A North Carolina licensee asks approval in 2026 for a centralized out-of-state record store. Which conditions must be satisfied for approval of the proposed storage location?
Correct Answer
A) Granted on 2 conditions: security, and production at the licensee expense
The request shall be approved provided the Commissioner determines the proposed storage will ensure the records are secured against unauthorized access and damage, and the licensee agrees in writing to make available at its expense for inspection and copying upon request copies of all requested records in a convertible form. Other choices: the rule says shall be approved on those conditions rather than leaving it to discretion; and no reciprocity or blanket refusal appears. Source: 04 NCAC 03M .0502(c)
Why This Is the Correct Answer
The request shall be approved provided the Commissioner determines the proposed storage will ensure the records are secured against unauthorized access and damage, and the licensee agrees in writing to make available at its expense for inspection and copying upon request copies of all requested records in a convertible form. Other choices: the rule says shall be approved on those conditions rather than leaving it to discretion; and no reciprocity or blanket refusal appears. Source: 04 NCAC 03M .0502(c)
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