Current Status Introducing Body:House Bill Number:3973 Primary Sponsor:Keyserling Committee Number:02 Type of Legislation:GB Subject:Surety bonds, persons not required to post Residing Body:Senate Current Committee:Banking and Insurance Computer Document Number:JIC/5693.HC Introduced Date:May 02, 1991 Date of Last Amendment:Jan 23, 1992 Last History Body:Senate Last History Date:Jan 29, 1992 Last History Type:Introduced, read first time, referred to Committee Scope of Legislation:Statewide All Sponsors:Keyserling Type of Legislation:General Bill
Bill Body Date Action Description CMN
---- ------ ------------ ------------------------------ ---
3973 Senate Jan 29, 1992 Introduced, read first time, 02
referred to Committee
3973 House Jan 28, 1992 Read third time, sent to
Senate
3973 House Jan 23, 1992 Amended, read second time
3973 House Jan 22, 1992 Committee Report: Favorable 26
with amendment
3973 House May 02, 1991 Introduced, read first time, 26
referred to Committee
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Indicates Matter Stricken
Indicates New Matter
AMENDED
January 23, 1992
H. 3973
S. Printed 1/23/92--H.
Read the first time May 2, 1991.
TO AMEND SECTION 35-1-510, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO REGISTERED BROKER-DEALERS, AGENTS, INVESTMENT ADVISERS, AND INVESTMENT ADVISER REPRESENTATIVES, SO AS TO BROADEN AND CLARIFY THE CATEGORIES OF PERSONS NOT REQUIRED TO POST BOND.
Amend Title To Conform
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Section 35-1-510 of the 1976 Code is amended to read:
"Section 35-1-510. Registered broker-dealers, agents, investment advisers, and investment adviser representatives shall post surety bonds in amounts of fifty thousand dollars for broker-dealers and investment advisers and ten thousand dollars for agents and investment adviser representatives, conditioned that the registrant will comply with the provisions of this chapter and those orders and regulations as the commissioner may from time to time prescribe. The bond may be so drawn as to cover the original registration and any renewal of the registration. Any appropriate deposit of cash or securities must be accepted in lieu of the bond. Every bond must provide that no suit may be maintained to enforce any liability on the bond unless brought within three years after the sale or other act upon which the suit is based and must also provide that the liability of the surety on each bond to all persons aggrieved may in no event exceed in the aggregate the penal sum of the bond. No bond is required for persons who are: (1) members of the National Association of Security Dealers, Inc., or the Securities Investor Corporation or (2) investment advisers or investment adviser representatives who:
(a) are registered with the Securities and Exchange Commission;
(b) do not have custody of or general power of attorney over their clients' funds and securities and such lack of custody or power of attorney is specified by the client's agreement with the investment adviser or investment adviser representative. A limited power of attorney which does not allow custody over their clients' funds does not require bonding; and
(c) file annually with the Securities Commissioner a current statement of financial condition."
SECTION 2. This act takes effect upon approval by the Governor.