N.J. Admin. Code § 13:47A-2.3

Current through Register Vol. 56, No. 24, December 18, 2024

Section 13:47A-2.3 - Bonds

(a) Subject to the limitations of Section 222 of the Investment Advisers Act of 1940 ( 15 U.S.C. § 80b- 18a), the bond required to be filed under N.J.A.C. 13:47A-2.2 (Capital requirements) shall provide for suit thereon by third parties for damage sustained as a result of misuse or misapplication of clients' funds or securities and shall be in the Uniform Surety Bond, Form U-SB, as set forth in N.J.A.C. 13:47A-11.5. The bond shall be for a term of two years, but the right to file claims thereunder for losses sustained while it was in force shall continue for two years from the time the aggrieved party knew or should have known of the existence of his or her cause of action.

(b) Such bond shall provide for termination; provided, however, that 90 days notice thereof is served in writing upon the Chief of the Bureau of Securities 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 time the aggrieved party knew or should have known of the existence of his cause of action.

(c) Such bond may be written by any surety company licensed to do business in the State of New Jersey.

N.J. Admin. Code § 13:47A-2.3

Amended by R.1997 d.451, effective 10/20/1997.
See: 29 N.J.R. 3119(a), 29 N.J.R. 4463(a).
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 "§", "Advisers" for "Advisors" and "Uniform Surety Bond, Form " for "form designated" and inserted a comma following "U-SB".