Issuers must be considered a business entity created under NC legislation and/or registered with the NC Secretary of State. This implies an entity structured in NC or in Delaware or other state can use the exemption if it’s qualified to do business in NC, at the mercy of complying with Section 3 (a) (11 or SEC Rule 147 talked about below. Businesses that have a Covered Person who has dedicated Bad Actor violations under Federal laws cannot use the exemption, unless the Securities Division grants or loans a waiver. Furthermore, many businesses are excluded from using the exemption because of Section 3 (a) (11) or SEC Rule 147 as referred to below.
Where must ownership occur? How are first use, first practical use, and operational use defined? What are the procedural requirements of the test? Where must possession or name take place? How is first functional use defined? How long is the test period? What are the procedural requirements of the test? How does the airplane owner document intervals when the aircraft is not in trip, or the vessel is moored?
What circumstances shorten the test period? How exactly does storage for delivery affect the exemption? Can a buyer of an individual item claim this exemption, or must the owner be a registered dealer? Can any use, other than bonafide display and demonstration be produced? What are the documentation requirements to support demonstration use?
How much use is too much to claim a resale exemption? Can a charge be …