1925_public laws_191_9
CHAPTER 190 AN ACT TO PROVIDE LAWS GOVERNING THE SALE OF STOCKS, BONDS AND OTHER SECURITIES IN THE STATE OF NORTH CAROLINA. The General Assembly of North Carolina do enact:
Application for authority to sell, filled with commissioner. The commissioner shall receive and act upon applications to have securities admitted to record in such register of qualified securities and the commissioner may from time to time prescribe forms on which such applications shall be submitted. All applications shall be in writing and shall be signed and dated and sworn to and shall thereafter be filed with the commissioner. Such applications may be made to and filed with the commissioner either by the issuer of the securities in question or by any person desiring to sell the same in the State of North Carolina; the application must show in full detail the plan upon which the issuer of the securities in question or the person desiring to sell same proposes to transact business; copy of all applications for and forms of contracts, securities, bonds, or other instruments, which it or he proposes to make with or sell to its or his contributors; a statement which shall show the name, location, and head office of the issuer or person desiring to sell such securities, and an itemized statement of its financial condition, and the amount of its or his property and the liabilities, and such other information and in such form touching its or his affairs as the commissioner may require. If a foreign corporation, it or he shall also file with the commissioner a copy of the laws of such state, territory, or government under which it exists and is incorporated, and also a copy of its charter of its home state and certificate of the proper officer of such state that it has authority to do business therein, articles of incorporation, constitution, and by-laws, and all amendments thereof which have been made, and all other papers pertaining to its organization, and enter into an agreement as a condition precedent to being registered and licensed that stock or other offerings shall be sold only for cash or for notes or bonds payable to the company, and that said notes or bonds will not be sold or discounted with an endorsement without recourse or obligation not to be responsible for the same by the owner in a general sale or canvass, or by any agent on salary or commission. Every note given for stock sold under the provisions of this act must have appearing upon its face the following: The consideration of this note is stock in the.............. cor poration, and this note is not negotiable under the negotiable instruments law. The contract of subscription or of sale shall be in writing and shall contain a provision in the following language: No sum shall be used for commissions, promotion and organization expenses on account of the sale of any securities offered for sale by this company in excess of five per centum of the amount actually paid upon separate subscriptions for such securities.