25,000 US). The bond shall be in favor of the State of North Carolina. The bond shall be payable for any penalties assessed by the Electronic Commerce Section pursuant to the Rules in this Chapter and for any losses the State encounters resulting from a Certification Authority's conduct of activities subject to the Electronic Commerce Act or arising out of a violation of the Electronic Commerce Act or any Rule promulgated thereunder;

(2) As precondition of licensure a Certification Authority shall obtain indemnity insurance coverage (e.g. "errors and omissions" or "cyber coverage" or similar coverage) to protect subscribers, relying parties and the State for any losses resulting from the Certification Authority's conduct of activities subject to the Electronic Commerce Act or arising out of a violation of the Electronic Commerce Act or any Rule promulgated thereunder. Indemnity coverage shall be obtained and maintained in the amount of not less than one hundred thousand dollars ($100,000 US) per occurrence and not less than one million dollars ($1,000,000 US) for all occurrences;

(3) The failure of a Certification Authority to continuously maintain this surety bond and indemnity insurance coverage may be the basis for revocation or suspension of its license.

History

Authority G.S. 66-58.3; 66-58.10(a)(2)
Temporary Adoption Eff. February 23, 1999
Codifier determined on November 23, 1999, agency findings did not meet criteria for temporary rule
Temporary Adoption Eff. December 3, 1999
Eff. March 26, 2001
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. December 6, 2016.

18 NCAC 10 .0302 Public Key Technology Certification Authority: Certificate Issuance and Management - Overview {#sec-18-ncac-10-.0302 omnilex-key=us-nc-regs-official--title-18--18 NCAC 10 .0302}

(a) Overview. The Rules in this Section specify minimum requirements for issuance and management of certificates that may be used in verifying digital signatures. The digital signatures may be used on categories of electronic communications specified as suitable applications in 18 NCAC 10 .0302(b)(5). Each item in the Rules in this Section must be specifically addressed by the Certification Authority in the Certification Authority's Certification Practice Statement filed with the North Carolina Department of the Secretary of State at the time the Certification Authority submits an application for licensure or renewal.

(b) Community and Applicability.

(1) Certification Authorities. The Rules in this Chapter are binding on each licensed Certification Authority issuing certificates identifying them, and govern Certification Authority performance with respect to all certificates it issues referencing the Rules. Specific Certification Authority Practice Statements and procedures implementing the requirements of the Rules in this Chapter shall be set forth in the Certification Authority Certification Practice Statement;

(2) Certification Authorities Authorized to Issue Certificates Under the Rules in this Chapter. Any Certification Authority may issue certificates identifying the Rules in this Chapter if licensed in the State of North Carolina and the Certification Authority agrees to be bound by and comply with the undertakings and representations of the Rules in this Chapter with respect to such certificates. Issuance of a certificate referencing this Item shall constitute issuing the agreement of the Certification Authority to be bound by terms of the Rules for all certificates referencing them;

(3) Subscribers. A Certification Authority may issue certificates that reference the Rules in this Chapter to the following classes of subscribers:

(A) individuals (unaffiliated);

(B) individuals associated with a sponsor recognized by the Certification Authority ("affiliated individuals"), provided the sponsor is the subscriber of a valid certificate issued by the Certification Authority in accordance with the Rules in this Chapter;

(D) organizations and businesses qualified as legal entities;

(4) Relying Parties. The Rules in this Chapter benefit the following persons, who may rely on certificates issued to others referencing them ("Qualified Relying Parties"):

(A) individuals intending to engage in a transaction with a public agency;

(B) public agencies, as defined in G.S. 66-58.2;

(D) other parties to a transaction with the entity and a public agency;

(5) Suitable Applications. Certificates referencing this Item are intended to provide a level of identity binding assurance and the protection of document encryption, and are typically suitable for:

(A) System Access / Systems Security

(i) Verifying the identity of electronic mail correspondents for non-critical communications;

(ii) Obtaining access to databases, applications and systems;

(iii) Message / document encryption for protection of contents/identities.

(B) Digital Signature Activity

(i) Commerce involving various goods or services with various values;

(ii) Obtaining personal data relating to the subscriber.

(6) Some sample applications of the Rules in this Chapter are:

(A) Computing applications providing access to the certificate holder's own personal information;

(B) Request and distribution of text information or other types of copyrighted content for which fees are charged or subscriptions are required;

(D) Verifying signatures on contracts, government benefits statements, and other documentation;

(E) Signing of electronic messages; e.g. official reports, employee leave and travel reporting, tax withholding; and

(F) Secure transport of individual, patient specific medical / other privileged information over public networks.

History

Authority G.S. 66-58.10
Codifier determined on November 23, 1999, agency findings did not meet criteria for temporary rule
Temporary Adoption Eff. December 3, 1999
Eff. March 26, 2001
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. December 6, 2016.

18 NCAC 10 .0303 Public Key Technology: Certificate Policy General Provisions {#sec-18-ncac-10-.0303 omnilex-key=us-nc-regs-official--title-18--18 NCAC 10 .0303}

(a) Certification Authority Obligations. The Certification Authority is responsible for all aspects of certificate issuance and management, including control over:

(1) the application / enrollment process;

(2) the identification and authentication process;

(3) the actual certificate manufacturing process;

(4) certificate publication;

(5) certificate suspension and revocation, publication of the Certificate Revocation List and Certification Authority Revocation Lists, as pertinent;

(6) certificate renewal;

(7) ensuring that all aspects of the Certification Authority services and Certification Authority operations and infrastructure related to certificates issued under the Rules in this Chapter are performed in accordance with the requirements, representations, and warranties of the Rules in this Chapter; and

(8) Delivering certificate updates and revocation transactions to the NC ITS directory, where pertinent.

(b) Representations by Certification Authority. By issuing a certificate referencing the Rules in this Chapter, a Certification Authority certifies to subscriber and all Qualified Relying Parties (who reasonably and in good faith rely on a certificate's information during its operational period in accordance with the Rules in this Chapter) that:

(1) the Certification Authority has verified certificate information unless otherwise noted in its Certification Practice Statement;

(2) the Certification Authority has issued, and will manage, the certificate in accordance with the Rules in this Chapter;

(3) the Certification Authority has complied with the requirements of the rules in this Chapter and its applicable Certification Practice Statement when authenticating the subscriber and issuing the certificate;

(4) there are no misrepresentations of fact in the certificate known to the Certification Authority, and the Certification Authority has verified additional information in the certificate unless otherwise noted in its Certification Practice Statement;

(5) subscriber-provided information in the certificate application has been accurately transcribed to the certificate; and

(6) the certificate meets all material requirements of the rules in this Chapter and the Certification Authority's certification practice statement.

(c) Registration Authority and Certificate Manufacturing Authority Obligations: The Certification Authority shall be responsible for performing all identification and authentication functions and all certificate manufacturing and issuing functions. However, the Certification Authority may delegate performance of these obligations to an identified Registration Authority or Certificate Manufacturing Authority, provided the Certification Authority remains primarily responsible for performance of those services by such third parties in a manner consistent with requirements of the rules in this Chapter.

(d) Repository Obligations: The Certification Authority shall be responsible for providing a repository, performing / providing certificate updates as required and performing all associated functions. However, the Certification Authority may delegate performance of this obligation to an identified Repository Services Provider, provided the Certification Authority remains primarily responsible for performance of those services by such third party in a manner consistent with the requirements of the rules in this Chapter.

(e) Subscriber Obligations. In all cases, the Certification Authority shall require the subscriber to enter an enforceable contractual commitment for the benefit of Qualified Relying Parties obligating the subscriber to:

(1) take precautions to prevent any loss, disclosure, or unauthorized use of the private key;

(2) acknowledge that by accepting the certificate the subscriber is warranting all information and representations made by the subscriber included in the certificate are true;

(3) use the certificate exclusively for authorized and legal purposes, consistent with the rules in this Chapter; and

(4) immediately contact the Certification Authority and instruct the Certification Authority to revoke the certificate promptly upon any actual or suspected loss, disclosure, or other subscriber private key compromise.

(f) Relying Party Obligations. A Qualified Relying Party may rely on a certificate referencing this Item only if the certificate was used and relied upon for lawful purposes and under circumstances where:

(1) the reliance was reasonable and in good faith in light of all circumstances known to the relying party at the time of reliance;

(2) the purpose for which the certificate was used was appropriate under the rules in this Chapter; and

(3) the relying party checked the certificate status certificate prior to reliance, or a check of the certificate's status would have indicated the certificate was valid.

(g) Interpretation & Enforcement.

(1) Governing Law. The laws of the State of North Carolina shall govern the enforceability, construction, interpretation, and validity of the rules in this Chapter.

(2) The holders of North Carolina Certification Authority licenses are not guaranteed any business by public agencies in North Carolina. All other state laws required to engage in business with public agencies in North Carolina must be complied with by the Certification Authority and public agencies.

(h) Fees. A Certification Authority shall not impose any fees for reading the rules in this Chapter or its Certification Practice Statement. A Certification Authority may charge access fees on certificates, certificate status information, or certificate revocation lists, subject to agreement between the Certification Authority and subscriber, and in accordance with a fee schedule published by the Certification Authority in its Certification Practice Statement or otherwise.

(i) Publication and Repositories:

(1) Publication of Certification Authority Information. Each authorized Certification Authority shall operate a secure online repository available to Qualified Relying Parties. The repository shall contain:

(A) issued certificates that reference the rules in this Chapter;

(B) a Certificate Revocation List or on-line certificate status database;

(D) past and current versions of the Certification Authority's Certification Practice Statement; and

(E) a copy of the rules in this Chapter.

(2) Frequency of Publication. All information to be published in the repository shall be published promptly after such information is available to the Certification Authority. In no case shall more than 24 hours pass between certification authority awareness of a change and the Certification Authority publishing of the change. Certificates issued by the Certification Authority referencing the rules in this Chapter shall be published promptly upon acceptance of such certificate by the subscriber. Certificate revocations and suspensions shall be published contemporaneously with the act of revocation or suspension. Information relating to revocation or suspension of a certificate shall be published in accordance with 18 NCAC 10 .0305(f)(2) and 18 NCAC 10 .0305(h).

(j) Access Controls. The repository shall be available to Qualified Relying Parties and subscribers 24 hours per day, 7 days per week, subject to published, scheduled maintenance and the Certification Authority's then-current terms of access. A Certification Authority shall not impose any access controls on the rules in this Chapter, the Certification Authority's certificate for its signing key, and past and current versions of the Certification Authority's Certification Practice Statement. A Certification Authority may impose access controls on certificates, certificate status information, or Certificate Revocation Lists at its discretion, subject to agreement between the Certification Authority and subscriber, in accordance with provisions published in its Certification Practice Statement or otherwise.

(k) Required Compliance Audits:

(1) The Certification Authority must submit to audit to determine its stability, prospects for longevity and adequacy of its security practices and conditions. The audits must result in unqualified compliance reports. When a Certification Authority is licensed in North Carolina based on a reciprocity agreement between North Carolina and another state, the Certification Authority may submit certified copies of audit reports required by the other jurisdiction. After review by the Electronic Commerce Section, audit reports may be determined to meet North Carolina Certification Authority audit requirements.

(2) A Certification Authority shall adhere to its Certification Practice Statement. If a Certification Authority modifies its Certification Practice Statement, it shall provide an updated copy of the Certification Practice Statement to the Electronic Commerce Section as soon as practicable and no later than the date the updated Certification Practice Statement is put into operation. At the discretion of the Electronic Commerce Section, the Certification Authority may be required to undergo additional / other audits for license renewal.

(3) Stability and Longevity Prospects Audit:

(A) Before initial approval as a licensed Certification Authority, the Certification Authority (and each Registration Authority, Certificate Manufacturing Authority, and Repository Services Provider, as applicable) shall submit to audit by an independent Certified Public Accounting firm. The audit must address the American Institute of Certified Public Accountants (AICPA) Section 341, "The Auditor's Consideration of an Entity's Ability to Continue as a Going Concern".

(B) The audit must produce an unqualified report from the CPA firm to the Certification Authority. A certified copy of the audit report must be attached by the Certification Authority to the application for a new Certification Authority license or renewal license, and submitted to the Electronic Commerce Section.

(C) As a condition of continued licensure, the Electronic Commerce Section may require the Certification Authority to undergo audit to document compliance with expectations for secure operations, an updated Certification Practice Statement, or to document continuing compliance with the ITU/ISO X.509 Version 3 standards and the rules in this Chapter.

(D) A Certification Authority operated by an Agency of the State of North Carolina is exempt from this requirement.

(4) Security Audit. The purpose of a security audit is to verify:

(A) The Certification Authority has in place a secure system assuring quality of Certification Authority Services provided; and

(B) the Certification Authority's system complies with all security requirements of the rules in this Chapter, the Certification Authority's Certification Practice Statement and ITU/ISO X.509 Version 3 standards.

Before initial approval as a licensed Certification Authority, and thereafter at least once every year, the Certification Authority shall submit to a security compliance audit by a security firm. The audit must evidence compliance with Federal Information Processing Standards 140-1 "Security: Cryptographic Modules" Level 2 and TSEC (The Orange Book) C2 criteria or comply with contemporary Certification Authority security criteria as expressed in terms of the "Common Criteria" – ISO 15408-1:1999. In order for an audit firm to be approved by the Electronic Commerce Section, it must engage or employ at least one Certified Information Systems Auditor (CISA) certified by the Information Systems Audit and Control Association (CISACA), 3701 Algonquin Road, Rolling Meadows, Illinois, 60008, www.ISACA.org. A certified copy of the current unqualified security audit report must be attached to an application for a new certification authority license or renewal license, and submitted to the NC Department of Secretary of State, Electronic Commerce Section.

(l) Confidentiality Policy. Subscriber consent must be obtained for each incident of disclosure and for each item of information unless required otherwise by law. The Certification Authority may not sell or exchange information in any circumstance that is not specifically allowed by the Rules in this Chapter or otherwise required by law.

(1) A Certification Authority may not use data gathered in fulfilling its Certification Authority role for any other purpose. A Certification Authority shall not gather information beyond that necessary to authenticate a subscriber nor shall it use information gathered in its Certification Authority role to assemble further information about subscribers; and

(2) Under no circumstance shall a Certification Authority (or any Registration Authority, Repository Services Provider, or Certificate Manufacturing Authority) have access to the signing private key(s) (versus encryption key(s)) of any subscriber to whom it issues a certificate referencing the Rules in this Chapter, except for initial creation of the signing/secret key where the key is not accessed and no enduring record is made of the key.

(m) Information Not Considered Confidential.

(1) Information appearing on certificates is not confidential.

(2) Disclosure of Certificate Revocation / Suspension Information. Information regarding the revocation or suspension status of a certificate is not confidential and is disclosed in the normal course of public key infrastructure activity.

(3) Any information may be disclosed upon owner's request.

History

Authority G.S. 66-58.10
Codifier determined on November 23, 1999, agency findings did not meet criteria fo temporary rule
Temporary Adoption Eff. December 3, 1999
Eff. March 26, 2001
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. December 6, 2016.

18 NCAC 10 .0304 Public Key Technology; Identification and Authentication {#sec-18-ncac-10-.0304 omnilex-key=us-nc-regs-official--title-18--18 NCAC 10 .0304}

(a) Initial Registration:

(1) Subject to the requirements of this Rule, certificate applications may be communicated from the applicant to Certification Authority or Registration Authority, and authorizations to issue certificates may be communicated from a Registration Authority to the Certification Authority, electronically, via E-mail or a web site, provided all communication is secured by SSL or a similar security protocol, by first class U.S. Mail or similar service.

(2) North Carolina deploys two levels / classes of authentication certificate:

(A) North Carolina Basic Authentication Certificate: A North Carolina Basic Authentication Certificate is a digital certificate manufactured by a licensed Certificate Authority intended to be used to sign routine internal North Carolina government business documents (e.g. personnel leave documents, travel reimbursement requests and similar documents) and to gain access to State systems when deemed appropriate by information technology security policy.

(B) North Carolina Strong Authentication Certificate: A North Carolina Strong Authentication Certificate is a digital certificate manufactured by a North Carolina licensed Certificate Authority intended to be used with a high degree of confidence to sign any document.

(b) Types of Names. The subject name used for certificate applicants shall be the X.509 Distinguished Name. The name shall be unique for each entity certified by a Certification Authority. A Certification Authority may issue more than one certificate with the same subject name for the same subject entity.

(c) Name Meanings. The subject name listed in a certificate must have a reasonable association with the authenticated name of the subscriber. In the case of an individual, this shall be a combination of first name or initials and surname. In the case of an organization, the name shall reflect the legal name of the organization or unit.

(d) Name Uniqueness. The subject name listed in a certificate shall be unambiguous and unique for all certificates issued by the Certification Authority and shall conform to X.500 standards for name uniqueness. If necessary, additional numbers or letters may be appended to the real name to ensure the name's uniqueness within the domain of certificates issued by the Certification Authority and detailed in the Certification Practice Statement.

(e) Verification of Key Pair. The Certification Authority shall establish that the applicant is in possession of the private key corresponding to the public key submitted with the application.

(f) Authentication of an Organization. An organization may be issued a North Carolina Strong Authentication Certificate. An organization shall not be issued a North Carolina Basic Authentication Certificate.

(1) Identification. A Certification Authority shall be presumed to have confirmed that the prospective subscriber organization is the organization to be listed in a certificate where the Certification Authority has assured by investigation:

(A) The organization exists and conducts business at the address listed in the certificate application;

(B) A duly authorized representative of the applicant organization signed the certificate application;

(D) If required by State law, the organization is authorized to transact business by the Corporations Division of the North Carolina Department of the Secretary of State.

(2) A Certificate Authority or Registration Authority, when authenticating an applicant who is an organization, shall require the following information on a notarized affidavit:

(A) Organization Name;

(B) Street address and mailing address, if different;

(D) State;

(E) Zip;

(F) Tax Payer Identification Number / Employer Identification Number (EIN);

(G) Corporate Identification Number (Issued by Secretary of State);

(H) Date of incorporation or creation;

(I) State or country of incorporation or creation;

(J) Telephone number (optional);

(K) E-mail address (optional);

(L) Post data element (e.g. password) to be a secret shared with the Certification Authority / Registration Authority and used later for authentication in the absence of the digital signature. This element may be used along with additional information to authenticate a request for certificate revocations; and

(M) Name of officially authorized agent, if applicable.

(3) Authentication and Confirmation Procedure. In conducting its review and investigation, the Certification Authority shall review official government records or engage the services of a third party vendor of business information to do so. The Certification Authority or third party review shall provide validation information concerning each organization applying for a certificate, including legal company name, type of entity, year of formation, names of directors and officers, address, telephone number, and good standing in the jurisdiction where the applicant was incorporated or otherwise organized.

(g) Authentication of Individual -- No Affiliation: An unaffiliated individual may be issued a North Carolina Strong Authentication Certificate, North Carolina Basic Authentication Certificate, or both. In determining the type of certificate required, agencies shall evaluate the application's risk of loss involved and nature of business with which the certificate holder shall be associated. Based on the evaluation, a NC Basic Authentication Certificate may be appropriate. In other cases, it may be appropriate to require a North Carolina Strong Authentication Certificate may be appropriate. In other cases, it may be appropriate to require a North Carolina Strong Authentication Certificate.

(1) Identification:

(A) North Carolina Strong Authentication Certificate. A Certification Authority shall be presumed to have confirmed that the prospective subscriber is the person to be listed in a certificate where the Certification Authority has been presented with at least two identification documents. At least one piece of identification shall be a current federal or state government-issued picture-type identification such as a military or government identification card, driver's license, or similar identification document issued under authority of another country, or passport. The Certification Authority or Registration Authority shall initial, date and archive copies of identification used to establish the subscriber's identity.

(2) Authentication for a North Carolina Strong Authentication Certificate. Authenticating an unaffiliated individual applicant, the Certification Authority or Registration Authority shall require the following elements of information from the applicant on a notarized affidavit:

(A) Last name (family name);

(B) First name (given name);

(D) Street address and mailing address, if different;

(E) City;

(F) State;

(G) Zip;

(H) Social Security Number (SSN), national identification number or passport number;

(I) Driver's license number, or state identification card number;

(J) Date of birth;

(K) Place of birth;

(L) Telephone number (optional);

(M) E-mail address (optional);

(N) Post data element (e.g. mother's maiden name, password) to be used later for authenticating an individual in the absence of their digital signature. This element may be used along with additional information to authenticate a request for certificate revocations; and

(O) Name of officially authorized agent, if applicable.

(3) Authentication for a North Carolina Basic Authentication Certificate. Certification Authorities or Registration Authorities shall require a notarized affidavit from the applicant's personnel officer, signed by the applicant including:

(A) Last name (family name);

(B) First name (given name);

(D) Street address and mailing address, if different;

(E) City;

(F) State;

(G) Zip;

(H) Social Security Number (SSN), national identification number or passport number;

(I) Driver's license number, or state identification card number;

(J) Date of birth;

(K) Place of birth;

(L) Business Telephone number (optional);

(M) Business E-mail address (optional) as assigned by agency;

(O) Name of officially authorized agent, if applicable;

(P) Beginning date of employment; and

(Q) Ending date of employment (if known).

(4) Investigation and Confirmation. Verification of the name and SSN and the Name and Driver's License (or ID Number) data elements may be accomplished via checks with the Social Security Administration and the appropriate state motor vehicle administration. Verification of the name and address data elements may be accomplished through access to either a commercial or governmental data source (e.g. Department of Motor Vehicles, personnel office, etc.). The address confirmation data sources may consist of either online databases or local business records (e.g., a bank's customer records, the U.S. Postal Service, state motor vehicle department records, state personnel office).

(5) Personal Presence. Authentication of an unaffiliated individual requires the applicant must either:

(A) personally present himself or herself to a Registration Authority to be authenticated prior to certificate issuance. An individual may meet expectations for personal presence by an attorney-in-fact, trustee or other court appointed fiduciary; or

(B) securely deliver signed and notarized copies of the requisite identification to the Certification Authority [in which case, once notarized copies are delivered parties may communicate electronically]. Where the applicant delivers notarized copies of identification to the Certification Authority, authentication of such identification shall be confirmed through the use of a shared secret [such as a personal identification number]. The shared secret is separately communicated to the applicant in a manner that assures its confidentiality and included with the documents delivered as part of the certificate application process.

(h) Authentication of Individual – Affiliated Certificate.

(1) Identification.

(A) The Certification Authority may establish a trustworthy procedure whereby a sponsoring organization that has been authenticated by the Certification Authority and issued a certificate may designate one or more Responsible Individuals, and authorize them to represent the sponsoring organization concerning the issuance and revocation of certificates for affiliated individuals. The Certification Authority may rely on a designated Responsible Individual appointed by the sponsor to properly authenticate the individual applicant, if the Certification Authority has previously authenticated the sponsor as an organization and the Responsible Individual as an unaffiliated individual, in accordance with the rules in this Chapter. A Certification Authority shall be presumed to have confirmed a prospective subscriber is the person to be listed in a certificate where the Certification Authority relies on a designated Responsible Individual appointed by the sponsor to properly authenticate the individual applicant, if the Certification Authority has previously authenticated the sponsor as an organization and the Responsible Individual as an unaffiliated individual, in accordance with the rules in this Chapter.

(B) In the absence of a trustworthy procedure, If the requirements of 18 NCAC 10 .0304(h)(1)(A) cannot be met, then affiliated individuals shall be authenticated in the same manner as unaffiliated individuals.

(2) Authentication Confirmation Procedure. Authentication of the individual shall be confirmed through the use of a shared secret [such as a Personal Identification Number]. The shared secret is distributed by an out of band communication to the applicant (either directly or via the sponsor) and included in the application process as part of the certificate enrollment process.

(3) Personal Presence.

(A) Applicants affiliated with an approved sponsor may be authenticated through an electronically submitted application, based on an agreement with the sponsor, the approval of a designated Responsible Individual, and the distribution of Personal Identification Numbers or a similar security device.

(B) If a Certification Authority elected to use an online commercial database, the application may be filled out and submitted via the Internet from a home or business computer. In the case where a Certification Authority elects to use a local record check, the application process may take place over the Internet, or alternatively, the Certification Authority may require the applicant personally appear at a designated business site in order to enter required information at a local terminal.

(4) Duties of Responsible Individual. The Responsible Individual represents the sponsoring organization with respect to the issuance and management of certificates. In that capacity he or she is responsible for properly indicating which subscribers are to receive certificates.

(i) Renewal Applications (Routine Re-key). A subscriber may request issuance of a new certificate for a new key pair from the Certification Authority issuing the original certificate. The request may be made electronically by a digitally signed message based on the old key pair in the original certificate under these conditions:

(1) The request must occur during the period two months prior to normal scheduled certificate expiration;

(2) The subscriber must be authenticated following the principles of the rules in this Chapter; and

(3) The original certificate has not been suspended or revoked.

(j) Re-key after Revocation. Revoked or expired certificates shall not be renewed under any conditions. Applicants without a valid certificate from the Certification Authority that references the rules in this Chapter shall be re-authenticated by the Certification or Registration Authority on certificate application, just as with a first-time application.

(k) Revocation Request.

(1) Electronic Revocation Request.

(A) A revocation request submitted electronically may be authenticated by digital signature using the "old" key pair.

(B) Electronic revocation requests authenticated on the basis of the old (compromised) key pair shall always be accepted as valid. Other revocation request authentication mechanisms are acceptable. These authentication mechanisms balance the need to prevent unauthorized revocation requests against the need to quickly revoke certificates.

(2) Non-Electronic Revocation Request.

(A) Organization initiated revocation of affiliated certificate(s) shall be authenticated by communication from a known person or official authorized to initiate revocations on behalf of an organization.

(B) Subscriber initiated requests for revocation of certificate(s) shall be authenticated by presentation of a signed and notarized request for revocation.

(C) Subscriber initiated requests for revocation of certificates via an attorney-in-fact shall be authenticated by presentation of

(i) a notarized request for revocation by the attorney-in-fact; and

(ii) a certified copy of the power of attorney.

(D) Revocation by a court of competent jurisdiction may be made by presentation of a certified court order.

History

Authority G.S. 66-58.10
Codifier determined on November 23, 1999, agency findings did not meet criteria for temporary rule
Temporary Adoption Eff. December 3, 1999
Eff. March 26, 2001
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. December 6, 2016.

18 NCAC 10 .0305 Public Key Technology: Operational Requirements {#sec-18-ncac-10-.0305 omnilex-key=us-nc-regs-official--title-18--18 NCAC 10 .0305}

(a) Certificate Application. A certificate applicant shall complete a certificate application in a form prescribed by the Certification Authority Certificate Policy and enter into a subscriber agreement with the Certification Authority. All applications are subject to Certification Authority review, approval, and acceptance. A Certificate Policy shall define the minimum content to be used for a certificate application. The Certificate Policy shall also specify that all applications are subject to review, approval, and acceptance by the Policy Authority in addition to the Issuer.

(b) Certificate Issuance. Upon successful completion of the subscriber identification and authentication process in accordance with the rules in this Chapter and complete and final approval of the certificate application, the Certification Authority shall:

(1) issue the requested certificate;

(2) notify the applicant thereof; and

(3) make the certificate available to the applicant using a procedure that:

(A) assures the certificate is only delivered to or available for subscriber pickup; and

(B) provides adequate proof of subscriber identification in accordance with the Rules in this Chapter.

A Certification Authority shall not issue a certificate without the consent of the applicant and, if applicable, the applicant's sponsor.

(c) Certificate Acceptance. Following certificate issuance, the Certification Authority shall continually require the subscriber to expressly indicate certificate acceptance or rejection to the Certification Authority, in accordance with established Certification Authority Certification Practice Statement procedures.

(d) Circumstances for Revocation of Certificate.

(1) Permissive Revocation. A subscriber may request revocation of his, her, or its certificate at any time for any reason. A sponsoring organization, where applicable, may request certificate revocation of any affiliated individual at any time for any reason. The issuing Certification Authority may also revoke a certificate upon failure of the subscriber, or where applicable, sponsoring organization failure to meet its obligations under the rules in this Chapter, the applicable Certification Practice Statement, or any other agreement, regulation, or law applicable to the certificate that may be in force.

(2) Required Revocation. A subscriber or sponsoring organization, where applicable, shall promptly request revocation of a certificate when:

(A) any information on the certificate changes or becomes obsolete;

(B) the private key, or the media holding the private key associated with the certificate is, or is suspected of having been compromised; or

(3) The issuing Certificate Authority shall revoke a certificate:

(A) upon request of the subscriber or sponsoring organization;

(B) upon failure of the subscriber (or the sponsoring organization, where applicable) to meet its material obligations under the Rules in this Chapter, any applicable Certification Practice Statement, or any other agreement, regulation, or law applicable to the certificate that may be in force;

(D) if the Certification Authority determines that the certificate was not properly issued in accordance with the rules in this Chapter and any applicable Certification Practice Statement.

(4) Notice of the Certification Authority ceasing operation shall be posted to the Certification Authority Revocation List maintained by the Electronic Commerce Section of the Department of the Secretary of State.

(e) Who Can Request Revocation. The only persons permitted to request revocation of a certificate issued pursuant to the Rules in this Chapter are:

(1) the subscriber;

(2) the sponsoring organization (where applicable); and

(3) the issuing Certification Authority.

(f) Procedure for Revocation Request.

(1) A certificate revocation request shall be promptly communicated to the issuing Certification Authority, either directly or through a Registration Authority. A certificate revocation request may be communicated electronically if it is digitally signed with the private key of the subscriber, or where applicable, the sponsoring organization. Requests digitally signed by the subscriber, or by the sponsoring organization, are considered authenticated when received by the Certification Authority or Registration Authority. Alternatively, the subscriber, or where applicable, the sponsoring organization, may request revocation by contacting the Certification Authority or an authorized Registration Authority in person and providing adequate proof of identification to authenticate the request in accordance with 18 NCAC 10 .0304(f)(1) or (g)(1). Copies of the digitally signed request must be archived by the Certification Authority or Registration Authority. Other identification used to establish the subscriber's identity shall be photocopied and initialed by an authorized representative of the Certification Authority or Registration Authority and archived.

(2) Repository/Certificate Revocation List Update. Promptly, within less than 2 hours of revocation, the Certificate Revocation List, or certificate status database in the repository, as applicable, shall be updated. All revocation requests and the resulting actions taken by the Certification Authority shall be archived.

(g) Revocation Request Grace Period. Certificate revocation requests shall be authenticated and processed within 2 hours of receipt by the Certification Authority.

(h) Certificate Suspension. The procedures and requirements stated for certificate revocation must also be followed for certificate suspension, where implemented.

(i) Certificate Revocation List Issuance Frequency. When Certificate Revocation Lists are used, an up-to-date Certificate Revocation List shall be issued to the repository at least every 2 hours. If no change has been made to the Certificate Revocation List, an update to the Certificate Revocation List in the repository is not necessary.

(j) Online Revocation / Status Checking Availability. Whenever an online certificate status database is used as an alternative to a Certificate Revocation List, such database shall be updated no later than 2 hours after certificate revocation.

(k) Computer Security Audit Procedures. All security events, including but not limited to:

(1) corruption of computing resources, software or data;

(2) revocation of the entity public key;

(3) compromise of the entity key; or

(4) the invocation of a disaster recovery plan, on the Certification Authority system shall be automatically recorded in audit trail files. The audit log shall be processed and archived at least once a week.

Such files shall be retained for at least 6 months onsite, and thereafter shall be securely archived.

(l) Records, Archival.

(1) Types of Records Archived. The following data and files must be archived by (or on behalf of) the Certification Authority:

(A) All computer security audit data;

(B) All certificate application data;

(D) Key histories; and

(E) All correspondence between the Certification Authority and Registration Authority, Certificate Manufacturing Authority, Repository Services Provider, and subscriber.

(2) Retention Period for Archive. Key and certificate information and archives of audit trail files must be retained for at least 30 years.

(3) Protection of Archive. The archive media must be protected either by physical security alone, or a combination of physical security and cryptographic protection. The archive must be protected from environmental threats such as temperature, humidity, and magnetism. The Certification Practice Statement must address the procedure for transferring and preserving the archive media in the case of the Certification Authority ceasing operation in this State.

(4) Archive Backup Procedures. Adequate backup procedures must be in place. In event of loss or destruction of primary archives, a complete set of backup copies shall be readily available within no more than 24 hours. Back up procedures must be tested regularly.

(m) Procedures to Obtain and Verify Archive Information. During the compliance audit required by the rules in this Chapter, the auditor shall verify integrity of the archives. Either copy of the archive media determined corrupted or damaged in any way, shall be replaced with the backup copy held in the separate location and noted in the compliance audit report.

(n) Compromise and Disaster Recovery.

(1) Disaster Recovery Plan:

(A) The Certification Authority must have a disaster recovery/business resumption plan in place. The Certification Authority must set up and render operational a facility located in a geographic area not affected or disrupted by the disaster. The facility must provide Certification Authority Services in accordance with the Rules in this Chapter. The alternate facility must be operational within 24 hours of an unanticipated emergency. Disaster recovery planning shall include a complete and periodic test of facility readiness. Such plan shall be identified and referenced within the Certification Practice Statement available to Qualified Relying Parties.

(B) The disaster recovery plan shall have been reviewed during Certification Authority initial and subsequent third party audits.

(2) Key Compromise Plan. The Certification Authority must have a key compromise plan in place. The plan must address procedures to be followed in the event the Certification Authority's private signing key used to issue certificates is compromised or in the event the private signing key of any Certification Authority higher in the chain of trust is compromised. Such plan shall include procedures for revoking all affected certificates and promptly notifying all subscribers and all Qualified Relying Parties.

(o) Certification Authority Termination. In the event that the Certification Authority ceases operation, the North Carolina Department of the Secretary of State Electronic Commerce Section, North Carolina Information Technology Services, all subscribers, sponsoring organizations, Registration Authorities, Certificate Manufacturing Authorities, Repository Service Providers, and Qualified Relying Parties shall be promptly notified of the termination. In addition, all Certification Authorities with which cross-certification authority agreements are current at the time of cessation must be promptly informed of the termination. All certificates issued by the Certification Authority referencing the rules in this Chapter shall be revoked no later than the time of termination.

History

Authority G.S. 66-58.10
Temporary Adoption Eff. February 23, 1999
Codifier determined on November 23, 1999, agency findings did not meet criteria for temporary rule
Temporary Adoption Eff. December 3, 1999
Recodified to Rule .0701 Eff. December 3, 1999
Eff. March 26, 2001
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. December 6, 2016.

18 NCAC 10 .0306 Public Key Technology: Physical, Procedural, and Personnel Security Controls {#sec-18-ncac-10-.0306 omnilex-key=us-nc-regs-official--title-18--18 NCAC 10 .0306}

(a) Physical Security -- Access Controls.

(1) The Certification Authorities, and all Registration Authorities, Certificate Manufacturing Authorities and Repository Services Providers, shall implement physical security controls to restrict access to hardware and software (including the server, workstations, and any external cryptographic hardware modules or tokens) used in connection with providing Certification Authority Services. Access to such hardware and software shall be limited to personnel performing in a Trusted Role as described in this Rule. Access shall be controlled through the use of electronic access controls, mechanical combination lock sets, or deadbolts. Such access controls must be manually or electronically monitored for unauthorized intrusion at all times.

(2) Breach of physical security or access control expectations may result in revocation of the Certification Authority's license.

(b) Procedural Controls.

(1) Trusted Roles. All employees, contractors, and consultants of a Certification Authority (collectively "personnel") having access to or control over cryptographic operations that may materially affect the Certification Authority's issuance, use, suspension, or revocation of certificates shall, for purposes of the rules in this Chapter, be considered as serving in a trusted role. This includes access to restricted operations of the Certificate Authority's repository. Such personnel include, but are not limited to, system administration personnel, operators, engineering personnel, and executives who are designated to oversee the Certification Authority's operations.

(2) Multiple Roles (Number of Persons Required Per Task). To ensure that one person acting alone cannot circumvent safeguards, multiple roles and individuals shall share Certification Authority server responsibilities. Each account on the Certification Authority server shall have limited capabilities commensurate with the role of the account holder.

(1) Background and Qualifications. Certification Authorities, Registration Authorities, Certificate Manufacturing Authorities and Repository Service Providers shall formulate and follow personnel and management policies sufficient to provide assurance of the trustworthiness and competence of their employees and of the satisfactory performance of their duties in manner consistent with the rules in this Chapter.

(2) Background Investigation.

(A) Certification Authorities shall conduct a background investigation of all personnel who serve in trusted roles (prior to their employment and at least every five years thereafter) to verify their trustworthiness and competence in accordance with the requirements of the rules in this Chapter and the Certification Authority's personnel Practice Statements or their equivalent. All personnel who fail an initial or periodic investigation shall not serve or continue to serve in a trusted role.

(B) Operative personnel shall not ever have been convicted of a felony or a crime involving fraud, false statement or deception.

(C) Any civil or administrative findings involving fraud, false statement or deception involving operative personnel must be disclosed.

(3) Training Requirements. All Certification Authority, Registration Authority, Certificate Manufacturing Authority and Repository Services Provider personnel must receive training in order to perform their duties, and update briefings thereafter as necessary to remain current.

(4) Documentation Supplied to Personnel. All Certification Authority, Registration Authority, Certificate Manufacturing Authority, and Repository Services Provider personnel must receive comprehensive user manuals detailing the procedures for certificate creation, update, renewal, suspension, revocation, and software functionality.

History

Authority G.S. 66-58.10
Temporary Adoption Eff. February 23, 1999
Codifier determined on November 23, 1999, agency findings did not meet criteria for temporary rule
Temporary Adoption Eff. December 3, 1999
Eff. March 26, 2001
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. December 6, 2016.

18 NCAC 10 .0307 Public Key Technology: Technical Security Controls {#sec-18-ncac-10-.0307 omnilex-key=us-nc-regs-official--title-18--18 NCAC 10 .0307}

(a) Key Pair Generation and Installation.

(1) Key Pair Generation. Key pairs for Certification Authorities, Registration Authorities, Certificate Manufacturing Authorities, Repository Services Providers, and subscribers must be generated in such a way that the private key is not known by other than the authorized user of the key pair. Acceptable methods include:

(A) Having all users (Certification Authorities, Certificate Manufacturing Authorities, Registration Authorities, Repository Services Providers and subscribers) generate their own keys on a trustworthy system, and not reveal the private keys to anyone else; or

(B) Having keys generated in hardware tokens from which the private key cannot be extracted.

(2) Certification Authority, Registration Authority, and Certificate Manufacturing Authority keys must be generated in hardware tokens. Key pairs for Repository Services Providers, and end-entities may be generated in either hardware or software as detailed in the Certification Practice Statement.

(b) Private Key Delivery to Entity. The private (secret) key shall be delivered to the subscriber in an "out of band" transaction. The secret key may delivered to the subscriber in a tamper-proof hardware or software container. The secret key may be delivered to the subscriber embedded in a hardware token protected by encryption and password protected.

(c) Subscriber Public Key Delivery to Certification Authority. The subscriber's public key must be transferred to the Registration Authority or Certification Authority in a way that ensures:

(1) it has not been changed during transit;

(2) the sender possesses the private key that corresponds to the transferred public key; and

(3) the sender of the public key is the legitimate user claimed in the certificate application.

(d) Certification Authority Public Key Delivery to Users. The public key of the Certification Authority signing key pair may be delivered to subscribers in an on-line transaction in accordance with Internet Engineering Task Force Public Key Infrastructure Part 3, or by another mechanism which assures the Certification Authority public key is delivered in a manner that assures the key originates with the Certification Authority and that assures the Certification Authority public key has not been altered in transit.

(e) Key Sizes – Asymmetric Cryptographic Applications.

(1) Minimum key length for other than elliptic curve based algorithms is 1024 bits;

(2) Minimum key length for elliptic curve group algorithms is 170 bits.

(f) Acceptable algorithms for public key cryptography applications include, but are not limited to:

(1) RSA (Rivest, Shamir, Adelman) -- digital signature and information security;

(2) ElGamal -- digital signature and information security;

(3) Diffie – Hellman -- digital signature and information security; and

(4) DSA /DSS (Digital Signature Algorithm) -- digital signature applications.

(g) Certification Authority Private Key Protection. The Certification Authority (and the Registration Authority, Certificate Manufacturing Authority and Repository Services Provider) shall each protect its private key(s) in accordance with the provisions of the rules in this Chapter.

(1) Standards for Cryptographic Module. Certification Authority signing key generation, storage and signing operations shall be on a hardware crypto module rated at Federal Information Processing Standards 140-1 Level 2 (or higher). Subscribers shall use Federal Information Processing Standards 140-1 Level 1 approved cryptographic modules (or higher) and related pertinent cryptographic module security requirements of the Common Criteria – ISO 15408-1 "Evaluation Criteria".

(2) Private Key Escrow:

(A) Certification Authority signing private keys shall not be escrowed;

(B) Keys used solely for encryption purposes within and by employees of the State of North Carolina shall be escrowed, unless otherwise provided by law.

(3) Private Key Backup. An entity may back up its own private key.

(4) Private Key Archival. An entity may archive its own private key.

(5) Other Aspects of Key Pair Management. Key Replacement. Certification Authority key pairs must be replaced at least every three years. Registration Authority and subscriber key pairs must be replaced not less than every two years and a new certificate issued.

(6) Restrictions on Certification Authority's Private Key Use.

(A) The Certification Authority's signing key used for issuing certificates conforming to the Rules in this Chapter shall be used only for signing certificates and, optionally, Certificate Revocation Lists.

(B) A private key used by a Registration Authority or Repository Services Provider for purposes associated with its Registration or Repository Services Provider function shall not be used for any other purpose without the express written permission of the Certification Authority.

(C) A private key held by a Certificate Manufacturing Authority and used for purposes of manufacturing certificates for the Certification Authority:

(i) is considered the Certification Authority's signing key;

(ii) is held by the Certificate Manufacturing Authority as a fiduciary for the Certification Authority; and

(iii) shall not be used for any reason without the express written permission of the Certification Authority.

(D) Any other private key used by a Certificate Manufacturing Authority for purposes associated with its Certificate Manufacturing Authority function shall not be used for any other purpose without the express written permission of the Certification Authority.

(h) Computer Security Controls. All Certification Authority servers must include the functionality satisfying Federal Information Processing Standards 140-1 Level 2 (or higher) and pertinent cryptographic module security requirements of the Common Criteria – ISO 15408-1 "Evaluation Criteria" for IT Security either through the operating system, or combination of operating system, public key infrastructure application, and physical safeguards.

(i) Life Cycle Technical Controls - System Development Controls. System design and development shall be conducted using an industrial standard methodology, e.g. systems development life cycle approach (SDLC).

History

Authority G.S. 66-58.10
Temporary Adoption Eff. February 23, 1999
Codifier determined on November 23, 1999, agency findings did not meet criteria for temporary rule
Temporary Adoption Eff. December 3, 1999
Eff. March 26, 2001
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. December 6, 2016.

18 NCAC 10 .0308 Public Key Technology: Certificate and Certificate Revocation List Profiles {#sec-18-ncac-10-.0308 omnilex-key=us-nc-regs-official--title-18--18 NCAC 10 .0308}

(a) Certificate Profile:

(1) Certificates referencing the Rules in this Chapter shall contain public keys used for authenticating the sender of an electronic message and verifying the integrity of such messages, i.e. public keys used for digital signature verification;

(2) All certificates referencing the Rules in this Chapter shall be issued in the X.509 version 3 format and shall include a reference to the Object Identifier for the rules in this Chapter, when assigned, within the appropriate field. The Certification Practice Statement shall identify the certificate extensions supported, and the level of support for those extensions.

(b) Certificate Revocation List Profile. If utilized, Certificate Revocation Lists shall be issued in the X.509 version 2 format. The Certificate Practice Statement shall identify the Certificate Revocation List extensions supported and the level of support for these extensions.

History

Authority G.S. 66-58.10
Codifier determined on November 23, 1999, agency findings did not meet criteria for temporary rule
Temporary Adoption Eff. December 3, 1999
Eff. March 26, 2001
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. December 6, 2016.

18 NCAC 10 .0309 Public Key Technology: Rule Administration {#sec-18-ncac-10-.0309 omnilex-key=us-nc-regs-official--title-18--18 NCAC 10 .0309}

(a) List of Items. Notice of all proposed changes to the Rules in this Chapter under consideration by the Department of the Secretary of State, that may affect users of the Rules (other than editorial or typographical corrections, or changes to the contact details) shall be provided to licensed Certification Authorities. Notice shall be posted on the World Wide Web site of the North Carolina Department of the Secretary of State. Authorized Certification Authorities shall post notice of such proposed changes in their repositories and shall advise their subscribers, in writing or by e-mail, of such proposed changes.

(b) Publication and Notification Procedures:

(1) A copy of the rules in this Chapter is available in electronic form on the Internet at www.secretary.state.nc.us/ecomm/;

(2) Authorized Certification Authorities shall post copies of the rules in this Chapter in their repositories.

History

Authority G.S. 66-58.10
Codifier determined on November 23, 1999, agency findings did not meet criteria for temporary rule
Temporary Adoption Eff. December 3, 1999
Eff. March 26, 2001
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. December 6, 2016.

18 NCAC 10 .0701 Alternate Technologies and Provisional Licensing {#sec-18-ncac-10-.0701 omnilex-key=us-nc-regs-official--title-18--18 NCAC 10 .0701}

Alternate Technologies: Any person may petition the Electronic Commerce Section to initiate rulemaking to recognize a technology not currently recognized under the rules in this Chapter. The petition shall be made pursuant to G.S. 150B-20. G.S. 150B-20 and other statutes may be viewed at the North Carolina General Assembly's Internet site at http://www.ncga.state.nc.us/. In addition to the requirements of G.S. 150B-20, in order to enable the Electronic Commerce Section to best consider the petition, the petitioner shall also provide a detailed explanation of the proposed technology, and a discussion of how the technology complies with the substantive intent of the Electronic Commerce Act.

History

Authority G.S. 66-58.10
Temporary Adoption Eff. February 23, 1999
Codifier determined on November 23, 1999, agency findings did not meet criteria for temporary rule
Recodified from 18 NCAC 10 .0305 Eff. December 3, 1999
Temporary Adoption Eff. December 3, 1999
Eff. March 26, 2001
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. December 6, 2016.

18 NCAC 10 .0801 Civil Sanctions {#sec-18-ncac-10-.0801 omnilex-key=us-nc-regs-official--title-18--18 NCAC 10 .0801}

(a) If, upon investigation, the Electronic Commerce Section finds that a Certification Authority has violated any provision of the Electronic Commerce Act or the rules in this Chapter, or finds that the Certification Authority has had a license revoked or suspended in any other jurisdiction, the Electronic Commerce Section may revoke or suspend any license issued under the Electronic Commerce Act and the rules in this Chapter. The revocation or suspension may be in addition to any civil monetary penalty issued against the Certification Authority. As a condition of license reinstatement following a period of suspension, the Electronic Commerce Section may require that the Certification Authority submit updated or additional documentation or assurances regarding its operations.

(b) If, upon investigation, the Electronic Commerce Section finds that a Certification Authority has violated any provision of the Electronic Commerce Act or the rules in this Chapter, the Electronic Commerce Section may assess a civil monetary penalty of not more than five thousand dollars ($5,000 US) for each violation. The civil monetary penalty may be in addition to any revocation or suspension of the Certification Authority's license. As a condition of continued licensure following assessment of a civil monetary penalty, the Electronic Commerce Section may require that the Certification Authority submit updated or additional documentation or assurances regarding its operations.

(c) Adjustment factors. In determining the length of any suspension or amount of any civil monetary penalty, the Electronic Commerce Section shall consider:

(1) The organizational size of the Certification Authority cited for violating the provisions of the Electronic Commerce Act;

(2) The good faith of the Certification Authority cited, including but not limited to any procedures or processes implemented by the violator to prevent the violation from recurring;

(3) The gravity of the violation;

(4) The prior record of the violator in complying or failing to comply with the Electronic Commerce Act or the rules in this Chapter; and

(5) The risk of harm cause by the violation.

(d) Continuing Violations. After the receipt of notice of a violation, if any Certification Authority willfully continues to violate by action or inaction the Electronic Commerce Act or the rules in this Chapter, each day or transaction the violation continues or is repeated may be considered a separate violation.

(e) Civil Sanction Notification. When the Electronic Commerce Section determines that a civil sanction shall be assessed, the Electronic Commerce Section shall notify the Certification Authority of the following information by electronic mail, if possible, and by any means permitted under Rule 4 of the North Carolina Rules of Civil Procedure:

(1) The nature of the violation;

(2) The proposed civil sanction;

(3) That the proposed civil sanction will become final unless within 60 days after receiving notice of the proposed sanction the Certification Authority either:

(A) takes exception to the proposed sanction by filing a contested case petition with the Office of Administrative Hearings; or

(B) submits a written request for the reduction of the proposed sanction; and

(4) The procedure for taking exception to the violation or seeking the reduction of the proposed sanction.

(f) Civil Sanction Finality. The Certification Authority must file a contested case petition pursuant to G.S. 150B-23 or submit a written request for the reduction of the proposed sanction within 60 days of receipt of the notice of the proposed civil sanction or the proposed sanction shall become the sanction imposed. Notice shall be deemed received at the time of service by any method permitted under Rule 4 of the North Carolina Rules of Civil Procedure.

(g) Request for Reduction of Proposed Civil Sanction. A Certification Authority that admits a cited violation but wishes to seek reduction of the length of a proposed suspension or the amount of a proposed civil monetary penalty may request reduction of the proposed civil sanction.

(1) Any request for reduction of a proposed civil sanction shall be submitted to the Electronic Commerce Section in writing and must include a written statement supporting the reduction request. Requests for reduction of a proposed sanction are solely for the purpose of allowing the Certification Authority to contest the reasonableness of the proposed civil sanction arising under this Rule. The Certification Authority shall not attempt to contest the existence of a violation or raise questions of law in the request for reduction of the proposed sanction.

(2) The Electronic Commerce Section shall determine if the proposed sanction is to be reduced pursuant to a reduction request and shall notify the Certification Authority of its decision in writing.

(3) If the Electronic Commerce Section determines that the reduction request raises issues of fact or questions of law, the Electronic Commerce Section may decline to consider the reduction request, and shall notify the Certification Authority by certified or registered mail that it must file a contested case petition with the Office of Administrative Hearings in order to preserve its claim and legal rights. The Certification Authority must file a contested case petition with the Office of Administrative Hearings within 60 days of receipt of notice or the sanction assessed shall be final.

(4) If the reduction request does not raise issues of fact or questions of law, the Electronic Commerce Section shall determine if the proposed sanction is to be reduced, and shall notify the Certification Authority of its decision in writing by electronic mail, if possible, and by any other means permitted under Rule 4 of the North Carolina Rules of Civil Procedure. In the event the Electronic Commerce Section denies the reduction request, or grants the reduction request in an amount unacceptable to the Certification Authority, the Certification Authority must file a contested case petition with the Office of Administrative Hearings within 60 days of receipt of notice of the Electronic Commerce Section's decision, or the decision shall become the final decision. Notice shall be deemed received at the time of service by any method permitted under Rule 4 of the North Carolina Rules of Civil Procedure.

(h) Payment. Any civil monetary penalty shall be due within 60 days of the date of the initial assessment of the penalty, except that if the Certification Authority files a contested case petition pursuant to G.S. 150B-23 or submits a written request for reduction of the penalty, the penalty shall be due within 60 days of the date of the final decision. The penalty shall be paid with cash or certified funds by personal delivery or certified mail to the Electronic Commerce Section. In the event the Certification Authority fails to pay the penalty assessed within the time periods set forth in this Rule, the Electronic Commerce Section may collect the amount of the penalty from the bond required by the rules in this Chapter.

History

Authority G.S. 66-58.6; 66-58.10
Temporary Adoption Eff. February 23, 1999
Codifier determined on November 23, 1999, agency findings did not meet criteria for temporary rule
Recodified from 18 NCAC 10 .0401 Eff December 3, 1999
Temporary Adoption Eff. December 3, 1999
Eff. March 26, 2001
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. December 6, 2016.

18 NCAC 10 .0802 Criminal Penalties and Injunctive Relief {#sec-18-ncac-10-.0802 omnilex-key=us-nc-regs-official--title-18--18 NCAC 10 .0802}

History

Status: expired
Authority G.S. 66-58.6; 66-58.8; 66-58.10
Temporary Adoption Eff. February 23, 1999
Recodified from Rule .0402
Codifier determined on November 23, 1999 that agency findings did not meet criteria for temporary rule
Temporary Adoption Eff. December 3, 1999
RRC Objection May 18, 2000 due to lack of necessity
RRC returned rule to agency on July 20, 2000
Temporary Adoption Expired on July 20, 2000.

18 NCAC 10 .0901 Reciprocal Agreements and Licensure by Reciprocity {#sec-18-ncac-10-.0901 omnilex-key=us-nc-regs-official--title-18--18 NCAC 10 .0901}

(a) Certification Authorities licensed by other jurisdictions may request North Carolina licensure by the North Carolina Electronic Commerce Section. The applicant must be currently licensed in good standing with another jurisdiction.

(b) To seek reciprocal licensure in North Carolina, Certification Authorities licensed by other jurisdictions shall do the following:

(1) Pay the licensing fee as described in the Rules in this Chapter and comply with 18 NCAC 10 .0301(a), (c), (d), (e), (f), (g) and (h);

(2) Provide the Electronic Commerce Section with evidence of licensure in good standing from the other licensing jurisdiction;

(3) Provide the Electronic Commerce Section with a complete copy of the licensing application that led to the Certification Authority becoming licensed in the other jurisdiction, including any amendments thereto;

(4) Provide full disclosure of any former, current or proposed disciplinary action or criminal proceeding arising from or related to the Certification Authority's license or activities as a Certification Authority;

(5) Provide a complete history of licensure in all other jurisdictions, whether continuous or disrupted, and if disrupted the length of the disruption and basis therefore; and

(6) Provide any additional information necessary to substantiate compliance with the audit requirements identified in 18 NCAC 10 .0303(k), as may be required by the Electronic Commerce Section.

(c) The Electronic Commerce Section may impose civil sanctions against a reciprocal licensee on the same basis that the Electronic Commerce Section can impose civil sanction against a Certification Authority license otherwise issued, or upon finding that the Certification Authority has had a license revoked or suspended in another jurisdiction.

(d) Any Certification Authority that obtains a reciprocal license under the Rules in this Chapter shall inform the Electronic Commerce Section in writing of any civil or criminal proceeding that arises from or relates to the Certification Authority's license or any disciplinary action commenced against the Certification Authority in any other jurisdiction within ten days of notice of the proceeding or action.

History

Authority G.S. 66-58.3; 66-58.6; 66-58.7; 66-58.8; 66-58.10; 66-58.11
Temporary Adoption Eff. February 23, 1999
Codifier determined on November 23, 1999, agency findings did not meet criteria for temporary rule
Recodified from 18 NCAC 10 .0501 Eff. December 3, 1999
Temporary Adoption Eff. December 3, 1999
Eff. March 26, 2001
Amended Eff. April 1, 2001
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. December 6, 2016.

Chapter 11 Solicitation Licensing Program

18 NCAC 11 .0101 Purpose {#sec-18-ncac-11-.0101 omnilex-key=us-nc-regs-official--title-18--18 NCAC 11 .0101}

History

Status: repealed
Authority G.S. 108.75.1 et. seq.; 108-75.5(c); 143B-153
Eff. January 28, 1977
Readopted Eff. February 1, 1978
Repealed Eff. January 1, 1982.

18 NCAC 11 .0102 Definitions {#sec-18-ncac-11-.0102 omnilex-key=us-nc-regs-official--title-18--18 NCAC 11 .0102}

History

Status: repealed
Authority G.S. 108.75.1 et. seq.; 108-75.5(c); 143B-153
Eff. January 28, 1977
Readopted Eff. February 1, 1978
Repealed Eff. January 1, 1982.

18 NCAC 11 .0103 Purpose {#sec-18-ncac-11-.0103 omnilex-key=us-nc-regs-official--title-18--18 NCAC 11 .0103}

History

Status: repealed
Authority G.S. 131C-12; 143B-153
Eff. January 1, 1982
Repealed Eff. November 1, 1989.

18 NCAC 11 .0104 Definitions {#sec-18-ncac-11-.0104 omnilex-key=us-nc-regs-official--title-18--18 NCAC 11 .0104}

(a) Terms defined in G.S. 131F-2 shall have the same meaning for the purpose of this Section as they do in the statute.

(b) "The Act" means an Act to rewrite the Charitable Solicitation Act, G.S. 131F-1 et. seq.

(c) "Advertising material" means printed requests for contributions but does not include tapes, records, films, slides, trailers, or other similar nonprinted items.

(d) "Audit or finance committee" means a group of three or more persons who serve on the organization's governing board and of which the majority are neither officers nor employees of the organization. A chief function of this committee shall be the review of the organization's financial statement.

(e) "Compensation" means salaries, wages, fees, commissions, benefits, or any other remuneration or valuable consideration.

(f) "Emergency medical service" means an organization which provides services pursuant to Article 56 of Chapter 143 of the North Carolina General Statutes.

(g) "Family" means parent, grandparent, child, brother, sister, grandchild, spouse, son-in-law, daughter-in-law, mother-in-law, father-in-law, brother-in-law, sister-in-law, aunt, uncle or cousin.

(h) "Fiscal year" means the twelve months period which a charitable organization or sponsor uses as its accounting year.

(i) "Foundation" means an incorporated body which holds status with the IRS as a foundation and is authorized to receive financial support from, and render financial support to, other persons for charitable purposes.

(j) "Initial application" means the first application filed by a person required to be licensed on or after January 1, 1995.

(k) "Instructional unit" means a department or school or an educational institution.

(l) "IRS" means the U. S. Internal Revenue Service.

(m) "Purpose of the organization" means the program services an organization performs.

(n) "Rescue squad" means meeting the eligibility requirements of N.C. Association of Rescue and Emergency Medical Services, Inc. and as defined in G.S. 58-87-5.

(o) "Salaried employee" means a person who has an employer-employee relationship which can be demonstrated by, but not limited to, the following:

(1) The withholding from the employee's salary for income taxes;

(2) The withholding from the employee's salary for F.I.C.A. taxes; and

(3) The granting of employees benefits such as insurance and leave time.

(p) "Solicitor consultant" means a solicitor as defined in G.S. 131F-2(19) except that neither the solicitor consultant nor his employees ever receives, handles, or controls funds raised for a charitable organization or sponsor.

(q) "Volunteer fire department" means certified by the North Carolina Department of Insurance as required by G.S. 58-87-1.

History

Authority G.S. 131F-33
Eff. January 1, 1982
Temporary Amendment Eff. January 1, 1995 for a period of 180 days or until the permanent rule becomes effective, whichever is sooner
Amended Eff. June 1, 1995; September 1, 1982
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. September 23, 2017.

18 NCAC 11 .0105 Contested Case Hearing Procedures {#sec-18-ncac-11-.0105 omnilex-key=us-nc-regs-official--title-18--18 NCAC 11 .0105}

History

Status: repealed
Filed as a Temporary Repeal Eff. January 1, 1995 for a period of 180 days or until the permanent rule becomes effective, whichever is sooner
Authority G.S. 131C-12; 150B-14(c)
Eff. January 1, 1982.
Amended Eff. November 1, 1989
Repealed Eff. June 1, 1995.

18 NCAC 11 .0201 Application {#sec-18-ncac-11-.0201 omnilex-key=us-nc-regs-official--title-18--18 NCAC 11 .0201}

History

Status: repealed
Authority G.S. 108-75.2; 108.75.5(c); 108-75.6(f); 108-75.22(a); 108-75.7(a)(3)
Eff. January 28, 1977
Readopted Eff. February 1, 1978
Repealed Eff. January 1, 1982.

18 NCAC 11 .0202 Charitable Organizations {#sec-18-ncac-11-.0202 omnilex-key=us-nc-regs-official--title-18--18 NCAC 11 .0202}

History

Status: repealed
Authority G.S. 108-75.2; 108.75.5(c); 108-75.6(f); 108-75.22(a); 108-75.7(a)(3)
Eff. January 28, 1977
Readopted Eff. February 1, 1978
Repealed Eff. January 1, 1982.

18 NCAC 11 .0203 Federated Fund-Raising Organizations {#sec-18-ncac-11-.0203 omnilex-key=us-nc-regs-official--title-18--18 NCAC 11 .0203}

History

Status: repealed
Authority G.S. 108-75.2; 108.75.5(c); 108-75.6(f); 108-75.22(a); 108-75.7(a)(3)
Eff. January 28, 1977
Readopted Eff. February 1, 1978
Repealed Eff. January 1, 1982.

18 NCAC 11 .0204 Exempted Persons {#sec-18-ncac-11-.0204 omnilex-key=us-nc-regs-official--title-18--18 NCAC 11 .0204}

History

Status: repealed
Authority G.S. 131C-12
Eff. January 1, 1982
Amended Eff. July 1, 1982
Repealed Eff. November 1, 1989.

18 NCAC 11 .0205 Foundations and Instructional Units {#sec-18-ncac-11-.0205 omnilex-key=us-nc-regs-official--title-18--18 NCAC 11 .0205}

A foundation or instructional unit shall be considered to have an established identity with an educational institution if the relationship between the trustees of the educational institution and the foundation or instructional unit meets one of the following criteria:

(1) The trustees have granted written authorization for the solicitation by the foundation or instructional unit;

(2) The trustees have final authority over the financial affairs of the foundation or instructional unit;

(3) The trustees have final authority over the disbursement of the contributions solicited by the foundation or instructional unit;

(4) The trustees have authorized the incorporation of receipts and disbursements of the contributions as a part of the educational institution's financial statement; or

(5) The trustees grant academic credit for instructional programs of the instructional unit.

History

Authority G.S. 131F-33
Eff. January 1, 1982
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. September 23, 2017.

18 NCAC 11 .0301 Exempt Organizations Employing to Solicit Publicly {#sec-18-ncac-11-.0301 omnilex-key=us-nc-regs-official--title-18--18 NCAC 11 .0301}

History

Status: repealed
Authority G.S. 108-75.3(16); 108-75.5(c); 108-75.7(a)(1)
Eff. January 28, 1977
Readopted Eff. February 1, 1978
Repealed Eff. January 1, 1982.

18 NCAC 11 .0302 Religious Organizations {#sec-18-ncac-11-.0302 omnilex-key=us-nc-regs-official--title-18--18 NCAC 11 .0302}

History

Status: repealed
Authority G.S. 108-75.3(16); 108-75.5(c); 108-75.7(a)(1)
Eff. January 28, 1977
Readopted Eff. February 1, 1978
Repealed Eff. January 1, 1982.

18 NCAC 11 .0303 Direct Mail Firms {#sec-18-ncac-11-.0303 omnilex-key=us-nc-regs-official--title-18--18 NCAC 11 .0303}

History

Status: repealed
Authority G.S. 108-75.3(16); 108-75.5(c); 108-75.7(a)(1)
Eff. January 28, 1977
Readopted Eff. February 1, 1978
Repealed Eff. January 1, 1982.

18 NCAC 11 .0304 Professional Solicitors {#sec-18-ncac-11-.0304 omnilex-key=us-nc-regs-official--title-18--18 NCAC 11 .0304}

History

Status: repealed
Authority G.S. 108-75.3(16); 108-75.5(c); 108-75.7(a)(1)
Eff. January 28, 1977
Readopted Eff. February 1, 1978
Repealed Eff. January 1, 1982.

18 NCAC 11 .0305 Persons Subject to Licensure {#sec-18-ncac-11-.0305 omnilex-key=us-nc-regs-official--title-18--18 NCAC 11 .0305}

(a) Any person subject to licensure under G.S. 131F-5, 131F-15, or 131F-16 shall file an application with the Department on forms provided by the Department prior to soliciting.

(b) If the Department identifies a person who has failed to comply with Paragraph (a) of this Rule, the Department shall send, by certified mail, to such person all forms relevant to licensure and a notice which advises the person of the unlawful solicitation.

(c) Upon receipt of an application to solicit charitable funds in North Carolina, the Department shall examine all submitted information. The Department shall retain the right to investigate any application to assure that true and full disclosure has been made.

(d) Any license issued to a charitable organization or a sponsor shall indicate the type of organization as defined by the IRS through its various exempt determination codes as follows:

(1) 501(c)(1) - Congressional organization or federal credit union

(2) 501(c)(3) - Charitable organization

(3) 501(c)(4) - Civic organization

(4) 501(c)(5) - Labor organization, union

(5) 501(c)(6) - Business league

(6) 501(c)(7) - Social club

(7) 501(c)(8) - Fraternal beneficiary

(8) 501(c)(10) - Domestic fraternal organization

(9) 501(c)(19) - Armed forces organization; or, any other designation by the IRS.

(e) A charitable organization or sponsor which elects not to file for IRS Tax Exempt Determination may be licensed as a "Non Tax Exempt Entity" provided it meets all other requirements for licensure. In addition, the charitable organization or sponsor shall provide disclosure in its solicitations that the charitable organization or sponsor is a non tax exempt entity and that donations are not tax deductible.

(f) At least 65 days prior to the expiration of a license, the Department shall send each licensee a renewal application form.

(g) Any charitable organization or sponsor which fails to file the renewal information by the due date shall be assessed a late filing fee of twenty five dollars ($25.00) for each month or part of a month after the due date on which the renewal information was due to be filed or after the period of extension granted for the filing.

History

Authority G.S. 131F-5; 131F-6; 131F-8; 131F-15; 131F-16; 131F-33
Eff. January 1, 1982
Amended Eff. November 1, 1989
Temporary Amendment Eff. January 1, 1995 for a period of 180 days or until the permanent rule becomes effective whichever is sooner
Amended Eff. June 1, 1995
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. September 23, 2017.

18 NCAC 11 .0306 Incomplete Application {#sec-18-ncac-11-.0306 omnilex-key=us-nc-regs-official--title-18--18 NCAC 11 .0306}

An applicant who fails to respond to any question, to provide any required information, or to submit the proper fee shall not be licensed.

History

Authority G.S. 131F-5; 131F-15; 131F-16; 131F-33
Eff. January 1, 1982
Temporary Amendment Eff. January 1, 1995 for a period of 180 days or until the permanent rule becomes effective, whichever is sooner
Amended Eff. June 1, 1995
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. September 23, 2017.

18 NCAC 11 .0307 Charitable Organizations {#sec-18-ncac-11-.0307 omnilex-key=us-nc-regs-official--title-18--18 NCAC 11 .0307}

History

Status: repealed
Filed as a Temporary Repeal Eff. January 1, 1995 for a period of 180 days or until the permanent rule becomes effective, whichever is sooner
Authority G.S. 131C-12
Eff. January 1, 1982
Amended Eff. July 1, 1982
Repealed Eff. June 1, 1995.

18 NCAC 11 .0308 Federated Fund-Raising Organizations {#sec-18-ncac-11-.0308 omnilex-key=us-nc-regs-official--title-18--18 NCAC 11 .0308}

(a) A Federated Fund-Raising Organization (FFRO), unless exempt under G.S. 131F-3, shall file an application which identifies member agencies of the FFRO. The identification of the member agencies shall include the licensure status of the member agencies.

(b) If a member agency is exempt from licensure under G.S. 131F-3, the FFRO shall state the name of the exempt member agency, the amount allocated by the FFRO to the member agency during the previous fiscal year, and the reasons why the member agency is exempt, based on information submitted by the member agency to the FFRO. This information shall be furnished as a part of the FFRO's application for a license to solicit.

(c) If a member agency is subject to licensure under the provisions of G.S. 131F the FFRO shall include the name and address of the member agency, the name of the executive in charge, the phone number, and the amount allocated by the FFRO to the member agency during the previous fiscal year. This information shall be furnished as a part of the FFRO's application for a license to solicit.

History

Authority G.S. 131F-33
Eff. January 1, 1982
Amended Eff. November 1, 1989; July 1, 1982
Temporary Amendment Eff. January 1, 1995 for a period of 180 days or until the permanent rule becomes effective, whichever is sooner
Amended Eff. June 1, 1995
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. September 23, 2017.

18 NCAC 11 .0309 Advertising Material {#sec-18-ncac-11-.0309 omnilex-key=us-nc-regs-official--title-18--18 NCAC 11 .0309}

History

Status: repealed
Filed as a Temporary Repeal Eff. January 1, 1995 for a period of 180 days or until the permanent rule becomes effective, whichever is sooner
Authority G.S. 131C-7; 131C-12
Eff. January 1, 1982
Repealed Eff. June 1, 1995.

18 NCAC 11 .0310 Similar Names {#sec-18-ncac-11-.0310 omnilex-key=us-nc-regs-official--title-18--18 NCAC 11 .0310}

History

Status: repealed
Filed as a Temporary Repeal Eff. January 1, 1995 for a period of 180 days or until the permanent rule becomes effective, whichever is sooner
Authority G.S. 131C-7; 131C-12
Eff. January 1, 1982
Repealed Eff. June 1, 1995.

18 NCAC 11 .0401 Community Foundation or Community Trust {#sec-18-ncac-11-.0401 omnilex-key=us-nc-regs-official--title-18--18 NCAC 11 .0401}

History

Status: repealed
Authority G.S. 108-75.7(a)(2); 108-75.25
Eff. January 28, 1977
Readopted Eff. February 1, 1978
Repealed Eff. January 1, 1982.

18 NCAC 11 .0402 Educational Affiliates {#sec-18-ncac-11-.0402 omnilex-key=us-nc-regs-official--title-18--18 NCAC 11 .0402}

History

Status: repealed
Authority G.S. 108-75.7(a)(2); 108-75.25
Eff. January 28, 1977
Readopted Eff. February 1, 1978
Repealed Eff. January 1, 1982.

18 NCAC 11 .0403 Schedule of Fees {#sec-18-ncac-11-.0403 omnilex-key=us-nc-regs-official--title-18--18 NCAC 11 .0403}

History

Status: repealed
Filed as a Temporary Repeal Eff. January 1, 1995 for a period of 180 days or until the permanent rule becomes effective, whichever is sooner
Authority G.S. 131C-9; 131C-12
Eff. January 1, 1982
Repealed Eff. June 1, 1995.

18 NCAC 11 .0404 Fee for Some Applicants {#sec-18-ncac-11-.0404 omnilex-key=us-nc-regs-official--title-18--18 NCAC 11 .0404}

History

Status: repealed
Filed as a Temporary Repeal Eff. January 1, 1995 for a period of 180 days or until the permanent rule becomes effective, whichever is sooner
Authority G.S. 131C-9; 131C-12
Eff. January 1, 1982
Repealed Eff. June 1, 1995.

18 NCAC 11 .0405 Uncollectible Fees {#sec-18-ncac-11-.0405 omnilex-key=us-nc-regs-official--title-18--18 NCAC 11 .0405}

If any applicant remits a fee in the form of a check or other instrument which is uncollectible from the paying institution, the Department shall notify the applicant of the nonpayment. If full payment of the fee is not received within 15 days of the notice, the Department shall proceed with denial of the application or revocation of the license.

History

Authority G.S. 131F-5; 131F-15; 131F-16; 131F-33
Eff. January 1, 1982
Temporary Amendment Eff. January 1, 1995 for a period of 180 days or until the permanent rule becomes effective, whichever is sooner
Amended Eff. June 1, 1995
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. September 23, 2017.

18 NCAC 11 .0501 Non-Transferability of Licenses {#sec-18-ncac-11-.0501 omnilex-key=us-nc-regs-official--title-18--18 NCAC 11 .0501}

History

Status: repealed
Authority G.S. 108-75.4(a); 108-75.5(c)
Eff. January 28, 1977
Readopted Eff. February 1, 1978
Repealed Eff. January 1, 1982.

18 NCAC 11 .0502 Charitable Organizations {#sec-18-ncac-11-.0502 omnilex-key=us-nc-regs-official--title-18--18 NCAC 11 .0502}

History

Status: repealed
Authority G.S. 108-75.4(a); 108-75.5(c)
Eff. January 28, 1977
Readopted Eff. February 1, 1978
Repealed Eff. January 1, 1982.

18 NCAC 11 .0503 Financial Information of Charitable Organizations {#sec-18-ncac-11-.0503 omnilex-key=us-nc-regs-official--title-18--18 NCAC 11 .0503}

(a) A charitable organization or sponsor shall maintain financial records.

(b) Any person subject to licensure under G.S. 131F-5, 131F-15 and 131F-16 shall maintain accurate financial records. The financial records shall include total support and revenue on a gross basis and an itemization of all actual fund-raising expenses. Financial records shall be retained for a period of at least three years after the license period to which they relate.

(c) A charitable organization or a sponsor who plans no solicitation of contributions in the State upon the expiration of its license shall file, with the Department, a financial report within 90 days of the expiration date of the license.

(d) The charitable organization or sponsor's assets shall not be commingled with those of any other person.

History

Authority G.S. 131F-18; 131F-32; 131F-33
Eff. January 1, 1982
Temporary Amendment Eff. January 1, 1995 for a period of 180 days or until the permanent rule becomes effective, whichever is sooner
Amended Eff. June 1, 1995
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. September 23, 2017.

18 NCAC 11 .0504 Accounting by Solicitors {#sec-18-ncac-11-.0504 omnilex-key=us-nc-regs-official--title-18--18 NCAC 11 .0504}

Within 90 days from the conclusion of a solicitation for which a solicitor has been retained, the solicitor shall provide to the Department an accounting of all monies received, pledged, and disbursed. The accounting shall be on a form prescribed by the Department. Solicitor's expense information is required and may be accompanied by a statement from a certified public accountant verifying its accuracy. The accounting shall be labeled as "verified" or "unverified" and shall be available for inspection in the Charitable Solicitation Licensing Office.

History

Authority G.S. 131F-16; 131F-33
Eff. January 1, 1982
Temporary Amendment Eff. January 1, 1995 for a period of 180 days or until the permanent rule becomes effective, whichever is sooner
Amended Eff. June 1, 1995
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. September 23, 2017.

18 NCAC 11 .0505 Charitable Sales Promotion - Coventure {#sec-18-ncac-11-.0505 omnilex-key=us-nc-regs-official--title-18--18 NCAC 11 .0505}

(a) Prior to a charitable sales promotion or coventure by a charitable organization or sponsor, the charitable organization or sponsor shall obtain the following:

(1) A license as required under G.S. 131F-5, unless exempt from licensure under G.S. 131F-3; and

(2) An agreement with the sales promotions or coventurer which shall include the projected amounts of gross sales, the projected sales for each vending unit, the charitable organization or sponsor's share per unit, and the charitable organization or sponsor's projected total dollar share.

(b) Upon the conclusion of the charitable sales promotion or coventure, the charitable organization or sponsor shall provide to the Department an accounting of the items set forth in Subparagraph (a)(2) of this Rule. In lieu of a separate accounting to the Department, the charitable organization or sponsor may incorporate the accounting into the financial report filed pursuant to Rule .0503 (b) of this Section.

History

Authority G.S. 131F-18; 131F-33
Eff. January 1, 1982
Amended Eff. July 1, 1982
Temporary Amendment Eff. January 1, 1995 for a period of 180 days or until the permanent rule becomes effective, whichever is sooner
Amended Eff. June 1, 1995
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. September 23, 2017.

18 NCAC 11 .0506 Simplified Reporting for Certain Organizations {#sec-18-ncac-11-.0506 omnilex-key=us-nc-regs-official--title-18--18 NCAC 11 .0506}

(a) A charitable organization or sponsor which has total support and revenue for the preceding fiscal year of less than one hundred thousand dollars ($100,000) may elect to file its financial statement as required by G.S. 131F-6(8) or 131F-6(9). A financial statement filed pursuant to G.S. 131F-6(8) shall be signed by three members of the audit or finance committee.

(b) A charitable organization or sponsor which has total support and revenue for the preceding fiscal year of one hundred thousand dollars ($100,000) but less than two hundred fifty thousand dollars ($250,000) shall provide a copy of a compilation performed and signed by an independent public accountant and a copy of the IRS Form 990.

(c) A charitable organization or sponsor which has total support and revenue for the preceding fiscal year of two hundred fifty thousand dollars ($250,000) or more shall provide an audit by a certified public accountant and a copy of IRS Form 990.

History

Authority G.S. 131F-6; 131F-33
Eff. January 1, 1982
Temporary Amendment Eff. January 1, 1995 for a period of 180 days or until the permanent rule becomes effective, whichever is sooner
Amended Eff. June 1, 1995
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. September 23, 2017.

18 NCAC 11 .0507 Management of the Charitable Organization {#sec-18-ncac-11-.0507 omnilex-key=us-nc-regs-official--title-18--18 NCAC 11 .0507}

History

Status: repealed
Filed as a Temporary Repeal Eff. January 1, 1995 for a period of 180 days or until the permanent rule becomes effective, whichever is sooner
Authority G.S. 131C-12
Eff. January 1, 1982
Amended Eff. July 1, 1982
Repealed Eff. June 1, 1995.

18 NCAC 11 .0601 Fund-Raising Expenses: Unordered Merchandise {#sec-18-ncac-11-.0601 omnilex-key=us-nc-regs-official--title-18--18 NCAC 11 .0601}

History

Authority G.S. 108-75.2; 108-75.3; 108-75.5(c); 108-75.6(a)(6); 108-75.12
Eff. January 28, 1977
Readopted Eff. February 1, 1978.

18 NCAC 11 .0602 Financial Information of Charitable Organizations {#sec-18-ncac-11-.0602 omnilex-key=us-nc-regs-official--title-18--18 NCAC 11 .0602}

History

Authority G.S. 108-75.2; 108-75.3; 108-75.5(c); 108-75.6(a)(6); 108-75.12
Eff. January 28, 1977
Readopted Eff. February 1, 1978.

18 NCAC 11 .0603 Federated Fund-Raising Organization {#sec-18-ncac-11-.0603 omnilex-key=us-nc-regs-official--title-18--18 NCAC 11 .0603}

History

Authority G.S. 108-75.2; 108-75.3; 108-75.5(c); 108-75.6(a)(6); 108-75.12
Eff. January 28, 1977
Readopted Eff. February 1, 1978.

18 NCAC 11 .0604 Professional Solicitors {#sec-18-ncac-11-.0604 omnilex-key=us-nc-regs-official--title-18--18 NCAC 11 .0604}

History

Authority G.S. 108-75.2; 108-75.3; 108-75.5(c); 108-75.6(a)(6); 108-75.12
Eff. January 28, 1977
Readopted Eff. February 1, 1978.

18 NCAC 11 .0605 Requirements to Be Licensed as a Charitable Organization {#sec-18-ncac-11-.0605 omnilex-key=us-nc-regs-official--title-18--18 NCAC 11 .0605}

History

Status: repealed
Filed as a Temporary Repeal Eff. January 1, 1995 for a period of 180 days or until the permanent rule becomes effective, whichever is sooner
Authority G.S. 131C-12
Eff. January 1, 1982
Repealed Eff. June 1, 1995.

18 NCAC 11 .0606 Requirements Licensed Professional Fund-Raising Counsel {#sec-18-ncac-11-.0606 omnilex-key=us-nc-regs-official--title-18--18 NCAC 11 .0606}

History

Status: repealed
Filed as a Temporary Repeal Eff. January 1, 1995 for a period of 180 days or until the permanent rule becomes effective, whichever is sooner
Authority G.S. 131C-12
Eff. January 1, 1982
Repealed Eff. June 1, 1995.

18 NCAC 11 .0607 License Year {#sec-18-ncac-11-.0607 omnilex-key=us-nc-regs-official--title-18--18 NCAC 11 .0607}

(a) A license year for a charitable organization or sponsor shall begin on the 15th day of the fifth month after the end of the fiscal year. The Department shall grant a different license year upon receipt of written notification of fiscal year change.

(b) A license shall be issued to any charitable organization or sponsor for less than a year when the charitable organization or sponsor files an application for licensure after the 15th of the fifth month of the end of the charitable organization or sponsor's fiscal year.

History

Authority G.S. 131F-5; 131F-33
Eff. January 1, 1982
Temporary Amendment Eff. January 1, 1995 for a period of 180 days or until the permanent rule becomes effective, whichever is sooner
Amended Eff. June 1, 1995
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. September 23, 2017.

18 NCAC 11 .0608 Nontransferability of License {#sec-18-ncac-11-.0608 omnilex-key=us-nc-regs-official--title-18--18 NCAC 11 .0608}

(a) The license issued to any person subject to G.S. 131F shall not be transferable.

(b) Upon receipt of documentation of a name change of a licensed person, the Department shall issue, without cost to the licensee, a new license.

(c) Upon request, any charitable organization or sponsor licensed under the provisions of G.S. 131F shall be provided an additional copy of its license free of charge.

History

Authority G.S. 131F-33
Eff. January 1, 1982
Temporary Amendment Eff. January 1, 1995 for a period of 180 days or until the permanent rule becomes effective, whichever is sooner
Amended Eff. June 1, 1995
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. September 23, 2017.

18 NCAC 11 .0609 Additional Copies of Licenses {#sec-18-ncac-11-.0609 omnilex-key=us-nc-regs-official--title-18--18 NCAC 11 .0609}

History

Status: repealed
Filed as a Temporary Repeal Eff. January 1, 1995 for a period of 180 days or until the permanent rule becomes effective, whichever is sooner
Authority G.S. 131C-11; 131C-12
Eff. January 1, 1982
Repealed Eff. June 1, 1995.

18 NCAC 11 .0610 License Denial or Revocation {#sec-18-ncac-11-.0610 omnilex-key=us-nc-regs-official--title-18--18 NCAC 11 .0610}

History

Status: repealed
Filed as a Temporary Repeal Eff. January 1, 1995 for a period of 180 days or until the permanent rule becomes effective, whichever is sooner
Authority G.S. 131C-11; 131C-12
Eff. January 1, 1982
Repealed Eff. June 1, 1995.

18 NCAC 11 .0701 All Licensees {#sec-18-ncac-11-.0701 omnilex-key=us-nc-regs-official--title-18--18 NCAC 11 .0701}

History

Status: repealed
Authority G.S. 108-75.2; 108-75.3; 108-75.5(c); 108-75.11; 108-75.20
Eff. January 28, 1977
Readopted Eff. February 1, 1978
Repealed Eff. January 1, 1982.

18 NCAC 11 .0702 Charitable Organizations {#sec-18-ncac-11-.0702 omnilex-key=us-nc-regs-official--title-18--18 NCAC 11 .0702}

History

Status: repealed
Authority G.S. 108-75.2; 108-75.3; 108-75.5(c); 108-75.11; 108-75.20
Eff. January 28, 1977
Readopted Eff. February 1, 1978
Repealed Eff. January 1, 1982.

18 NCAC 11 .0703 Professional Fund-Raising Counsel: Professional Solicitors {#sec-18-ncac-11-.0703 omnilex-key=us-nc-regs-official--title-18--18 NCAC 11 .0703}

History

Status: repealed
Authority G.S. 108-75.2; 108-75.3; 108-75.5(c); 108-75.11; 108-75.20
Eff. January 28, 1977
Readopted Eff. February 1, 1978
Repealed Eff. January 1, 1982.

18 NCAC 11 .0704 Professional Solicitor {#sec-18-ncac-11-.0704 omnilex-key=us-nc-regs-official--title-18--18 NCAC 11 .0704}

History

Status: repealed
Authority G.S. 108-75.2; 108-75.3; 108-75.5(c); 108-75.11; 108-75.20
Eff. January 28, 1977
Readopted Eff. February 1, 1978
Repealed Eff. January 1, 1982.

18 NCAC 11 .0705 Solicitation Violations and Requirements {#sec-18-ncac-11-.0705 omnilex-key=us-nc-regs-official--title-18--18 NCAC 11 .0705}

(a) Any person, subject to licensure under G.S. 131F et. seq., who promises to produce an event and fails to do so or has not produced the event within 60 days following the scheduled event shall offer of a full refund to the purchaser.

(b) Any person, subject to licensure under G.S. 131F et. seq. who offers a publication or item for sale who has not produced the publication or item for sale within 60 days of the promised delivery date shall offer of a full refund to the purchaser.

(c) Any person subject to licensure under G.S. 131F et. seq. shall avoid all acts in solicitations that would cause any person to suffer actual damages.

(d) A charitable organization or sponsor shall issue to each unpaid volunteer solicitor or salaried employee a printed authorization or other identification and shall instruct that it be shown in all solicitations by such solicitor or employee.

(e) When a solicitor or solicitor counsel sells tickets to an event where the seats are specifically identified, the solicitor or solicitor counsel shall not sell duplicate tickets for the same seat.

(f) When a solicitor or solicitor counsel sells tickets for an event where the seats are not specifically identified, the solicitor counsel shall not sell tickets in excess of 10% of the seating capacity for the event.

(g) When a solicitor or solicitor counsel has sold tickets an event and the purchaser cannot be seated at a scheduled performance of the event, the solicitor or solicitor counsel shall offer to the purchaser the option of either guaranteed seating at another performance of a full refund.

History

Authority G.S. 131F-18; 131F-33
Eff. January 1, 1982
Amended Eff. November 1, 1989
Temporary Amendment Eff. January 1, 1995 for a period of 180 days or until the permanent rule becomes effective, whichever is sooner
Amended Eff. June 1, 1995
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. September 23, 2017.

18 NCAC 11 .0706 General Requirements: Publish Disclosure Notice {#sec-18-ncac-11-.0706 omnilex-key=us-nc-regs-official--title-18--18 NCAC 11 .0706}

History

Status: repealed
Authority G.S. 131C-12; 131C-16
Eff. January 1, 1982
Amended Eff. July 1, 1982
Repealed Eff. September 1, 1982.

18 NCAC 11 .0707 Special Requirements for Charitable Organizations {#sec-18-ncac-11-.0707 omnilex-key=us-nc-regs-official--title-18--18 NCAC 11 .0707}

History

Status: repealed
Authority G.S. 131C-12; 131C-16
Eff. January 1, 1982
Amended Eff. July 1, 1982
Repealed Eff. September 1, 1982.

18 NCAC 11 .0708 Special Requirements for Professional Solicitors {#sec-18-ncac-11-.0708 omnilex-key=us-nc-regs-official--title-18--18 NCAC 11 .0708}

History

Status: repealed
Authority G.S. 131C-12; 131C-16
Eff. January 1, 1982
Amended Eff. July 1, 1982
Repealed Eff. September 1, 1982.

18 NCAC 11 .0709 Furnishing Documentation {#sec-18-ncac-11-.0709 omnilex-key=us-nc-regs-official--title-18--18 NCAC 11 .0709}

History

Status: repealed
Authority G.S. 131C-12; 131C-16
Eff. January 1, 1982
Amended Eff. July 1, 1982
Repealed Eff. September 1, 1982.

18 NCAC 11 .0801 Charitable Organizations {#sec-18-ncac-11-.0801 omnilex-key=us-nc-regs-official--title-18--18 NCAC 11 .0801}

History

Status: repealed
Authority G.S. 108-75.4; 108-75.6(a),(b); 108-75.23
Eff. January 28, 1977
Readopted Eff. February 1, 1978
Repealed Eff. January 1, 1982.

18 NCAC 11 .0802 Federated Fund-Raising Organizations {#sec-18-ncac-11-.0802 omnilex-key=us-nc-regs-official--title-18--18 NCAC 11 .0802}

History

Status: repealed
Authority G.S. 108-75.4; 108-75.6(a),(b); 108-75.23
Eff. January 28, 1977
Readopted Eff. February 1, 1978
Repealed Eff. January 1, 1982.

18 NCAC 11 .0901 All Applicants {#sec-18-ncac-11-.0901 omnilex-key=us-nc-regs-official--title-18--18 NCAC 11 .0901}

History

Status: repealed
Authority G.S. 108-75.3(14); 108-75.6(a),(c),(h),(1)-(4); 108-75.8; 108-75.18(1)-(3); 108-75.22(a)
Eff. January 28, 1977
Readopted Eff. February 1, 1978
Repealed Eff. January 1, 1982.

18 NCAC 11 .0902 Charitable Organization Not a Legal Entity {#sec-18-ncac-11-.0902 omnilex-key=us-nc-regs-official--title-18--18 NCAC 11 .0902}

History

Status: repealed
Authority G.S. 108-75.3(14); 108-75.6(a),(c),(h),(1)-(4); 108-75.8; 108-75.18(1)-(3); 108-75.22(a)
Eff. January 28, 1977
Readopted Eff. February 1, 1978
Repealed Eff. January 1, 1982.

18 NCAC 11 .0903 Charitable and Federated Organizations as a Legal Entity {#sec-18-ncac-11-.0903 omnilex-key=us-nc-regs-official--title-18--18 NCAC 11 .0903}

History

Status: repealed
Authority G.S. 108-75.3(14); 108-75.6(a),(c),(h),(1)-(4); 108-75.8; 108-75.18(1)-(3); 108-75.22(a)
Eff. January 28, 1977
Readopted Eff. February 1, 1978
Repealed Eff. January 1, 1982.

18 NCAC 11 .0904 Professional Fund-Raising Counsel: Professional Solicitor {#sec-18-ncac-11-.0904 omnilex-key=us-nc-regs-official--title-18--18 NCAC 11 .0904}

History

Status: repealed
Authority G.S. 108-75.3(14); 108-75.6(a),(c),(h),(1)-(4); 108-75.8; 108-75.18(1)-(3); 108-75.22(a)
Eff. January 28, 1977
Readopted Eff. February 1, 1978
Repealed Eff. January 1, 1982.

Chapter 12 Lobbying

18 NCAC 12 .0101 Scope {#sec-18-ncac-12-.0101 omnilex-key=us-nc-regs-official--title-18--18 NCAC 12 .0101}

(a) The rules in this Chapter execute the authority granted to the Secretary of State pursuant to Chapter 120C of the North Carolina General Statutes ("the Secretary's authority").

(b) The rules in this Chapter apply only to documents filed with the Department of the Secretary of State ("the Department").

(c) The rules in this Chapter do not apply to document(s) and information forwarded to or shared with the Department by the Ethics Commission or its staff pursuant to G.S. 120C-102(d).

History

Authority G.S. 120C-101(a); 120C-101(b); 120C-200; 120C-201; 120C-206; 120C-207; 120C-215; 120C-220; 120C-400; 120C-401; 120C-401(h); 120C-402; 120C-403; 120C-404; 120C-405;120C-600; 120C-603; 120C-800
Temporary Adoption Eff. January 1, 2007
Eff. December 1, 2007
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. September 23, 2017.

18 NCAC 12 .0102 Calculation of Time Periods {#sec-18-ncac-12-.0102 omnilex-key=us-nc-regs-official--title-18--18 NCAC 12 .0102}

Time periods shall be calculated pursuant to the requirements of G.S. 1A-1, Rule 6 for documents ("document(s)" or "filing(s)") filed with the Department.

History

Authority G.S. 1A-1, Rule 6; 120C-101(a); 120C-101(b); 120C-200; 120C-206; 120C-207; 120C- 215; 120C-220; 120C-401; 120C-402; 120C-403; 120C-404; 120C-600; 120C-603; 120C-800
Temporary Adoption Eff. January 1, 2007
Eff. December 1, 2007
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. September 23, 2017.

18 NCAC 12 .0103 Calculation of Quarterly Reporting Period {#sec-18-ncac-12-.0103 omnilex-key=us-nc-regs-official--title-18--18 NCAC 12 .0103}

When calculating a deadline for a document submitted to the Department on a quarterly basis or for a quarterly reporting period:

(1) The reporting period for the first quarter ends on March 31;

(2) The reporting period for the second quarter ends on June 30;

(3) The reporting period for the third quarter ends on September 30; and

(4) The reporting period for the fourth quarter ends on December 31.

History

Authority G.S. 1A-1, Rule 6; 120C-101(a); 120C-101(b); 120C-200; 120C-206; 120C-207; 120C- 215; 120C-220; 120C-401; 120C-402; 120C-403; 120C-404; 120C-600; 120C-800
Temporary Adoption Eff. January 1, 2007
Eff. December 1, 2007
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. September 23, 2017.

18 NCAC 12 .0104 Calculation of Monthly Reporting Period {#sec-18-ncac-12-.0104 omnilex-key=us-nc-regs-official--title-18--18 NCAC 12 .0104}

When calculating a deadline for a document filed with the Department on a monthly basis for a monthly reporting period, the reporting period ends on the last calendar day of the month.

History

Authority G.S. 1A-1, Rule 6; 120C-101(a); 120C-101(b); 120C-401(h); 120C-402; 120C-403; 120C-600
Temporary Adoption Eff. January 1, 2007
Eff. December 1, 2007
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. September 23, 2017.

18 NCAC 12 .0105 Waiver {#sec-18-ncac-12-.0105 omnilex-key=us-nc-regs-official--title-18--18 NCAC 12 .0105}

Upon consideration of a written request, the Secretary or the Secretary's designee may waive any rule in this Chapter. The factors which the Secretary shall use in determining whether to grant a waiver are set out in Rule .0106 of this Chapter.

History

Authority G.S. 120C-101(a); 120C-101(b); 120C-200; 120C-206; 120C-207; 120C-215; 120C-220; 120C-400; 120C-400(h); 120C-401; 120C-402; 120C-403; 120C-404; 120C-405; 120C-600; 120C-800; 150B-19(6)
Eff. December 1, 2007
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. September 23, 2017.

18 NCAC 12 .0106 Factors for Waivers {#sec-18-ncac-12-.0106 omnilex-key=us-nc-regs-official--title-18--18 NCAC 12 .0106}

Factors which may be used to determine whether to grant a waiver to a person or entity requesting a waiver (the "requester") are:

(1) Whether the requester had control over the circumstances which underlie the requested waiver;

(2) Previous requests from the requester for waivers by the Secretary;

(3) The nature, number and severity of the violations;

(4) The nature and severity of the actual or potential harm to the public, group, individual, lobbyist, principal or designated individual;

(5) The requester's record for timeliness, completeness and accuracy of filings with the Department;

(6) History of prior sanctions imposed by the Department on the requester;

(7) Evidence in mitigation and aggravation;

(8) Willfulness of the violation by the requester;

(9) Negligence on the part of the requestor which contributed to the violation;

(10) Impact of the granting of the waiver on consistency of enforcement by the Secretary.

History

Authority G.S. 120C-101(a); 120C-101(b); 120C-200; 120C-206; 120C-207; 120C-215; 120C-400(h); 120C-401; 120C-402; 120C-403; 120C-404; 120C-600; 120C-800; 150B-19(6)
Eff. December 1, 2007
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. September 23, 2017.

18 NCAC 12 .0201 Mandatory Use of Departmental Forms {#sec-18-ncac-12-.0201 omnilex-key=us-nc-regs-official--title-18--18 NCAC 12 .0201}

The Department's forms shall be used to file all documents submitted to the Department.

History

Authority G.S. 120C-101(a); 120C-101(b); 120C-200; 120C-201; 120C-206; 120C-207; 120C-215; 120C-401; 120C-402; 120C-403; 120C-404; 120C-600; 120C-603; 120C-800
Temporary Adoption Eff. January 1, 2007
Eff. December 1, 2007
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. September 23, 2017.

18 NCAC 12 .0202 Filing May Be Electronic or Paper {#sec-18-ncac-12-.0202 omnilex-key=us-nc-regs-official--title-18--18 NCAC 12 .0202}

An individual or entity submitting a form to the Department may submit the form in paper or electronic format except as otherwise provided by this Chapter.

History

Authority G.S. 120C-101(a); 120C-101(b); 120C-200; 120C-206; 120C-207; 120C-215; 120C-220; 120C-401; 120C-402; 120C-403; 120C-404; 120C-600; 120C-603; 120C-800
Temporary Adoption Eff. January 1, 2007
Eff. December 1, 2007
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. September 23, 2017.

18 NCAC 12 .0203 Document Completion Requirements {#sec-18-ncac-12-.0203 omnilex-key=us-nc-regs-official--title-18--18 NCAC 12 .0203}

An individual or entity shall provide a response on the Department's forms to all requests for information.

History

Authority G.S. 120C-101(a); 120C-101(b); 120C-200; 120C-206; 120C-207; 120C-215; 120C-220; 120C-401; 120C-402; 120C-403; 120C-404; 120C-600; 120C-603; 120C-800
Temporary Adoption Eff. January 1, 2007
Eff. December 1, 2007
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. September 23, 2017.

18 NCAC 12 .0204 Items Which Are Not Applicable to the Person or Entity Completing a Form {#sec-18-ncac-12-.0204 omnilex-key=us-nc-regs-official--title-18--18 NCAC 12 .0204}

If a question or item is not applicable to the individual or entity submitting the document, the individual or entity submitting the document shall not leave the question or item blank but shall indicate that the item is 'not applicable'.

History

Authority G.S. 120C-101(a); 120C-101(b); 120C-200; 120C-206; 120C-207; 120C-215; 120C-220; 120C-401; 120C-402; 120C-403; 120C-404; 120C-600; 120C-603; 120C-800
Temporary Adoption Eff. January 1, 2007
Eff. December 1, 2007
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. September 23, 2017.

18 NCAC 12 .0205 Complete Name of Person or Entity Required {#sec-18-ncac-12-.0205 omnilex-key=us-nc-regs-official--title-18--18 NCAC 12 .0205}

The complete name of the person or entity filing a document shall be legibly printed in the designated space on the Department's form.

History

Authority G.S. 120C-101(a); 120C-101(b); 120C-200; 120C-206; 120C-207; 120C-215; 120C-220; 120C-401; 120C-402; 120C-403; 120C-404; 120C-600; 120C-603; 120C-800
Temporary Adoption Eff. January 1, 2007
Eff. December 1, 2007
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. September 23, 2017.

18 NCAC 12 .0206 Document Signature Required {#sec-18-ncac-12-.0206 omnilex-key=us-nc-regs-official--title-18--18 NCAC 12 .0206}

Except as otherwise permitted by the rules in this Chapter, a document shall be signed by a person required or authorized to file the document with the Department.

History

Authority G.S. 120C-101(a); 120C-101(b); 120C-200; 120C-206; 120C-207; 120C-215; 120C-220; 120C-401; 120C-402; 120C-403; 120C-404; 120C-600; 120C-603; 120C-800
Temporary Adoption Eff. January 1, 2007
Eff. December 1, 2007
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. September 23, 2017.

18 NCAC 12 .0207 Signature for Entity {#sec-18-ncac-12-.0207 omnilex-key=us-nc-regs-official--title-18--18 NCAC 12 .0207}

In the case of an entity, a document filed with the Department shall be signed by an officer authorized to do so. The officer's title or indication of the officer's authority to sign the document shall also be entered on the document in the designated space.

History

Authority G.S. 120C-101(a); 120C-101(b); 120C-200; 120C-206; 120C-207; 120C-215; 120C-220; 120C-401; 120C-402; 120C-403; 120C-404; 120C-600; 120C-603; 120C-800
Temporary Adoption Eff. January 1, 2007
Eff. December 1, 2007
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. September 23, 2017.

18 NCAC 12 .0208 Electronic Signature {#sec-18-ncac-12-.0208 omnilex-key=us-nc-regs-official--title-18--18 NCAC 12 .0208}

(a) All electronic notarizations shall be performed in compliance with Chapter 10B of the General Statutes and the rules in effect pursuant to that Chapter.

(b) Signers of electronic documents in a non-notarial capacity may use any form of electronic signature permissible according to G.S. 66-312(9) except that it shall not be a sound.

History

Authority G.S. 10B-106; 66-312(9); 120C-101(a); 120C-101(b); 120C-200; 120C-206; 120C-207; 120C-215; 120C-220; 120C-401; 120C-402; 120C-403; 120C-404; 120C-600; 120C-603; 120C-800
Temporary Adoption Eff. January 1, 2007
Eff. December 1, 2007
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. September 23, 2017.

18 NCAC 12 .0209 Form Preparer Signature Required {#sec-18-ncac-12-.0209 omnilex-key=us-nc-regs-official--title-18--18 NCAC 12 .0209}

A person who prepares or completes any part of a document on behalf of an individual or entity required or permitted to file a document with the Department shall sign the document in the space provided for a preparer's signature, except as provided in Rule .0210 of this Chapter.

History

Authority G.S. 120C-101(a); 120C-101(b); 120C-200; 120C-201; 120C-206; 120C-207; 120C-215; 120C-401; 120C-402; 120C-403; 120C-404; 120C-600; 120C-603; 120C-800
Temporary Adoption Eff. January 1, 2007
Eff. December 1, 2007
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. September 23, 2017.

18 NCAC 12 .0210 When Form Preparer Signature Not Required {#sec-18-ncac-12-.0210 omnilex-key=us-nc-regs-official--title-18--18 NCAC 12 .0210}

A person who enters information on a Department form on behalf of an individual or entity required or permitted to file the form and who does not exercise independent judgment or discretion as to the information that is entered on the document is not required to sign the form in the space provided for the preparer's signature. NOTE: For example, an administrative assistant who enters information supplied by and at the direction of an individual or entity required to file a form would not have to sign the form in the space provided for a preparer's signature.

History

Authority G.S. 120C-101(a); 120C-101(b); 120C-200; 120C-201; 120C-206; 120C-207; 120C-215; 120C-401; 120C-402; 120C-403; 120C-404; 120C-600; 120C-603; 120C-800
Temporary Adoption Eff. January 1, 2007
Eff. December 1, 2007
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. September 23, 2017.

18 NCAC 12 .0211 Signing Pursuant to Power of Attorney {#sec-18-ncac-12-.0211 omnilex-key=us-nc-regs-official--title-18--18 NCAC 12 .0211}

A person signing a Department form on behalf of another under a power of attorney granted pursuant to Chapter 32A of the General Statutes shall provide with each document filed:

(1) A legible copy of the power of attorney; and

(2) For an entity, a legible copy of a resolution or evidence of other formal action granting the power of attorney.

History

Authority G.S. 120C-101(a); 120C-101(b); 120C-200; 120C-201; 120C-206; 120C-207; 120C-215; 120C-401; 120C-402; 120C-403; 120C-404; 120C-600; 120C-603; 120C-800
Temporary Adoption Eff. January 1, 2007
Eff. December 1, 2007
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. September 23, 2017.

18 NCAC 12 .0212 Signing and Executing a Form Under Oath {#sec-18-ncac-12-.0212 omnilex-key=us-nc-regs-official--title-18--18 NCAC 12 .0212}

When a document is required to be signed under oath, the oath shall:

(1) Be signed pursuant to Rule .0206 of this Chapter; and

(2) Be administered and signed by a notary public or other officer authorized to administer oaths by the state in which the document is being signed.

History

Authority G.S. 10B-20; 120C-101(a); 120C-101(b); 120C-200; 120C-201; 120C-206; 120C-207; 120C-215; 120C-401; 120C-402; 120C-403; 120C-404; 120C-600; 120C-603; 120C-800
Temporary Adoption Eff. January 1, 2007
Eff. December 1, 2007
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. September 23, 2017.

18 NCAC 12 .0213 Signature Verifies Information Is True {#sec-18-ncac-12-.0213 omnilex-key=us-nc-regs-official--title-18--18 NCAC 12 .0213}

An individual's signature on a document constitutes that person's verification that all information entered on the document or report is true and complete.

History

Authority G.S. 120C-101(a); 120C-101(b); 120C-200; 120C-201; 120C-206; 120C-207; 120C-215; 120C-401; 120C-402; 120C-403; 120C-404; 120C-600; 120C-603; 120C-800
Temporary Adoption Eff. January 1, 2007
Eff. December 1, 2007
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. September 23, 2017.

18 NCAC 12 .0214 Signature and Execution Under Oath of an Electronically Filed Document {#sec-18-ncac-12-.0214 omnilex-key=us-nc-regs-official--title-18--18 NCAC 12 .0214}

A document submitted to the Department for which notarization is required may be filed electronically if:

(1) The document is electronically notarized pursuant to Article 2 of Chapter 10B of the General Statutes;

(2) The document is submitted without an electronic notarization pursuant to Article 2 of Chapter 10B of the General Statutes and an affidavit containing the information required by Rule .0215 of this Section is delivered to the Department within seven days or postmarked within seven days after the document is electronically filed; or

(3) The document is submitted without an electronic notarization pursuant to Article 2 of Chapter 10B of the General Statutes and the original, paper, signed, and notarized document is maintained in the filer's own records for three years as required by Rule .1301 of this Chapter.

History

Authority G.S. 10B-115; 14-209; 66-312(9); 120C-101(a); 120C-200; 120C-206; 120C-400; 120C-401; 120C-600; 120C-800
Temporary Adoption January 1, 2007
Eff. December 1, 2007
Amended Eff. July 1, 2017
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. September 23, 2017.

18 NCAC 12 .0215 Contents of Affidavit for Electronic Filing Without Electronic Notarization {#sec-18-ncac-12-.0215 omnilex-key=us-nc-regs-official--title-18--18 NCAC 12 .0215}

An affidavit submitted to the Department pursuant to Rule .0214 of this Chapter shall include the following information:

(1) A statement that the person signing did electronically file a document required by the Act;

(2) The date and time at which the electronic document was transmitted;

(3) The email address from which the electronic document was transmitted;

(4) A signature under oath pursuant to Rule .0212 of this Chapter; and

(5) Certification that all information contained therein (including any attachments thereto) is true, complete and correct to the best of the person's knowledge and belief.

History

Authority G.S. 66-312(9); 120C-101(a); 120C-200; 120C-201; 120C-206; 120C-207; 120C-400; 120C-401; 120C-600; 120C-603; 120C-800
Temporary Adoption January 1, 2007
Eff. December 1, 2007
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. September 23, 2017.

18 NCAC 12 .0216 Consequence of Failure to Deliver Affidavit {#sec-18-ncac-12-.0216 omnilex-key=us-nc-regs-official--title-18--18 NCAC 12 .0216}

Failure to deliver the affidavit as required by Rule .0214 of this Chapter shall render the filing untimely pursuant to Rule .0319 of this Chapter and the filing does not receive the benefit of Rules .0214, .0310, .0311, and .0317 of this Chapter.

History

Authority G.S. 66-312(9); 120C-101(a); 120C-200; 120C-201; 120C-206; 120C-207; 120C-400; 120C-401; 120C-600; 120C-603; 120C-800
Temporary Adoption January 1, 2007
Eff. December 1, 2007
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. September 23, 2017.

18 NCAC 12 .0217 Effective Date of Late Filing {#sec-18-ncac-12-.0217 omnilex-key=us-nc-regs-official--title-18--18 NCAC 12 .0217}

History

Status: expired
Authority G.S. 120C-101(a)
Temporary Adoption Eff. January 1, 2007
Temporary Adoption Expired October 13, 2007.

18 NCAC 12 .0301 General Submission Locations and Methods {#sec-18-ncac-12-.0301 omnilex-key=us-nc-regs-official--title-18--18 NCAC 12 .0301}

Each filing required or permitted to be submitted to the Department shall be submitted by one of the methods set forth in Rule .0302 through Rule .0305 of this Chapter.

History

Authority G.S. 120C-101(a); 120C-101(b); 120C-401(h); 120C-600
Temporary Adoption Eff. January 1, 2007
Eff. December 1, 2007
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. September 23, 2017.

18 NCAC 12 .0302 Filing by United States Mail {#sec-18-ncac-12-.0302 omnilex-key=us-nc-regs-official--title-18--18 NCAC 12 .0302}

A document may be submitted to the Department by United States mail at the following address: Lobbying Compliance Division, Department of the Secretary of State, P. O. Box 29622, Raleigh, N.C. 27626-0622.

History

Authority G.S. 1A-1; Rule 4; 120C-101(a); 120C-101(b); 120C-401(h)
Temporary Adoption January 1, 2007
Eff. December 1, 2007
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. September 23, 2017.

18 NCAC 12 .0303 Filing by Hand-Delivery or by Designated Delivery Service {#sec-18-ncac-12-.0303 omnilex-key=us-nc-regs-official--title-18--18 NCAC 12 .0303}

A document may be submitted to the Department by hand-delivery or by a designated delivery service authorized pursuant to G.S. 1A-1, Rule 4:

(1) At the following address: Lobbying Compliance Division, Department of the Secretary of State, 2 South Salisbury Street, Raleigh, NC 27601-2903; or

(2) At a location designated by the Secretary or the Secretary's designee.

History

Authority G.S. 1A-1, Rule 4; 120C-101(a); 120C-101(b); 120C-401(h)
Temporary Adoption January 1, 2007
Eff. December 1, 2007
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. September 23, 2017.

18 NCAC 12 .0304 Filing by Electronic Mail {#sec-18-ncac-12-.0304 omnilex-key=us-nc-regs-official--title-18--18 NCAC 12 .0304}

(a) A filing may be submitted to the Department by electronic mail ("email") to the following address: lobbyistfiling@sosnc.gov.

(b) An email attachment shall be compatible with or convertible to the most recently issued version of Microsoft Word®.

History

Authority G.S. 1A-1, Rule 4; 120C-101(a); 120C-101(b); 120C-401(h); 120C-600; 120C-603
Temporary Adoption January 1, 2007
Eff. December 1, 2007
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. September 23, 2017
Amended Eff. October 1, 2019.

18 NCAC 12 .0305 Filing Electronically on the Department's Website {#sec-18-ncac-12-.0305 omnilex-key=us-nc-regs-official--title-18--18 NCAC 12 .0305}

A Department website form may be submitted electronically to the Department by:

(1) Completing the form on the Department's website;

(2) Submitting the completed form;

(3) Submitting any required payment in a manner permitted pursuant to Section .0400 of this Chapter; and

(4) Submitting any additional information such as an affidavit pursuant to Rule .0214 of this Chapter for an electronic filing without a required notarization.

History

Authority G.S. 120C-101(a); 120C-101(b); 120C-401(h); 120C-600; 120C-603
Eff. December 1, 2007
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. September 23, 2017.

18 NCAC 12 .0306 No Filing by Facsimile If Fee Required {#sec-18-ncac-12-.0306 omnilex-key=us-nc-regs-official--title-18--18 NCAC 12 .0306}

If payment of a fee is required to be submitted to the Department together with a document, the document shall not be submitted by facsimile ("fax").

History

Authority G.S. 120C-101(a); 120C-101(b); 120C-201; 120C-207; 120C-215; 120C-600; 120C-603
Temporary Adoption Eff. January 1, 2007
Eff. December 1, 2007
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. September 23, 2017.

18 NCAC 12 .0307 Circumstances in Which Filing by Fax Permitted {#sec-18-ncac-12-.0307 omnilex-key=us-nc-regs-official--title-18--18 NCAC 12 .0307}

A document may be submitted by fax if:

(1) Payment of a fee is not required to be submitted to the Department together with the document; and

(2) The filer complies with Rule .0308 of this Chapter.

History

Authority G.S. 120C-101(a); 120C-101(b); 120C-201; 120C-207; 120C-215; 120C-600; 120C-603
Temporary Adoption Eff. January 1, 2007
Eff. December 1, 2007
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. September 23, 2017.

18 NCAC 12 .0308 Submission of Original After Filing by Fax {#sec-18-ncac-12-.0308 omnilex-key=us-nc-regs-official--title-18--18 NCAC 12 .0308}

Within seven days following the Department's receipt of a filing by fax, the original signed document shall be delivered or postmarked to the Department or:

(1) If a registration, the filing is void; or

(2) If a report, the filing shall be deemed filed on the date received.

History

Authority G.S. 120C-101(a); 120C-101(b); 120C-201; 120C-207; 120C-215; 120C-600; 120C-603
Temporary Adoption Eff. January 1, 2007
Eff. December 1, 2007
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. September 23, 2017.

18 NCAC 12 .0309 Rejection of Incomplete Forms {#sec-18-ncac-12-.0309 omnilex-key=us-nc-regs-official--title-18--18 NCAC 12 .0309}

A filing with the Department shall be rejected if the form is not completed in accordance with the applicable provisions of Chapter 120C of the General Statutes and this Chapter.

History

Authority G.S. 120C-101(a); 120C-101(b); 120C-200; 120C-201; 120C-206; 120C-207; 120C-215; 120C-401; 120C-402; 120C-403; 120C-404; 120C-600; 120C-603; 120C-800
Temporary Adoption Eff. January 1, 2007
Eff. December 1, 2007
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. September 23, 2017.

18 NCAC 12 .0310 Document Submission Date and Time {#sec-18-ncac-12-.0310 omnilex-key=us-nc-regs-official--title-18--18 NCAC 12 .0310}

A document is submitted to the Department:

(1) When it is received by the Department by hand-delivery, fax or electronic filing; or

(2) When it is postmarked by the United States Postal Service or marked with an equivalent marking by a delivery service authorized pursuant to G.S. 1A-1, Rule 4.

History

Authority G.S. 1A-1, Rule 4; 120C-101(a); 120C-101(b); 120C-200; 120C-201; 120C-206; 120C-207; 120C-215; 120C-401; 120C-402; 120C-403; 120C-404; 120C-600; 120C-603; 120C-800
Temporary Adoption Eff. January 1, 2007
Eff. December 1, 2007
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. September 23, 2017.

18 NCAC 12 .0311 Document Received {#sec-18-ncac-12-.0311 omnilex-key=us-nc-regs-official--title-18--18 NCAC 12 .0311}

Except as otherwise provided in the rules in this Chapter, a document received by hand-delivery or fax after 5:00 p.m. is considered to be received on the following day.

History

Authority G.S. 1A-1, Rule 4; 120C-101(a); 120C-101(b); 120C-200; 120C-201; 120C-206; 120C-207; 120C-215; 120C-401; 120C-402; 120C-403; 120C-404; 120C-600; 120C-603; 120C-800
Temporary Adoption Eff. January 1, 2007
Eff. December 1, 2007
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. September 23, 2017.

18 NCAC 12 .0312 Proof of Submission {#sec-18-ncac-12-.0312 omnilex-key=us-nc-regs-official--title-18--18 NCAC 12 .0312}

A person may obtain proof of submission of a filing to the Department by:

(1) Any means acceptable pursuant to G.S. 1A-1, Rules of Civil Procedure;

(2) Requesting that the Department return a file stamped copy and supplying to the Department both a copy of the form and a self-addressed, stamped envelope or prepaid delivery service envelope; or

(3) Requesting that the Department file stamp a copy at the time of hand delivery.

History

Authority G.S. 1A-1, Rule 4; 120C-101(a); 120C-101(b); 120C-200; 120C-201; 120C-206; 120C-207; 120C-215; 120C-401; 120C-402; 120C-403; 120C-404; 120C-600; 120C-603; 120C-800
Temporary Adoption Eff. January 1, 2007
Eff. December 1, 2007
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. September 23, 2017.

18 NCAC 12 .0313 Grounds for Department Rejection of Submitted Document {#sec-18-ncac-12-.0313 omnilex-key=us-nc-regs-official--title-18--18 NCAC 12 .0313}

Unless timely corrected in compliance with the rules in this Chapter, the Department shall reject any document filed with the Department which:

(1) Contains illegible information;

(2) Lacks required information;

(3) Contains blank, unfilled, or unanswered questions or data entry areas;

(4) Contains a signature which does not comply with the rules in this Chapter; or

(5) Is not submitted together with a required fee or affidavit.

History

Authority G.S. 120C-101(a); 120C-101(b); 120C-200; 120C-201; 120C-206; 120C-207; 120C-215; 120C-401; 120C-402; 120C-403; 120C-404; 120C-600; 120C-603; 120C-800
Temporary Adoption Eff. January 1, 2007
Eff. December 1, 2007
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. September 23, 2017.

18 NCAC 12 .0314 Principal's Authorization Statement Omissions Requiring Correction Within One Business Day {#sec-18-ncac-12-.0314 omnilex-key=us-nc-regs-official--title-18--18 NCAC 12 .0314}

The Department shall reject a principal's authorization statement when a principal fails to correct the absence of the signature of the principal on the principal authorization statement within one business day after the Department notifies the principal of the lack of signature.

History

Authority G.S. 120C-101(a); 120C-101(b); 120C-200; 120C-201; 120C-206; 120C-207; 120C-215; 120C-401; 120C-402; 120C-403; 120C-404; 120C-600; 120C-603; 120C-800
Temporary Adoption Eff. January 1, 2007
Eff. December 1, 2007
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. September 23, 2017.

18 NCAC 12 .0315 Omissions from Report Under Oath Requiring Correction Within One Business Day {#sec-18-ncac-12-.0315 omnilex-key=us-nc-regs-official--title-18--18 NCAC 12 .0315}

The Department shall reject a quarterly report of the principal, lobbyist, or solicitor if the principal, lobbyist or solicitor fails to correct the absence of notarization of a quarterly report within one business day after the Department notifies the lobbyist, principal, or solicitor of the lack of the notarization.

History

Authority G.S. 120C-101(a); 120C-101(b); 120C-402; 120C-403; 120C-404; 120C-600; 120C-800
Temporary Adoption Eff. January 1, 2007
Eff. December 1, 2007
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. September 23, 2017.

18 NCAC 12 .0316 Omissions Requiring Correction Within Seven Days {#sec-18-ncac-12-.0316 omnilex-key=us-nc-regs-official--title-18--18 NCAC 12 .0316}

(a) Omissions other than those set forth in Rules .0314 and .0315 of this Chapter shall be corrected within seven days after notification by the Department or the document shall be rejected.

(b) A document that contained an omission corrected pursuant to Paragraph (a) of this Rule is filed pursuant to the provisions of Rule .0317 of this Chapter.

History

Authority G.S. 120C-101(a); 120C-101(b); 120C-200; 120C-201; 120C-206; 120C-207; 120C-215; 120C-401; 120C-402; 120C-403; 120C-404; 120C-600; 120C-603; 120C-800
Temporary Adoption Eff. January 1, 2007
Eff. December 1, 2007
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. September 23, 2017.

18 NCAC 12 .0317 Effective Date of Complete Submission of Document {#sec-18-ncac-12-.0317 omnilex-key=us-nc-regs-official--title-18--18 NCAC 12 .0317}

After the Department determines that a document is complete, the document is considered filed on the date on which it was submitted.

History

Authority G.S. 120C-101(a); 120C-101(b); 120C-200; 120C-201; 120C-206; 120C-207; 120C-215; 120C-401; 120C-402; 120C-403; 120C-404; 120C-600; 120C-603; 120C-800
Temporary Adoption Eff. January 1, 2007
Eff. December 1, 2007
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. September 23, 2017.

18 NCAC 12 .0318 Rejected Filings {#sec-18-ncac-12-.0318 omnilex-key=us-nc-regs-official--title-18--18 NCAC 12 .0318}

A document which is rejected is not considered filed.

History

Authority G.S. 120C-101(a); 120C-101(b); 120C-200; 120C-201; 120C-206; 120C-207; 120C-215; 120C-401; 120C-402; 120C-403; 120C-404; 120C-600; 120C-603; 120C-800
Temporary Adoption Eff. January 1, 2007
Eff. December 1, 2007
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. September 23, 2017.

18 NCAC 12 .0319 Effective Date of Late Document {#sec-18-ncac-12-.0319 omnilex-key=us-nc-regs-official--title-18--18 NCAC 12 .0319}

For a late submission of a document, there shall be no relation back of the document to an earlier date.

History

Authority G.S. 120C-101(a); 120C-101(b); 120C-200; 120C-201; 120C-206; 120C-207; 120C-215; 120C-401; 120C-402; 120C-403; 120C-404; 120C-600; 120C-603; 120C-800
Temporary Adoption Eff. January 1, 2007
Eff. December 1, 2007
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. September 23, 2017.

18 NCAC 12 .0320 Process for Amending a Document {#sec-18-ncac-12-.0320 omnilex-key=us-nc-regs-official--title-18--18 NCAC 12 .0320}

An individual or an entity who submitted a document to the Department for filing may amend it by submitting to the Department the amended document.

History

Authority G.S. 120C-101(a); 120C-101(b); 120C-200; 120C-201; 120C-206; 120C-207; 120C-215; 120C-401; 120C-402; 120C-403; 120C-404; 120C-600; 120C-603; 120C-800
Temporary Adoption Eff. January 1, 2007
Eff. December 1, 2007
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. September 23, 2017.

18 NCAC 12 .0321 Notarization of Amended Quarterly Document {#sec-18-ncac-12-.0321 omnilex-key=us-nc-regs-official--title-18--18 NCAC 12 .0321}

An amendment form for a quarterly report shall be notarized. If an oath is required for a document, the amendment of the document shall be made under oath pursuant to Rule .0212 of this Chapter.

History

Authority G.S. 120C-101(a); 120C-101(b); 120C-401; 120C-402; 120C-403; 120C-404; 120C-600; 120C-603; 120C-800
Temporary Adoption Eff. January 1, 2007
Eff. December 1, 2007
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. September 23, 2017.

18 NCAC 12 .0322 Effect of Amended Document {#sec-18-ncac-12-.0322 omnilex-key=us-nc-regs-official--title-18--18 NCAC 12 .0322}

An amendment to a document is filed as of the date on which it is submitted.

History

Authority G.S. 120C-101(a); 120C-101(b); 120C-200; 120C-201; 120C-206; 120C-207; 120C-215; 120C-401; 120C-402; 120C-403; 120C-404; 120C-600; 120C-603; 120C-800
Eff. December 1, 2007
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. September 23, 2017.

18 NCAC 12 .0401 General {#sec-18-ncac-12-.0401 omnilex-key=us-nc-regs-official--title-18--18 NCAC 12 .0401}

Except as otherwise permitted or required by the rules in this Chapter, a required fee shall be submitted together with the filing to which the fee applies.

History

Authority G.S. 120C-101(a); 120C-201; 120C-207; 120C-215; 120C-600; 120C-603
Temporary Adoption Eff. January 1, 2007
Eff. December 1, 2007
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. September 23, 2017.

18 NCAC 12 .0402 Form of Payment {#sec-18-ncac-12-.0402 omnilex-key=us-nc-regs-official--title-18--18 NCAC 12 .0402}

A fee due with a document filed shall be paid by cash, warrant, uncertified check, certified check, money order, credit card or another instrument freely negotiable at par through the Federal Reserve System. Checks, money orders, credit cards or other instruments must be drawn on U.S. financial institutions in U.S. currency.

History

Authority G.S. 120C-101(a); 120C-201; 120C-207; 120C-215; 120C-600; 120C-603
Temporary Adoption Eff. January 1, 2007
Eff. December 1, 2007
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. September 23, 2017.

18 NCAC 12 .0403 Return of Fee Instrument by Issuing Institution {#sec-18-ncac-12-.0403 omnilex-key=us-nc-regs-official--title-18--18 NCAC 12 .0403}

A document filed with the Department is void if a check or other instrument for payment to the Department of a required fee is returned by the institution upon which it was issued as "insufficient funds" or for other similar reason.

History

Authority G.S. 120C-101(a); 120C-201; 120C-207; 120C-215; 120C-600; 120C-603
Temporary Adoption Eff. January 1, 2007
Eff. December 1, 2007
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. September 23, 2017.

18 NCAC 12 .0404 Limitation on Fee Reduction or Waiver {#sec-18-ncac-12-.0404 omnilex-key=us-nc-regs-official--title-18--18 NCAC 12 .0404}

History

Status: repealed
Authority G.S. 120C-101(a); 120C-201; 120C-207; 120C-600; 120C-603; 26 U.S.C. Sec. 501(c)(3)
Temporary Adoption January 1, 2007
Eff. December 1, 2007
Repealed Eff. January 1, 2014.

18 NCAC 12 .0405 Nonprofits to Which No Fee Reduction or Waiver Shall Be Granted {#sec-18-ncac-12-.0405 omnilex-key=us-nc-regs-official--title-18--18 NCAC 12 .0405}

History

Status: repealed
Authority G.S. 120C-101(a); 120C-201; 120C-207; 120C-600; 120C-603; 26 U.S.C. Sec. 501(c)(3)
Temporary Adoption January 1, 2007
Eff. December 1, 2007
Repealed Eff. January 1, 2014.

18 NCAC 12 .0406 Nonprofit Fee Reduction Procedure {#sec-18-ncac-12-.0406 omnilex-key=us-nc-regs-official--title-18--18 NCAC 12 .0406}

History

Status: repealed
Authority G.S. 120C-101(a); 120C-201; 120C-207; 120C-600; 120C-603; 26 U.S.C. Sec. 501(c)(3)
Temporary Adoption January 1, 2007
Eff. December 1, 2007
Repealed Eff. January 1, 2014.

18 NCAC 12 .0407 Submission of Reduced Fee {#sec-18-ncac-12-.0407 omnilex-key=us-nc-regs-official--title-18--18 NCAC 12 .0407}

History

Status: repealed
Authority G.S. 120C-101(a); 120C-201; 120C-207; 120C-600; 120C-603; 26 U.S.C. Sec. 501(c)(3)
Temporary Adoption January 1, 2007
Eff. December 1, 2007
Repealed Eff. January 1, 2014.

18 NCAC 12 .0408 Submission of Documentation Supporting Fee Reduction Request {#sec-18-ncac-12-.0408 omnilex-key=us-nc-regs-official--title-18--18 NCAC 12 .0408}

History

Status: repealed
Authority G.S. 120C-101(a); 120C-201; 120C-207; 120C-600; 120C-603; 26 U.S.C. Sec. 501(c)(3)
Temporary Adoption January 1, 2007
Eff. December 1, 2007
Repealed Eff. January 1, 2014.

18 NCAC 12 .0409 Fee Reduction Applies to Both Lobbyist and Principal {#sec-18-ncac-12-.0409 omnilex-key=us-nc-regs-official--title-18--18 NCAC 12 .0409}

History

Status: repealed
Authority G.S. 120C-101(a); 120C-201; 120C-207; 120C-600; 120C-603; 26 U.S.C. Sec. 501(c)(3)
Temporary Adoption January 1, 2007
Eff. December 1, 2007
Repealed Eff. January 1, 2014.

18 NCAC 12 .0410 Payment of Remainder of Fee If Reduction Denied {#sec-18-ncac-12-.0410 omnilex-key=us-nc-regs-official--title-18--18 NCAC 12 .0410}

History

Status: repealed
Authority G.S. 120C-101(a); 120C-201; 120C-207; 120C-600; 120C-603; 26 U.S.C. Sec. 501(c)(3)
Temporary Adoption January 1, 2007
Eff. December 1, 2007
Repealed Eff. January 1, 2014.

18 NCAC 12 .0411 Consequences of Failure to Pay Remainder of Fee {#sec-18-ncac-12-.0411 omnilex-key=us-nc-regs-official--title-18--18 NCAC 12 .0411}

History

Status: repealed
Authority G.S. 120C-101(a); 120C-201; 120C-207; 120C-600; 120C-603; 26 U.S.C. Sec. 501(c)(3)
Temporary Adoption January 1, 2007
Eff. December 1, 2007
Repealed Eff. January 1, 2014.

18 NCAC 12 .0412 Nonprofit Fee Waiver Procedure {#sec-18-ncac-12-.0412 omnilex-key=us-nc-regs-official--title-18--18 NCAC 12 .0412}

History

Status: repealed
Authority G.S. 120C-101(a); 120C-201; 120C-207; 120C-600; 120C-603; 26 U.S.C. Sec. 501(c)(3)
Temporary Adoption January 1, 2007
Eff. December 1, 2007
Repealed Eff. January 1, 2014.

18 NCAC 12 .0413 Submission of Fee with Request for Waiver {#sec-18-ncac-12-.0413 omnilex-key=us-nc-regs-official--title-18--18 NCAC 12 .0413}

History

Status: repealed
Authority G.S. 120C-101(a); 120C-201; 120C-207; 120C-600; 120C-603; 26 U.S.C. Sec. 501(c)(3)
Temporary Adoption January 1, 2007
Eff. December 1, 2007
Repealed Eff. January 1, 2014.

18 NCAC 12 .0414 Refund of Fee If Request for Waiver Granted {#sec-18-ncac-12-.0414 omnilex-key=us-nc-regs-official--title-18--18 NCAC 12 .0414}

History

Status: repealed
Authority G.S. 120C-101(a); 120C-201; 120C-207; 120C-600; 120C-603; 26 U.S.C. Sec. 501(c)(3)
Temporary Adoption January 1, 2007
Eff. December 1, 2007
Repealed Eff. January 1, 2014.

18 NCAC 12 .0415 Submission of Documentation Supporting Fee Waiver Request {#sec-18-ncac-12-.0415 omnilex-key=us-nc-regs-official--title-18--18 NCAC 12 .0415}

History

Status: repealed
Authority G.S. 120C-101(a); 120C-201; 120C-207; 120C-600; 120C-603; 26 U.S.C. Sec. 501(c)(3)
Temporary Adoption January 1, 2007
Eff. December 1, 2007
Repealed Eff. January 1, 2014.

18 NCAC 12 .0416 Fee Waiver Applies to Both Lobbyist and Principal {#sec-18-ncac-12-.0416 omnilex-key=us-nc-regs-official--title-18--18 NCAC 12 .0416}

History

Status: repealed
Authority G.S. 120C-101(a); 120C-201; 120C-207; 120C-600; 120C-603; 26 U.S.C. Sec. 501(c)(3)
Temporary Adoption January 1, 2007
Eff. December 1, 2007
Repealed Eff. January 1, 2014.

18 NCAC 12 .0417 General Proof of Nonprofit Status {#sec-18-ncac-12-.0417 omnilex-key=us-nc-regs-official--title-18--18 NCAC 12 .0417}

History

Status: repealed
Authority G.S. 120C-101(a); 120C-201; 120C-207; 120C-600; 120C-603; 26 U.S.C. Sec. 501(c)(3)
Temporary Adoption January 1, 2007
Eff. December 1, 2007
Repealed Eff. January 1, 2014.

18 NCAC 12 .0418 Officers or Persons Authorized to Demonstrate Nonprofit Status {#sec-18-ncac-12-.0418 omnilex-key=us-nc-regs-official--title-18--18 NCAC 12 .0418}

History

Status: repealed
Authority G.S. 120C-101(a); 120C-201; 120C-207; 120C-600; 120C-603; 26 U.S.C. Sec. 501(c)(3)
Temporary Adoption January 1, 2007
Eff. December 1, 2007
Repealed Eff. January 1, 2014.

18 NCAC 12 .0419 reserved for future codification {#sec-18-ncac-12-.0419 omnilex-key=us-nc-regs-official--title-18--18 NCAC 12 .0419}

18 NCAC 12 .0420 reserved for future codification {#sec-18-ncac-12-.0420 omnilex-key=us-nc-regs-official--title-18--18 NCAC 12 .0420}

18 NCAC 12 .0421 Submission of Federal Tax-Exempt Determination Letter {#sec-18-ncac-12-.0421 omnilex-key=us-nc-regs-official--title-18--18 NCAC 12 .0421}

History

Status: repealed
Authority G.S. 120C-101(a); 120C-201; 120C-207; 120C-600; 120C-603; 26 U.S.C. Sec. 501(c)(3)
Temporary Adoption Eff. January 1, 2007
Eff. December 1, 2007
Repealed Eff. January 1, 2014.

18 NCAC 12 .0422 Documents to Be Submitted by Nonprofit Principals Without Tax Exempt Determination Letter {#sec-18-ncac-12-.0422 omnilex-key=us-nc-regs-official--title-18--18 NCAC 12 .0422}

History

Status: repealed
Authority G.S. 120C-101(a); 120C-201; 120C-207; 120C-600; 120C-603; 26 U.S.C. Sec. 501(c)(3)
Temporary Adoption Eff. January 1, 2007
Eff. December 1, 2007
Repealed Eff. January 1, 2014.

18 NCAC 12 .0423 Additional Information for Fee Reduction for Nonprofit with Tax-Exempt Determination Letter {#sec-18-ncac-12-.0423 omnilex-key=us-nc-regs-official--title-18--18 NCAC 12 .0423}

History

Status: repealed
Authority G.S. 120C-101(a); 120C-201; 120C-207; 120C-600; 120C-603; 26 U.S.C. Sec. 501(c)(3)
Temporary Adoption Eff. January 1, 2007
Eff. December 1, 2007
Repealed Eff. January 1, 2014.

18 NCAC 12 .0424 Additional Information for Fee Reduction for Nonprofit with Tax-Exempt Determination Letter and Certain Federal Forms Not Required {#sec-18-ncac-12-.0424 omnilex-key=us-nc-regs-official--title-18--18 NCAC 12 .0424}

History

Status: repealed
Authority G.S. 120C-101(a); 120C-201; 120C-207; 120C-600; 120C-603; 26 U.S.C. Sec. 501(c)(3)
Temporary Adoption Eff. January 1, 2007
Eff. December 1, 2007
Repealed Eff. January 1, 2014.

18 NCAC 12 .0425 Contents for Fee Reduction Request for Nonprofit Without Tax-Exempt Determination Letter {#sec-18-ncac-12-.0425 omnilex-key=us-nc-regs-official--title-18--18 NCAC 12 .0425}

History

Status: repealed
Authority G.S. 120C-101(a); 120C-201; 120C-207; 120C-600; 120C-603; 26 U.S.C. Sec. 501(c)(3)
Temporary Adoption Eff. January 1, 2007
Eff. December 1, 2007
Repealed Eff. January 1, 2014.

18 NCAC 12 .0426 Additional Information for Fee Waiver {#sec-18-ncac-12-.0426 omnilex-key=us-nc-regs-official--title-18--18 NCAC 12 .0426}

History

Status: repealed
Authority G.S. 120C-101(a); 120C-201; 120C-207; 120C-600; 120C-603; 26 U.S.C. Sec. 501(c)(3)
Temporary Adoption Eff. January 1, 2007
Eff. December 1, 2007
Repealed Eff. January 1, 2014.

18 NCAC 12 .0501 Request for Protection of Confidentiality {#sec-18-ncac-12-.0501 omnilex-key=us-nc-regs-official--title-18--18 NCAC 12 .0501}

A principal may seek protection under the Secretary's authority from premature disclosure by the Department ("premature disclosure protection") of confidential information related to economic development initiatives or to industrial or business recruitment activities ("economic development information") by filing an economic information protection request.

History

Authority G.S. 120C-101(a); 120C-101(b); 132-6(d); 132-9
Temporary Adoption Eff. January 1, 2007
Eff. December 1, 2007
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. September 23, 2017.

18 NCAC 12 .0502 Timing of Submission of Request for Protection of Confidential Information from Premature Disclosure {#sec-18-ncac-12-.0502 omnilex-key=us-nc-regs-official--title-18--18 NCAC 12 .0502}

A principal shall deliver an economic information protection request to the Department no later than the close of business on the date of the receipt by the Department of any document for which such protection is requested.

History

Authority G.S. 120C-101(a); 120C-101(b); 132-6(d); 132-9
Eff. December 1, 2007.
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. September 23, 2017.

18 NCAC 12 .0503 Consequences of Failure to Request Protection of Confidential Information from Premature Disclosure and Failure to Use Economic Information Protection Reporting Forms {#sec-18-ncac-12-.0503 omnilex-key=us-nc-regs-official--title-18--18 NCAC 12 .0503}

Except as otherwise provided in this Rule and this Chapter, the Department shall make documents publicly available under G.S. 120C-220 and 120C-405 if a lobbyist or principal fails to:

(1) Request that the Department provide protection from premature disclosure of confidential economic development information; or

(2) Use the Department's economic information protection reporting forms.

History

Authority G.S. 120C-101(a); 120C-101(b); 132-6(d); 132-9
Temporary Adoption Eff. January 1, 2007
Eff. December 1, 2007
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. September 23, 2017.

18 NCAC 12 .0504 One Designation Form Per Activity {#sec-18-ncac-12-.0504 omnilex-key=us-nc-regs-official--title-18--18 NCAC 12 .0504}

(a) An economic information protection request form submitted to the Department shall describe only one project involving economic development activity, economic development initiative, industrial or business recruitment activity.

(b) A separate registration fee pursuant to G.S. 120C-201 is not required for each such economic information protection request.

History

Authority G.S. 120C-101(a); 120C-101(b); 132-6(d); 132-9
Temporary Adoption Eff. January 1, 2007
Eff. December 1, 2007
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. September 23, 2017.

A principal or lobbyist filing shall use the Department economic information request protection form when submitting a document to the Department which is related to economic development information for which economic information protection is requested.

History

Authority G.S. 120C-101(a); 120C-101(b); 132-6(d); 132-9
Eff. December 1, 2007
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. September 23, 2017.

18 NCAC 12 .0506 Principal's Economic Information Protection Authorization Form {#sec-18-ncac-12-.0506 omnilex-key=us-nc-regs-official--title-18--18 NCAC 12 .0506}

A principal shall file an economic information protection principal authorization form together with the economic information protection request form.

History

Authority G.S. 120C-101(a); 120C-101(b); 132-6(d); 132-9
Temporary Adoption Eff. January 1, 2007
Eff. December 1, 2007
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. September 23, 2017.

18 NCAC 12 .0507 Principal's Economic Information Protection Registration Form {#sec-18-ncac-12-.0507 omnilex-key=us-nc-regs-official--title-18--18 NCAC 12 .0507}

A lobbyist shall file an economic information protection registration form together with a copy of the principal's economic information protection request form.

History

Authority G.S. 120C-101(a); 120C-101(b); 132-6(d); 132-9
Temporary Adoption Eff. January 1, 2007
Eff. December 1, 2007
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. September 23, 2017.

18 NCAC 12 .0508 Principal's Economic Information Protection Monthly or Quarterly Report {#sec-18-ncac-12-.0508 omnilex-key=us-nc-regs-official--title-18--18 NCAC 12 .0508}

(a) Pursuant to G.S. 120C-403, a principal shall file a separate monthly or quarterly report related to economic development information for which an economic information protection request has been filed. When filing such a report, the principal shall:

(1) Use the Department's economic information protection request quarterly or monthly report form; and

(2) Provide to the Department a copy of the economic information request form.

(b) Failure to file the information required on a monthly or quarterly report may subject the principal to civil sanctions.

History

Authority G.S. 120C-101(a); 120C-101(b); 132-6(d); 132-9
Temporary Adoption Eff. January 1, 2007
Eff. December 1, 2007
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. September 23, 2017.

18 NCAC 12 .0509 Lobbyist's Economic Information Protection Monthly or Quarterly Report {#sec-18-ncac-12-.0509 omnilex-key=us-nc-regs-official--title-18--18 NCAC 12 .0509}

(a) A lobbyist shall file a separate monthly or quarterly report pursuant to G.S. 120C-402 when engaging in lobbying related to economic development information for which an economic information protection request has been filed. When filing such a report, the lobbyist shall use:

(1) The economic information protection request quarterly or monthly report form; and

(2) Provide to the Department a copy of the principal's economic information protection request form previously filed and currently in effect for that calendar year.

(b) Failure to file the information required on a monthly or quarterly report may subject the lobbyist to civil sanctions.

History

Authority G.S. 120C-101(a); 120C-101(b); 132-6(d); 132-9
Temporary Adoption Eff. January 1, 2007
Eff. December 1, 2007
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. September 23, 2017.

18 NCAC 12 .0510 Principal's Authorization for Lobbying Unrelated to Economic Information Protection Request {#sec-18-ncac-12-.0510 omnilex-key=us-nc-regs-official--title-18--18 NCAC 12 .0510}

If a principal has a lobbyist who engages in lobbying activities unrelated to economic development information for which an economic information protection request has been filed, the principal shall file a Department principal authorization form for each such lobbyist and shall not file a Department economic information protection principal authorization form.

History

Authority G.S. 120C-101(a); 120C-101(b); 132-6(d); 132-9
Eff. December 1, 2007
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. September 23, 2017.

18 NCAC 12 .0511 Lobbyist Registration for Lobbying Unrelated to Economic Information Protection Request {#sec-18-ncac-12-.0511 omnilex-key=us-nc-regs-official--title-18--18 NCAC 12 .0511}

If a principal has a lobbyist(s) who engages in lobbying activities unrelated to economic development information, the principal shall ensure that the lobbyist(s) shall file separate registrations, reports, and supporting documents with the Department for any lobbying for that principal which is not related to the economic development information activity or project described in the principal's economic information protection request form.

History

Authority G.S. 120C-101(a); 120C-101(b); 132-6(d); 132-9
Eff. December 1, 2007
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. September 23, 2017.

18 NCAC 12 .0512 Principal's Documents Unrelated to Economic Information Protection Request {#sec-18-ncac-12-.0512 omnilex-key=us-nc-regs-official--title-18--18 NCAC 12 .0512}

For lobbying not related to economic development information for which economic information protection has been requested, a principal shall file a separate monthly or quarterly report pursuant to G.S. 120C-403 and shall not use the economic information protection quarterly or monthly report forms.

History

Authority G.S. 120C-101(a); 120C-101(b); 132-6(d); 132-9
Eff. December 1, 2007
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. September 23, 2017.

18 NCAC 12 .0513 Lobbyist's Documents Unrelated to Economic Information Protection Request {#sec-18-ncac-12-.0513 omnilex-key=us-nc-regs-official--title-18--18 NCAC 12 .0513}

A lobbyist shall file a separate monthly or quarterly report pursuant to G.S. 120C-402 when engaging in lobbying not related to economic development information for which economic information protection has been requested. When filing such a report, the lobbyist shall not use an economic information protection quarterly or monthly report form.

History

Authority G.S. 120C-101(a); 120C-101(b); 132-6(d); 132-9
Eff. December 1, 2007
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. September 23, 2017.

18 NCAC 12 .0514 Rejection of Non-Economic Designation Information - General {#sec-18-ncac-12-.0514 omnilex-key=us-nc-regs-official--title-18--18 NCAC 12 .0514}

(a) Except as otherwise provided in Section .0500 of this Chapter, the Department shall reject any economic information protection document that contains information that does not relate to economic development information for which economic information protection has been requested.

(b) The Department shall return the document to the filer who shall correct it pursuant to Rules .0515 and .0516 of this Chapter.

History

Authority G.S. 120C-101(a); 120C-101(b); 132-6(d); 132-9
Eff. December 1, 2007
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. September 23, 2017.

18 NCAC 12 .0515 CORRECTION WITHIN SEVEN BUSINESS DAYS OF ECONOMIC INFORMATION PROTECTION FILING CONTAINING INFORMATiON NOT ENTITLED TO ECONOMIC DEVELOPMENT INFORMATION PROTECTION {#sec-18-ncac-12-.0515 omnilex-key=us-nc-regs-official--title-18--18 NCAC 12 .0515}

Within seven business days after notification by the Department that a document submitted with an economic information protection request form includes information that does not relate to the economic development information for which economic information protection has been requested, the principal or lobbyist shall correct the document and deliver the corrected document to the Department.

History

Authority G.S. 120C-101(a); 120C-101(b); 132-6(d); 132-9
Eff. December 1, 2007
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. September 23, 2017.

18 NCAC 12 .0516 Method of Correcting Document Containing Information Not Entitled to Economic Information Protection {#sec-18-ncac-12-.0516 omnilex-key=us-nc-regs-official--title-18--18 NCAC 12 .0516}

Upon notification by the Department that a document shall be corrected by a principal or lobbyist, the principal or lobbyist shall:

(1) Delete the unrelated information from the economic information protection form; and

(2) Ensure that the deleted information unrelated to the economic information protection request is filed according to the rules in this Chapter.

History

Authority G.S. 120C-101(a); 120C-101(b); 132-6(d); 132-9
Eff. December 1, 2007
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. September 23, 2017.

18 NCAC 12 .0517 Rejection of Uncorrected Document Containing Information Not Entitled to Economic Information Protection {#sec-18-ncac-12-.0517 omnilex-key=us-nc-regs-official--title-18--18 NCAC 12 .0517}

(a) If a principal or lobbyist fails to correct a document pursuant to Rules .0515 and .0516 of this Chapter, the Department shall reject the document.

(b) Failure to file the information if required on a monthly or quarterly report may subject the principal or lobbyist to civil sanctions.

History

Authority G.S. 120C-101(a); 120C-101(b); 132-6(d); 132-9
Eff. December 1, 2007
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. September 23, 2017.

18 NCAC 12 .0518 Contents of Economic Information Protection Request {#sec-18-ncac-12-.0518 omnilex-key=us-nc-regs-official--title-18--18 NCAC 12 .0518}

An economic information protection request filed with the Department shall contain the following information:

(1) A description of the economic development activity, economic development initiative, industrial or business recruitment activity;

(2) The complete names of the lobbyist and principal;

(3) The complete name of any firm or organization, if applicable;

(4) If applicable, the complete name and title of the authorized representative of the principal;

(5) The complete mailing and physical addresses of the lobbyist and the principal;

(6) The telephone numbers at which the lobbyist and principal can be reached between 8:00 a.m. and 5:00 p.m. on weekdays;

(7) The email addresses of the principal and the lobbyist;

(8) The complete name of the state or local official who may authorize the disclosure of the confidential information;

(9) The complete title of the state or local authorized government official position held by the official listed in Item (8) of this Rule designated by the principal at the time of filing;

(10) The complete name of the state or local governmental agency;

(11) The complete mailing and physical addresses of the state or local authorized government position;

(12) The telephone numbers at which the state or local official or the person currently occupying the authorized government position can be reached between 8:00 a.m. and 5:00 p.m. on weekdays; and

(13) The email addresses of the state or local official occupying the authorized government official position at the time of filing.

History

Authority G.S. 120C-101(a); 120C-101(b); 132-6(d); 132-9
Temporary Adoption January 1, 2007
Eff. December 1, 2007
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. September 23, 2017.

18 NCAC 12 .0519 Description of the Economic Development Activity Entitled to Protection from Premature Disclosure {#sec-18-ncac-12-.0519 omnilex-key=us-nc-regs-official--title-18--18 NCAC 12 .0519}

The economic information protection request form filed with the Department shall contain a description of the economic development activity, initiative, industrial, or business recruitment activity sufficient for the exercise of the Secretary's authority to determine that the Department's release would constitute a premature disclosure of confidential records pursuant to a public records request or would not constitute a premature disclosure of confidential records pursuant to a public records request.

History

Authority G.S. 120C-101(a); 120C-101(b); 132-6(d); 132-9
Temporary Adoption Eff. January 1, 2007
Eff. December 1, 2007
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. September 23, 2017.

18 NCAC 12 .0520 Identification of Authorized Individual {#sec-18-ncac-12-.0520 omnilex-key=us-nc-regs-official--title-18--18 NCAC 12 .0520}

A principal shall designate and authorize at least one other individual to file a release authorizing the Department to disclose the confidential economic development information and to make it publicly available pursuant to G.S. 120C-220 and 120C-405. The principal shall provide the name, title, address, telephone number and email address of the authorized individual(s).

History

Authority G.S. 120C-101(a); 120C-101(b); 132-6(d); 132-9
Temporary Adoption Eff. January 1, 2007
Eff. December 1, 2007
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. September 23, 2017.

18 NCAC 12 .0521 Designation of Authorized State or Local Government Employee, Official, or Public Servant {#sec-18-ncac-12-.0521 omnilex-key=us-nc-regs-official--title-18--18 NCAC 12 .0521}

A principal shall identify to the Department on the economic development protection request form as required by Rule .0518 of this Chapter at least one State or local government employee, official or public servant ("authorized government official") who:

(1) Holds a position with the responsibility to be:

(a) Involved in or aware of the economic information; and

(b) Knowledgeable about the circumstances that give rise to the need for protection from premature disclosure of the economic development information; and

(2) Has the authority to:

(a) Make a determination as to whether and when a release of records or an announcement of the activity would be appropriate and proper; and

(b) File a request with the Department for release of economic development information or to make an announcement regarding the activity or initiative.

History

Authority G.S. 120C-101(a); 120C-101(b); 132-6(d); 132-9
Temporary Adoption Eff. January 1, 2007
Eff. December 1, 2007
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. September 23, 2017.

18 NCAC 12 .0522 Confirmation Signature {#sec-18-ncac-12-.0522 omnilex-key=us-nc-regs-official--title-18--18 NCAC 12 .0522}

The authorized government official identified pursuant to Rule .0518 of this Chapter shall sign the economic information protection request form.

History

Authority G.S. 120C-101(a); 120C-101(b); 132-6(d); 132-9
Temporary Adoption Eff. January 1, 2007
Eff. December 1, 2007
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. September 23, 2017.

18 NCAC 12 .0523 Verification by Government Official Signature {#sec-18-ncac-12-.0523 omnilex-key=us-nc-regs-official--title-18--18 NCAC 12 .0523}

The signature of the authorized government official on the economic information protection request form verifies that:

(1) The position held by the authorized government official signer meets the criteria set out in Rule .0521 of this Chapter;

(2) The authorized government official confirms that the economic development information qualifies for protection from premature disclosure pursuant to G.S. 120C-101(b) and G.S. 132-6(d); and

(3) Confirms that the signing authorized government official currently has authority to file a request for release or make an announcement pursuant to G.S. 120C-101(b), 120C-405 and G.S. 132-6(d).

History

Authority G.S. 120C-101(a); 120C-101(b); 132-6(d); 132-9
Temporary Adoption Eff. January 1, 2007
Eff. December 1, 2007
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. September 23, 2017.

18 NCAC 12 .0524 Verification by Authorized Official Signature {#sec-18-ncac-12-.0524 omnilex-key=us-nc-regs-official--title-18--18 NCAC 12 .0524}

A principal shall complete the section of the economic information protection request form which sets forth the principal's decision as to whether the authorized government official has the principal's authority to extend the economic information protection status until such time as the requirements for protection of the economic development information from premature disclosure no longer exist even if the principal elects not to submit a principal's authorization for the next calendar year.

History

Authority G.S. 120C-101(a); 120C-101(b); 132-6(d); 132-9
Eff. December 1, 2007
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. September 23, 2017.

18 NCAC 12 .0525 Department Action Upon Receipt of Release or Notification {#sec-18-ncac-12-.0525 omnilex-key=us-nc-regs-official--title-18--18 NCAC 12 .0525}

The Department shall make the previously confidential economic development information publicly available pursuant to G.S. 120C-220, 120C-405 and Chapter 132 of the General Statutes upon a date specified by the principal or upon the receipt of a release from a principal or authorized government official.

History

Authority G.S. 120C-101(a); 120C-101(b); 132-6(d); 132-9
Temporary Adoption Eff. January 1, 2007
Eff. December 1, 2007
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. September 23, 2017.

18 NCAC 12 .0526 Department Action Upon Receipt of Information Indicating Previously Confidential Economic Development Information May No Longer Be Protected from Disclosure {#sec-18-ncac-12-.0526 omnilex-key=us-nc-regs-official--title-18--18 NCAC 12 .0526}

Upon receipt of information that economic development information may no longer be protected from disclosure by the provisions of G.S. 120C-220, G.S. 120C-405 and Chapter 132 of the General Statutes, the Department shall contact both the principal and the authorized government official.

History

Authority G.S. 120C-101(a); 120C-101(b); 132-6(d); 132-9
Eff. December 1, 2007
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. September 23, 2017.

18 NCAC 12 .0527 Principal and Authorized Government Official Response {#sec-18-ncac-12-.0527 omnilex-key=us-nc-regs-official--title-18--18 NCAC 12 .0527}

A principal and the authorized government official shall comply with Rules .0528 and .0529 of this Chapter within 10 business days of receipt of a contact from the Department regarding information that economic development information may no longer be protected from disclosure.

History

Authority G.S. 120C-101(a); 120C-101(b); 132-6(d); 132-9
Eff. December 1, 2007
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. September 23, 2017.

18 NCAC 12 .0528 Confirmation of Announcement by Principal and Authorized Government Official Response {#sec-18-ncac-12-.0528 omnilex-key=us-nc-regs-official--title-18--18 NCAC 12 .0528}

In response to the departmental contact described in Rule .0527 of this Chapter, a principal and authorized government official shall confirm to the Department that:

(1) The State, a unit of local government or the principal has announced a commitment by the principal to expand or locate a specific project in North Carolina; or

(2) The State, a unit of local government or the principal has not announced a commitment by the principal to expand or locate a specific project in North Carolina or a final decision by the principal not to expand or locate a specific project in North Carolina.

History

Authority G.S. 120C-101(a); 120C-101(b); 132-6(d); 132-9
Eff. December 1, 2007
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. September 23, 2017.

18 NCAC 12 .0529 Confirmation That Release Is Authorized {#sec-18-ncac-12-.0529 omnilex-key=us-nc-regs-official--title-18--18 NCAC 12 .0529}

In response to the departmental contact described in Rule .0527 of this Chapter, a principal and authorized government official shall also confirm to the Department that:

(1) The principal has communicated the commitment or decision referred to in Rule .0528 of this Chapter to the State or local government agency involved with the project; or

(2) The principal has not communicated the commitment or decision referred to in Rule .0528 of this Chapter to the State or local government agency involved with the project.

History

Authority G.S. 120C-101(a); 120C-101(b); 132-6(d); 132-9
Eff. December 1, 2007
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. September 23, 2017.

18 NCAC 12 .0530 Conditions When Response to Department Contact Results in Release {#sec-18-ncac-12-.0530 omnilex-key=us-nc-regs-official--title-18--18 NCAC 12 .0530}

The Department shall release and make publicly available pursuant to G.S. 120C-220, 120C-405 and Chapter 132, information previously held confidential when both the principal and authorized government official file a response pursuant to Rule .0527 of this Chapter and the information in the responses confirms that the economic development information no longer meets the statutory criteria for protection from premature disclosure.

History

Authority G.S. 120C-101(a); 120C-101(b); 132-6(d); 132-9
Eff. December 1, 2007
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. September 23, 2017.

18 NCAC 12 .0531 Conditions When Response to Department Contact Results in Continued Protection of Information from Premature Disclosure {#sec-18-ncac-12-.0531 omnilex-key=us-nc-regs-official--title-18--18 NCAC 12 .0531}

The Department shall not release and not make publicly available pursuant to G.S. 120C-220, 120C-405 and Chapter 132 of the General Statutes, information previously held confidential when both the principal and authorized government official file responses pursuant to Rule .0526 through Rule .0529 of this Chapter and the information in the responses confirms that the economic development information continues to meet the statutory criteria for protection from premature disclosure.

History

Authority G.S. 120C-101(a); 120C-101(b); 132-6(d); 132-9
Eff. December 1, 2007
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. September 23, 2017.

18 NCAC 12 .0532 Conditions When Response to Department Contact May Result in Continued Protection of Information from Premature Disclosure {#sec-18-ncac-12-.0532 omnilex-key=us-nc-regs-official--title-18--18 NCAC 12 .0532}

The Department shall take further action to obtain confirmation as to whether information previously held confidential continues to meet the statutory criteria for protection from premature disclosure when:

(1) A principal and the principal's authorized government official submit conflicting responses regarding the status of information protected from premature disclosure; or

(2) Either the principal or authorized government official fails to file a response pursuant to Rule .0528 of this Chapter.

History

Authority G.S. 120C-101(a); 120C-101(b); 132-6(d); 132-9
Eff. December 1, 2007
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. September 23, 2017.

18 NCAC 12 .0533 Secretary of Commerce Designation {#sec-18-ncac-12-.0533 omnilex-key=us-nc-regs-official--title-18--18 NCAC 12 .0533}

(a) A principal may designate the North Carolina Secretary of Commerce or his or her designee as the authorized government official pursuant to this Chapter.

(b) With the consent of the North Carolina Secretary of Commerce, a local government official designated as a principal's authorized government official may delegate to the North Carolina Secretary of Commerce or his or her designee the authority to act as the principal's authorized government official pursuant to this Chapter and to the principal's designation of that local government official.

History

Authority G.S. 120C-101(a); 120C-101(b); 132-6(d); 132-9
Temporary Adoption Eff. January 1, 2007
Eff. December 1, 2007
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. September 23, 2017.

18 NCAC 12 .0534 reserved for future codification {#sec-18-ncac-12-.0534 omnilex-key=us-nc-regs-official--title-18--18 NCAC 12 .0534}

18 NCAC 12 .0535 Secretary of Commerce Default Designation {#sec-18-ncac-12-.0535 omnilex-key=us-nc-regs-official--title-18--18 NCAC 12 .0535}

The failure of a principal to designate to the Department an authorized government official pursuant to Rule .0518 of this Chapter shall constitute designation of the Secretary of Commerce or his or her designee as the principal's authorized government official for all purposes for which such a designation may be made or is required.

History

Authority G.S. 120C-101(a); 120C-101(b); 132-6(d); 132-9
Eff. December 1, 2007
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. September 23, 2017.

18 NCAC 12 .0536 Continuation of Economic Information Protection from Premature Disclosure {#sec-18-ncac-12-.0536 omnilex-key=us-nc-regs-official--title-18--18 NCAC 12 .0536}

A principal shall file a new economic information protection request no later than the 31st day of each December for the next calendar year if the principal seeks continuation of economic information protection.

History

Authority G.S. 120C-101(a); 120C-101(b); 132-6(d); 132-9
Eff. December 1, 2007
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. September 23, 2017.

18 NCAC 12 .0537 Release of Information to the Department of Commerce {#sec-18-ncac-12-.0537 omnilex-key=us-nc-regs-official--title-18--18 NCAC 12 .0537}

The Secretary of State may give the Secretary of the Department of Commerce the names of the entities who have received the economic information protection status if the principal has acknowledged to the Department of the Secretary of State that the principal permits this information to be released to the Department of Commerce for purposes of determining the continuation of the economic information protection status or for the purposes of preventing the premature disclosure of economic information.

History

Authority G.S. 120C-101(a); 120C-101(b); 132-6(d); 132-9
Eff. December 1, 2007
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. September 23, 2017.

18 NCAC 12 .0538 Certification Process Involving the Department of Commerce {#sec-18-ncac-12-.0538 omnilex-key=us-nc-regs-official--title-18--18 NCAC 12 .0538}

On or before December 1 of each year, the Department of the Secretary of State shall provide to the Department of Commerce a list of all of the filings where the principal has acknowledged to the Department of the Secretary of State that the principal permits the Secretary of State to release this information to the Department of Commerce for purposes of determining the continuation of the economic information protection status or for the purposes of preventing the premature disclosure of economic information.

History

Authority G.S. 120C-101(a); 120C-101(b); 132-6(d); 132-9
Eff. December 1, 2007
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. September 23, 2017.

18 NCAC 12 .0539 Department of Commerce Certification of Status {#sec-18-ncac-12-.0539 omnilex-key=us-nc-regs-official--title-18--18 NCAC 12 .0539}

For those economic information documents for which protection has been requested and the Secretary of Commerce or his or her designee has been designated as the authorized government official or default or designated by the local official, the Secretary of Commerce or his or her designee shall confirm to the Secretary of State in writing no later than January 15 of the next year whether the statutory criteria for protection from premature disclosure continue to exist for each project.

History

Authority G.S. 120C-101(a); 120C-101(b); 132-6(d); 132-9
Temporary Adoption Eff. January 1, 2007
Eff. December 1, 2007
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. September 23, 2017.

18 NCAC 12 .0540 Continuation Shall Include Certification {#sec-18-ncac-12-.0540 omnilex-key=us-nc-regs-official--title-18--18 NCAC 12 .0540}

A continuation request shall include certification that the circumstances continue to exist which qualify the filings for economic information protection status pursuant to G.S. 120C-101(b) and 132-6.

History

Authority G.S. 120C-101(a); 120C-101(b); 132-6(d); 132-9
Eff. December 1, 2007
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. September 23, 2017.

18 NCAC 12 .0541 Annual Certification of Economic Protection Designation {#sec-18-ncac-12-.0541 omnilex-key=us-nc-regs-official--title-18--18 NCAC 12 .0541}

An economic information protection status may be continued only by the annual submission of the economic information protection request form or the submission of the economic information protection continuation form.

History

Authority G.S. 120C-101(a); 120C-101(b); 132-6(d); 132-9
Eff. December 1, 2007
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. September 23, 2017.

18 NCAC 12 .0542 Extension of Certification Without Re-Registration {#sec-18-ncac-12-.0542 omnilex-key=us-nc-regs-official--title-18--18 NCAC 12 .0542}

In the event that a principal fails to register for a year following the initial request for economic information protection, the principal may file an economic information protection continuation form which verifies that the information continues to be confidential pursuant to the provisions of G.S. 120C-101(b) and 132-6(d). Such an economic information protection continuation shall be submitted no later than December 31 for the next year.

History

Authority G.S. 120C-101(a); 120C-101(b); 132-6(d); 132-9
Eff. December 1, 2007
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. September 23, 2017.

18 NCAC 12 .0543 Authorized Government Official Can Extend Certification {#sec-18-ncac-12-.0543 omnilex-key=us-nc-regs-official--title-18--18 NCAC 12 .0543}

In the event that a principal fails to register for a year following the initial request for economic information protection and the principal does not file an economic information protection continuation form, the authorized government official may file an economic information protection continuation form. Such an economic information protection continuation form shall be submitted no later than the 15th day of January in the next calendar year.

History

Authority G.S. 120C-101(a); 120C-101(b); 132-6(d); 132-9
Eff. December 1, 2007
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. September 23, 2017.

18 NCAC 12 .0544 Authorized Government Official File Release Form {#sec-18-ncac-12-.0544 omnilex-key=us-nc-regs-official--title-18--18 NCAC 12 .0544}

The principal or authorized government official shall file a release form if the principal has:

(1) Communicated to the State or local government agency involved with the project either:

(a) A commitment to expand or locate the economic development project in this State; or

(b) A decision not to expand or locate the economic development project in this State; and

(2) Made a public announcement as to whether or not the economic development project will be located in this State.

History

Authority G.S. 120C-101(a); 120C-101(b); 132-6(d); 132-9
Temporary Adoption January 1, 2007
Eff. December 1, 2007
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. September 23, 2017.

18 NCAC 12 .0545 Contents of Release {#sec-18-ncac-12-.0545 omnilex-key=us-nc-regs-official--title-18--18 NCAC 12 .0545}

A release of previously confidential economic information shall:

(1) Bear the signature of at least one of the government representatives identified pursuant to Rule .0518 of this Chapter;

(2) Verify that the business has communicated to the State or local government agency involved with the project either:

(a) A commitment to expand or locate the economic development project in this State; or

(b) A decision not to expand or locate the economic development project in this State; and

(3) Verify that a public announcement of the project has been communicated to:

(a) The Secretary of Commerce or his authorized designee; or

(b) The authorized government official who is authorized and has knowledge pursuant to Rule .0521 of this Chapter.

History

Authority G.S. 120C-101(a); 120C-101(b); 132-6(d); 132-9
Temporary Adoption Eff. January 1, 2007
Eff. December 1, 2007
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. September 23, 2017.

18 NCAC 12 .0546 reserved for future codification {#sec-18-ncac-12-.0546 omnilex-key=us-nc-regs-official--title-18--18 NCAC 12 .0546}

18 NCAC 12 .0601 Matters on Which the Registrant Expects to Act as Lobbyist {#sec-18-ncac-12-.0601 omnilex-key=us-nc-regs-official--title-18--18 NCAC 12 .0601}

An individual registering as a lobbyist shall specify on the registration form one or more categories in which the registrant expects to act as lobbyist.

History

Authority G.S. 120C-101(a); 120C-200; 120C-220; 120C-600; 120C-603
Temporary Adoption Eff. January 1, 2007
Eff. December 1, 2007
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. September 23, 2017.

18 NCAC 12 .0602 Reporting of Changes in Matters on Which the Registrant Expects to Act as a Lobbyist {#sec-18-ncac-12-.0602 omnilex-key=us-nc-regs-official--title-18--18 NCAC 12 .0602}

A person registered as a lobbyist shall report any changes in the matters on which the individual expects to act as a lobbyist pursuant to G.S. 120C-200(c). If the lobbyist begins to lobby on a matter not previously identified, the lobbyist shall file an amendment to the registration identifying and noting that change.

History

Authority G.S. 120C-101(a); 120C-200; 120C-220; 120C-600; 120C-603
Temporary Adoption Eff. January 1, 2007
Eff. December 1, 2007
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. September 23, 2017.

18 NCAC 12 .0603 End of Lobbyist and Principal Relationship {#sec-18-ncac-12-.0603 omnilex-key=us-nc-regs-official--title-18--18 NCAC 12 .0603}

If a relationship between a lobbyist and principal ends and the lobbyist files a resignation form with the Department and the principal files a termination form, the Department shall keep both forms on file.

History

Authority G.S. 120C-101(a); 120C-200; 120C-220; 120C-600; 120C-603
Eff. December 1, 2007
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. September 23, 2017.

18 NCAC 12 .0604 Subsequent Registration in Same Year {#sec-18-ncac-12-.0604 omnilex-key=us-nc-regs-official--title-18--18 NCAC 12 .0604}

A subsequent registration with the Department for a lobbyist or principal within the same calendar year shall be deemed a new registration and shall be accompanied by the required fee.

History

Authority G.S. 120C-101(a); 120C-200; 120C-220; 120C-600; 120C-603
Temporary Adoption Eff. January 1, 2007
Eff. December 1, 2007
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. September 23, 2017.

18 NCAC 12 .0605 Resignation {#sec-18-ncac-12-.0605 omnilex-key=us-nc-regs-official--title-18--18 NCAC 12 .0605}

The effective date of a resignation of a lobbyist shall be governed by the rules in Sections .0200 and .0300 of this Chapter.

History

Authority G.S. 120C-101(a); 120C-200; 120C-220; 120C-600; 120C-603
Eff. December 1, 2007
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. September 23, 2017.

18 NCAC 12 .0606 Ending of Lobbyist-Principal Relationship Does Not End Reporting Obligation {#sec-18-ncac-12-.0606 omnilex-key=us-nc-regs-official--title-18--18 NCAC 12 .0606}

Termination of a registration does not end the reporting obligation for any month or quarter in which reportable expenses were made while the person or entity was required to report.

History

Authority G.S. 120C-101(a); 120C-200; 120C-220; 120C-600; 120C-603
Temporary Adoption Eff. January 1, 2007
Eff. December 1, 2007
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. September 23, 2017.

18 NCAC 12 .0701 Lobbyist Disclosure of Identity of Principal to Department {#sec-18-ncac-12-.0701 omnilex-key=us-nc-regs-official--title-18--18 NCAC 12 .0701}

A lobbyist shall identify as his or her principal the person on whose behalf the lobbyist lobbies ("principal in fact") on all documents submitted to the Department.

History

Authority G.S. 120C-101(a); 120C-200; 120C-220; 120C-600; 120C-603
Eff. December 1, 2007
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. September 23, 2017.

18 NCAC 12 .0702 reserved for future codification {#sec-18-ncac-12-.0702 omnilex-key=us-nc-regs-official--title-18--18 NCAC 12 .0702}

18 NCAC 12 .0703 Consequences of Failure to Disclose the Principal in Fact on the Registration Form {#sec-18-ncac-12-.0703 omnilex-key=us-nc-regs-official--title-18--18 NCAC 12 .0703}

A lobbyist's registration shall be void if the lobbyist fails to identify the principal in fact on his or her registration form.

History

Authority G.S. 120C-101(a); 120C-200; 120C-215; 120C-600; 120C-603
Temporary Adoption Eff. January 1, 2007
Eff. December 1, 2007
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. September 23, 2017.

18 NCAC 12 .0704 reserved for future codification {#sec-18-ncac-12-.0704 omnilex-key=us-nc-regs-official--title-18--18 NCAC 12 .0704}

18 NCAC 12 .0705 Lobbyist Identification {#sec-18-ncac-12-.0705 omnilex-key=us-nc-regs-official--title-18--18 NCAC 12 .0705}

Before engaging in lobbying communications or activities with a designated individual, a lobbyist shall:

(1) Communicate or confirm his or her identity to the designated individual; and

(2) Communicate or confirm to the designated individual that he or she is a lobbyist by one or more of the following methods or by a similar declarative method:

(a) Orally making a declarative statement that "I am a lobbyist" spoken in a manner heard and understood by the designated individual;

(b) Stating in a document in bold or typeface at least two points larger than surrounding type or other method, "lobbyist"; or

(3) Identify his or her principal in fact by a method set forth in Rule .0706 through Rule .0708 of this Chapter.

History

Authority G.S. 120C-101(a); 120C-200(e); 120C-220; 120C-600; 120C-603
Eff. December 1, 2007
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. September 23, 2017.

18 NCAC 12 .0706 Disclosure to a Designated Individual of the Identity of the Principal by the Lobbyist for a Single Principal {#sec-18-ncac-12-.0706 omnilex-key=us-nc-regs-official--title-18--18 NCAC 12 .0706}

Before engaging in lobbying communications or activities with a designated individual, a lobbyist representing a single principal shall identify his or her principal by one or more of the following methods or by a method which provides a similar declaration of the identity of the principal in fact:

(1) An oral or written communication:

(a) Using the word "principal"; or

(b) Using the term "lobbyist for"; and

(2) An oral or written communication of the identity of the principal in fact by:

(a) An oral and declarative statement identifying the principal;

(b) The act of supplying a business card with the name of the principal;

(d) The act of placing the words "lobbyist for" and the identity of the principal in correspondence; or

(e) The visible display of a name tag containing the identity of the principal.

History

Authority G.S. 120C-101(a); 120C-200(e); 120C-220; 120C-600; 120C-603
Eff. December 1, 2007
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. September 23, 2017.

18 NCAC 12 .0707 Disclosure to a Designated Individual of the Identity of the Principal by a Lobbyist Who Represents More Than One Principal {#sec-18-ncac-12-.0707 omnilex-key=us-nc-regs-official--title-18--18 NCAC 12 .0707}

Before engaging in lobbying communications or activities with a designated individual, a lobbyist representing more than one principal shall make an affirmative communication of the identity of the specific principal or principals on whose behalf the lobbyist is currently engaging in lobbying communications or activities with a designated individual.

History

Authority G.S. 120C-101(a); 120C-200(e); 120C-220; 120C-600; 120C-603
Eff. December 1, 2007
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. September 23, 2017.

18 NCAC 12 .0708 Contents of Disclosure of the Identity of the Specific Principal(s) for Whom Lobbying by a Lobbyist Who Represents More Than One Principal {#sec-18-ncac-12-.0708 omnilex-key=us-nc-regs-official--title-18--18 NCAC 12 .0708}

When making the disclosure required by Rule .0707 of this Chapter, a lobbyist shall use one or more of the following methods or a method which provides a similar declaration of the identity of the specific principal or principals:

(1) An oral or written communication:

(a) Using the word "principal"; or

(b) Using the term "lobbyist for"; and

(2) An oral or written communication of the identity of the principal in fact by:

(a) An oral declaration stating the identity of the specific principal or principals on whose behalf the lobbyist is currently communicating;

(b) A statement in correspondence identifying the specific principal or principals on whose behalf the lobbyist is currently communicating; or

(c) Placing the words "lobbyist for" and the identity of the specific principal or principals on whose behalf the lobbyist is currently communicating in correspondence.

History

Authority G.S. 120C-101(a); 120C-200(e); 120C-220; 120C-600; 120C-603
Eff. December 1, 2007
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. September 23, 2017.

18 NCAC 12 .0801 Quarterly Report May Include Last Month of Quarter Report {#sec-18-ncac-12-.0801 omnilex-key=us-nc-regs-official--title-18--18 NCAC 12 .0801}

Instead of filing a separate monthly report with the Department for the last month of the quarter, a lobbyist may incorporate that monthly report within the quarterly report.

History

Authority G.S. 120C-101(a); 120C-400; 120C-401; 120C-401(h); 120C-402
Temporary Adoption Eff. January 1, 2007
Eff. December 1, 2007
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. September 23, 2017.

18 NCAC 12 .0802 Quarterly Report May Incorporate Separately Filed Monthly Reports {#sec-18-ncac-12-.0802 omnilex-key=us-nc-regs-official--title-18--18 NCAC 12 .0802}

A lobbyist may incorporate the separately filed monthly reports on the applicable quarterly report form filed with the Department.

History

Authority G.S. 120C-101(a); 120C-400; 120C-401; 120C-401(h); 120C-402
Temporary Adoption Eff. January 1, 2007
Eff. December 1, 2007
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. September 23, 2017.

18 NCAC 12 .0803 Quarterly Report Verification of Monthly Report Information {#sec-18-ncac-12-.0803 omnilex-key=us-nc-regs-official--title-18--18 NCAC 12 .0803}

A lobbyist's signature under oath on a quarterly report verifies that all information on the report regarding any incorporated monthly reports for that quarter and any amendments to the monthly reports is true and correct.

History

Authority G.S. 120C-101(a); 120C-400; 120C-401; 120C-401(h); 120C-402
Temporary Adoption Eff. January 1, 2007
Eff. December 1, 2007
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. September 23, 2017.

18 NCAC 12 .0804 reserved for future codification {#sec-18-ncac-12-.0804 omnilex-key=us-nc-regs-official--title-18--18 NCAC 12 .0804}

18 NCAC 12 .0805 Reporting of Contracts in the Normal Conduct of Daily Life {#sec-18-ncac-12-.0805 omnilex-key=us-nc-regs-official--title-18--18 NCAC 12 .0805}

A lobbyist shall not include on a report filed with the Department those contracts with designated individuals which are available to the public under the same terms in the ordinary course of business.

History

Authority G.S. 120C-101(a); 120C-101(b); 120C-401(h); 120C-402; 120C-403; 120C-600
Temporary Adoption Eff. January 1, 2007
Eff. December 1, 2007
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. September 23, 2017.

18 NCAC 12 .0901 Method of Reporting Compensation {#sec-18-ncac-12-.0901 omnilex-key=us-nc-regs-official--title-18--18 NCAC 12 .0901}

A principal shall report lobbyist compensation using the same method of calculation on each quarterly Department report.

History

Authority G.S. 120C-101(a); 120C-101(b); 120C-400; 120C-401(h); 120C-403(b)(3); 120C-405
Temporary Adoption Eff. January 1, 2007
Eff. December 1, 2007
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. September 23, 2017.

18 NCAC 12 .0902 Comprehensive Reporting {#sec-18-ncac-12-.0902 omnilex-key=us-nc-regs-official--title-18--18 NCAC 12 .0902}

A principal shall report to the Department:

(1) What the principal actually paid to each lobbyist;

(2) The amount of compensation the principal owes the lobbyist for that quarterly period and any other money that accrued or was paid for services provided by the lobbyist during that period; and

(3) Any other compensation of the lobbyist by the principal.

History

Authority G.S. 120C-101(a); 120C-401(h); 120C-403(b)
Eff. December 1, 2007
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. September 23, 2017.

18 NCAC 12 .0903 Separate Lobbyist Compensation Reports May Be Included on Same Form {#sec-18-ncac-12-.0903 omnilex-key=us-nc-regs-official--title-18--18 NCAC 12 .0903}

If a principal has more than one lobbyist, the principal may use one report to the Department for all lobbyists.

History

Authority G.S. 120C-101(a); 120C-401(h); 120C-403(b)
Temporary Adoption Eff. January 1, 2007
Eff. December 1, 2007
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. September 23, 2017.

18 NCAC 12 .0904 Lobbyist Compensation Shall Be Separately Reported {#sec-18-ncac-12-.0904 omnilex-key=us-nc-regs-official--title-18--18 NCAC 12 .0904}

History

Status: repealed
Authority G.S. 120C-101(a); 120C-401(h); 120C-403; S.L. 2011-393, s. 2
Temporary Adoption Eff. January 1, 2007
Eff. December 1, 2007
Repealed Eff. February 1, 2013.

18 NCAC 12 .0905 Quarterly Report May Include Last Month of Quarter Report {#sec-18-ncac-12-.0905 omnilex-key=us-nc-regs-official--title-18--18 NCAC 12 .0905}

Instead of filing the monthly report with the Department for the last month of the quarter, a principal may incorporate that monthly report within the quarterly report.

History

Authority G.S. 120C-101(a); 120C-401(h); 120C-403
Temporary Adoption Eff. January 1, 2007
Eff. December 1, 2007
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. September 23, 2017.

18 NCAC 12 .0906 Quarterly Report May Incorporate Separately Filed Monthly Reports by Reference {#sec-18-ncac-12-.0906 omnilex-key=us-nc-regs-official--title-18--18 NCAC 12 .0906}

Instead of entering separately filed monthly report information on the quarterly report form, a principal may incorporate the separately filed monthly reports by reference in the applicable quarterly report form filed with the Department.

History

Authority G.S. 120C-101(a); 120C-401(h); 120C-403
Temporary Adoption Eff. January 1, 2007
Eff. December 1, 2007
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. September 23, 2017.

18 NCAC 12 .0907 Quarterly Report Verification of Monthly Report Information {#sec-18-ncac-12-.0907 omnilex-key=us-nc-regs-official--title-18--18 NCAC 12 .0907}

A principal's signature under oath on a quarterly report verifies that all information on the report regarding any incorporated monthly reports for that quarter and any amendments to the monthly reports is true and correct.

History

Authority G.S. 120C-101(a); 120C-401(h); 120C-403
Temporary Adoption Eff. January 1, 2007
Eff. December 1, 2007
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. September 23, 2017.

18 NCAC 12 .0908 reserved for future codification {#sec-18-ncac-12-.0908 omnilex-key=us-nc-regs-official--title-18--18 NCAC 12 .0908}

18 NCAC 12 .0909 reserved for future codification {#sec-18-ncac-12-.0909 omnilex-key=us-nc-regs-official--title-18--18 NCAC 12 .0909}

18 NCAC 12 .0910 Reporting of Contracts in the Normal Conduct of Daily Life {#sec-18-ncac-12-.0910 omnilex-key=us-nc-regs-official--title-18--18 NCAC 12 .0910}

A principal shall not include on a report filed with the Department those contracts with designated individuals which are available to the public under the same terms in the ordinary course of business.

History

Authority G.S. 120C-101(a); 120C-400(1); 120C-400(2); 120C-401(c); 120C-401(h); 120C-403(b)(1)
Temporary Adoption Eff. January 1, 2007
Eff. December 1, 2007
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. September 23, 2017.

18 NCAC 12 .1001 Solicitor Registration {#sec-18-ncac-12-.1001 omnilex-key=us-nc-regs-official--title-18--18 NCAC 12 .1001}

History

Status: expired
Authority G.S. 120C-101(a); 120C-401(h); 120C-404; 120C-600
Eff. December 1, 2007
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. September 23, 2017
Expired Eff. May 1, 2025 pursuant to G.S. 150B-21.3A.

18 NCAC 12 .1002 When Registration with the Department Is Required {#sec-18-ncac-12-.1002 omnilex-key=us-nc-regs-official--title-18--18 NCAC 12 .1002}

History

Status: expired
Authority G.S. 120C-101(a); 120C-401(h); 120C-404; 120C-600
Eff. December 1, 2007
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. September 23, 2017
Expired Eff. May 1, 2025 pursuant to G.S. 150B-21.3A.

18 NCAC 12 .1003 Calculation of Production Costs in Order to Determine Registration and Reporting Applicability {#sec-18-ncac-12-.1003 omnilex-key=us-nc-regs-official--title-18--18 NCAC 12 .1003}

History

Status: expired
Authority G.S. 120C-101(a); 120C-401(h); 120C-404; 120C-600
Eff. December 1, 2007
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. September 23, 2017
Expired Eff. May 1, 2025 pursuant to G.S. 150B-21.3A.

18 NCAC 12 .1004 Calculation of Transmission Costs in Order to Determine Registration and Reporting Applicability {#sec-18-ncac-12-.1004 omnilex-key=us-nc-regs-official--title-18--18 NCAC 12 .1004}

History

Status: expired
Authority G.S. 120C-101(a); 120C-401(h); 120C-404; 120C-600
Eff. December 1, 2007
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. September 23, 2017
Expired Eff. May 1, 2025 pursuant to G.S. 150B-21.3A.

18 NCAC 12 .1005 Calculation of Event Costs in Order to Determine Registration and Reporting Applicability {#sec-18-ncac-12-.1005 omnilex-key=us-nc-regs-official--title-18--18 NCAC 12 .1005}

History

Status: expired
Authority G.S. 120C-101(a); 120C-401(h); 120C-404; 120C-600
Eff. December 1, 2007
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. September 23, 2017
Expired Eff. May 1, 2025 pursuant to G.S. 150B-21.3A.

18 NCAC 12 .1006 Reporting for Remainder of Year of Registration as Solicitor {#sec-18-ncac-12-.1006 omnilex-key=us-nc-regs-official--title-18--18 NCAC 12 .1006}

History

Status: expired
Authority G.S. 120C-101(a); 120C-401(h); 120C-404; 120C-600
Eff. December 1, 2007
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. September 23, 2017
Expired Eff. May 1, 2025 pursuant to G.S. 150B-21.3A.

18 NCAC 12 .1007 Report Contents {#sec-18-ncac-12-.1007 omnilex-key=us-nc-regs-official--title-18--18 NCAC 12 .1007}

History

Status: expired
Authority G.S. 120C-101(a); 120C-401(h); 120C-404; 120C-600
Eff. December 1, 2007
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. September 23, 2017
Expired Eff. May 1, 2025 pursuant to G.S. 150B-21.3A.

18 NCAC 12 .1008 Contracts Reportable {#sec-18-ncac-12-.1008 omnilex-key=us-nc-regs-official--title-18--18 NCAC 12 .1008}

History

Status: expired
Authority G.S. 120C-101(a); 120C-401(h); 120C-404; 120C-600
Eff. December 1, 2007
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. September 23, 2017
Expired Eff. May 1, 2025 pursuant to G.S. 150B-21.3A.

18 NCAC 12 .1101 reserved for future codification {#sec-18-ncac-12-.1101 omnilex-key=us-nc-regs-official--title-18--18 NCAC 12 .1101}

18 NCAC 12 .1201 Reporting of Confidential Information {#sec-18-ncac-12-.1201 omnilex-key=us-nc-regs-official--title-18--18 NCAC 12 .1201}

A lobbyist, principal, solicitor or other person required to file with the Department shall not report information to the Department that is confidential pursuant to State or federal law, except as otherwise provided by law or as set forth in Section .0500 or Rule .1202 through Rule .1204 of this Chapter.

History

Authority G.S. 120C-101(a); 120C-101(b); 120C-401(h); 120C-600; 120C-603
Eff. December 1, 2007
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. September 23, 2017.

18 NCAC 12 .1202 General Requirements Relating to Protective Order Payees and Address Confidentiality Program Participants {#sec-18-ncac-12-.1202 omnilex-key=us-nc-regs-official--title-18--18 NCAC 12 .1202}

(a) A person who requests that information be held confidential ("confidentiality request") by the Department pursuant to G.S. 120C-401 shall make the request prior to or at the time of submission to the Department of such information.

(b) A person who makes a "confidentiality request" to the Department pursuant to G.S. 120C-401 shall include a cover sheet marked: "Confidentiality Requested" with any documents submitted.

History

Authority G.S. 120C-101(a); 120C-101(b); 120C-401(h); 120C-600
Temporary Adoption Eff. January 1, 2007
Eff. December 1, 2007
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. September 23, 2017.

18 NCAC 12 .1203 Confidentiality Request Contents {#sec-18-ncac-12-.1203 omnilex-key=us-nc-regs-official--title-18--18 NCAC 12 .1203}

The following information shall be included with a confidentiality request to the Department pursuant to G.S. 120C-401:

(1) Identification of all documents submitted which contain information to which the confidentiality request applies;

(2) Identification of any attachments to documents submitted which contain information to which a confidentiality request applies; and

(3) A copy of either:

(a) The protective order pursuant to Chapter 50B of the General Statutes which orders that a payee's actual address be kept confidential; or

(b) The Address Confidentiality Program authorization card issued to the payee by the Attorney General under G.S. 15C-8.

History

Authority G.S. 120C-101(a); 120C-101(b); 120C-401(h); 120C-600
Temporary Adoption Eff. January 1, 2007
Eff. December 1, 2007
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. September 23, 2017.

18 NCAC 12 .1204 Disclosure of Confidential Information in G.s. 120c-401 Filings for Which There Is No Confidentiality Request {#sec-18-ncac-12-.1204 omnilex-key=us-nc-regs-official--title-18--18 NCAC 12 .1204}

(a) Unless the provisions of paragraph (b) of this Rule apply, the Department shall disclose information for which there is not a confidentiality request presented to the Department pursuant to G.S. 120C-401 before or at the time documents are submitted to the Department.

(b) If the Department has not already made a document public and a confidentiality request pursuant to G.S. 120C-401 is submitted, the Department shall hold the covered information confidential as requested.

(c) A payee address designated as confidential pursuant to a G.S. 50B order and pursuant to G.S. 120C-401(h) remains confidential until the Department receives:

(1) A signed, notarized request from the payee to remove the confidentiality designation; or

(2) A copy of a court order directing removal of confidential address status.

(d) A payee address designated as confidential pursuant to the Address Confidentiality Program under Chapter 15C of the General Statutes and pursuant to G.S. 120C-401(h) remains confidential until the Department receives:

(1) A signed, notarized request from the payee to remove the confidentiality designation; or

(2) A written notification from the Attorney General issued pursuant to Chapter 15C modifying the payee's address under the program or canceling the payee's participation in the program.

History

Authority G.S. 120C-101(a); 120C-101(b); 120C-401(h); 120C-600
Temporary Adoption Eff. January 1, 2007
Eff. December 1, 2007
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. September 23, 2017.

18 NCAC 12 .1205 reserved for future codification {#sec-18-ncac-12-.1205 omnilex-key=us-nc-regs-official--title-18--18 NCAC 12 .1205}

18 NCAC 12 .1301 General Requirements {#sec-18-ncac-12-.1301 omnilex-key=us-nc-regs-official--title-18--18 NCAC 12 .1301}

A lobbyist, lobbyist principal, solicitor, or liaison personnel required or permitted to file a document with the Department shall retain copies of all documents, forms, information and supporting documentation related to the submissions and underlying activities for a period of three years after the date on which the record was made or the document was submitted to the Department. Note: For example, if invitations or attendee lists are utilized to prepare the filing, they would be supporting documentation for a monthly or quarterly report.

History

Authority G.S. 120C-101(a); 120C-200; 120C-400; 120C-600; 120C-603; 120C-800
Temporary Adoption Eff. January 1, 2007
Eff. December 1, 2007
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. September 23, 2017.

18 NCAC 12 .1302 Record Retention Requirement When Investigation Is Open {#sec-18-ncac-12-.1302 omnilex-key=us-nc-regs-official--title-18--18 NCAC 12 .1302}

If a lobbyist, lobbyist principal, solicitor, or liaison personnel who is required or permitted to file a document with the Department knows or has reason to believe that an official investigation or inquiry has been initiated for any reason related to lobbying, solicitation, or a document required or permitted to be filed with the Department, the person or entity shall preserve and maintain all records and supporting documentation related to or associated with the lobbying, solicitation or document required or permitted to be filed with the Department pursuant to 18 NCAC 12 .1303.

History

Authority G.S. 120C-101(a); 120C-101(b); 120C-200; 120C-206; 120C-207; 120C-215; 120C-400; 120C-401; 120C-402; 120C-403; 120C-404; 120C-600; 120C-603; 120C-800
Temporary Adoption Eff. January 1, 2007
Eff. December 1, 2007
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. September 23, 2017.

A lobbyist, lobbyist principal, solicitor, or liaison personnel required or permitted to file a document with the Department subject to Rule .1302 of this Chapter shall maintain such records until three years from the later of:

(1) Receipt of notice that the investigation has been closed and that no further action will be taken by the investigating authority and no other related investigation or inquiry is open; or

(2) Termination or closure of any judicial or quasi-judicial proceeding related to the investigation or inquiry.

History

Authority G.S. 120C-101(a); 120C-101(b); 120C-200; 120C-206; 120C-207; 120C-215; 120C-400; 120C-401; 120C-402; 120C-403; 120C-404; 120C-600; 120C-603; 120C-800
Temporary Adoption Eff. January 1, 2007
Eff. December 1, 2007
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. September 23, 2017.

18 NCAC 12 .1304 Requirement for Original or Equivalent {#sec-18-ncac-12-.1304 omnilex-key=us-nc-regs-official--title-18--18 NCAC 12 .1304}

A lobbyist, lobbyist principal, solicitor, or liaison personnel required or permitted to file a document with the Department, shall retain the information in the original form in which the information was created, or in any other form that accurately captures and retains information contained in the original form in which the information was created, including all meta-data or other information related to the properties or history of the document.

History

Authority G.S. 120C-101(a); 120C-101(b); 120C-200; 120C-206; 120C-207; 120C-215; 120C-400; 120C-401; 120C-402; 120C-403; 120C-404; 120C-600; 120C-603; 120C-800
Temporary Adoption Eff. January 1, 2007
Eff. December 1, 2007
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. September 23, 2017.

18 NCAC 12 .1305 Lobbyist's Compensation Records {#sec-18-ncac-12-.1305 omnilex-key=us-nc-regs-official--title-18--18 NCAC 12 .1305}

An individual registered as a lobbyist shall maintain for three years a record of all fees and compensation received from his or her principal(s), including but not limited to compensation paid for professional, expert, or consulting or any combination of such services.

History

Authority G.S. 120C-101(a); 120C-101(b); 120C-200; 120C-206; 120C-207; 120C-400; 120C-401; 120C-402; 120C-403; 120C-600; 120C-603; 120C-800
Eff. December 1, 2007
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. September 23, 2017.

18 NCAC 12 .1306 Principal's Records of Lobbyist's Compensation {#sec-18-ncac-12-.1306 omnilex-key=us-nc-regs-official--title-18--18 NCAC 12 .1306}

A principal shall maintain a record for three years of all fees or compensation including but not limited to compensation paid to each lobbyist for professional, consulting, or expert services or any combination of such services.

History

Authority G.S. 120C-101(a); 120C-101(b); 120C-200; 120C-206; 120C-207; 120C-400; 120C-401; 120C-402; 120C-403; 120C-600; 120C-603; 120C-800
Eff. December 1, 2007
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. September 23, 2017.

A principal shall maintain its records such that the Department can determine the method of calculation for reportable expenditures contained in monthly and quarterly reports.

History

Authority G.S. 120C-101(a); 120C-101(b); 120C-200; 120C-206; 120C-207; 120C-400; 120C-401; 120C-402; 120C-403; 120C-600; 120C-603; 120C-800
Eff. December 1, 2007
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. September 23, 2017.

A lobbyist shall maintain his or her records and any underlying data for information contained in monthly and quarterly reports such that the Department can determine the method of calculation.

History

Authority G.S. 120C-101(a); 120C-101(b); 120C-200; 120C-206; 120C-207; 120C-400; 120C-401; 120C-402; 120C-403; 120C-600; 120C-603; 120C-800
Eff. December 1, 2007
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. September 23, 2017.

History

Status: expired
Authority G.S. 120C-101(a); 120C-101(b); 120C-200; 120C-215; 120C-400; 120C-401; 120C-404; 120C-600; 120C-603; 120C-800
Eff. December 1, 2007
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. September 23, 2017
Expired Eff. May 1, 2025 pursuant to G.S. 150B-21.3A.

18 NCAC 12 .1310 PRINCIPAL'S MAINTENANCE OF RECORDS REgarding ALLOCATION OF LOBBYING AND NON-LOBBYING COMPENSATION {#sec-18-ncac-12-.1310 omnilex-key=us-nc-regs-official--title-18--18 NCAC 12 .1310}

A principal shall maintain records such that the Department can determine the allocation of compensation for lobbying and non-lobbying compensation paid to each lobbyist.

History

Authority G.S. 120C-101(a); 120C-101(b); 120C-200; 120C-206; 120C-207; 120C-400; 120C-401; 120C-402; 120C-403; 120C-600; 120C-603; 120C-800
Eff. December 1, 2007
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. September 23, 2017.

18 NCAC 12 .1311 LOBBYIST MAINTENANCE OF RECORDS REgarding ALLOCATION OF LOBBYING AND NON-LOBBYING COMPENSATION {#sec-18-ncac-12-.1311 omnilex-key=us-nc-regs-official--title-18--18 NCAC 12 .1311}

A lobbyist shall maintain records such that the Department can determine the allocation of the compensation for lobbying and non-lobbying compensation received from a principal.

History

Authority G.S. 120C-101(a); 120C-101(b); 120C-200; 120C-206; 120C-207; 120C-400; 120C-401; 120C-402; 120C-403; 120C-600; 120C-603; 120C-800
Eff. December 1, 2007
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. September 23, 2017.

18 NCAC 12 .1312 Liaison's Records {#sec-18-ncac-12-.1312 omnilex-key=us-nc-regs-official--title-18--18 NCAC 12 .1312}

A liaison shall maintain records pursuant to his or her employing entity's State records retention policy.

History

Authority G.S. 120C-101(a); 120C-101(b); 120C-200; 120C-400; 120C-401; 120C-402; 120C-600; 120C-800; 132-8
Eff. December 1, 2007
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. September 23, 2017.

18 NCAC 12 .1313 RECORDS OF FILERS PURSUANT TO G.S. 120C-800(a) OR G.S. 120C-800(c) {#sec-18-ncac-12-.1313 omnilex-key=us-nc-regs-official--title-18--18 NCAC 12 .1313}

Persons who are permitted or required to file with the Department pursuant to G.S. 120C-800(a) or G.S. 120C-800(c) shall comply with the requirements of this Section.

History

Authority G.S. 120C-101(a); 120C-400; 120C-600; 120C-603; 120C-800
Temporary Adoption Eff. January 1, 2007
Eff. December 1, 2007
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. September 23, 2017.

18 NCAC 12 .1314 RECORD RETENTION BY FILERS PURSUANT TO G.S. 120C-800(a) OR 120C-800(c) REQUIREMENT WHEN AN INVESTIGATION IS OPEN {#sec-18-ncac-12-.1314 omnilex-key=us-nc-regs-official--title-18--18 NCAC 12 .1314}

Persons permitted or required to file a document with the Department pursuant to G.S. 120C-800(a) or G.S. 120C-800(c) subject to Rule .1313 of this Chapter shall maintain such records until three years from the later of:

(1) Receipt of notice that the investigation has been closed and that no further action will be taken by the investigating authority and no other related investigation or inquiry is open; or

(2) Termination or closure of any judicial or quasi-judicial proceeding related to the investigation or inquiry.

History

Authority G.S. 120C-101(a); 120C-101(b); 120C-200; 120C-206; 120C-207; 120C-215; 120C-400; 120C-401; 120C-402; 120C-403; 120C-404; 120C-600; 120C-603; 120C-800
Temporary Adoption Eff. January 1, 2007
Eff. December 1, 2007
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. September 23, 2017.

Persons who are permitted or required to file with the Department pursuant to G.S. 120C-800(a) or G.S. 120C-800(c) subject to Rule .1313 of this Chapter shall maintain such records until three years from the later of:

(1) Receipt of notice that the investigation has been closed and that no further action will be taken by the investigating authority and no other related investigation or inquiry is open; or

(2) Termination or closure of any judicial or quasi-judicial proceeding related to the investigation or inquiry.

History

Authority G.S. 120C-101(a); 120C-101(b); 120C-200; 120C-206; 120C-207; 120C-215; 120C-400; 120C-401; 120C-402; 120C-403; 120C-404; 120C-600; 120C-603; 120C-800
Temporary Adoption Eff. January 1, 2007
Eff. December 1, 2007
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. September 23, 2017.

18 NCAC 12 .1316 REQUIREMENT FOR ORIGINAL OR EQUIVALENT FOR PERSONS WHO ARE REQUIRED OR PERMITTED AND DID FILE PURSUANT TO G.S. 120C-800(a) OR G.S. 120C-800(c) {#sec-18-ncac-12-.1316 omnilex-key=us-nc-regs-official--title-18--18 NCAC 12 .1316}

Persons who are permitted or required to file a document with the Department pursuant to G.S. 120C-800(a) or G.S. 120C-800(c), shall retain the information in the original form in which the information was created, or in any other form that accurately captures and retains information contained in the original form in which the information was created, including all meta-data or other information related to the properties or history of the document.

History

Authority G.S. 120C-101(a); 120C-101(b); 120C-600; 120C-603; 120C-800
Temporary Adoption Eff. January 1, 2007
Eff. December 1, 2007
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. September 23, 2017.

18 NCAC 12 .1317 RECORDS OF PERSONS PERMITTED TO FILE PURSUANT TO G.S. 120C-800(b) OR G.S. 120C-800(d) {#sec-18-ncac-12-.1317 omnilex-key=us-nc-regs-official--title-18--18 NCAC 12 .1317}

Persons permitted to file and who did file documents with the Department pursuant to G.S. 120C-800(b) or G.S. 120C-800(d) shall maintain records pursuant to this Section.

History

Authority G.S. 120C-101(a); 120C-400; 120C-600; 120C-603; 120C-800
Temporary Adoption Eff. January 1, 2007
Eff. December 1, 2007
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. September 23, 2017.

18 NCAC 12 .1318 RECORD RETENTION REQUIREMENT OF FILERS PURSUANT TO G.S. 120C-800(b) OR 120C-800(d) WHEN AN INVESTIGATION IS OPEN {#sec-18-ncac-12-.1318 omnilex-key=us-nc-regs-official--title-18--18 NCAC 12 .1318}

Persons permitted to file a document and who did file a document with the Department pursuant to G.S. 120C-800(b) or G.S. 120C-800(d) subject to Rule .1317 of this Chapter, shall maintain such records until the earlier of the following:

(1) The Department's jurisdiction over the person ceases; or

(2) Three years from the later of:

(a) Receipt of notice that the investigation has been closed and that no further action will be taken by the investigating authority and no other related investigation or inquiry is open; or

(b) Termination or closure of any judicial or quasi-judicial proceeding related to the investigation or inquiry.

History

Authority G.S. 120C-101(a); 120C-101(b); 120C-600; 120C-603; 120C-800
Temporary Adoption Eff. January 1, 2007
Eff. December 1, 2007
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. September 23, 2017.

Persons who are required to file with the Department and did file pursuant to G.S. 120C-800(b) or G.S. 120C-800(d) subject to Rule .1317 of this Chapter shall maintain such records until the earlier of the following:

(1) Department ceases to exercise jurisdiction over the records; or

(2) Three years from the later of:

(a) Receipt of notice that the investigation has been closed and that no further action will be taken by the investigating authority and no other related investigation or inquiry is open; or

(b) Termination or closure of any judicial or quasi-judicial proceeding related to the investigation or inquiry.

History

Authority G.S. 120C-101(a); 120C-101(b); 120C-200; 120C-206; 120C-207; 120C-215; 120C-400; 120C-401; 120C-402; 120C-403; 120C-404; 120C-600; 120C-603; 120C-800
Temporary Adoption Eff. January 1, 2007
Eff. December 1, 2007
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. September 23, 2017.

18 NCAC 12 .1320 REQUIREMENT FOR ORIGINAL OR EQUIVALENT FOR PERSONS WHO ARE PERMITTED TO FILE AND DID FILE PURSUANT TO G.S. 120C-800(b) OR G.S. 120C-800(d) {#sec-18-ncac-12-.1320 omnilex-key=us-nc-regs-official--title-18--18 NCAC 12 .1320}

Persons who are permitted to file and did file with the Department pursuant to G.S. 120C-800(b) or G.S. 120C-800(d), shall retain the information in the original form in which the information was created, or in any other form that accurately captures and retains information contained in the original form in which the information was created, including all meta-data or other information related to the properties or history of the document.

History

Authority G.S. 120C-101(a); 120C-800
Temporary Adoption Eff. January 1, 2007
Eff. December 1, 2007
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. September 23, 2017.

18 NCAC 12 .1401 Furnishing Lobbyist Lists to Designated Individuals {#sec-18-ncac-12-.1401 omnilex-key=us-nc-regs-official--title-18--18 NCAC 12 .1401}

The Department may furnish lobbyist and principal lists to designated individuals by:

(1) Electronically furnishing a copy to the ethics liaison or head of the employing entity, board or commission for which a designated individual has been designated and for whom the Department has no current email address and requesting that it be forwarded to the designated individual; or

(2) Electronically furnishing a website link to all designated individuals for accessing an electronic copy of the lobbyist and principal lists.

History

Authority G.S. 120C-101(a); 120C-101(b); 120C-200; 120C-220
Temporary Adoption Eff. January 1, 2007
Eff. December 1, 2007
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. September 23, 2017.

18 NCAC 12 .1402 reserved for future codification {#sec-18-ncac-12-.1402 omnilex-key=us-nc-regs-official--title-18--18 NCAC 12 .1402}

18 NCAC 12 .1403 Rejection of Electronically Furnished List {#sec-18-ncac-12-.1403 omnilex-key=us-nc-regs-official--title-18--18 NCAC 12 .1403}

If the email system of a designated person rejects a lobbyist list furnished by email, the Department may provide the list to the ethics liaison or agency head of the employing entity, board or for which a designated individual has been designated.

History

Authority G.S. 120C-101(a); 120C-101(b); 120C-200; 120C-220
Temporary Adoption Eff. January 1, 2007
Eff. December 1, 2007
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. September 23, 2017.

18 NCAC 12 .1501 General Requirements {#sec-18-ncac-12-.1501 omnilex-key=us-nc-regs-official--title-18--18 NCAC 12 .1501}

History

Status: expired
Authority G.S. 120C-101(a); 120C-401(h); 120C-600
Temporary Adoption Eff. January 1, 2007
Temporary Adoption Expired October 13, 2007.

18 NCAC 12 .1502 Confidentiality Request Contents {#sec-18-ncac-12-.1502 omnilex-key=us-nc-regs-official--title-18--18 NCAC 12 .1502}

History

Status: expired
Authority G.S. 120C-101(a); 120C-401(h); 120C-600
Temporary Adoption Eff. January 1, 2007
Temporary Adoption Expired October 13, 2007.

18 NCAC 12 .1503 Disclosure of Confidential Information {#sec-18-ncac-12-.1503 omnilex-key=us-nc-regs-official--title-18--18 NCAC 12 .1503}

History

Status: expired
Authority G.S. 120C-101(a); 120C-401(h); 120C-600
Temporary Adoption Eff. January 1, 2007
Temporary Adoption Expired October 13, 2007.

18 NCAC 12 .1504 Confidentiality of Investigative Records {#sec-18-ncac-12-.1504 omnilex-key=us-nc-regs-official--title-18--18 NCAC 12 .1504}

History

Status: expired
Authority G.S. 120C-101(a); 120C-401(h); 120C-600
Temporary Adoption Eff. January 1, 2007
Temporary Adoption Expired October 13, 2007.

18 NCAC 12 .1601 General Requirements {#sec-18-ncac-12-.1601 omnilex-key=us-nc-regs-official--title-18--18 NCAC 12 .1601}

History

Status: expired
Authority G.S. 120C-101(a); 120C-603
Temporary Adoption Eff. January 1, 2007
Temporary Adoption Expired October 13, 2007.

Chapter 13 State Franchise For Cable Television Service

18 NCAC 13 .0101 Scope {#sec-18-ncac-13-.0101 omnilex-key=us-nc-regs-official--title-18--18 NCAC 13 .0101}

The rules in this Chapter implement Article 42 of Chapter 66 of the General Statutes.

History

Authority G.S. 55D-5; 55D-10; 66-354(a)
Temporary Adoption Eff. January 1, 2007
Eff. November 1, 2007
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. December 20, 2015.

18 NCAC 13 .0102 Definitions {#sec-18-ncac-13-.0102 omnilex-key=us-nc-regs-official--title-18--18 NCAC 13 .0102}

The following terms and definitions apply to the rules in this Chapter:

(1) "Act" means Article 42 of Chapter 66 of the North Carolina General Statutes entitled "State Franchise for Cable Television Service";

(2) "Correspond" means to conform to or be obviously similar to, although not agreeing in every detail;

(3) "Department" means the Department of the Secretary of State;

(4) "Filed" means received by the Department and filed pursuant to G.S. 55D-15 and this Chapter;

(5) "Filer" means a person submitting a filing pursuant to the Act and this Chapter;

(6) "Filing" and "record" mean those forms, reports, attachments and information submitted in paper or electronic form; and

(7) "Form" means a form or report promulgated by the Department and required or permitted to be filed pursuant to the Act.

History

Authority G.S. 55D-5; 55D-10; 66-354(a)
Temporary Adoption Eff. January 1, 2007
Eff. November 1, 2007
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. December 20, 2015.

18 NCAC 13 .0103 Time {#sec-18-ncac-13-.0103 omnilex-key=us-nc-regs-official--title-18--18 NCAC 13 .0103}

Time periods are calculated according to the provisions of G.S. 1A-1, Rule 6.

History

Authority G.S. 1A-1, Rule 6; 55D-5; 55D-10(b)(7); 66-354(a)
Temporary Adoption Eff. January 1, 2007
Eff. November 1, 2007
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. December 20, 2015.

18 NCAC 13 .0201 Filing Locations and Methods {#sec-18-ncac-13-.0201 omnilex-key=us-nc-regs-official--title-18--18 NCAC 13 .0201}

Each required filing must be submitted to and received by the Department using one of the following methods:

(1) By United States mail at the following address: Department of the Secretary of State, P.O. Box 29622, Raleigh, NC 27626-0622.

(2) In person or by a designated delivery service authorized pursuant to G.S. 1A-1, Rule 04 at the following street address: Secretary of State's Office, 2 South Salisbury Street, Raleigh, NC 27601-2903.

History

Authority G.S. 1A-1, Rule 4; 55D-5; 55D-10; 66-354(a)
Temporary Adoption Eff. January 1, 2007
Eff. November 1, 2007
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. December 20, 2015.

18 NCAC 13 .0202 Filing Using Department's Forms {#sec-18-ncac-13-.0202 omnilex-key=us-nc-regs-official--title-18--18 NCAC 13 .0202}

(a) Filers shall use forms promulgated by the Department.

(b) For each filing, a filer shall submit an original consisting of:

(1) A completed and signed form;

(2) A map which complies with Section .0400 of this Chapter, if the filing of a map is required;

(3) Any attachments.

History

Authority G.S. 55D-5; 55D-10; 66-354(a)
Temporary Adoption Eff. January 1, 2007
Eff. November 1, 2007
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. December 20, 2015.

18 NCAC 13 .0203 Form Completion Requirements {#sec-18-ncac-13-.0203 omnilex-key=us-nc-regs-official--title-18--18 NCAC 13 .0203}

(a) All information requested on a form shall be completed by the filer whether requested by means of a block to be marked or a line to be completed.

(b) Nothwithstanding the requirements of Paragraph (a) of this Rule, if the filer's mailing address is the same as the filer's physical address, the filer may leave the mailing address question or item blank.

(c) A form is not complete unless it complies with all other applicable filing requirements in this Chapter and Article 2 of Chapter 55D of the General Statutes.

History

Authority G.S. 55D-5; 55D-10; 55D-15; 66-354(a)
Temporary Adoption Eff. January 1, 2007
Eff. November 1, 2007
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. December 20, 2015.

18 NCAC 13 .0204 Filing Submission Date and Time {#sec-18-ncac-13-.0204 omnilex-key=us-nc-regs-official--title-18--18 NCAC 13 .0204}

A filing is submitted on the day it is received in paper form by the Department before 5:00 p.m. of that day.

History

Authority G.S. 55D-5; 55D-10; 55D-15; 66-354(a)
Temporary Adoption Eff. January 1, 2007
Eff. November 1, 2007
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. December 20, 2015.

18 NCAC 13 .0205 Rejection of Incomplete Filing {#sec-18-ncac-13-.0205 omnilex-key=us-nc-regs-official--title-18--18 NCAC 13 .0205}

The Department shall reject any filing which is incomplete because the filing:

(1) Lacks any required information; or

(2) Is not signed as required by the Act; or

(3) Is not submitted together with any required fee; or

(4) Does not comply with the requirements of G.S. 55D-10.

History

Authority G.S. 55D-5; 55D-10; 55D-15; 66-354(a)
Temporary Adoption Eff. January 1, 2007
Eff. November 1, 2007
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. December 20, 2015.

18 NCAC 13 .0206 Departmental Refusal to File {#sec-18-ncac-13-.0206 omnilex-key=us-nc-regs-official--title-18--18 NCAC 13 .0206}

The Department shall refuse to file a filing which is subject to rejection for any of the reasons stated in this Chapter or in Article 2 of Chapter 55D of the General Statutes.

History

Authority G.S. 55D-5; 55D-10(b)(7); 66-354(a)
Temporary Adoption Eff. January 1, 2007
Eff. November 1, 2007
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. December 20, 2015.

18 NCAC 13 .0207 Expedited Review of Filing {#sec-18-ncac-13-.0207 omnilex-key=us-nc-regs-official--title-18--18 NCAC 13 .0207}

A filer may request expedited review of a filing pursuant to G.S. 55D-11 upon payment of the applicable expedited review fee.

History

Authority G.S. 55D-5; 55D-10; 55D-11; 55D-15; 66-354(a)
Temporary Adoption Eff. January 1, 2007
Eff. November 1, 2007
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. December 20, 2015.

18 NCAC 13 .0208 Effective Date of Filing {#sec-18-ncac-13-.0208 omnilex-key=us-nc-regs-official--title-18--18 NCAC 13 .0208}

(a) When the Department does not reject a filing under Rule .0205 or refuse to file a filing under Rule .0206 and accepts and files a filing pursuant to G.S. 55D-15, the document is deemed filed on the date on which it was received by the Department.

(b) When the Department rejects a filing under Rule .0205 or refuses to file a filing under Rule .0206 and later accepts and files a subsequently submitted corrected filing pursuant to G.S. 55D-15, the document is deemed filed on the date on which the corrected filing was received by the Department.

History

Authority G.S. 55D-5; 55D-10; 55D-13; 55D-15; 66-354(a)
Temporary Adoption Eff. January 1, 2007
Eff. November 1, 2007
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. December 20, 2015.

18 NCAC 13 .0209 Department's Delivery of Copy to Filer {#sec-18-ncac-13-.0209 omnilex-key=us-nc-regs-official--title-18--18 NCAC 13 .0209}

At the time of submission of a filing, a filer may request that the Department make the copy delivery required by G.S. 55D-15(b) by a delivery service authorized pursuant to G.S. 1A-1, Rule 4 if the filer has:

(1) Made provision for the delivery service to visit the Department and pick up the copy; or

(2) Provided a completed delivery envelope and made arrangements with the delivery service for payment of costs associated with the pickup and delivery of the copy.

History

Authority G.S. 1A-1, Rule 4; 55D-5; 55D-10; 55D-15; 66-354(a); 26 U.S.C. 7502(f)(2)
Temporary Adoption Eff. January 1, 2007
Eff. November 1, 2007
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. December 20, 2015.

18 NCAC 13 .0301 General Requirements {#sec-18-ncac-13-.0301 omnilex-key=us-nc-regs-official--title-18--18 NCAC 13 .0301}

(a) A required fee shall be submitted together with the filing to which the fee applies.

(b) A fee must be paid by cash, warrant, uncertified check, certified check, money order, or another instrument freely negotiable at par through the Federal Reserve System. Checks, money orders, or other instruments shall be drawn on U.S. financial institutions in U.S. currency.

(c) A filing is void if a financial instrument listed in Paragraph (b) of this Rule and tendered for a required fee is returned by the institution upon which it was issued as "insufficient funds" or for other similar reason.

History

Authority G.S. 55D-5; 55D-10(b)(7); 66-354(a)
Temporary Adoption Eff. January 1, 2007
Eff. November 1, 2007
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. December 20, 2015.

18 NCAC 13 .0401 Purpose {#sec-18-ncac-13-.0401 omnilex-key=us-nc-regs-official--title-18--18 NCAC 13 .0401}

The rules in this Section establish basic standards for map and description filings.

History

Authority G.S. 55D-5; 55D-10; 55D-15; 66-352; 66-354(a)
Temporary Adoption Eff. January 1, 2007
Eff. November 1, 2007
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. December 20, 2015.

18 NCAC 13 .0402 Content Sufficiency Requirement for Submitted Maps {#sec-18-ncac-13-.0402 omnilex-key=us-nc-regs-official--title-18--18 NCAC 13 .0402}

A map submitted shall accurately depict the geographic area to be served by reference to governmental boundaries, streets, roads, or geographical features.

History

G.S. 55D-5; 55D-10; 55D-15; 66-352; 66-354(a)
Temporary Adoption Eff. January 1, 2007 (18 NCAC 12 .0401)
Eff. December 1, 2007
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. December 20, 2015.

18 NCAC 13 .0403 Descriptions of Service Areas {#sec-18-ncac-13-.0403 omnilex-key=us-nc-regs-official--title-18--18 NCAC 13 .0403}

(a) Service areas shall be described in a manner sufficient to enable a person to determine whether or not a particular location falls within the service area. NOTE: For example, any of the following descriptions would enable a person to determine whether a location fell within the described service area: the entirety of the State of North Carolina; the entirety of X county; all of X county north of Y highway; the city of Z; the A, B and C subdivisions of Q city; or, those portions of X county between river S and highway Y.

(b) If both a map and a description of a service area are required, then the description of the service area shall correspond to the map.

History

Authority G.S. 55D-5; 55D-10; 66-354(a)
Temporary Adoption Eff. January 1, 2007 (18 NCAC 13 .0401)
Eff. November 1, 2007
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. December 20, 2015.

18 NCAC 13 .0404 Reserved for future codification' {#sec-18-ncac-13-.0404 omnilex-key=us-nc-regs-official--title-18--18 NCAC 13 .0404}

18 NCAC 13 .0405 Required Map Components {#sec-18-ncac-13-.0405 omnilex-key=us-nc-regs-official--title-18--18 NCAC 13 .0405}

A map shall have three basic components combined and submitted as a single final map document or image. These basic components are:

(1) The map depicting recognizable geographic territory,

(2) The service area depicting the filer's franchise service area, and

(3) Boundary clarity and detail sufficient to comply with the requirements of Rule .0408, .0409, .0410, or .0411 of this Section.

History

Authority G.S. 55D-5; 55D-10; 55D-15; 66-352; 66-354(a)
Eff. November 1, 2007
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. December 20, 2015.

18 NCAC 13 .0406 General Requirements for Map {#sec-18-ncac-13-.0406 omnilex-key=us-nc-regs-official--title-18--18 NCAC 13 .0406}

The map shall include:

(1) The geographic map image;

(2) A scale indicator;

(3) A graphic indicating the direction North;

(4) A title indicating the map's purpose;

(5) A reference statement linking the map to the filing for which the map is submitted; and

(6) A legend or key to any symbols on the geographic map image.

History

G.S. 55D-5; 55D-10; 55D-15; 66-352; 66-354(a)
Eff. December 1, 2007
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. December 20, 2015.

18 NCAC 13 .0407 General Requirements for Service Area {#sec-18-ncac-13-.0407 omnilex-key=us-nc-regs-official--title-18--18 NCAC 13 .0407}

The service area for a submitted map shall:

(1) Delineate the service area as one or more polygons. The polygon(s) shall be closed on all sides;

(2) Identify area included in the service area polygon(s) through use of color fill, hash marks, hatching, or similar graphic depiction; and

(3) Contain a legend or key to any symbols used to depict the service area. NOTE: For example, if hash marks are used to identify included areas of the service area, the legend or key would include that information.

History

Authority G.S. 55D-5; 55D-10; 55D-15; 66-352; 66-354(a)
Temporary Adoption Eff. January 1, 2007 (18 NCAC 13 .0401)
Eff. November 1, 2007
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. December 20, 2015.

18 NCAC 13 .0408 Map Boundary Detail Requirements for Service Areas Covering the Entire Area of One or More Municipalities or Counties {#sec-18-ncac-13-.0408 omnilex-key=us-nc-regs-official--title-18--18 NCAC 13 .0408}

(a) A map depicting a service area that covers the entire area of one or more municipalities provides sufficient boundary detail if the map depicts the official boundaries of the covered municipality or municipalities.

(b) A map depicting a service area that covers the entire area of one or more counties provides sufficient boundary detail if the map depicts the official boundaries of the covered county or counties.

(c) For the purposes of this Rule, "official boundaries" means those boundaries set or recognized by the municipalities or counties depicted on the submitted map.

History

Authority G.S. 55D-5; 55D-10; 55D-15; 66-352; 66-354(a)
Temporary Adoption Eff. January 1, 2007 (18 NCAC 13 .0401)
Eff. November 1, 2007
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. December 20, 2015.

18 NCAC 13 .0409 Map Boundary Detail Requirements for Service Areas Covering the Entire Area of the State {#sec-18-ncac-13-.0409 omnilex-key=us-nc-regs-official--title-18--18 NCAC 13 .0409}

A map depicting a service area that covers the entire area of the State provides sufficient boundary detail if the map depicts the official boundaries of the State.

History

Authority G.S. 55D-5; 55D-10; 55D-15; 66-352; 66-354(a)
Temporary Adoption Eff. January 1, 2007 (18 NCAC 13 .0401)
Eff. November 1, 2007
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. December 20, 2015.

18 NCAC 13 .0410 Increased Map Boundary Detail Requirements for Service Areas Covering Less Than the Entire Area of a Municipality or County {#sec-18-ncac-13-.0410 omnilex-key=us-nc-regs-official--title-18--18 NCAC 13 .0410}

A map depicting any service area that covers less than the entire area of a municipality or a county shall provide boundary detail as is necessary to comply with the requirements of Rule .0402 of this Section.

History

Authority G.S. 55D-5; 55D-10; 55D-15; 66-352; 66-354(a)
Eff. November 1, 2007
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. December 20, 2015.

18 NCAC 13 .0411 Map Sources {#sec-18-ncac-13-.0411 omnilex-key=us-nc-regs-official--title-18--18 NCAC 13 .0411}

Maps obtained from the following sources may be submitted and are acceptable so long as the map submitted complies with all service area requirements in this Section:

(1) A map which is obtained either from a property mapper certified by the Department's Land Records Management Section or a county mapping office for the county in which the service area is located and which meets minimum State standards for creating base or cadastral maps established by G.S. 102-17 and G.S. 147-54.3, including any subsequent amendments to those standards. Copies of the standards may be viewed online using the Department's Internet site at the following address: https://www.sosnc.gov/divisions/land_records/standards_specifications or may be obtained by contacting the Land Records Management Section, NC Department of the Secretary of State, PO Box 29626, Raleigh, North Carolina 27626-0626, telephone number 919-814-5400, facsimile number 919-814-5597. The cost for receiving a paper copy of these materials is twenty cents ($.20) per page; or

(2) A map which is obtained from the website established by the NC Geographic Information Coordinating Council at: www.nconemap.com at no cost to the user and which contains at least the following geo-referenced representation of the service area boundaries:

(a) County boundaries;

(b) City boundaries;

(d) Roads and streets; or

(3) A map which meets the requirements of the Utilities Commission as set forth in 04 NCAC 11 R09-04, including any subsequent amendments to those Rules. Copies of those Rules and the standards incorporated therein may be viewed online at: http://reports.oah.state.nc.us/ncac.asp or may be obtained by contacting the Business Registration Division, NC Department of the Secretary of State; PO Box 29626, Raleigh, North Carolina 27626-0626, telephone number 919-814-5400; or

(4) For maps concerning municipalities, a map which is obtained from the office of the clerk for the municipality depicted in the map.

History

Authority G.S. 55D-5; 55D-10; 55D-15; 66-352; 66-354(a)
Temporary Adoption Eff. January 1, 2007 (18 NCAC 13 .0401)
Eff. November 1, 2007
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. December 20, 2015
Amended Eff. February 1, 2021; October 1, 2019.

18 NCAC 13 .0412 Reserved for future codification' {#sec-18-ncac-13-.0412 omnilex-key=us-nc-regs-official--title-18--18 NCAC 13 .0412}

18 NCAC 13 .0413 Additional Map Information Permitted {#sec-18-ncac-13-.0413 omnilex-key=us-nc-regs-official--title-18--18 NCAC 13 .0413}

A map may contain additional information which will be useful to the customers of the franchise holder, the North Carolina Department of Revenue, local governments and others. Note: For example, a map may include geographical features such as waterways.

History

Authority G.S. 55D-5; 55D-10; 55D-15; 66-352; 66-354(a)
Temporary Adoption Eff. January 1, 2007 (18 NCAC 13 .0401)
Eff. November 1, 2007
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. December 20, 2015.

18 NCAC 13 .0414 Filing of Maps {#sec-18-ncac-13-.0414 omnilex-key=us-nc-regs-official--title-18--18 NCAC 13 .0414}

A paper copy and an electronic copy of a map shall be submitted with each filing for which a map is required.

History

Authority G.S. 55D-5; 55D-10; 55D-15; 66-352; 66-353; 66-354(a)
Eff. November 1, 2007
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. December 20, 2015.

18 NCAC 13 .0415 Electronic Map Format Requirements {#sec-18-ncac-13-.0415 omnilex-key=us-nc-regs-official--title-18--18 NCAC 13 .0415}

Any electronic copy of a map submitted under this Section shall be submitted either in Portable Document Format (PDF) or in a GIS "shapefile".

History

Authority G.S. 55D-5; 55D-10; 55D-15; 66-352; 66-353; 66-354(a)
Eff. November 1, 2007
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. December 20, 2015.

18 NCAC 13 .0416 Electronic Map Media Requirements {#sec-18-ncac-13-.0416 omnilex-key=us-nc-regs-official--title-18--18 NCAC 13 .0416}

(a) Any electronic copy of a map submitted under this Section may be submitted using any of the following media:

(1) A floppy disk;

(2) A CD-Rom Disc, or

(3) A DVD-Rom Disc.

(b) The medium containing the electronic map shall be labeled in a manner that identifies the filer, the filing type, and the date of submission.

History

Authority G.S. 55D-5; 55D-10; 55D-15; 66-352; 66-354(a)
Eff. November 1, 2007
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. December 20, 2015.

18 NCAC 13 .0417 Amendments to Service Areas Prohibited {#sec-18-ncac-13-.0417 omnilex-key=us-nc-regs-official--title-18--18 NCAC 13 .0417}

(a) A franchise holder shall not file an amendment to a map or service area description which changes the service area boundaries.

(b) A new notice of franchise shall be filed if a filer seeks to change a franchise service area.

History

Authority G.S. 55D-5; 55D-10; 55D-15; 66-352; 66-354(a)
Eff. July 3, 2008
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. December 20, 2015.

18 NCAC 13 .0418 Permitted Map and Description Amendments {#sec-18-ncac-13-.0418 omnilex-key=us-nc-regs-official--title-18--18 NCAC 13 .0418}

(a) A filer may amend a map or service area description for reasons other than changes to the service area boundaries. NOTE: For example, a filer may amend a map or service area description to further identify landmarks within the described service area such as street names.

(b) An amended map or service area description shall:

(1) Be titled "Amended"; and

(2) Comply with Rule .0202 of this Chapter.

(c) If a map is amended pursuant to this Rule, an electronic copy shall be provided consistent with the requirements of this Section.

History

Authority G.S. 55D-5; 55D-10; 55D-15; 66-352; 66-354(a)
Eff. November 1, 2007
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. December 20, 2015.

18 NCAC 13 .0419 Annual Service Report Map Submission {#sec-18-ncac-13-.0419 omnilex-key=us-nc-regs-official--title-18--18 NCAC 13 .0419}

For the purpose of complying with the map filing requirements for annual service reports under G.S. 66-353, a filer submitting an annual service report shall either:

(1) Combine and submit the information required by G.S. 66-353(2) and G.S. 66-353(4) on a single map image, so long as the resulting single map image provides the visual depiction and information required by each provision of law; or

(2) Submit two separate map images: one map image to depict the service area and one map image to depict households passed.

History

Authority G.S. 55D-5; 55D-10; 55D-15; 66-352; 66-353; 66-354(a)
Eff. November 1, 2007
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. December 20, 2015.

18 NCAC 13 .0501 Schedules {#sec-18-ncac-13-.0501 omnilex-key=us-nc-regs-official--title-18--18 NCAC 13 .0501}

(a) A schedule shall set forth the proposed sequence and timing of the provision of service to the service area. Deviations from the proposed schedule shall be noted and explained in the annual service report as required in G.S. 66-353(8).

(b) If a franchise service area contains noncontiguous geographic areas, then the schedule in the notice of franchise shall specifically address each of the noncontiguous areas.

History

Authority G.S. 55D-5; 55D-10; 66-352; 66-354(a)
Temporary Adoption Eff. January 1, 2007
Eff. November 1, 2007
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. December 20, 2015.

18 NCAC 13 .0601 Notice of Commencement of Service {#sec-18-ncac-13-.0601 omnilex-key=us-nc-regs-official--title-18--18 NCAC 13 .0601}

A notice of commencement of service shall include:

(1) The effective date of the notice of franchise for that service area as determined pursuant to Rule .0208 of this Chapter as noted on the copy of the notice of franchise returned by the Department to the filer and available on the Department's website;

(2) The franchise number assigned by the Department;

(3) Either verification that there have been no changes in the information on the notice of franchise with regard to the identity, address and contact information of the filer or amendment of that information;

(4) A map of the service area which complies with Section .0400 of this Chapter;

(5) A description of the service area which complies with Section .0400 of this Chapter;

(6) A statement confirming that cable service has begun in the service area; and

(7) The date on which cable service began.

History

Authority G.S. 55D-5; 55D-10; 66-352(b); 66-354(a)
Eff. November 1, 2007
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. December 20, 2015.

18 NCAC 13 .0701 Minimum Requirements {#sec-18-ncac-13-.0701 omnilex-key=us-nc-regs-official--title-18--18 NCAC 13 .0701}

A notice of withdrawal must include:

(1) The name of the franchisee as stated on the notice of franchise;

(2) The date of the notice of franchise;

(3) The cities and counties identified in the original notice of franchise;

(4) The date upon which the franchisee will cease providing service; and

(5) The franchise number assigned by the Department.

History

Authority G.S. 55D-5; 55D-10; 66-352(d); 66-354(a)
Temporary Adoption Eff. January 1, 2007
Eff. November 1, 2007
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. December 20, 2015.

18 NCAC 13 .0702 Withdrawal Notice Covers Entire Service Area {#sec-18-ncac-13-.0702 omnilex-key=us-nc-regs-official--title-18--18 NCAC 13 .0702}

A withdrawal of a notice of franchise applies to the entire franchise service area.

History

Authority G.S. 55D-5; 55D-10; 66-352(d); 66-354(a)
Temporary Adoption Eff. January 1, 2007
Eff. November 1, 2007
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. December 20, 2015.

18 NCAC 13 .0801 One Annual Service Report Per Franchise {#sec-18-ncac-13-.0801 omnilex-key=us-nc-regs-official--title-18--18 NCAC 13 .0801}

History

Status: expired
Authority G.S. 55D-5; 55D-10(b)(7); 66-354(a)
Temporary Adoption Eff. January 1, 2007
Temporary Adoption Expired November 1, 2007.

18 NCAC 13 .0802 Annual Service Report Description and Map Information {#sec-18-ncac-13-.0802 omnilex-key=us-nc-regs-official--title-18--18 NCAC 13 .0802}

Description and map information filed in an annual service report must correspond with description and map information in the notice of franchise to which the annual service report applies.

History

Authority G.S. 55D-5; 55D-10(b)(7); 66-353; 66-354(a)
Temporary Adoption Eff. January 1, 2007
Eff. November 1, 2007
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. December 20, 2015.

18 NCAC 13 .0803 Annual Service Report Schedule {#sec-18-ncac-13-.0803 omnilex-key=us-nc-regs-official--title-18--18 NCAC 13 .0803}

The explanation included in an annual service report for a new schedule and the accompanying new schedule shall be linked to the description and map of the franchise service area in a manner which permits a person reading the explanation to determine whether or not the new schedule affects an area. Note: For example, an explanation and new schedule would be linked to the service area description if it stated: Households in the northern quadrant of the service area were scheduled to be passed in 2007. That schedule has now changed because flooding due to Hurricane XYZ prevented passing those households. Those households are now scheduled to be passed in 2008.

History

Authority G.S. 55D-5; 55D-10(b)(7); 66-353; 66-354(a)
Eff. November 1, 2007
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. December 20, 2015.

18 NCAC 13 .0804 Required Customer Service Information {#sec-18-ncac-13-.0804 omnilex-key=us-nc-regs-official--title-18--18 NCAC 13 .0804}

An annual service report shall specify the extent to which the following requirements contained in 47 C.F.R. Part 76 have been met:

(1) 47 C.F.R. 76.309 Customer service obligations;

(2) 47 C.F.R. 76.1602 Customer service--general information;

(3) 47 C.F.R. 76.1603 Customer service--rate and service changes; and

(4) 47 C.F.R. 76.1604 Charges for customer service changes.

A cable service franchise holder may include additional information regarding compliance with customer service requirements in Part 76 of Title 47 of the Code of Federal Regulations in the annual report.

History

Authority G.S. 55D-5; 55D-10(b)(7); 66-353; 66-354(a); 66-356(b); 47 C.F.R. Part 76
Temporary Adoption Eff. January 1, 2007
Eff. November 1, 2007
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. December 20, 2015.

18 NCAC 13 .0805 Annual Service Report Percentage of Households Passed {#sec-18-ncac-13-.0805 omnilex-key=us-nc-regs-official--title-18--18 NCAC 13 .0805}

When listing the percentage of households passed in the service area as of July 1 of any preceding year for which a report was required, a filer shall list the percentage that was set forth on the annual service report for the immediately preceding year. A filer is not required to list percentages for other prior years in which another annual service report was filed.

History

Authority G.S. 55D-5; 55D-10(b)(7); 66-353; 66-354(a)
Eff. November 1, 2007
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. December 20, 2015.

18 NCAC 13 .0901 Accessing Public Records {#sec-18-ncac-13-.0901 omnilex-key=us-nc-regs-official--title-18--18 NCAC 13 .0901}

Records may be physically viewed at the Department by the public on weekdays during normal operating hours, except on State holidays. A list of State holidays may be viewed at: http://www.osp.state.nc.us/holsched.htm.

History

Authority G.S. 55D-5; 55D-10(b)(7); 66-354(a)
Temporary Adoption Eff. January 1, 2007
Eff. November 1, 2007
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. December 20, 2015.