BC 2012 12 19 Recessed Meeting - Laserfiche WebLink

Home Browse Search

December 19, 2012 (Recessed Meeting) Page 1363 was an amended - do you have multiple copies? I just wanted to see if you had both, both your original application and your amended application. Because I had a copy and I'll be honest with you, I had trouble reading it. It wasn't a very good copy and I couldn't see (inaudible). And I'm not certain that all commissioners had received that copy. This is the bond? The application is on - behind it. Okay, just double checking because my next question was that we hadn't seen the bond yet. So you've put that all together in one package. Small: I have, if Mr. Koch would actually flip through all the pages. Poole: That's okay. We just want to make sure. And again, I haven't seen the bond and I haven't seen, I couldn't read the copy I was given. Did you make full disclosure of all North Carolina State Bar issues to State Farm? Small: Yes I did. Poole: Can you take just a minute and let everybody have a chance to read these. (Review of the bond and bond application) Poole: Okay, Mr. Small, at this time is there anything else that you would like to add or in addition to the documents you handed out? Small: Well, I would only say that I've done everything this board has asked me to do in terms of amendment; amending the applications, getting supplemental applications, amending the bonds. I've gone to extraordinary lengths in order to provide the assurances that this board and its attorney have requested. There is nothing else I can provide to this board at this time. You have three different people from State Farm who are willing to go out on a limb and vouch for me personally and that's just something that isn't done in the insurance industry outside of the four corners of the document in the bond and in the attorney's notes that you've got what took a tremendous amount of work in order to accomplish. There is absolutely no reason to deny this bond today. Poole: Thank you. Commissioners, at this time do you have any questions or comments? Mr. Morris, I don't know if you have any questions for our attorney that will help clear up to. So I would say at this time, ask questions. Burrage: Mr. Koch, is this a good bond? All right, let me ask it this way - is this bond as good as any bond that the bonding company has bonded anybody else of this county for, is my question? Koch: I don't think I can answer that question because I haven't reviewed those other bonds. Otherwise, I would answer it, but I haven't - so I can't - I can't tell you on a comparative basis about that. What I can tell you is that this bond, talking about just the bond, on its face appears to be a valid bond, yes. Burrage: Which is what the county requires, right? Koch: That's part of what - of what the statutes require. Burrage: What else does it require? Koch: Well, the statutes require that the commissioners approve the bond and be satisfied themselves as to the validity of the bond in both amount and in terms of security. That's GS 58 -72 -60 that's that - Burrage: That's that 1700 law we talked about - Koch: Well, I think it was 1800 but it's that statute, it's a very old statute, yes. I think it's been amended a couple of times but it's basically the same as it was back in the 1800's. So the question that has come up with reference to these different bonds is whether the - you, as commissioners, were satisfied that the bond met the requirements of 58- 72 -60. In order to be satisfied yourselves that you would not have potential personal liability under that statute if the bond turned out not be valid or if the company repudiated the bond based on a lack of knowledge of what people might consider to be relevant issues that would go to the - to the underwriting of the bond. That's what the issue has always been since it first came up. Burrage: I - I think the issue to start with is the fact that Mr.- Small's law license has been suspended. Which as far as I'm concerned has nothing to do with the position of register of deeds for which he was voted for. What concerns me, the man's got the bond, he's got the - every bond in this county that's got issued could be cancelled tomorrow - right? The insurance company could go broke tomorrow, the bonds wouldn't be no good. We'd be sitting here with nobody having a bond. What concerns me is the fact that we're sitting here taking away his constitutional rights, the rights of every person that voted for him, this is supposed to be a republic and a democracy and we're turning it into being a communist country by what we're sitting here doing. It's not right. Poole: Any other questions or comments? Measmer: I would like to ask, I know on the printed version of the application, you know, it states that there has been an appeal to the North Carolina, I guess, Court of Appeals and I guess that's still pending, is that correct? Small: That has been the information from day one, Mr. Measmer. Measmer: Right. Okay. I just want to make it clear. And then the reason I ask is depending upon how that ruling comes back or any future incidents regarding the North Carolina State Bar, how would that affect a bond that is