North Dakota Code 9-14-06 – Financial requirements
1. Every invention developer rendering or offering to render invention development services in this state shall maintain a bond issued by a surety company authorized to do business in this state, and equal to either ten percent of the invention developer’s gross income from the invention development business in this state during the invention developer’s preceding fiscal year, or twenty-five thousand dollars, whichever is larger. A copy of the bond must be approved by the attorney general and filed with the secretary of state before the invention developer renders or offers to render invention development services in this state. The invention developer has ninety days after the end of each fiscal year within which to change the bond as may be necessary to conform to the requirements of this subsection.
Terms Used In North Dakota Code 9-14-06
- Contract: A legal written agreement that becomes binding when signed.
- Fiscal year: The fiscal year is the accounting period for the government. For the federal government, this begins on October 1 and ends on September 30. The fiscal year is designated by the calendar year in which it ends; for example, fiscal year 2006 begins on October 1, 2005 and ends on September 30, 2006.
- Fraud: Intentional deception resulting in injury to another.
- Person: means an individual, organization, government, political subdivision, or government agency or instrumentality. See North Dakota Code 1-01-49
- State: when applied to the different parts of the United States, includes the District of Columbia and the territories. See North Dakota Code 1-01-49
- year: means twelve consecutive months. See North Dakota Code 1-01-33
2. The bond required by subsection 1 must be in favor of the state of North Dakota for the benefit of any person who, after entering into a contract for invention development services with an invention developer, is damaged by fraud or dishonesty of the invention developer in performance of the contract, by the insolvency or the cessation of business by the invention developer, or by the intentional violation of this chapter by the invention developer. Any person claiming against the bond may maintain a claim for relief against the invention developer and the surety company.
The aggregate liability of the surety company to all persons for all breaches of conditions of the bond may not exceed the amount of the bond.
3. In lieu of the bond required by subsection 1, the invention developer may deposit with the Bank of North Dakota a cash deposit in the like amount. The Bank of North Dakota may not refund a deposit until sixty days after either the invention developer has ceased doing business in the state or a bond has been filed which complies with subsections 1 and 2.