§ 78A-10. Unlawful representations concerning registration or exemption. - North Carolina Statutes

§78A‑10.  Unlawful representations concerning registration or exemption.

(a)        Neither (i) thefact that an application for registration under Article 5 or a registrationstatement under Article 4 has been filed nor (ii) the fact that a person orsecurity is effectively registered constitutes a finding by the Administratorthat any document filed under this Chapter is true, complete, and notmisleading. Neither any such fact nor the fact that an exemption or exceptionis available for a security or a transaction means that the Administrator haspassed in any way upon the merits or qualifications of, or recommended or givenapproval to, any person, security, or transaction.

(b)        It is unlawful tomake, or cause to be made, to any prospective purchaser, customer, or clientany representation inconsistent with subsection (a). (1973,c. 1380.)