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North Dakota Century Code Title 10. Corporations § 10-04-03. Administration of chapter

Current as of January 01, 2024 | Updated by Findlaw Staff

1. a. It is the duty of the commissioner to administer this chapter.

b. The commissioner may employ such employees as are necessary for the administration of this chapter. In the absence of the commissioner, the deputy or designee of the commissioner may administer this chapter as acting commissioner.

c. The commissioner may not:

(1) Own or control any security required to be registered under this chapter or any security that is exempt based on the approval of the department; or

(2) Be an officer, director, or employee of any broker-dealer, agent, investment adviser, or investment adviser representative required to be registered under this chapter, or of a federal covered adviser required to be notice-filed under this chapter.

2. The commissioner may:

a. Administer oaths in, and prescribe forms for, all matters arising under this chapter; and

b. Adopt, amend, and rescind such rules, forms, and orders as are necessary under this chapter, including rules and forms governing registration statements, applications and reports, and defining any terms, whether or not used in this chapter, if the definitions are consistent with this chapter.

3. The commissioner shall cooperate with the administrators of the securities laws of other states and of the United States with a view toward achieving maximum uniformity in the interpretation of like provisions of the laws administered by them and in the forms which are required to be filed under such law.

4. a. A special fund is established in the state treasury and designated as the investor education and technology fund. The commissioner may deposit the following moneys into the investor education and technology fund:

(1) Payments for tuition or other costs associated with educational services or materials provided by the department.

(2) Grants or donations for the purpose of investor education received by the commissioner from any public or private source.

(3) Civil penalties assessed by the commissioner under the Securities Act of 1951, if the commissioner finds the violations or alleged violations underlying the assessment of civil penalties:

(a) Involve repeat violations, involve numerous investors, or appear to have been perpetrated on a systematic basis; and

(b) Could have been prevented or significantly curtailed had the individual investors involved in the matter been more knowledgeable about financial concepts in general, or about any specific laws, practices, or procedures relating to the securities industry.

b. The commissioner shall maintain and administer the investor education and technology fund. The moneys in the fund are appropriated to provide education services to the public relating to any of the financial services industries, including the securities industry, and to provide for the technology needs of the department, including the purchase or rental of equipment or software, servicing of the equipment or software, and training the commissioner's staff in the use of the equipment or software.

5. A special fund is established in the state treasury and designated as the securities special fund. All fees, civil penalties, or other moneys collected under this chapter must be deposited in the securities special fund, except funds permitted to be deposited into the investor education and technology fund under subsection 4 or civil penalties collected from enforcement actions for the purpose of distribution to aggrieved investors, which may be deposited in the investor restitution fund. Funds in the investor restitution fund are appropriated to the commissioner on a continuing basis for distribution to aggrieved investors.

a. The moneys deposited in the securities special fund are reserved for use by the commissioner to defray the expenses of the department in the discharge of administrative and regulatory powers and duties of the department under this chapter. Deposits under this subdivision are subject to the applicable laws relating to the appropriations of state funds and to the deposit and expenditure of state moneys. The commissioner is responsible for the proper expenditure of these moneys as provided by law.

b. Except as otherwise provided by law, after the fiscal year has been closed and all expenses relating to the fiscal year have been accounted for, the office of management and budget shall transfer any balance remaining in the securities special fund that exceeds one million dollars to the general fund.

6. The commissioner may honor requests from interested persons for the issuance of a statement or opinion concerning the applicability of this chapter or the rules adopted under this chapter to any transaction or proposed transaction that may be subject to this chapter. Any such request must be accompanied by a nonrefundable fee of one hundred fifty dollars.

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Cite this article: FindLaw.com - North Dakota Century Code Title 10. Corporations § 10-04-03. Administration of chapter - last updated January 01, 2024 | https://codes.findlaw.com/nd/title-10-corporations/nd-cent-code-sect-10-04-03/

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