When used in this Chapter,unless the context otherwise requires:
(1) "Administrator"means the Secretary of State.
(2) "Dealer"means any person engaged in the business of effecting transactions insecurities for the account of others or for his own account. "Dealer"does not include:
a. A salesman,
b. A bank, savingsinstitution, or trust company,
c. A person who has noplace of business in this State if
1. He effectstransactions in this State exclusively with or through (i) the issuers of thesecurities involved in the transactions, (ii) other dealers, or (iii) banks,savings institutions, trust companies, insurance companies, investmentcompanies as defined in the Investment Company Act of 1940, pension or profit‑sharingtrusts, or other financial institutions or institutional buyers, whether actingfor themselves or as trustees, or
2. In the case of aperson registered as a dealer with the Securities and Exchange Commission underthe Securities Exchange Act of 1934 and in one or more states, during anyperiod of 12 consecutive months he does not effect more than 15 purchases orsales in this State in any manner with persons other than those specified inclause 1, whether or not the dealer or any of the purchasers or sellers is thenpresent in this State, or
d. An issuer if
1. The security isexempted under subdivisions (1), (2), (3), (4), (5), (7), (9), (10), (11),(13), or (14) of G.S. 78A‑16, or the security is a security covered underfederal law, or the transaction is exempted under G.S. 78A‑17, except forG.S. 78A‑17(19) if the security is a viatical settlement contract, or thetransaction is in a security covered under federal law, and such exemption hasnot been denied or revoked under G.S. 78A‑18, or
2. The security isregistered under this Chapter and it is offered and sold through a registereddealer, or
3. All of the followingconditions are met: (i) No commission or other remuneration is paid or givendirectly or indirectly for soliciting any prospective purchaser in this State;(ii) the total amount of the offering, both within and without this State, doesnot exceed two million five hundred thousand dollars ($2,500,000); and (iii)the total number of purchasers, both within and without this State, does notexceed 100. Provided, however, the Administrator may by rule or order waive thecondition imposed by subdivision (iii) hereof; or
4. The security isissued by an open‑end management company that is registered under theInvestment Company Act of 1940 and so long as no sales load is paid or given,directly or indirectly.
e. A person who acts asa business broker with respect to a transaction involving the offer or sale ofall of the stock or other equity interests in any closely held corporationprovided that such stock or other equity interest is sold to no more than oneperson, as that term is defined herein.
f. An individual whorepresents an issuer in effecting transactions in a security described in sub‑subdivision(2)d. of this section or a security covered under federal law, provided nocommission or other special remuneration is paid or given directly orindirectly for soliciting any prospective purchaser in this State.
(2a) "Entity"includes a corporation, joint‑stock company, limited liability company,business trust, limited partnership or other partnership in which the interestsof the partners are evidenced by a security, trust in which the interests ofthe beneficiaries are evidenced by a security, any other unincorporatedorganization in which two or more persons have a joint or common economicinterest evidenced by a security, and government or political subdivision of agovernment.
(3) "Fraud,""deceit," and "defraud" are not limited to common‑lawdeceit.
(4) "Guaranteed"means guaranteed as to payment of principal, interest, dividends, or otherdistributions.
(5) "Issuer"means any person who issues or proposes to issue any security, except that
a. With respect tocertificates of deposit, voting‑trust certificates, or collateral‑trustcertificates, or with respect to certificates of interest or shares in anunincorporated investment trust not having a board of directors or personsperforming similar functions or of the fixed, restricted‑management, orunit type, the term "issuer" means the person or persons performingthe acts and assuming the duties of depositor or manager pursuant to theprovisions of the trust or other agreement or instrument under which thesecurity is issued; and
b. With respect tocertificates of interest or participation in oil, gas, or mining titles orleases or in payments out of production under such titles or leases, there isnot considered to be any "issuer."
c. With respect to aviatical settlement contract, "issuer" means a person involved increating, offering, transferring, or selling to an investor any interest in aviatical settlement contract, including, but not limited to, fractional orpooled interests.
(6) "Nonissuer"means not directly or indirectly for the benefit of the issuer.
(7) "Person"means an individual, an entity, a partnership in which the interests of thepartners are not evidenced by a security, a trust in which the interests of thebeneficiaries are not evidenced by a security, or an unincorporatedorganization.
(8) a. "Sale"or "sell" includes every contract of sale of, contract to sell, ordisposition of, a security or interest in a security for value.
b. "Offer" or"offer to sell" includes every attempt or offer to dispose of, orsolicitation of an offer to buy, a security or interest in a security forvalue.
c. Any security givenor delivered with, or as a bonus on account of, any purchase of securities orany other thing is considered to constitute part of the subject of the purchaseand to have been offered and sold for value.
d. A purported gift ofassessable stock or other ownership interest obligating the owner to makefuture payments is considered to involve an offer and sale.
e. Every sale or offerof a warrant or right to purchase or subscribe to another security of the sameor another issuer, as well as every sale or offer of a security which gives theholder a present or future right or privilege to convert into another securityof the same or another issuer, is considered to include an offer of the othersecurity.
f. The terms definedin this subdivision and the term "purchase" as used in this Chapterdo not include any of the following:
1. Any bona fide loan,pledge, or other transaction creating a bona fide security interest.
2. Any stock split andany security dividend or distribution, whether the entity distributing thedividend or distribution is the issuer of the security or not, if nothing ofvalue is given by security holders for the dividend or distribution other thanthe surrender of a right to a cash or property dividend or distribution when eachsecurity holder may elect to take the dividend or distribution in cash orproperty or in securities.
3., 4. Repealed bySession Laws 2001‑201, s. 6.
(9) "Salesman"means any individual other than a dealer who represents a dealer in effectingor attempting to effect purchases or sales of securities. "Salesman"does not include an individual who represents a dealer in effectingtransactions in this State limited to those transactions described in section15(h)(2) of the Securities Exchange Act of 1934 (15 U.S.C. § 78o(h)(2)). Apartner, executive officer, or director of a dealer, or a person occupying asimilar status or performing similar functions, is a salesman only if thatperson otherwise comes within this definition.
(10) "Securities Actof 1933," "Securities Exchange Act of 1934," "PublicUtility Holding Company Act of 1935," "Investment Company Act of1940," and "Internal Revenue Code" mean the federal statutes ofthose names as amended before or after April 1, 1975.
(11) "Security"means any note; stock; treasury stock; bond; debenture; evidence ofindebtedness; certificate of interest or participation in any profit‑sharingagreement; collateral‑trust certificate; preorganization certificate orsubscription; transferable share; investment contract including withoutlimitation any investment contract taking the form of a whiskey warehousereceipt or other investment of money in whiskey or malt beverages; voting‑trustcertificate; certificate of deposit for a security; certificate of interest orparticipation in an oil, gas, or mining title or lease or in payments out ofproduction under a title or lease; viatical settlement contract or anyfractional or pooled interest in a viatical settlement contract; or, ingeneral, any interest or instrument commonly known as a "security,"or any certificate of interest or participation in, temporary or interimcertificate for, receipt for guarantee of, or warrant or right to subscribe toor purchase, any of the foregoing. "Security" does not include anyinsurance or endowment policy, funding agreement, as defined in G.S. 58‑7‑16,or annuity contract under which an insurance company promises to pay (i) afixed sum of money either in a lump sum or periodically for life or for someother specified period, or (ii) benefits or payments or value that vary so asto reflect investment results of any segregated portfolio of investments or ofa designated separate account or accounts in which amounts received or retainedin connection with a contract have been placed if the delivering or issuinginsurance company has currently satisfied the Commissioner of Insurance that itis in compliance with G.S. 58‑7‑95.
(11a) "Security coveredunder federal law" means any security that is a covered security undersection 18(b) of the Securities Act of 1933 (15 U.S.C. § 77r(b)) or rules orregulations adopted under that section.
(12) "State"means any state, territory, or possession of the United States, the District ofColumbia, and Puerto Rico.
(13) "Viaticalsettlement contract" means an agreement for the purchase, sale,assignment, transfer, devise, or bequest of all or any portion of the deathbenefit or ownership of a life insurance policy or contract for considerationwhich is less than the expected death benefit of the life insurance policy orcontract. "Viatical settlement contract" does not include:
a. The assignment,transfer, sale, devise, or bequest of a death benefit of a life insurancepolicy or contract made by the viator to an insurance company or to a viaticalsettlement provider or broker licensed pursuant to the Viatical Settlements Act(Part 5 of Article 58 of Chapter 58 of the General Statutes);
b. The assignment of alife insurance policy or contract to a bank, savings bank, savings and loanassociation, credit union, or other licensed lending institution as collateralfor a loan; or
c. The exercise ofaccelerated benefits pursuant to the terms of a life insurance policy orcontract and consistent with applicable law. (1925, c. 190, s. 2; 1927, c. 149, s. 2; 1933, c. 432;1943, c. 104, ss. 2, 3; 1955, c. 436, s. 1; 1973, c. 1380; 1983, c. 817, ss. 1‑3;1987, c. 849, s. 1; 1989, c. 12, s. 1; 1993 (Reg. Sess., 1994), c. 600, s. 3;1995, c. 509, s. 35; 1997‑419, ss. 1‑4; 2001‑201, ss. 2, 3,4, 5, 6; 2001‑436, s. 6.)
When used in this Chapter,unless the context otherwise requires:
(1) "Administrator"means the Secretary of State.
(2) "Dealer"means any person engaged in the business of effecting transactions insecurities for the account of others or for his own account. "Dealer"does not include:
a. A salesman,
b. A bank, savingsinstitution, or trust company,
c. A person who has noplace of business in this State if
1. He effectstransactions in this State exclusively with or through (i) the issuers of thesecurities involved in the transactions, (ii) other dealers, or (iii) banks,savings institutions, trust companies, insurance companies, investmentcompanies as defined in the Investment Company Act of 1940, pension or profit‑sharingtrusts, or other financial institutions or institutional buyers, whether actingfor themselves or as trustees, or
2. In the case of aperson registered as a dealer with the Securities and Exchange Commission underthe Securities Exchange Act of 1934 and in one or more states, during anyperiod of 12 consecutive months he does not effect more than 15 purchases orsales in this State in any manner with persons other than those specified inclause 1, whether or not the dealer or any of the purchasers or sellers is thenpresent in this State, or
d. An issuer if
1. The security isexempted under subdivisions (1), (2), (3), (4), (5), (7), (9), (10), (11),(13), or (14) of G.S. 78A‑16, or the security is a security covered underfederal law, or the transaction is exempted under G.S. 78A‑17, except forG.S. 78A‑17(19) if the security is a viatical settlement contract, or thetransaction is in a security covered under federal law, and such exemption hasnot been denied or revoked under G.S. 78A‑18, or
2. The security isregistered under this Chapter and it is offered and sold through a registereddealer, or
3. All of the followingconditions are met: (i) No commission or other remuneration is paid or givendirectly or indirectly for soliciting any prospective purchaser in this State;(ii) the total amount of the offering, both within and without this State, doesnot exceed two million five hundred thousand dollars ($2,500,000); and (iii)the total number of purchasers, both within and without this State, does notexceed 100. Provided, however, the Administrator may by rule or order waive thecondition imposed by subdivision (iii) hereof; or
4. The security isissued by an open‑end management company that is registered under theInvestment Company Act of 1940 and so long as no sales load is paid or given,directly or indirectly.
e. A person who acts asa business broker with respect to a transaction involving the offer or sale ofall of the stock or other equity interests in any closely held corporationprovided that such stock or other equity interest is sold to no more than oneperson, as that term is defined herein.
f. An individual whorepresents an issuer in effecting transactions in a security described in sub‑subdivision(2)d. of this section or a security covered under federal law, provided nocommission or other special remuneration is paid or given directly orindirectly for soliciting any prospective purchaser in this State.
(2a) "Entity"includes a corporation, joint‑stock company, limited liability company,business trust, limited partnership or other partnership in which the interestsof the partners are evidenced by a security, trust in which the interests ofthe beneficiaries are evidenced by a security, any other unincorporatedorganization in which two or more persons have a joint or common economicinterest evidenced by a security, and government or political subdivision of agovernment.
(3) "Fraud,""deceit," and "defraud" are not limited to common‑lawdeceit.
(4) "Guaranteed"means guaranteed as to payment of principal, interest, dividends, or otherdistributions.
(5) "Issuer"means any person who issues or proposes to issue any security, except that
a. With respect tocertificates of deposit, voting‑trust certificates, or collateral‑trustcertificates, or with respect to certificates of interest or shares in anunincorporated investment trust not having a board of directors or personsperforming similar functions or of the fixed, restricted‑management, orunit type, the term "issuer" means the person or persons performingthe acts and assuming the duties of depositor or manager pursuant to theprovisions of the trust or other agreement or instrument under which thesecurity is issued; and
b. With respect tocertificates of interest or participation in oil, gas, or mining titles orleases or in payments out of production under such titles or leases, there isnot considered to be any "issuer."
c. With respect to aviatical settlement contract, "issuer" means a person involved increating, offering, transferring, or selling to an investor any interest in aviatical settlement contract, including, but not limited to, fractional orpooled interests.
(6) "Nonissuer"means not directly or indirectly for the benefit of the issuer.
(7) "Person"means an individual, an entity, a partnership in which the interests of thepartners are not evidenced by a security, a trust in which the interests of thebeneficiaries are not evidenced by a security, or an unincorporatedorganization.
(8) a. "Sale"or "sell" includes every contract of sale of, contract to sell, ordisposition of, a security or interest in a security for value.
b. "Offer" or"offer to sell" includes every attempt or offer to dispose of, orsolicitation of an offer to buy, a security or interest in a security forvalue.
c. Any security givenor delivered with, or as a bonus on account of, any purchase of securities orany other thing is considered to constitute part of the subject of the purchaseand to have been offered and sold for value.
d. A purported gift ofassessable stock or other ownership interest obligating the owner to makefuture payments is considered to involve an offer and sale.
e. Every sale or offerof a warrant or right to purchase or subscribe to another security of the sameor another issuer, as well as every sale or offer of a security which gives theholder a present or future right or privilege to convert into another securityof the same or another issuer, is considered to include an offer of the othersecurity.
f. The terms definedin this subdivision and the term "purchase" as used in this Chapterdo not include any of the following:
1. Any bona fide loan,pledge, or other transaction creating a bona fide security interest.
2. Any stock split andany security dividend or distribution, whether the entity distributing thedividend or distribution is the issuer of the security or not, if nothing ofvalue is given by security holders for the dividend or distribution other thanthe surrender of a right to a cash or property dividend or distribution when eachsecurity holder may elect to take the dividend or distribution in cash orproperty or in securities.
3., 4. Repealed bySession Laws 2001‑201, s. 6.
(9) "Salesman"means any individual other than a dealer who represents a dealer in effectingor attempting to effect purchases or sales of securities. "Salesman"does not include an individual who represents a dealer in effectingtransactions in this State limited to those transactions described in section15(h)(2) of the Securities Exchange Act of 1934 (15 U.S.C. § 78o(h)(2)). Apartner, executive officer, or director of a dealer, or a person occupying asimilar status or performing similar functions, is a salesman only if thatperson otherwise comes within this definition.
(10) "Securities Actof 1933," "Securities Exchange Act of 1934," "PublicUtility Holding Company Act of 1935," "Investment Company Act of1940," and "Internal Revenue Code" mean the federal statutes ofthose names as amended before or after April 1, 1975.
(11) "Security"means any note; stock; treasury stock; bond; debenture; evidence ofindebtedness; certificate of interest or participation in any profit‑sharingagreement; collateral‑trust certificate; preorganization certificate orsubscription; transferable share; investment contract including withoutlimitation any investment contract taking the form of a whiskey warehousereceipt or other investment of money in whiskey or malt beverages; voting‑trustcertificate; certificate of deposit for a security; certificate of interest orparticipation in an oil, gas, or mining title or lease or in payments out ofproduction under a title or lease; viatical settlement contract or anyfractional or pooled interest in a viatical settlement contract; or, ingeneral, any interest or instrument commonly known as a "security,"or any certificate of interest or participation in, temporary or interimcertificate for, receipt for guarantee of, or warrant or right to subscribe toor purchase, any of the foregoing. "Security" does not include anyinsurance or endowment policy, funding agreement, as defined in G.S. 58‑7‑16,or annuity contract under which an insurance company promises to pay (i) afixed sum of money either in a lump sum or periodically for life or for someother specified period, or (ii) benefits or payments or value that vary so asto reflect investment results of any segregated portfolio of investments or ofa designated separate account or accounts in which amounts received or retainedin connection with a contract have been placed if the delivering or issuinginsurance company has currently satisfied the Commissioner of Insurance that itis in compliance with G.S. 58‑7‑95.
(11a) "Security coveredunder federal law" means any security that is a covered security undersection 18(b) of the Securities Act of 1933 (15 U.S.C. § 77r(b)) or rules orregulations adopted under that section.
(12) "State"means any state, territory, or possession of the United States, the District ofColumbia, and Puerto Rico.
(13) "Viaticalsettlement contract" means an agreement for the purchase, sale,assignment, transfer, devise, or bequest of all or any portion of the deathbenefit or ownership of a life insurance policy or contract for considerationwhich is less than the expected death benefit of the life insurance policy orcontract. "Viatical settlement contract" does not include:
a. The assignment,transfer, sale, devise, or bequest of a death benefit of a life insurancepolicy or contract made by the viator to an insurance company or to a viaticalsettlement provider or broker licensed pursuant to the Viatical Settlements Act(Part 5 of Article 58 of Chapter 58 of the General Statutes);
b. The assignment of alife insurance policy or contract to a bank, savings bank, savings and loanassociation, credit union, or other licensed lending institution as collateralfor a loan; or
c. The exercise ofaccelerated benefits pursuant to the terms of a life insurance policy orcontract and consistent with applicable law. (1925, c. 190, s. 2; 1927, c. 149, s. 2; 1933, c. 432;1943, c. 104, ss. 2, 3; 1955, c. 436, s. 1; 1973, c. 1380; 1983, c. 817, ss. 1‑3;1987, c. 849, s. 1; 1989, c. 12, s. 1; 1993 (Reg. Sess., 1994), c. 600, s. 3;1995, c. 509, s. 35; 1997‑419, ss. 1‑4; 2001‑201, ss. 2, 3,4, 5, 6; 2001‑436, s. 6.)
When used in this Chapter,unless the context otherwise requires:
(1) "Administrator"means the Secretary of State.
(2) "Dealer"means any person engaged in the business of effecting transactions insecurities for the account of others or for his own account. "Dealer"does not include:
a. A salesman,
b. A bank, savingsinstitution, or trust company,
c. A person who has noplace of business in this State if
1. He effectstransactions in this State exclusively with or through (i) the issuers of thesecurities involved in the transactions, (ii) other dealers, or (iii) banks,savings institutions, trust companies, insurance companies, investmentcompanies as defined in the Investment Company Act of 1940, pension or profit‑sharingtrusts, or other financial institutions or institutional buyers, whether actingfor themselves or as trustees, or
2. In the case of aperson registered as a dealer with the Securities and Exchange Commission underthe Securities Exchange Act of 1934 and in one or more states, during anyperiod of 12 consecutive months he does not effect more than 15 purchases orsales in this State in any manner with persons other than those specified inclause 1, whether or not the dealer or any of the purchasers or sellers is thenpresent in this State, or
d. An issuer if
1. The security isexempted under subdivisions (1), (2), (3), (4), (5), (7), (9), (10), (11),(13), or (14) of G.S. 78A‑16, or the security is a security covered underfederal law, or the transaction is exempted under G.S. 78A‑17, except forG.S. 78A‑17(19) if the security is a viatical settlement contract, or thetransaction is in a security covered under federal law, and such exemption hasnot been denied or revoked under G.S. 78A‑18, or
2. The security isregistered under this Chapter and it is offered and sold through a registereddealer, or
3. All of the followingconditions are met: (i) No commission or other remuneration is paid or givendirectly or indirectly for soliciting any prospective purchaser in this State;(ii) the total amount of the offering, both within and without this State, doesnot exceed two million five hundred thousand dollars ($2,500,000); and (iii)the total number of purchasers, both within and without this State, does notexceed 100. Provided, however, the Administrator may by rule or order waive thecondition imposed by subdivision (iii) hereof; or
4. The security isissued by an open‑end management company that is registered under theInvestment Company Act of 1940 and so long as no sales load is paid or given,directly or indirectly.
e. A person who acts asa business broker with respect to a transaction involving the offer or sale ofall of the stock or other equity interests in any closely held corporationprovided that such stock or other equity interest is sold to no more than oneperson, as that term is defined herein.
f. An individual whorepresents an issuer in effecting transactions in a security described in sub‑subdivision(2)d. of this section or a security covered under federal law, provided nocommission or other special remuneration is paid or given directly orindirectly for soliciting any prospective purchaser in this State.
(2a) "Entity"includes a corporation, joint‑stock company, limited liability company,business trust, limited partnership or other partnership in which the interestsof the partners are evidenced by a security, trust in which the interests ofthe beneficiaries are evidenced by a security, any other unincorporatedorganization in which two or more persons have a joint or common economicinterest evidenced by a security, and government or political subdivision of agovernment.
(3) "Fraud,""deceit," and "defraud" are not limited to common‑lawdeceit.
(4) "Guaranteed"means guaranteed as to payment of principal, interest, dividends, or otherdistributions.
(5) "Issuer"means any person who issues or proposes to issue any security, except that
a. With respect tocertificates of deposit, voting‑trust certificates, or collateral‑trustcertificates, or with respect to certificates of interest or shares in anunincorporated investment trust not having a board of directors or personsperforming similar functions or of the fixed, restricted‑management, orunit type, the term "issuer" means the person or persons performingthe acts and assuming the duties of depositor or manager pursuant to theprovisions of the trust or other agreement or instrument under which thesecurity is issued; and
b. With respect tocertificates of interest or participation in oil, gas, or mining titles orleases or in payments out of production under such titles or leases, there isnot considered to be any "issuer."
c. With respect to aviatical settlement contract, "issuer" means a person involved increating, offering, transferring, or selling to an investor any interest in aviatical settlement contract, including, but not limited to, fractional orpooled interests.
(6) "Nonissuer"means not directly or indirectly for the benefit of the issuer.
(7) "Person"means an individual, an entity, a partnership in which the interests of thepartners are not evidenced by a security, a trust in which the interests of thebeneficiaries are not evidenced by a security, or an unincorporatedorganization.
(8) a. "Sale"or "sell" includes every contract of sale of, contract to sell, ordisposition of, a security or interest in a security for value.
b. "Offer" or"offer to sell" includes every attempt or offer to dispose of, orsolicitation of an offer to buy, a security or interest in a security forvalue.
c. Any security givenor delivered with, or as a bonus on account of, any purchase of securities orany other thing is considered to constitute part of the subject of the purchaseand to have been offered and sold for value.
d. A purported gift ofassessable stock or other ownership interest obligating the owner to makefuture payments is considered to involve an offer and sale.
e. Every sale or offerof a warrant or right to purchase or subscribe to another security of the sameor another issuer, as well as every sale or offer of a security which gives theholder a present or future right or privilege to convert into another securityof the same or another issuer, is considered to include an offer of the othersecurity.
f. The terms definedin this subdivision and the term "purchase" as used in this Chapterdo not include any of the following:
1. Any bona fide loan,pledge, or other transaction creating a bona fide security interest.
2. Any stock split andany security dividend or distribution, whether the entity distributing thedividend or distribution is the issuer of the security or not, if nothing ofvalue is given by security holders for the dividend or distribution other thanthe surrender of a right to a cash or property dividend or distribution when eachsecurity holder may elect to take the dividend or distribution in cash orproperty or in securities.
3., 4. Repealed bySession Laws 2001‑201, s. 6.
(9) "Salesman"means any individual other than a dealer who represents a dealer in effectingor attempting to effect purchases or sales of securities. "Salesman"does not include an individual who represents a dealer in effectingtransactions in this State limited to those transactions described in section15(h)(2) of the Securities Exchange Act of 1934 (15 U.S.C. § 78o(h)(2)). Apartner, executive officer, or director of a dealer, or a person occupying asimilar status or performing similar functions, is a salesman only if thatperson otherwise comes within this definition.
(10) "Securities Actof 1933," "Securities Exchange Act of 1934," "PublicUtility Holding Company Act of 1935," "Investment Company Act of1940," and "Internal Revenue Code" mean the federal statutes ofthose names as amended before or after April 1, 1975.
(11) "Security"means any note; stock; treasury stock; bond; debenture; evidence ofindebtedness; certificate of interest or participation in any profit‑sharingagreement; collateral‑trust certificate; preorganization certificate orsubscription; transferable share; investment contract including withoutlimitation any investment contract taking the form of a whiskey warehousereceipt or other investment of money in whiskey or malt beverages; voting‑trustcertificate; certificate of deposit for a security; certificate of interest orparticipation in an oil, gas, or mining title or lease or in payments out ofproduction under a title or lease; viatical settlement contract or anyfractional or pooled interest in a viatical settlement contract; or, ingeneral, any interest or instrument commonly known as a "security,"or any certificate of interest or participation in, temporary or interimcertificate for, receipt for guarantee of, or warrant or right to subscribe toor purchase, any of the foregoing. "Security" does not include anyinsurance or endowment policy, funding agreement, as defined in G.S. 58‑7‑16,or annuity contract under which an insurance company promises to pay (i) afixed sum of money either in a lump sum or periodically for life or for someother specified period, or (ii) benefits or payments or value that vary so asto reflect investment results of any segregated portfolio of investments or ofa designated separate account or accounts in which amounts received or retainedin connection with a contract have been placed if the delivering or issuinginsurance company has currently satisfied the Commissioner of Insurance that itis in compliance with G.S. 58‑7‑95.
(11a) "Security coveredunder federal law" means any security that is a covered security undersection 18(b) of the Securities Act of 1933 (15 U.S.C. § 77r(b)) or rules orregulations adopted under that section.
(12) "State"means any state, territory, or possession of the United States, the District ofColumbia, and Puerto Rico.
(13) "Viaticalsettlement contract" means an agreement for the purchase, sale,assignment, transfer, devise, or bequest of all or any portion of the deathbenefit or ownership of a life insurance policy or contract for considerationwhich is less than the expected death benefit of the life insurance policy orcontract. "Viatical settlement contract" does not include:
a. The assignment,transfer, sale, devise, or bequest of a death benefit of a life insurancepolicy or contract made by the viator to an insurance company or to a viaticalsettlement provider or broker licensed pursuant to the Viatical Settlements Act(Part 5 of Article 58 of Chapter 58 of the General Statutes);
b. The assignment of alife insurance policy or contract to a bank, savings bank, savings and loanassociation, credit union, or other licensed lending institution as collateralfor a loan; or
c. The exercise ofaccelerated benefits pursuant to the terms of a life insurance policy orcontract and consistent with applicable law. (1925, c. 190, s. 2; 1927, c. 149, s. 2; 1933, c. 432;1943, c. 104, ss. 2, 3; 1955, c. 436, s. 1; 1973, c. 1380; 1983, c. 817, ss. 1‑3;1987, c. 849, s. 1; 1989, c. 12, s. 1; 1993 (Reg. Sess., 1994), c. 600, s. 3;1995, c. 509, s. 35; 1997‑419, ss. 1‑4; 2001‑201, ss. 2, 3,4, 5, 6; 2001‑436, s. 6.)
