GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2001

SENATE BILL 274
RATIFIED BILL

AN ACT to repeal an obsolete provision in the north carolina securities act.

The General Assembly of North Carolina enacts:

SECTION 1.  G.S. 78A‑16(8) is repealed.
SECTION 2.  G.S. 78A‑18(a) reads as rewritten:
"(a)	The Administrator may by order deny or revoke any exemption specified in subdivision (9), (11), or (15) of G.S. 78A‑16 or in 78A‑17 with respect to a specific security or transaction. No such order may be entered without appropriate prior notice to all interested parties, opportunity for hearing, and written findings of fact and conclusions of law, except that the Administrator may by order summarily deny or revoke any of the specified exemptions pending final determination of any proceeding under this section. Upon the entry of a summary order, the Administrator shall promptly notify all interested parties that it has been entered and of the reasons therefor and that within 15 days of the receipt of a written request the matter will be set down for hearing. If no hearing is requested and none is ordered by the Administrator, the order will remain in effect until it is modified or vacated by the Administrator. If a hearing is requested or ordered, the Administrator, after notice of an opportunity for hearing to all interested persons, may not modify or vacate the order or extend it until final determination. No order under this subsection may operate retroactively. No person may be considered to have violated G.S. 78A‑24 or 78A‑49(d) by reason of any offer or sale effected after the entry of an order under this subsection if he sustains the burden of proof that he did not know, and in the exercise of reasonable care could not have known, of the order."
SECTION 3.  This act is effective when it becomes law.
In the General Assembly read three times and ratified this the 24th day of May, 2001.

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		 Beverly E. Perdue
	 President of the Senate

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		 James B. Black
	 Speaker of the House of Representatives

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		 Michael F. Easley
	 Governor

Approved __________.m. this ______________ day of ___________________, 2001