(a) Except as providedby subsection (c) of this section, each invention developer doing business inthis State as defined by the North Carolina General Statutes shall maintain abond issued by a surety company authorized to do business in this State. Theprincipal sum of the bond must be at least five percent (5%) of the inventiondeveloper's gross income from the invention development business in this Stateduring the invention developer's last fiscal year or twenty‑five thousanddollars ($25,000), whichever is greater. The invention developer shall file acopy of the bond with the Secretary of State before the day on which theinvention developer begins business in this State. The invention developershall have 90 days after the end of each fiscal year within which to change thebond as may be necessary to conform to the requirement of this subdivision.
(b) The bond requiredby subsection (a) of this section must be in favor of the State of NorthCarolina for the benefit of any person who, after entering into a contract forinvention development services with an invention developer is damaged by fraud,dishonesty, or failure to provide the services of the invention developer inperformance of the contract. Any person claiming against the bond may maintainan action at law against the invention developer and surety. The aggregateliability of the surety to all persons for all breaches of conditions of thebond required by the subsection is limited to the amount of the bond.
(c) Instead offurnishing the bond required by subsection (a) of this section, the inventiondeveloper may deposit with the Secretary of State a cash deposit equal to theamount of the bond required by this section. The cash deposit may be satisfiedby:
(1) Certificates ofdeposit payable to the Secretary of State issued by banks doing business inthis State and insured by the Federal Deposit Insurance Corporation;
(2) Investmentcertificates of share accounts assigned to the Secretary of State and issued bya savings and loan association doing business in this State, and insured by theFederal Savings and Loan Insurance Corporation;
(3) Bearer bonds issuedby the United States government or by this State; or
(4) Cash deposit withthe Secretary of State. (1989, c. 746, s. 1; c. 770, s. 62.1(1), (2); 1991, c.235, s. 1.)
(a) Except as providedby subsection (c) of this section, each invention developer doing business inthis State as defined by the North Carolina General Statutes shall maintain abond issued by a surety company authorized to do business in this State. Theprincipal sum of the bond must be at least five percent (5%) of the inventiondeveloper's gross income from the invention development business in this Stateduring the invention developer's last fiscal year or twenty‑five thousanddollars ($25,000), whichever is greater. The invention developer shall file acopy of the bond with the Secretary of State before the day on which theinvention developer begins business in this State. The invention developershall have 90 days after the end of each fiscal year within which to change thebond as may be necessary to conform to the requirement of this subdivision.
(b) The bond requiredby subsection (a) of this section must be in favor of the State of NorthCarolina for the benefit of any person who, after entering into a contract forinvention development services with an invention developer is damaged by fraud,dishonesty, or failure to provide the services of the invention developer inperformance of the contract. Any person claiming against the bond may maintainan action at law against the invention developer and surety. The aggregateliability of the surety to all persons for all breaches of conditions of thebond required by the subsection is limited to the amount of the bond.
(c) Instead offurnishing the bond required by subsection (a) of this section, the inventiondeveloper may deposit with the Secretary of State a cash deposit equal to theamount of the bond required by this section. The cash deposit may be satisfiedby:
(1) Certificates ofdeposit payable to the Secretary of State issued by banks doing business inthis State and insured by the Federal Deposit Insurance Corporation;
(2) Investmentcertificates of share accounts assigned to the Secretary of State and issued bya savings and loan association doing business in this State, and insured by theFederal Savings and Loan Insurance Corporation;
(3) Bearer bonds issuedby the United States government or by this State; or
(4) Cash deposit withthe Secretary of State. (1989, c. 746, s. 1; c. 770, s. 62.1(1), (2); 1991, c.235, s. 1.)
(a) Except as providedby subsection (c) of this section, each invention developer doing business inthis State as defined by the North Carolina General Statutes shall maintain abond issued by a surety company authorized to do business in this State. Theprincipal sum of the bond must be at least five percent (5%) of the inventiondeveloper's gross income from the invention development business in this Stateduring the invention developer's last fiscal year or twenty‑five thousanddollars ($25,000), whichever is greater. The invention developer shall file acopy of the bond with the Secretary of State before the day on which theinvention developer begins business in this State. The invention developershall have 90 days after the end of each fiscal year within which to change thebond as may be necessary to conform to the requirement of this subdivision.
(b) The bond requiredby subsection (a) of this section must be in favor of the State of NorthCarolina for the benefit of any person who, after entering into a contract forinvention development services with an invention developer is damaged by fraud,dishonesty, or failure to provide the services of the invention developer inperformance of the contract. Any person claiming against the bond may maintainan action at law against the invention developer and surety. The aggregateliability of the surety to all persons for all breaches of conditions of thebond required by the subsection is limited to the amount of the bond.
(c) Instead offurnishing the bond required by subsection (a) of this section, the inventiondeveloper may deposit with the Secretary of State a cash deposit equal to theamount of the bond required by this section. The cash deposit may be satisfiedby:
(1) Certificates ofdeposit payable to the Secretary of State issued by banks doing business inthis State and insured by the Federal Deposit Insurance Corporation;
(2) Investmentcertificates of share accounts assigned to the Secretary of State and issued bya savings and loan association doing business in this State, and insured by theFederal Savings and Loan Insurance Corporation;
(3) Bearer bonds issuedby the United States government or by this State; or
(4) Cash deposit withthe Secretary of State. (1989, c. 746, s. 1; c. 770, s. 62.1(1), (2); 1991, c.235, s. 1.)
