N.J. Admin. Code § 13:47A-1.7

Current through Register Vol. 56, No. 21, November 4, 2024

Section 13:47A-1.7 - Bonds

(a) Subject to the limitations of Section 15 of the Securities Exchange Act of 1934 ( 15 U.S.C. § 78o ) and rules promulgated thereunder, the bonds required to be filed under 13:47A-1.6 (Minimum net capital) shall provide for suit thereon by third parties for any cause of action under 49:3-71, for loss and damages, and shall be on the Uniform Security Bond, Form U-SB, as set forth in 13:47A-11.5. The bond shall be for a term of two years, but the right to bring an action under the bond for losses sustained while it was in force shall continue for two years from the date of the sale upon which the action is based.

(b) The bond may provide for termination provided, however, that 90 days' notice thereof is served in writing upon the Bureau Chief; and provided further, that the right to bring an action for losses sustained while it was in force shall continue for two years from the date of the sale upon which the action is based.

Amended by R.1992 d.435, effective 11/2/1992.
See: 24 N.J.R. 2524(a), 24 N.J.R. 4060(a).
Recodified from 13:47A-1.6 with stylistic revisions. Old 13:47A-1.7 Cash or securities in lieu of bond recodified to 13:47A-1.8.
Amended by R.1997 d.451, effective 10/20/1997.
See: 29 N.J.R. 3119(a), 29 N.J.R. 4463(a).
In (a), made the section subject to the limitations of § 15 of the Securities Exchange Act of 1934 (15 U.S.C. § 78), and amended N.J.A.C. references.
Amended by R.2008 d.301, effective 10/6/2008.
See: 40 N.J.R. 2061(a), 40 N.J.R. 5820(a).
In (a), substituted "Section" for "§", "§78o" for "§78" and "on the Uniform Security Bond, Form U-SB," for "in the form designated U-SB".