Registration by announcement - Secondary
N.D. Cent. Code § 10-04-07.1
in effect10-04-07.1. Registration by announcement - Secondary
1. Securities that have been outstanding and in the hands of the public for not less than
one year as the result of prior original registration in North Dakota or through securities
and exchange commission registration, by the issuer, or by the underwriter on behalf
of an issuer, are entitled to registration by announcement in the manner and subject to
the conditions provided by this section.
In addition to the foregoing, stock, having equal voting rights with other classes,
of life insurance companies may also qualify for registration under this section
provided the company has been in continuous operation for twenty years immediately
preceding the date of filing for registration and provided further that in addition to
supplying the information required by subdivisions a through c of subsection 2 the
applicant can supply all of the following:
a. A balance sheet and an earnings statement showing statutory net earnings after
all dividends (returned premiums) to policyholders and after all expenses
including state and federal income taxes for the fiscal period ended not more than
twelve months prior to the filing date upon which either an unqualified or a
qualified opinion has been expressed by a certified public accountant; provided,
however, that any qualification of opinion relates only to generally accepted
principles of accounting which may have been modified to meet the reporting
requirements of the various state insurance departments.
b. Such balance sheet separates the surplus account into its component parts and
shows a positive balance in the accumulated unrestricted retained earnings
account, on statutory basis.
c. Earnings statements for the four fiscal years immediately preceding the beginning
date of the earnings statement required in subdivision a prepared by the same
certified public accountant showing statutory net earnings after the deductions
enumerated in subdivision a for each fiscal year; provided, however, that these
statements need not be accompanied by an unqualified or a qualified opinion of
the certified public accountant unless such certified public accountant did actually
perform an audit of the company for any year or years covered by the earnings
statements in which case the requirements of subdivision a apply for the year or
years so audited.
d. A statement prepared by a certified public accountant or actuary showing a net
gain in insurance in force for each of the last five fiscal years.
2. Securities entitled to registration by announcement may be registered only by a
broker-dealer registered with the department as provided for in section 10-04-10 by
filing with the department a written announcement of intention to trade in the securities
containing the following:
a. Name of issuer and location of the headquarters or principal office.
b. A brief description of the security, including price and current earnings.
c. A statement that the securities have been outstanding and in the hands of the
public not less than one year as aforesaid.
d. A balance sheet not more than twelve months old.
e. A statement that the security has been registered in North Dakota or by the
securities and exchange commission.
3. The filing of such announcement with the department constitutes the registration of the
security, unless advised to the contrary within forty-eight hours or advised to furnish
additional information, and such broker-dealer shall pay to the commissioner a filing
fee of twenty-five dollars. Upon registration, such securities may be sold in this state
for a period of one year from date of registration by registered broker-dealers at a price
or prices reasonably related to the current market price of such security at the time of
sale, subject, however, to any and all rights and authority granted the commissioner
and to any person or purchaser under chapter 10-04, in respect of securities
registered by the commissioner by coordination or qualification. No security registered
under this section shall be sold directly or indirectly for the benefit of the issuer, or an
underwriter of such securities, or for the promotion of any scheme or enterprise with
the intent of violating or evading any provision of this chapter; provided, that no
security, the registration of which has been revoked by the commissioner, or
application for registration of which has been denied by the commissioner, or
withdrawn by the applicant, shall be registered under this section.
4. Securities registered pursuant to section 10-04-07.2 or 10-04-08 become eligible for
trading in the secondary market at current market prices upon completion of the
original offering when said securities are outstanding and in the hands of the public
and remain so until the end of the registration year when renewal for secondary is
permissible. Notification of completion of initial offering should be sent to the
commissioner when the offering is completed requesting change to secondary.
Source: Open US Law by Vaquill AI (CC BY 4.0)URL: https://ndlegis.gov/cencode/t10c04.pdf#nameddest=10-04-07p1Fetched: 10/16/2026