ND General Contractor flashcards
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32 cards. Read the term and the definition here. The deck at the top of this page is optional.
- Contractor's License
- The license issued by the North Dakota Secretary of State under N.D.C.C. ch. 43-07 that allows a person to bid and contract for construction work above the statutory threshold.
- License Threshold
- The dollar amount of a project above which a North Dakota contractor's license is required; currently a contract price exceeding $4,000.
- Qualifying Party
- The individual designated by a contracting business who passes the required examination and whose qualifications support the entity's license.
- Surety Bond Amount
- The bond required for licensure: $25,000 for an in-state contractor and $50,000 for an out-of-state contractor, running to the state and injured persons.
- License Year
- The period from July 1 through June 30 during which a North Dakota contractor's license remains valid before renewal is required.
- Out-of-State Consent
- A filing by an out-of-state contractor consenting to service of process and appointing an agent in North Dakota as a condition of licensure.
- Unlicensed Contracting Penalty
- Bidding or contracting without a required license is a class B misdemeanor and may also result in administrative action by the Secretary of State.
- License Nontransferable
- A contractor's license belongs to the named licensee and cannot be sold or assigned; a change in ownership or structure requires a new filing.
- Articles of Incorporation
- The document filed with the Secretary of State to form a domestic corporation, stating the name, registered agent, and purpose.
- Certificate of Authority
- The application a foreign corporation files with the Secretary of State to be authorized to transact business in North Dakota.
- Articles of Organization
- The filing that creates a domestic limited liability company in North Dakota and states its name, agent, and management structure.
- Registered Agent
- A person or entity with a physical North Dakota address authorized to receive legal process and official notices on behalf of a business entity.
- Annual Report
- The periodic filing required of corporations and LLCs; failure to file can lead to administrative dissolution or revocation of authority.
- Trade Name Registration
- A filing with the Secretary of State giving public notice that a business uses a particular name, without creating exclusive statewide ownership rights.
- Professional LLC
- An LLC formed to render a licensed professional service, which must be owned by persons licensed in that profession and named accordingly.
- Foreign Registration Statement
- The filing a foreign LLC submits to the Secretary of State to register to do business in North Dakota, including its registered agent.
- Mechanic's Lien
- A statutory claim against real property securing payment for labor or materials furnished for an improvement to that property.
- Lien Filing Deadline
- A mechanic's lien statement must be filed with the clerk of the district court within 90 days after the last labor or materials are furnished.
- Lien Statement Contents
- The verified filing identifying the claimant, owner, amount claimed, and property description that perfects a mechanic's lien.
- Foreclosure Period
- An action to foreclose a mechanic's lien must be commenced within one year after the lien is filed or the lien is extinguished.
- UCC Financing Statement
- The filing with the Secretary of State that perfects a security interest in personal property by identifying the debtor, secured party, and collateral.
- Debtor Name Rule
- A UCC filing must use the debtor's exact legal name; a seriously misleading error in the name can render the filing ineffective.
- Continuation Statement
- A filing made within six months before a UCC financing statement lapses that extends perfection for another five years.
- Lien vs. UCC
- A mechanic's lien encumbers real property for construction work, while a UCC filing perfects an interest in personal property such as equipment.
- Complaint Filing
- A written allegation submitted to the Secretary of State stating the facts and parties, which triggers notice and an opportunity to respond.
- License Revocation
- A sanction the Secretary of State may impose after a hearing for a violation of the contractor licensing law, along with penalties or restitution.
- Appeal Deadline
- A person aggrieved by a final order of the Secretary of State may appeal to the district court within 30 days after service.
- Records Production
- A contractor must keep contracts, change orders, and payment records and produce them when requested during an investigation.
- Change Notification
- A contractor must notify the Secretary of State within 30 days of a change in business name, address, ownership, or qualifying party.
- False Holding Out
- Advertising or representing oneself as a licensed contractor without a license is a violation subject to administrative and criminal action.
- Private Civil Action
- A consumer may sue an unlicensed or noncompliant contractor for damages in addition to filing an administrative complaint.
- Hearing Rights
- A contractor accused of a violation is entitled to notice and an opportunity to respond before the Secretary of State imposes a sanction.