44-1941

44-1941. Application for registration as
dealer; contents; filing; consent to service of process; fee;
exemption

A. Application for registration as a dealer may be made by any person. An
application for registration shall be signed by the applicant. The application shall be
filed with the commission and shall contain the following, together with other
information the commission prescribes:

1. The name of the applicant.

2. The address of the principal place of business of the applicant and the
addresses of all branch offices, if any, of the applicant in this state.

3. The character of business organization of the applicant and the date of
organization.

4. The names and business addresses of all members, partners, officers, directors,
trustees or managers of the applicant, a statement of the limitations, if any, of the
liability of any partner, member, manager or trustee and a statement setting forth in
chronological order the business history of each partner, member, officer, director,
trustee or manager during the preceding ten years.

5. A brief description of the general character of the business conducted or to be
conducted by the applicant.

6. A list of each state in which the applicant is registered as a dealer and
whether or not the registration of the applicant as a dealer has been refused, cancelled,
suspended or withdrawn in any state and, if so, a complete statement of the facts with
respect thereto.

7. A statement showing whether the applicant is registered as a dealer under the
securities exchange act of 1934 and whether any such registration of the applicant has
been denied, revoked or suspended or made the subject of proceedings for denial,
revocation or suspension by the SEC.

8. The name of each organization of dealers of which the applicant is a member, or
before which any application for membership on the part of the applicant is pending, and
whether any such membership of the applicant has been denied, revoked or suspended or
made the subject of proceedings for denial, revocation or suspension.

9. The name of each securities exchange of which the applicant or any of its
partners, officers, directors, trustees, members, managers or employees is a member and
whether any such membership has been denied, revoked or suspended or made the subject of
proceedings for denial, revocation or suspension.

10. For an applicant that is subject to the securities exchange act of 1934, any
financial information that is required to be provided to the SEC or its designee, under
the securities exchange act of 1934 to the extent requested by the commission. All other
applicants shall provide an audit report of an independent certified public accountant
together with a balance sheet and related statements of income or operations,
stockholders' equity or retained earnings and cash flows that reflect the dealer's
financial position, results of operations and cash flows. The financial statements listed
in this subsection must be prepared in conformity with generally accepted accounting
principles and examined in accordance with generally accepted auditing standards as of
the most recent practicable date before the date of the application or the financial
information established by the commission by rule.

11. A statement showing whether the applicant or an officer, director, partner,
member, trustee or manager of the applicant has within the past ten years been convicted
of or charged with a felony or misdemeanor of which fraud is an essential element, or a
felony or misdemeanor involving the purchase or sale of securities or arising out of the
conduct of the business of the applicant as a dealer in securities, and, if so, a
complete statement of the facts with respect to the felony or misdemeanor.

12. A statement showing whether the applicant, or any officer, director, partner,
member, trustee or manager of the applicant, has been enjoined or restrained by a court
of competent jurisdiction in connection with any transaction involving the purchase or
sale of securities and, if so, a complete statement of the facts with respect to the
transaction.

B. An application for registration as a dealer shall be accompanied by a written
consent to service of process on the commission in actions against that dealer,
conforming to the requirements of section 44-1862, and payment of the registration fee
prescribed by section 44-1861, subsection A or B.

C. The commission by rule or order may provide limited registration requirements
for any dealer or class of dealers or exempt any dealer or class of dealers from
registration under this article if the commission determines that registration is not
necessary to protect the public interest due to the special characteristics of the
securities or transactions in which the dealer or class of dealers is involved.