NORTH CAROLINA GENERAL ASSEMBLY

1967 SESSION

 

 

CHAPTER 1233

SENATE BILL 535

 

 

AN ACT TO AMEND THE SECURITIES LAW, SAME BEING CHAPTER 78 OF THE GENERAL STATUTES, SO AS TO PLACE NORTH CAROLINA STATE BANKS ON A PARITY WITH NATIONAL BANKS AND TO MAKE AVAILABLE ADDITIONAL EXEMPTIONS FOR CORPORATIONS ORGANIZED IN THIS STATE.

 

The General Assembly of North Carolina do enact:

 

Section 1.  G.S. 78-3(3) is hereby amended by adding to the first line after the word "security" and before the word "issued" the following: "representing an interest in and".

Sec. 2.  G.S. 78-4(7) is hereby rewritten to read as follows:

"(7)      subscriptions for sales, or negotiations for sales of securities in domestic corporations if no expense is incurred, and no commission, compensation or remuneration is paid or given for, or in connection with the sale or disposition of such securities; provided that: (a) this exemption is available for the offering of only two classes of securities issued by the same corporation; and, (b) the securities of a single class are not offered to more than 25 persons in this State."

Sec. 3.  G.S. 78-4 is hereby amended by adding at the end thereof a new subsection to be numbered and to read as follows:

"(14)    any transaction involving the issuance of a security (a) in connection with an employees' stock purchase, savings, pension, profit sharing or similar benefit plan; or, (b) in connection with retirement plans for self-employed individuals if that security is issued: (1) by a bank organized under the laws of the United States, or any bank, savings institution, or trust company organized and supervised under the laws of North Carolina; and, (2) under a plan established in accordance with the United States Internal Revenue Code: Provided, however, that the Secretary of State may by order deny or revoke the exemption of subsection (a) or (b) with respect to a specific security or transaction found to be unlawful, against public policy or contrary to sound business practices."

Sec. 4.  All laws and clauses of laws in conflict with this Act are hereby repealed.

Sec. 5.  This Act shall be in full force and effect on and after its ratification.

In the General Assembly read three times and ratified, this the 6th day of July, 1967.